§4325. Major weapon systems: assessment, management, and control of operating and support costs
(a)
(b)
(1) be issued in conjunction with the comprehensive guidance on life-cycle management and the development and implementation of product support strategies for major weapon systems required by section 4324 of this title;
(2) require the military departments to retain each estimate of operating and support costs that is developed at any time during the life cycle of a major weapon system, together with supporting documentation used to develop the estimate;
(3) require the military departments to update estimates of operating and support costs periodically throughout the life cycle of a major weapon system, to determine whether preliminary information and assumptions remain relevant and accurate, and identify and record reasons for variances;
(4) establish policies and procedures for the collection, organization, maintenance, and availability of standardized data on operating and support costs for major weapon systems in accordance with section 2222 of this title;
(5) establish standard requirements for the collection and reporting of data on operating and support costs for major weapon systems by contractors performing weapon system sustainment functions in an appropriate format, and develop contract clauses to ensure that contractors comply with such requirements;
(6) require the military departments-
(A) to collect and retain data from operational and developmental testing and evaluation on the reliability and maintainability of major weapon systems; and
(B) to use such data to inform system design decisions, provide insight into sustainment costs, and inform estimates of operating and support costs for such systems;
(7) require the military departments to ensure that sustainment factors are fully considered at key life-cycle management decision points and that appropriate measures are taken to reduce operating and support costs by influencing system design early in development, developing sound sustainment strategies, and addressing key drivers of costs;
(8) require the military departments to conduct an independent logistics assessment of each major weapon system prior to key acquisition decision points (including milestone decisions) to identify features that are likely to drive future operating and support costs, changes to system design that could reduce such costs, and effective strategies for managing such costs;
(9) include-
(A) reliability metrics for major weapon systems; and
(B) requirements on the use of metrics under subparagraph (A) as triggers-
(i) to conduct further investigation and analysis into drivers of those metrics; and
(ii) to develop strategies for improving reliability, availability, and maintainability of such systems at an affordable cost; and
(10) require the military departments to conduct periodic reviews of operating and support costs of major weapon systems after such systems achieve initial operational capability to identify and address factors resulting in growth in operating and support costs and adapt support strategies to reduce such costs.
(c)
(1)
(2)
(A) promptly receives the results of all cost estimates and cost analyses conducted by the military departments with regard to operating and support costs of major weapon systems;
(B) has timely access to any records and data of the military departments (including classified and proprietary information) that the Director considers necessary to carry out such responsibility; and
(C) with the concurrence of the Under Secretary of Defense for Acquisition and Sustainment, may direct the military departments to collect and retain information necessary to support the database.
(d)
(Added
Editorial Notes
Amendments
2021-
Subsec. (b)(1).
Subsec. (d).
2018-Subsec. (d).
Statutory Notes and Related Subsidiaries
Effective Date of 2021 Amendment
Amendment by
Pilot Program on Time-Certain Development in Acquisition of Major Weapon Systems
"(a)
"(b)
"(1) disciplined decision-making;
"(2) emphasis on technological maturity; and
"(3) appropriate trade-offs between-
"(A) cost and system performance; and
"(B) program schedule.
"(c)
"(1)
"(A) the major weapon system meets the criteria under paragraph (2) in accordance with that paragraph; and
"(B) the Milestone Decision Authority nominates such program to the Secretary of Defense for inclusion in the program.
"(2)
"(A) the certification requirements of section 2366b of title 10, United States Code [now 10 U.S.C. 4252] (as amended by section 805 of this Act), have been met, and no waivers have been granted from such requirements;
"(B) a preliminary design has been reviewed using systems engineering, and the system, as so designed, will meet battlefield needs identified by the relevant combatant commanders after appropriate requirements analysis;
"(C) a representative model or prototype of the system, or key subsystems, has been demonstrated in a relevant environment, such as a well-simulated operational environment;
"(D) an independent cost estimate has been conducted and used as the basis for funding requirements for the acquisition program for the system;
"(E) the budget of the military department responsible for carrying out the acquisition program for the system provides the funding necessary to execute the product development and production plan consistent with the requirements identified pursuant to subparagraph (D);
"(F) an appropriately qualified program manager has entered into a performance agreement with the Milestone Decision Authority that establishes expected parameters for the cost, schedule, and performance of the acquisition program for the system, consistent with a business case for such acquisition program;
"(G) the service acquisition executive and the program manager have developed a strategy to ensure stability in program management until, at a minimum, the delivery of the initial operational capability under the acquisition program for the system has occurred;
"(H) the service acquisition executive, the relevant combatant commanders, and the program manager have agreed that no additional requirements that would be inconsistent with the agreed-upon program schedule will be added during the development phase of the acquisition program for the system; and
"(I) a planned initial operational capability will be delivered to the relevant combatant commanders within a defined period of time as prescribed in regulations by the Secretary of Defense.
"(3)
"(d)
"(e)
"(f)
"(1)
"(2)
"(A) funds made available for any major weapon system included in the pilot program to cover termination liability;
"(B) funds made available for any major weapon system included in the pilot program for award fees that may be earned by contractors; and
"(C) funds appropriated to the special reserve account.
"(3)
"(A) To cover termination liability for any major weapon system included in the pilot program.
"(B) To pay award fees that are earned by any contractor for a major weapon system included in the pilot program.
"(C) To address unforeseen contingencies that could prevent a major weapon system included in the pilot program from meeting critical schedule or performance requirements.
"(4)
"(5)
"(g)
"(1) provide for the use of program status reports based on earned value data to track progress on a major weapon system under the pilot program against baseline estimates applicable to such system at each systems engineering technical review point; and
"(2) grant authority, to the maximum extent practicable, to the program manager for the acquisition program for a major weapon system to make key program decisions and trade-offs, subject to management reviews only if cost or schedule deviations exceed the baselines for such acquisition program by 10 percent or more.
"(h)
"(1) the weapon system receives Milestone C approval; or
"(2) the Secretary determines that the weapon system is no longer in substantial compliance with the criteria in subsection (c)(2) or is otherwise no longer appropriate for inclusion in the pilot program.
"(i)
"(1)
"(2)
"(j)
"(1)
"(2)
"(A) a description of progress under the pilot program, and on each major weapon system included in the pilot program, during the period covered by such report;
"(B) a description of the use of all funds in the special reserve account established under subsection (f); and
"(C) such other matters as the Secretary considers appropriate.
"(k)
[