CHAPTER 323—LIFE-CYCLE AND SUSTAINMENT
4321.
Development of major defense acquisition programs: sustainment of system to be replaced.
4323.
Sustainment reviews.
4324.
Life-cycle management and product support.
4325.
Major weapon systems: assessment, management, and control of operating and support costs.
4328.
Weapon system design: sustainment factors.
Editorial Notes
Prior Provisions
A prior chapter 323 "INNOVATION", consisting of reserved section 4301, was repealed by Pub. L. 116–283, div. A, title XVIII, §1841(a)(1)(A), Jan. 1, 2021, 134 Stat. 4242.
Amendments
2021—Pub. L. 117–81, div. A, title XVII, §1701(f)(9), Dec. 27, 2021, 135 Stat. 2140, added item 4324 and struck out former item 4324 "Major systems: life-cycle management and product support".
Statutory Notes and Related Subsidiaries
Standardized Policy Guidance for Calculating Aircraft Operation and Sustainment Costs
Pub. L. 116–92, div. A, title XVII, §1747, Dec. 20, 2019, 133 Stat. 1847, provided that: "Not later than 270 days after the date of the enactment of this Act [Dec. 20, 2019], the Under Secretary of Defense for Acquisition and Sustainment, in coordination with the Director of Cost Analysis and Program Evaluation and in consultation with the Secretary of each of the military services, shall develop and implement standardized policy guidance for calculating aircraft operation and sustainment costs for the Department of Defense. Such guidance shall provide for a standardized calculation of—
"(1) aircraft cost per flying hour;
"(2) aircraft cost per aircraft tail per year;
"(3) total cost of ownership per flying hour for aircraft systems;
"(4) average annual operation and sustainment cost per aircraft; and
"(5) any other cost metrics the Under Secretary of Defense determines appropriate."
Requirements Prior to Low-Rate Initial Production
Pub. L. 112–81, div. A, title VIII, §801(c), Dec. 31, 2011, 125 Stat. 1483, as amended by Pub. L. 112–239, div. A, title III, §322(e)(3), Jan. 2, 2013, 126 Stat. 1695, provided that: "Prior to entering into a contract for low-rate initial production of a major defense acquisition program, the Secretary of Defense shall ensure that the detailed requirements for core logistics capabilities and the associated sustaining workloads required to support such requirements, have been defined."
Acquisition Strategies To Ensure Competition Throughout the Lifecycle of Major Defense Acquisition Programs
Pub. L. 111–23, title II, §202, May 22, 2009, 123 Stat. 1720, as amended by Pub. L. 112–81, div. A, title VIII, §837, Dec. 31, 2011, 125 Stat. 1509; Pub. L. 112–239, div. A, title VIII, §825, Jan. 2, 2013, 126 Stat. 1833, provided that:
"(a) Acquisition Strategies To Ensure Competition.—The Secretary of Defense shall ensure that the acquisition strategy for each major defense acquisition program includes—
"(1) measures to ensure competition, or the option of competition, at both the prime contract level and the subcontract level (at such tier or tiers as are appropriate) of such program throughout the life-cycle of such program as a means to improve contractor performance; and
"(2) adequate documentation of the rationale for the selection of the subcontract tier or tiers under paragraph (1).
"(b) Measures To Ensure Competition.—The measures to ensure competition, or the option of competition, for purposes of subsection (a)(1) may include measures to achieve the following, in appropriate cases if such measures are cost-effective:
"(1) Competitive prototyping.
"(2) Dual-sourcing.
"(3) Unbundling of contracts.
"(4) Funding of next-generation prototype systems or subsystems.
"(5) Use of modular, open architectures to enable competition for upgrades.
"(6) Use of build-to-print approaches to enable production through multiple sources.
"(7) Acquisition of complete technical data packages.
"(8) Periodic competitions for subsystem upgrades.
"(9) Licensing of additional suppliers.
"(10) Periodic system or program reviews to address long-term competitive effects of program decisions.
