ACQUISITION OF, AND INDEPENDENT COST ANALYSES FOR, THE JOINT STRIKE FIGHTER PROPULSION SYSTEM.

SEC. 211. ACQUISITION OF, AND INDEPENDENT COST ANALYSES FOR, THE JOINT STRIKE FIGHTER PROPULSION SYSTEM.(a) Acquisition.—(1) In general.—The Secretary of Defense shall provide for the development and procurement of the propulsion system for the Joint Strike Fighter aircraft through the continued development and sustainment of two interchangeable propulsion systems for that aircraft by two separate contractors throughout the life cycle of the aircraft.(2) Modifications prohibited.—Except as provided by paragraph (3), the Secretary may not carry out any modification to the acquisition program for the Joint Strike Fighter aircraft that would result in the development or procurement of the propulsion system for that aircraft in a manner other than that required by paragraph (1).(3) Modifications allowed.—Notwithstanding paragraph (1), a modification described in paragraph (2) may be carried 120 STAT. 2118 out to the extent that each of the following requirements is met:(A) The Secretary of Defense has notified the congressional defense committees of the modification.(B) Each of the reports required by subsection (b) has been submitted.(C) Funds are appropriated for that purpose pursuant to an authorization of appropriations.(b) Independent Cost Analyses.—(1) In general.—A comprehensive and detailed cost analysis of the Joint Strike Fighter engine program shall be independently performed by each of the following:(A) The Comptroller General.(B) A federally funded research and development center selected by the Secretary of Defense.(C) The Secretary of Defense, acting through the Cost Analysis Improvement Group of the Office of the Secretary of Defense.(2) Matters covered.—Each such cost analysis shall cover—(A) an alternative under which the Joint Strike Fighter aircraft is capable of using the F135 engine only;(B) an alternative under which the program executes a one-time firm-fixed price contract for a selected propulsion system for the Joint Strike Fighter aircraft for the life cycle of the aircraft following the Initial Service Release of the propulsion system in fiscal year 2008;(C) an alternative under which the Joint Strike Fighter aircraft is capable of using either the F135 engine or the F136 engine, and the engine selection is carried out on a competitive basis; and(D) any other alternative, whether competitive or sole source, that would reduce total life-cycle cost, improve program schedule, or both.(3) Reports.—Not later than March 15, 2007, the Secretary of Defense, the Comptroller General, and the chief executive officer of the federally funded research and development center selected under paragraph (1)(B) shall independently submit to the congressional defense committees a report on the cost analysis carried out under paragraph (1). Each such report shall include each of the following matters:(A) The key assumptions used in carrying out the cost analysis.(B) The methodology and techniques used in carrying out the cost analysis.(C) For each alternative required by paragraph (2)—(i) a comparison of the life-cycle costs, including costs in current and constant dollars and a net-present-value analysis;(ii) estimates of—(I) supply, maintenance, and other operations manpower required to support the alternative;(II) the number of flight hours required to achieve engine maturity and the year in which that is expected to be achieved; and120 STAT. 2119(III) the total number of engines expected to be procured over the lifetime of the Joint Strike Fighter program; and(iii) an evaluation of benefits, other than cost, provided by competition, to include an assessment of improved performance, operational readiness and warfighting capability, risk reduction, technology innovation, and contractor responsiveness.(D) A description of the acquisition strategies (including development and production) that were used for, and experience with respect to cost, schedule, and performance under, past acquisition programs for engines for tactical fighter aircraft, including the F–15, F–16, F–18, and F–22 aircraft.(E) A comparison of the experiences under past acquisition programs carried out on a sole-source basis with respect to performance, savings, maintainability, reliability, and technical innovation.(F) The impact that canceling the F136 competitive engine would have on the high-performance military engine industrial base, and on the Department of Defense’s ability to make competitive engine choices for future combat aircraft systems beyond the Joint Strike Fighter.(G) Conclusions and recommendations.(4) Certifications.—In submitting the report required by paragraph (3), the Comptroller General and the chief executive officer of the federally funded research and development center shall also submit a certification as to whether the Secretary of Defense provided access to sufficient information to enable the Comptroller General or the chief executive officer, as the case may be, to make informed judgments on the matters required to be included in the report.(c) Life-Cycle Costs Defined.—In this section, the term “life-cycle costs” includes—(1) those elements of cost that would be considered for a life-cycle cost analysis for a major defense acquisition program, including procurement of engines, procurement of spare engines, and procurement of engine components and parts; and(2) good-faith estimates of routine engine costs (such as performance upgrades and component improvement) that historically have occurred in tactical fighter engine programs.