ALIGNMENT OF THE DEFENSE ACQUISITION SYSTEM WITH THE NEEDS OF MEMBERS OF THE ARMED FORCES.

SEC. 1801. ALIGNMENT OF THE DEFENSE ACQUISITION SYSTEM WITH THE NEEDS OF MEMBERS OF THE ARMED FORCES. (a) Objectives of Defense Acquisition System.— (1) In general.—Section 3102 of title 10, United States Code, is amended to read as follows: “SEC. 3102. Objectives of the defense acquisition system “(a) In General.—The Secretary of Defense shall ensure that the defense acquisition system expeditiously provides the armed forces with the capabilities necessary to operate effectively, to address evolving threats, and to sustain the military advantage of the United States in the most cost-effective manner practicable. “(b) Guidance.—The Secretary of Defense shall issue guidance to carry out subsection (a) and shall ensure that the defense acquisition system prioritizes the needs of end users and is validated by direct engagement, experimentation, and iteration. Such guidance shall require the following: “(1) All activities of the defense acquisition system contribute to the expeditious delivery of capabilities to enhance the operational readiness of the armed forces and enable the missions of the Department of Defense. “(2) A leadership culture and organizational structure that empowers individuals in the management of the defense acquisition system and encourages appropriate delegation authority, collaboration, and mission-focused risk-taking. “(3) Sufficient numbers of members of the acquisition workforce to support the defense acquisition system, and that such members are properly trained and assigned. “(4) Resource decisions for the defense acquisition system to prioritize best value and seek to balance life-cycle costs, schedule, performance, and quantity through continuous trade-off analysis informed by prototyping and direct feedback from end users. “(5) Adoption and integration in the defense acquisition system of advanced approaches in digital engineering, model-based engineering, and simulation environments to enable rapid, iterative designs and technology insertion to maximize mission outcomes. “(6) Active pursuit of innovative solutions to enhance effectiveness of the armed forces and responsiveness to emerging threats, including the acquisition and integration of commercial products and commercial services. “(7) Approaches to workforce training and development that equally balance emphasis on functional and technical skills with skills in cross-functional integration, critical thinking, and innovative approaches that best deliver solutions to operational problems.” . (2) Conforming amendments.— (A) Under secretary of defense for acquisition and sustainment.—Section 133b(b) of title 10, United States Code, is amended— (i) in paragraph (1), by striking “delivering and sustaining timely, cost-effective capabilities for the 139 STAT. 1222 armed forces (and the Department)” and inserting “delivers end-user capabilities with speed and innovation to counter threats and cost-effectively sustain the military advantage of the United States”; and (ii) in paragraph (9)(A), by striking “defense acquisition programs” and inserting “the defense acquisition system, in accordance with the objectives established pursuant to section 3102 of this title”. (B) Director of operational test and evaluation.—Section 139(b) of title 10, United States Code, as amended by section 904, is further amended— (i) by redesignating paragraphs (1) through (7) as paragraphs (2) through (8), respectively; and (ii) by inserting before paragraph (2), as so redesignated, the following new paragraph: “(1) ensure that all operational test and evaluation activities are aligned with, and are conducted in a manner that supports, the objectives of the defense acquisition system established pursuant to section 3102 of this title;” . (C) Director of cost assessment and program evaluation.—Section 139a(d) of title 10, United States Code, is amended by inserting “shall carry out the requirements of this section in accordance with the objectives established pursuant to section 3102 of this title and” before “shall serve”. (b) Civilian Management of the Defense Acquisition System.—Section 3103 of title 10, United States Code, is amended— (1) in subsection (a), by striking “to ensure the successful and efficient operation of the defense acquisition system” and inserting “in accordance with the objectives of the defense acquisition system established pursuant to section 3102 of this title”; and (2) in subsection (b), by striking “to ensure the successful and efficient operation of such elements of the defense acquisition system.” and inserting the following:““in accordance with the objectives of the defense acquisition system established pursuant to section 3102 of this title. In carrying out this subsection, each service acquisition executive shall— “(1) implement strategies to adapt rapidly to evolving end-user requirements, validated through end user engagement; “(2) use data analytics to manage trade-offs among life-cycle costs, delivery schedules, performance objectives, technical feasibility, and procurement quantity objectives to maximize best value for the end user; “(3) conduct iterative cycles to develop, test with end-users, and terminate capabilities that deviate from priorities or significantly exceed cost or schedule thresholds; “(4) notify the Joint Requirements Oversight Council within 30 days after changes to a defense acquisition program that result in a material difference in capability requirements, procurement quantities, or delivery schedules; “(5) assign personnel to critical acquisition positions (as defined in section 1731 of this title) to build expertise and accountability, equipping such personnel with strategies to empower teams, delegate authority, and embrace mission-focused risk-taking; and “(6) foster mutual transparency and cooperation between the Government and private sector entities and require collaboration with such entities to ensure delivery of safe, suitable, and effective systems on relevant timelines and on established cost baselines.” . (c) Acquisition-related Functions of Service Chiefs.