"(c) Additional Measures To Ensure Competition at Subcontract Level.—The Secretary shall take actions to ensure competition or the option of competition at the subcontract level on major defense acquisition programs by—
"(1) where appropriate, breaking out a major subsystem, conducting a separate competition for the subsystem, and providing the subsystem to the prime contractor as Government-furnished equipment;
"(2) requiring prime contractors to give full and fair consideration to qualified sources other than the prime contractor for the development or construction of major subsystems and components of major weapon systems;
"(3) providing for government surveillance of the process by which prime contractors consider such sources and determine whether to conduct such development or construction in-house or through a subcontract; and
"(4) providing for the assessment of the extent to which a contractor has given full and fair consideration to qualified sources other than the contractor in sourcing decisions as a part of past performance evaluations.
"(d) Consideration of Competition Throughout Maintenance and Sustainment of Major Weapon Systems and Subsystems.—Whenever a decision regarding source of repair results in a plan to award a contract for performance of maintenance and sustainment of a major weapon system or subsystem of a major weapon system, the Secretary shall take actions to ensure that, to the maximum extent practicable and consistent with statutory requirements, contracts for such maintenance and sustainment, or for components needed for such maintenance and sustainment, are awarded on a competitive basis and give full consideration to all sources (including sources that partner or subcontract with public or private sector repair activities).
"(e) Applicability.—
"(1) Strategy and measures to ensure competition.—The requirements of subsections (a) and (b) shall apply to any acquisition plan for a major defense acquisition program that is developed or revised on or after the date that is 60 days after the date of the enactment of this Act [May 22, 2009].
"(2) Additional actions.—The actions required by subsections (c) and (d) shall be taken within 180 days after the date of the enactment of this Act."
Preservation of Tooling for Major Defense Acquisition Programs
Pub. L. 110–417, [div. A], title VIII, §815, Oct. 14, 2008, 122 Stat. 4530, directed the Secretary of Defense to issue, not later than 270 days after Oct. 14, 2008, guidance requiring the preservation and storage of unique tooling associated with the production of hardware for a major defense acquisition program through the end of the service life of the end item associated with such a program.
Definitions
Pub. L. 111–23, §2, May 22, 2009, 123 Stat. 1704, as amended by Pub. L. 119–60, div. A, title VIII, §811(c)(3)(A), Dec. 18, 2025, 139 Stat. 950, provided that: "In this Act [see Short Title of 2009 Amendment note set out under section 101 of this title]:
"(1) The term 'congressional defense committees' has the meaning given that term in section 101(a)(16) of title 10, United States Code.
"(2) The term 'major defense acquisition program' has the meaning given that term in section 2430 of title 10, United States Code [now 10 U.S.C. 4201].
"(3) The term 'major weapon system' has the meaning given that term in section 101(a) of title 10, United States Code."
§4321. Development of major defense acquisition programs: sustainment of system to be replaced
(a) Requirement for Sustaining Existing Forces.—(1) The Secretary of Defense shall require that, whenever a new major defense acquisition program begins development, the defense acquisition authority responsible for that program shall develop a plan (to be known as a "sustainment plan") for the existing system that the system under development is intended to replace. Any such sustainment plan shall provide for an appropriate level of budgeting for sustaining the existing system until the replacement system to be developed under the major defense acquisition program is fielded and assumes the majority of responsibility for the mission of the existing system. This section does not apply to a major defense acquisition that reaches initial operational capability before October 1, 2008.
(2) In this section, the term "defense acquisition authority" means the Secretary of a military department or the commander of the United States Special Operations Command.
(b) Sustainment Plan.—The Secretary of Defense shall require that each sustainment plan under this section include, at a minimum, the following:
(1) The milestone schedule for the development of the major defense acquisition program, including the scheduled dates for low-rate initial production, initial operational capability, full-rate production, and full operational capability and the date as of when the replacement system is scheduled to assume the majority of responsibility for the mission of the existing system.
(2) An analysis of the existing system to assess the following:
(A) Anticipated funding levels necessary to—
(i) ensure acceptable reliability and availability rates for the existing system; and
(ii) maintain mission capability of the existing system against the relevant threats.
