MAJOR DEFENSE ACQUISITION PROGRAM REPORTS.

SEC. 817. MAJOR DEFENSE ACQUISITION PROGRAM REPORTS. (a) Selected Acquisition Reports for Certain Programs.—Section 127(a) of the National Defense Authorization Act for Fiscal Years 1988 and 1989 (101 Stat. 1044; 10 U.S.C. 2432 note) is 106 STAT. 2455amended by striking out “at the end of each fiscal year quarter” and inserting in lieu thereof “, in accordance with the provisions of subsection (b) of section 2432 of title 10, United States Code,”. (b) Minimum Amount Criteria for Major Defense Acquisition Programs.—Section 2430 of title 10, United States Code, is amended— (1) by designating the existing test as subsection (a); (2) in paragraph (2) of that subsection, as so designated— (A) by striking out “$200,000,000” and inserting in lieu thereof “$300,000,000”; (B) by striking out “1980” both places it appears and inserting in lieu thereof “1990”; and (C) by striking out “$1,000,000,000” and inserting in lieu thereof “$1,800,000,000”; and (3) by adding at the end the following new subsection: “(b) The Secretary of Defense may adjust the amounts (and the base fiscal year) provided in subsection (a)(2) on the basis of Department of Defense escalation rates. An adjustment under this subsection shall be effective after the Secretary transmits a written notification of the adjustment to the Committees on Armed Services of the Senate and House of Representatives.”. (c) Selected Acquisition Reports.—(1) Subsection (a) of section 2432 of title 10, United States Code, is amended by striking out paragraph (3) and inserting in lieu thereof the following: “(3) The term “major contract’, with respect to a major defense acquisition program, means each of the six largest prime, associate, or Government-furnished equipment contracts under the program that is in excess of $40,000,000.”. (2) Subsection (b) of such section is amended by striking out paragraph (3) and inserting in lieu thereof the following: “(3)(A) The Secretary of Defense may waive the requirement for submission of Selected Acquisition Reports for a program for a fiscal year if— “(i) the program has not entered full scale development or engineering and manufacturing development; “(ii) a reasonable cost estimate has not been established for such program; and “(iii) the system configuration for such program is not well defined. “(B) The Secretary shall submit to the Committees on Armed Services of the Senate and House of Representatives a written notification of each waiver under subparagraph (A) for a program for a fiscal year not later than 60 days before the President submits the budget to Congress pursuant to section 1105 of title 31 in that fiscal year.”. (3) Subsection (c)(2) of such section is amended by striking out the last sentence and inserting in lieu thereof the following: “The Secretary of Defense may approve changes in the content of the Selected Acquisition Report if the Secretary provides such Committees with written notification of such changes at least 60 days before the date of the report that incorporates the changes.”. (4) Subsection (c)(3)(C) of such section is amended by striking out clauses (i) through (vii) and inserting in lieu thereof the following: “(i) Specification of the baseline production rate, defined as the rate or rates to be achieved at full rate production as assumed in the decision to proceed with 106 STAT. 2456production (commonly referred to as the “Milestone III’ decision). “(ii) Specification, for each of the two budget years of production under the program, of the minimum sustaining production rate, defined as the production rate for each budget year that is necessary to keep production lines open while maintaining a base of responsive vendors and suppliers. “(iii) Specification, for each of the two budget years of production under the program, of the maximum production rate, defined as the production rate for each budget year that is attainable with the facilities and tooling programmed to be available for procurement under the program or otherwise to be provided with Government funds. “(iv) Specification, for each of the two budget years of production, of the current production rate, defined as the production rate for each budget year for which the report is submitted, based on the budget submitted to Congress pursuant to section 1105 of title 31. “(v) Estimation of any cost variance— “(I) between the budget year procurement unit costs at the production rate specified pursuant to clause (iv) and the budget year procurement unit costs at the minimum sustaining production rate specified pursuant to clause (ii); and “(II) between the total remaining procurement cost at the production rate specified pursuant to clause (iv) and the total remaining procurement cost at the minimum sustaining production rate specified pursuant to clause (ii). “(vi) Estimation of any cost variance— “(I) between the budget year procurement unit costs at the current production rate specified pursuant to clause (iv) and the budget year procurement unit costs at the maximum production rate specified pursuant to clause (iii); and “(II) between the total remaining procurement cost at the current production rate specified pursuant to clause (iv) and the total remaining procurement cost at the maximum production rate specified pursuant to clause (iii). “(vii) Estimation of quantity variance— “(I) between the budget year quantities assumed in the minimum sustaining production rate specified pursuant to clause (ii) and the current production rate specified pursuant to clause (iv); and “(II) between the budget year quantities assumed in the maximum production rate specified pursuant to clause (iii) and the current production rate specified pursuant to clause (iv).”. (d) Unit Cost Reports.—(1) Subsection (a)(4)(C) of section 2433 of title 10, United States Code, is amended by striking out “(e)(2)(B)(ii)” and inserting in lieu thereof “(e)(2)(B)”. (2) Subsection (b) of such section is amended by striking out “7 days (excluding Saturdays, Sundays, and legal public holidays)” in the second sentence and inserting in lieu thereof “30 calendar days”. 106 STAT. 2457 (3) Paragraphs (1)(A), (1)(B), (2)(A), and (2)(B) of subsection (c) of such section are amended by striking out “more than” each place it appears and inserting in lieu thereof “at least”. (4) Subsection (d) of such section is amended— (A) by striking out “more than” each place it appears in paragraphs (1) and (2) and inserting in lieu thereof “at least”; and (B) in paragraph (3) of such subsection— (i) by striking out “more than” each place it appears and inserting in lieu thereof “at least”; and (ii) by striking out “program within 30 days” and all that follows and inserting in lieu thereof “program. In the case of a determination based on a quarterly report submitted in accordance with subsection (b), the Secretary shall submit the notification to Congress within 45 days after the end of the quarter. In the case of a determination based on a report submitted in accordance with subsection (c), the Secretary shall submit the notification to Congress within 45 days after the date of that report. The Secretary shall include in the notification the date on which the determination was made.”. (5) Subsection (e) of such section is amended— (A) in paragraph (1), by striking out subparagraph (A) and inserting in lieu thereof the following: “(A) Except as provided in subparagraph (B), whenever the Secretary concerned determines under subsection (d) that the program acquisition unit cost or the current procurement unit cost of a major defense acquisition program has increased by at least 15 percent, a Selected Acquisition Report shall be submitted to Congress for the first fiscal-year quarter ending on or after the date of the determination or for the fiscal-year quarter which immediately precedes the first fiscal-year quarter ending on or after that date. The report shall include the information described in section 2432(e) of this title and shall be submitted in accordance with section 2432(f) of this title.”; (B) in paragraph (2), by striking out “current program acquisition cost” and inserting in lieu thereof “program acquisition unit cost or current procurement unit cost”; and (C) in paragraph (3), by striking out “more than” each place it appears and inserting in lieu thereof “at least”.