— (1) Performance of certain acquisition-related functions.—Section 3104 of title 10, United States Code, is amended— (A) by amending the section heading to read as follows: “Acquisition-related functions of service chiefs”; and (B) in subsection (a)— (i) by striking the “Chief of Staff of the Army, the Chief of Naval Operations, the Chief of Staff of the Air Force, the Commandant of the Marine Corps, and the Chief of Space Operations assist” and inserting “service chiefs assist”; (ii) by inserting “, in accordance with the objectives established pursuant to section 3102 of this title,” after “Secretary of the military department concerned”; and (iii) by amending paragraphs (1) through (7) to read as follows: “(1) The development of capability requirement statements for equipping the armed force concerned that— “(A) describes the operational problem to provide necessary context for the capability requirement; “(B) proposes nonprescriptive solutions to operational problems; and “(C) ensures system interoperability, where appropriate, between and among joint military capabilities (as defined in section 181 of this title). “(2) Implement strategies to support timely adjustments to capability requirement statements developed in paragraph (1). “(3) Advise on trade-offs among life-cycle costs, delivery schedules, performance objectives, technical feasibility, and procurement quantity objectives to maximize best value for the end user. “(4) In consultation with the Joint Requirements Oversight Council, prioritize— “(A) capability needs for investment; and “(B) resource allocation to meet operational readiness requirements (as defined in section 4324 of this title) and the materiel readiness objectives established under section 118(c) of this title. “(5) Make available appropriate personnel to provide end-user feedback for the development of new capabilities. “(6) Recommend modification, discontinuation, or termination of the development of capabilities— “(A) that no longer align with a capability requirement established by the Secretary of Defense; or “(B) that are experiencing significant cost growth, technical or performance deficiencies, or delays in schedule. “(7) Build acquisition career paths for officers and personnel (as required by section 1722a of this title) to ensure such officers and personnel have the necessary skills and opportunities for career progression to fulfill the objectives established pursuant to section 3102 of this title.” . (2) Adherence to requirements in major defense acquisition programs.—Section 3104(b) of such title is amended— (A) in paragraph (1)— (i) by striking “the program capability document supporting a Milestone B or subsequent decision” and inserting “any requirements document”; and (ii) by striking “chief of the armed force concerned” and inserting “service chief concerned”; and (B) in paragraph (2)— (i) in the matter preceding subparagraph (A)— (I) by striking “Chief of the armed force concerned” and inserting “service chief concerned”; and (II) by striking “chiefs of the armed force concerned” and inserting “service chiefs concerned”; (ii) in subparagraph (A), by striking “prior to entry into the Materiel Solution Analysis Phase under Department of Defense Instruction 5000.02”; and (iii) in subparagraph (B), by striking “cost, schedule, technical feasibility, and performance trade-offs” and inserting “life-cycle cost, delivery schedule, performance objective, technical feasibility, and procurement quantity trade-offs”. (3) Definitions.—Section 3104(d) of such title is amended to read as follows: “(d) Requirements Document Defined.—In this section, the term ‘requirements document’ means a document that establishes the need for a materiel approach to address an operational problem.” . (d) [10 U.S.C. 3104 note] Implementation.—Not later than 180 days after the date of the enactment of this Act, the Secretary of Defense shall revise Department of Defense Directive 5000.01 and any other relevant instructions, policies, or guidance to carry out the requirements of this section and the amendments made by this section. (e) Technical Amendments.— (1) Section 3101 of title 10, United States Code, is amended to read as follows: “SEC. 3101. Definitions “In this chapter: “(1) The term ‘best value’ means, with respect to an acquisition, the optimal combination of cost, quality, technical capability or solution quality, and delivery schedule. “(2) The term ‘capability requirement’ means a capability that is critical or essential to address an operational problem. “(3) The term ‘cost-effective’ means, with respect to an acquisition, delivering superior end-user results at equal or lower cost compared to alternatives. “(4) The term ‘operational problem’ means— “(A) a challenge of a military department in achieving an assigned military objective based on current doctrine, emerging threats, or future concepts; and “(B) may include limitations in capabilities, capacity, resources, or the ability to effectively and efficiently coordinate across the joint force, with another combatant command, or among military capabilities. “(5) The term ‘service chief’ means— “(A) the Chief of Staff of the Army, with respect to matters concerning the Army; “(B) the Chief of Naval Operations, with respect to matters concerning the Navy; “(C) the Commandant of the Marine Corps, with respect to matters concerning the Marine Corps; “(D) the Chief of Staff of the Air Force, with respect to matters concerning the Air Force; and “(E) the Chief of Space Operations, with respect to matters concerning the Space Force.” . (2) Section 3001(c) of title 10, United States Code, is amended by striking “this section” and inserting “this part”.