(B) The extent to which it is necessary and appropriate to—
(i) transfer mature technologies from the new system or other systems to enhance the mission capability of the existing system against relevant threats; and
(ii) provide interoperability with the new system during the period from initial fielding until the new system assumes the majority of responsibility for the mission of the existing system.
(c) Exceptions.—Subsection (a) shall not apply to a major defense acquisition program if the Secretary of Defense determines that—
(1) the existing system is no longer relevant to the mission;
(2) the mission has been eliminated;
(3) the mission has been consolidated with another mission in such a manner that another existing system can adequately meet the mission requirements; or
(4) the duration of time until the new system assumes the majority of responsibility for the existing system's mission is sufficiently short so that mission availability, capability, interoperability, and force protection requirements are maintained.
(d) Waiver.—The Secretary of Defense may waive the applicability of subsection (a) to a major defense acquisition program if the Secretary determines that, but for such a waiver, the Department would be unable to meet national security objectives. Whenever the Secretary makes such a determination and authorizes such a waiver, the Secretary shall submit notice of such waiver and of the Secretary's determination and the reasons therefor in writing to the congressional defense committees.
(Added Pub. L. 108–375, div. A, title VIII, §805(a)(1), Oct. 28, 2004, 118 Stat. 2008, §2437; renumbered §4321, Pub. L. 116–283, div. A, title XVIII, §1848(b), Jan. 1, 2021, 134 Stat. 4258.)
Editorial Notes
Prior Provisions
A prior section 4321 was renumbered section 7421 of this title.
Amendments
2021—Pub. L. 116–283 renumbered section 2437 of this title as this section.
Statutory Notes and Related Subsidiaries
Effective Date of 2021 Amendment
Amendment by Pub. L. 116–283 effective Jan. 1, 2022, with additional provisions for delayed implementation and applicability of existing law, see section 1801(d) of Pub. L. 116–283, set out as a note preceding section 3001 of this title.
Effective Date
Pub. L. 108–375, div. A, title VIII, §805(b), Oct. 28, 2004, 118 Stat. 2009, provided that: "Section 2437 of title 10, United States Code [now 10 U.S.C. 4321], as added by subsection (a), shall apply with respect to a major defense acquisition program for a system that is under development as of the date of the enactment of this Act [Oct. 28, 2004] and is not expected to reach initial operational capability before October 1, 2008. The Secretary of Defense shall require that a sustainment plan under that section be developed not later than one year after the date of the enactment of this Act for the existing system that the system under development is intended to replace."
§4323. Sustainment reviews
(a) Review Required.—The Secretary of Defense shall require each Secretary of a military department, in coordination with the Under Secretary of Defense for Acquisition and Sustainment, to conduct an assessment of the actual performance of each major weapon system against the operational readiness requirements and materiel readiness objectives (established under section 118(c) of this title). Each Secretary of a military department shall use such assessment to—
(1) identify any factors contributing to the failure of a major weapon system to meet such requirements and objectives;
(2) develop and implement a corrective action plan to address such factors in an expeditious manner; and
(3) inform the submission of materials to Congress required by section 118(c)(2) of this title and the development of the future-years defense program required by section 221 of this title.
(b) Submission to Congress.—Not later than five days after the date on which the budget of the President is submitted to Congress pursuant to section 1105 of title 31, each Secretary of a military department, in coordination with the Under Secretary of Defense for Acquisition and Sustainment, shall submit to the congressional defense committees a report that includes the following:
(1) Findings from a review of the effectiveness of the life-cycle sustainment plan required under section 4324 of this title for a major weapon system.
(2) A description of how such assessments informed the submission of materials to Congress required by section 118(c)(2) of this title and the development of the future-years defense program required by section 221 of this title.
(3) For a covered system which has been declared to meet initial operational capability, and that for two consecutive calendar years has failed to meet established materiel readiness objectives for materiel availability or operational availability (as such terms are defined, respectively, in section 118 of this title), such report shall include—
(A) an identification of factors contributing to such failure;
(B) a mitigation plan to address supply, maintenance, or other issues contributing to such failure; and
(C) a description of any corrective action plan required by subsection (a)(2) and an update on progress made in implementing such a plan.
