DEPARTMENT OF DEFENSE ACQUISITION PILOT PROGRAMS.

SEC. 5064. DEPARTMENT OF DEFENSE ACQUISITION PILOT PROGRAMS. (a) In General.— The Secretary of Defense is authorized to designate the following defense acquisition programs for participation in the defense acquisition pilot program authorized by section 809 of the National Defense Authorization Act for Fiscal Year 1991 (10 U.S.C. 2430 note): (1) Fire support combined arms tactical trainer (fscatt).— The Fire Support Combined Arms Tactical Trainer program with respect to all contracts directly related to the procurement of a training simulation system (including related hardware, software, and subsystems) to perform collective training of field artillery gunnery team components, with development of software as required to generate the training exercises and component interfaces. (2) Joint direct attack munition (jdam i.).— The Joint Direct Attack Munition program with respect to all contracts directly related to the development and procurement of a strap- on guidance kit, using an inertially guided, Global Positioning System updated guidance kit to enhance the delivery accuracy of 1000-pound and 2000-pound bombs in inventory. (3) Joint primary aircraft training system (JPATS).— The Joint Primary Aircraft Training System (JPATS) with respect to all contracts directly related to the acquisition of a new primary trainer aircraft to fulfill Air Force and Navy joint undergraduate aviation training requirements, and an associated ground-based training system consisting of air crew training devices (simulators), courseware, a Training Management System, and contractor support for the life of the system. (4) Commercial-derivative aircraft (cda).— (A) All contracts directly related to the acquisition or upgrading of commercial-derivative aircraft for use in meeting airlift and tanker requirements and the air vehicle component for airborne warning and control systems. (B) For purposes of this paragraph, the term “commercial-derivative aircraft” means any of the following: (i) Any aircraft (including spare parts, support services, support equipment, technical manuals, and data related thereto) that is or was of a type customarily used in the course of normal business operations for other than Federal Government purposes, that has been issued a type certificate by the Administrator of the Federal Aviation Administration, and that has been sold or leased for use in the commercial market-place or that has been offered for sale or lease for use in the commercial marketplace. (ii) Any aircraft that, but for modifications of a type customarily available in the commercial market-place, or minor modifications made to meet Federal Government requirements, would satisfy or would have satisfied the criteria in subclause (I). (iii) For purposes of a potential complement or alternative to the C–17 program, any nondevelopmental airlift aircraft, other than the C–17 or any aircraft derived from the C–108 STAT. 336017, shall be considered a commercial-derivative aircraft. (5) Commercial-derivative engine (cde).— The commercial derivative engine program with respect to all contracts directly related to the acquisition of (A) commercial derivative engines (including spare engines and upgrades), logistics sup-port equipment, technical orders, management data, and spare parts, and (B) commercially derived engines for use in supporting the purchase of commercial-derivative aircraft for use in airlift and tanker requirements (including engine replacement and upgrades) and the air vehicle component for airborne warning and control systems. For purposes of a potential complement or alternative to the C–17 program, any nondevelopmental airlift aircraft engine shall be considered a commercial-derivative engine. (b) Pilot Program Implementation.— (1) The text of section 833 of the National Defense Authorization Act for Fiscal Year 1994 (Public Law 103–160; 107 Stat. 1716) is amended to read as follows: “(a) Mission-Oriented Program Management.— In the exercise of the authority provided in section 809 of the National Defense Authorization Act for Fiscal Year 1991 (10 U.S.C. 2430 note), the Secretary of Defense should propose for one or more of the defense acquisition programs covered by the Defense Acquisition Pilot Program to utilize the concept of mission-oriented program management. “(b) Policies and Procedures.— In the case of each defense acquisition program covered by the Defense Acquisition Pilot Program, the Secretary of Defense should prescribe policies and procedures for the interaction of the program manager and the commander of the operational command (or a representative) responsible for the requirement for the equipment acquired, and for the interaction with the commanders of the unified and specified combatant commands. Such policies and procedures should include provisions for enabling the user commands to participate in acceptance testing.”. (2) The text of section 837 of the National Defense Authorization Act for Fiscal Year 1994 (Public Law 103–160; 107 Stat. 1718) is amended to read as follows: “The Secretary of Defense shall take any additional actions that the Secretary considers necessary to waive regulations not required by statute that affect the efficiency of the contracting process within the Department of Defense. Such actions shall include, in the Secretary’s discretion, developing methods to streamline the procurement process, streamlining the period for entering into contracts, and defining alternative techniques to reduce reliance on military specifications and standards, in contracts for the defense acquisition programs participating in the Defense Acquisition Pilot Program.”. (3) The text of section 838 of the National Defense Authorization Act for Fiscal Year 1994 (Public Law 103–160; 107 Stat. 1718) is amended to read as follows: “For at least one participating defense acquisition program for which a determination is made to make payments for work in progress under the authority of section 2307 of title 10, United States Code, the Secretary of Defense should define payment milestones on the basis of quantitative measures of results.”. 108 STAT. 3361 (4) Not later than 45 days after the date of the enactment of the Federal Acquisition Streamlining Act of 1994, the Secretary of Defense shall identify for each defense acquisition program participating in the pilot program quantitative measures and goals for reducing acquisition management costs. (5) For each defense acquisition program participating in the pilot program, the Secretary of Defense shall establish a review process that provides senior acquisition officials with reports on the minimum necessary data items required to ensure the appropriate expenditure of funds appropriated for the program and that— (A) contain essential information on program results at appropriate intervals, including the criteria to be used in measuring the success of the program; and (B) reduce data requirements from the current program review reporting requirements. (c) Special Authority.— The authority delegated under subsection (a) may include authority for the Secretary of Defense— (1) to apply any amendment or repeal of a provision of law made in this Act to the pilot programs before the effective date of such amendment or repeal; and (2) to apply to a procurement of items other than commercial items under such programs— (A) any authority provided in this Act (or in an amendment made by a provision of this Act) to waive a provision of law in the case of commercial items, and (B) any exception applicable under this Act (or an amendment made by a provision of this Act) in the case of commercial items, before the effective date of such provision (or amendment) to the extent that the Secretary determines necessary to test the application of such waiver or exception to procurements of items other than commercial items. (d) Applicability.— (1) Subsection (c) applies with respect to— (A) a contract that is awarded or modified during the period described in paragraph (2); and (B) a contract that is awarded before the beginning of such period and is to be performed (or may be performed), in whole or in part, during such period. (2) The period referred to in paragraph (1) is the period that begins 45 days after the date of the enactment of this Act and ends on September 30, 1998. (e) Rule of Construction.— Nothing in this section shall be construed as authorizing the appropriation or obligation of funds for the programs designated for participation in the defense acquisition pilot program under the authority of subsection (a).