(4) A summary of actions taken by the Secretary to ensure that each covered system of the military department under the jurisdiction of the Secretary meets the applicable operational readiness requirements and materiel readiness objectives in the most cost-effective manner practicable.
(c) Covered System Defined.—In this section, the term "covered system" has the meaning given in section 4324 of this title.
(Added Pub. L. 114–328, div. A, title VIII, §849(c)(1), Dec. 23, 2016, 130 Stat. 2293, §2441; amended Pub. L. 115–91, div. A, title VIII, §§816, 836(b)(2), Dec. 12, 2017, 131 Stat. 1462, 1473; renumbered §4323 and amended Pub. L. 116–283, div. A, title VIII, §802(c), title XVIII, §§1848(c), 1883(b)(2), Jan. 1, 2021, 134 Stat. 3732, 4258, 4294; Pub. L. 119–60, div. A, title XVIII, §1803(b), Dec. 18, 2025, 139 Stat. 1229.)
Editorial Notes
Amendments
2025—Pub. L. 119–60 amended section generally. Prior to amendment, section required a sustainment review of each covered system not later than five years after declaration of initial operational capability of a major defense acquisition program, and every five years thereafter throughout the life cycle of the covered system.
2021—Pub. L. 116–283, §1848(c), renumbered section 2441 of this title as this section.
Subsec. (a). Pub. L. 116–283, §802(c)(1), in first sentence, substituted "covered system" for "major weapon system", ", and every five years thereafter throughout the life cycle of the covered system," for "and throughout the life cycle of the weapon system", and "costs of the covered system" for "costs of the weapon system" and struck out second sentence which read as follows: "For any review after the first one, the Secretary concerned shall use availability and reliability thresholds and cost estimates as the basis for the circumstances that prompt such a review."
Subsec. (b). Pub. L. 116–283, §802(c)(2)(A), inserted "assess execution of the life cycle sustainment plan of the covered system and" before "include the following elements:" in introductory provisions.
Subsec. (b)(10). Pub. L. 116–283, §802(c)(2)(B), added par. (10).
Subsec. (c). Pub. L. 116–283, §1848(c), substituted "sections 4324 and 4325" for "sections 2337 and 2337a".
Subsec. (d). Pub. L. 116–283, §802(c)(3), added subsec. (d).
Subsec. (e). Pub. L. 116–283, §802(c)(3), added subsec. (e).
Subsec. (e)(1). Pub. L. 116–283, §1883(b)(2), substituted "section 4324" for "section 2337".
Subsec. (e)(2)(B). Pub. L. 116–283, §1883(b)(2), substituted "section 4214(d)" for "section 2435(d)".
2017—Subsec. (a). Pub. L. 115–91, §816, inserted at end "The Secretary concerned shall make the memorandum and supporting documentation for each sustainment review available to the Under Secretary of Defense for Acquisition and Sustainment within 30 days after the review is completed."
Subsec. (c). Pub. L. 115–91, §836(b)(2), substituted "sections 2337 and 2337a of this title" for "section 2337 of this title and section 832 of the National Defense Authorization Act for Fiscal Year 2012 (Public Law 112–81; 10 U.S.C. 2430 note)".
Statutory Notes and Related Subsidiaries
Effective Date of 2021 Amendment
Amendment by sections 1848(c) and 1883(b)(2) of Pub. L. 116–283 effective Jan. 1, 2022, with additional provisions for delayed implementation and applicability of existing law, see section 1801(d) of Pub. L. 116–283, set out as a note preceding section 3001 of this title.
§4324. Life-cycle management and product support
(a) In General.—The Secretary of Defense shall ensure that each covered system is supported by a performance-based life-cycle sustainment plan—
(1) that is approved by the service acquisition executive responsible for such covered system; and
(2) that meets applicable operational readiness requirements and materiel readiness objectives (established under section 118(c) of this title) in the most cost-effective manner practicable.
(b) Life-cycle Sustainment Plan.—(1) A product support manager shall develop, update, and implement a life-cycle sustainment plan for each covered system for which the product support manager is responsible. Such plan shall include the following:
(A) A comprehensive product support strategy that addresses each Integrated Product Support Element in a manner—
(i) to best achieve operational readiness requirements and materiel readiness objectives throughout the planned life cycle of such system; and
(ii) that allows evaluation and selection of product support integrators and product support providers appropriate to execute the product support strategy.
(B) A life-cycle cost estimate for the covered system that—
(i) is based on the product support strategy described in subparagraph (A); and
(ii) if the covered system is a major defense acquisition program or major subprogram, is developed in accordance with the requirements to support a Milestone A approval, Milestone B approval, or Milestone C approval.
(C) Recommended engineering and design considerations that support cost-effective sustainment of the covered system and best value solutions in life cycle planning and management.
(D) An intellectual property management plan for product support developed in accordance with section 3774 of this title, including requirements for technical data, software, and modular open system approaches (as defined in section 4401 of this title).
(E) A strategy to maximize use of public and private sector capabilities including public-private partnerships, when appropriate.
(F) After consideration of the views received by the milestone decision authority from appropriate materiel, logistics, or fleet representatives, a plan to transition the covered system from production to initial fielding that addresses specific products or services required for successful initial fielding of the covered system, including—
(i) a description of the necessary tooling or other unique support equipment, requirements for initial spare parts and components, technical handbooks and maintenance manuals, maintenance training, and facilities;
(ii) an identification of the funding required to provide such products and services for any initial fielding location of the covered system; and
(iii) an assessment of the required number of training simulators, including the initial operational capability and overall fielding of such simulators.
(2) In developing each life-cycle sustainment plan required by this section, the product support manager shall—
(A) consider affordability constraints and key cost factors that could affect operating and support costs during the life cycle of the covered system;
(B) consider sustainment risks or challenges to sustaining the covered system in operational environments, including contested logistics environments (as defined in section 2926 of this title);
(C) seek to comply with—
(i) requirements to maintain a core logistics capability under section 2464 of this title; and
(ii) limitations on the performance of depot-level maintenance of materiel under section 2466 of this title;
(D) seek to integrate commercial best practices, use commercial standards, and use advanced technologies to enhance the product support of each covered system; and
(E) seek to maintain a robust, resilient, and innovative defense industrial base to support requirements throughout the life cycle of the covered system.
(d) 1 Definitions.—In this chapter:
(1) The terms "milestone decision authority" and "Milestone A approval" have the meanings given, respectively, in section 4251 of this title.
(2) The term "Milestone B approval" and "Milestone C approval" has the meaning given in section 4172 of this title.
(3) The term "covered system" means—
(A) a major defense acquisition program as defined in section 4201 of this title;
(B) a major subprogram as described in section 4203 of this title; or
(C) an acquisition program or project that is carried out using the rapid fielding or rapid prototyping acquisition pathway under section 3602 of this title that is estimated by the Secretary of Defense to require an eventual total expenditure described in section 4201(a)(2) of this title.
(4) The term "critical readiness items of supply" means—
(A) parts and systems designated as Mission Impaired Capability Awaiting Parts, Not Mission Capable Supply, or Casualty Report Category 3 or 4 status (as defined by the Secretary of Defense or a Secretary of a military department); or
(B) parts or systems designated by the Secretary of Defense as negatively impacting the materiel readiness objectives of a covered system.
(5) The term "Integrated Product Support Elements" means, with respect to a covered system—
(A) product support management;
(B) design interface;
(C) sustaining engineering;
(D) maintenance planning and management;
(E) supply support;
(F) support equipment;
(G) technical data;
(H) training and training support;
(I) information technology systems continuous support;
(J) facilities and infrastructure;
(K) packaging, handling, storage, and transportation; and
(L) manpower and personnel.
(6) The term "product support" means the package of support functions required to field and sustain the readiness and operational capability of covered systems (including subsystems and components of such covered systems).
(7) The term "product support arrangement"—
(A) means a contract, task order, or another contractual arrangement, or any type of agreement or non-contractual arrangement entered into by the Federal Government, for the performance of sustainment or logistics support required for covered systems (including subsystems and components of such covered systems); and
(B) includes arrangements for any of the following:
(i) Performance-based logistics.
(ii) Sustainment support.
(iii) Contractor logistics support.
(iv) Life-cycle product support.
(8) The term "product support integrator" means an entity responsible for integrating private and public sources of product support within the scope of a product support arrangement.
(9) The term "product support provider" means an entity that provides product support functions.
(Added Pub. L. 112–239, div. A, title VIII, §823(a)(1), Jan. 2, 2013, 126 Stat. 1830, §2337; amended Pub. L. 113–66, div. A, title VIII, §823, Dec. 26, 2013, 127 Stat. 809; renumbered §4324 and amended Pub. L. 116–283, div. A, title VIII, §802(a), title XVIII, §§1848(d)(1), (2), 1883(b)(2), Jan. 1, 2021, 134 Stat. 3731, 4258, 4294; Pub. L. 117–81, div. A, title XVII, §1701(b)(17), (d)(11), Dec. 27, 2021, 135 Stat. 2135, 2137; Pub. L. 117–263, div. A, title VIII, §806, Dec. 23, 2022, 136 Stat. 2702; Pub. L. 118–159, div. A, title VIII, §804(c)(3), Dec. 23, 2024, 138 Stat. 1968; Pub. L. 119–60, div. A, title XVIII, §§1803(c), 1805(b)(1), Dec. 18, 2025, 139 Stat. 1230, 1236.)
Editorial Notes
Amendments
2025—Pub. L. 119–60, §1803(c), amended section generally. Prior to amendment, section related to guidance on life-cycle management, life cycle sustainment plans, and product support managers for covered systems.
Subsec. (d)(8). Pub. L. 119–60, §1805(b)(1), which directed the insertion of "the term 'decision authority' " after "meaning given", could not be executed following the general amendment of the section by Pub. L. 119–60, §1803(c). See above.
2024—Subsec. (d)(5)(B). Pub. L. 118–159 substituted "section 3602 of this title" for "section 804 of the National Defense Authorization Act for Fiscal Year 2016 (Public Law 114–92; 10 U.S.C. 2302 note)".
2022—Subsec. (b). Pub. L. 117–263, §806(a), designated existing provisions as par. (1) and inserted heading; inserted "for which the milestone decision authority has received views from appropriate materiel, logistics, or fleet representatives" after "approved life cycle sustainment plan"; designated former pars. (1) to (8) as subpars. (A) to (G) and (J), respectively, of par. (1); amended subpar. (G) generally, prior to which text read "a technical data and intellectual property management plan for product support; and"; added subpars. (H) and (I) of par. (1); and added par. (2). Amendment adding par. (2) "at the end of" par. (1) was executed by adding par. (2) after par. (1) to reflect the probable intent of Congress.
Subsec. (d)(7), (8). Pub. L. 117–263, §806(b), added par. (7) and redesignated former par. (7) as (8).
2021—Pub. L. 116–283, §1848(d)(1), renumbered section 2337 of this title as this section.
Pub. L. 116–283, §802(a)(1)–(3), substituted "covered system" for "major weapon system" and "weapon system" and "covered systems" for "major weapon systems" wherever appearing.
Subsec. (b). Pub. L. 116–283, §802(a)(5), added subsec. (b). Former subsec. (b) redesignated (c).
Subsec. (c). Pub. L. 116–283, §802(a)(4), redesignated subsec. (b) as (c). Former subsec. (c) redesignated (d).
Subsec. (c)(2)(A). Pub. L. 116–283, §802(a)(6)(A), amended subpar. (A) generally. Prior to amendment, subpar. (A) read as follows: "develop and implement a comprehensive product support strategy for the weapon system;".
Subsec. (c)(2)(B). Pub. L. 116–283, §802(a)(6)(B), substituted "ensure the life cycle sustainment plan is informed by" for "use".
Subsec. (c)(2)(C). Pub. L. 116–283, §802(a)(6)(C), inserted "and life cycle sustainment plan" after "product support strategy".
Subsec. (c)(5). Pub. L. 116–283, §1848(d)(2), which directed amendment of subsec. (c)(5) by substituting "section 3041(c)(1)" for "section 2302d(a)" and could not be executed, was repealed by Pub. L. 117–81, §1701(b)(17).
Subsec. (d). Pub. L. 116–283, §802(a)(4), redesignated subsec. (c) as (d).
Subsec. (d)(5). Pub. L. 116–283, §802(a)(7)(A), amended par. (5) generally. Prior to amendment, par. (5) defined "major weapon system".
Subsec. (d)(5)(A). Pub. L. 117–81, §1701(d)(11)(A), substituted "section 4201" for "section 2430".
Pub. L. 116–283, §1883(b)(2), which directed that each reference in the text of title 10 to a section that was redesignated by title XVIII of Pub. L. 116–283, as such section was in effect before the redesignation, be amended by striking such reference and inserting a reference to the appropriate redesignated section, was not executed with respect to "section 2430", which was redesignated as multiple sections.
Subsec. (d)(5)(B). Pub. L. 117–81, §1701(d)(11)(A), which directed the substitution of "section 4201(a)(2) of this title" for "section 2430(a)(1)(B)", could not be executed because of the intervening amendment by Pub. L. 116–283, §1883(b)(2). See note below.
Pub. L. 116–283, §1883(b)(2), substituted "section 4201(a)(2)" for "section 2430(a)(1)(B)".
Subsec. (d)(6). Pub. L. 117–81, §1701(d)(11)(B), which directed the substitution of "section 4172(e)(7)" for "section 2366(e)(7)", could not be executed because of the intervening amendment by Pub. L. 116–283, §1883(b)(2). See note below.
Pub. L. 116–283, §1883(b)(2), substituted "section 4172(e)(7)" for "section 2366(e)(7)".
Pub. L. 116–283, §802(a)(7)(B), added par. (6).
Subsec. (d)(7). Pub. L. 117–81, §1701(d)(11)(C), which directed the substitution of "section 4211(e)(3)" for "section 2431a(e)(5)", could not be executed because of the intervening amendment by Pub. L. 116–283, §1883(b)(2). See note below.
Pub. L. 116–283, §1883(b)(2), substituted "section 4211(e)(3)" for "section 2431a(e)(5)".
Pub. L. 116–283, §802(a)(7)(B), added par. (7).
2013—Subsec. (b)(2)(I). Pub. L. 113–66 added subpar. (I).
Statutory Notes and Related Subsidiaries
Effective Date of 2021 Amendment
Amendment by section 1701(d)(11) of Pub. L. 117–81 to take effect immediately after the amendments made by title XVIII of Pub. L. 116–283 have taken effect, see section 1701(a)(3) of Pub. L. 117–81, set out in a note preceding section 3001 of this title and note below.
Amendment by sections 1848(d)(1), (2) and 1883(b)(2) of Pub. L. 116–283 effective Jan. 1, 2022, with additional provisions for delayed implementation and applicability of existing law, see section 1801(d) of Pub. L. 116–283, set out as a note preceding section 3001 of this title.
Similar Provisions
Provisions similar to those in this section were contained in section 805 of Pub. L. 111–84, which was set out as a note under section 2302 of this title prior to repeal by Pub. L. 112–239, div. A, title VIII, §823(b), Jan. 2, 2013, 126 Stat. 1832.
§4325. Major weapon systems: assessment, management, and control of operating and support costs
(a) Guidance Required.—The Secretary of Defense shall issue and maintain guidance on actions to be taken to assess, manage, and control Department of Defense costs for the operation and support of major weapon systems.
(b) Elements.—The guidance required by subsection (a) shall, at a minimum—
(1) be issued in accordance with the requirements of section 118 of this title and 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 each Secretary of a military department to update estimates of operating and support costs periodically throughout the life cycle of a major weapon system, and make necessary adjustments to the life-cycle sustainment plan required by section 4324 of this title to ensure such major weapon system meets applicable operational readiness requirements and materiel readiness objectives (established in accordance with section 118(c) of this title) in the most cost-effective manner practicable;
(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) prior to the Milestone B approval (or equivalent approval) for a major weapon system, require the Secretary concerned to ensure the completion of an intellectual property management plan for product support required under section 4324(b)(1)(D) of this title; and
(10) require each Secretary of a military department to create and retain an independent cost estimate for the remainder of the life cycle of the covered weapon system every five years.
(c) Major Weapon System Defined.—In this section, the term "major weapon system" has the meaning given that term in section 101(a) of this title.
(Added Pub. L. 115–91, div. A, title VIII, §836(a)(1), Dec. 12, 2017, 131 Stat. 1472, §2337a; amended Pub. L. 115–232, div. A, title X, §1081(a)(20), Aug. 13, 2018, 132 Stat. 1984; renumbered §4325 and amended Pub. L. 116–283, div. A, title XVIII, §1848(d)(1), (3), Jan. 1, 2021, 134 Stat. 4258; Pub. L. 119–60, div. A, title VIII, §811(c)(2)(C), title XVIII, §1803(e), Dec. 18, 2025, 139 Stat. 950, 1233.)
Editorial Notes
Amendments
2025—Subsec. (b)(1). Pub. L. 119–60, §1803(e)(1)(A), inserted "in accordance with the requirements of section 118 of this title and" after "be issued".
Subsec. (b)(3). Pub. L. 119–60, §1803(e)(1)(B), amended par. (3) generally. Prior to amendment, par. (3) read as follows: "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;".
Subsec. (b)(9). Pub. L. 119–60, §1803(e)(1)(C), amended par. (9) generally. Prior to amendment, par. (9) read as follows: "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".
Subsec. (b)(10). Pub. L. 119–60, §1803(e)(1)(D), amended par. (10) generally. Prior to amendment, par. (10) read as follows: "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."
Subsec. (c). Pub. L. 119–60, §1803(e)(2), (3), redesignated subsec. (d) as (c) and struck out former subsec. (c) which related to retention of data on operating and support costs.
Subsec. (d). Pub. L. 119–60, §1803(e)(3), redesignated subsec. (d) as (c).
Pub. L. 119–60, §811(c)(2)(C), substituted "section 101(a)" for "section 3455(f)".
2021—Pub. L. 116–283, §1848(d)(3)(B), amended section catchline generally. Prior to amendment, section catchline read as follows: "Assessment, management, and control of operating and support costs for major weapon systems".
Pub. L. 116–283, §1848(d)(1), renumbered section 2337a of this title as this section.
Subsec. (b)(1). Pub. L. 116–283, §1848(d)(3)(A)(i), substituted "section 4324" for "section 2337".
Subsec. (d). Pub. L. 116–283, §1848(d)(3)(A)(ii), substituted "section 3455(f)" for "section 2379(f)".
2018—Subsec. (d). Pub. L. 115–232 substituted "this title" for "title 10, United States Code".
Statutory Notes and Related Subsidiaries
Effective Date of 2021 Amendment
Amendment by Pub. L. 116–283 effective Jan. 1, 2022, with additional provisions for delayed implementation and applicability of existing law, see section 1801(d) of Pub. L. 116–283, set out as a note preceding section 3001 of this title.
Retention of Data on Operating and Support Costs
Pub. L. 119–60, div. A, title XVIII, §1803(f), Dec. 18, 2025, 139 Stat. 1233, provided that:
"(1) In general.—The Director of Cost Assessment and Program Evaluation shall develop and maintain a database on operating and support estimates, supporting documentation, and actual operating and support costs for major weapon systems (as defined in section 101 of title 10, United States Code, as added by section 811 of this Act).
"(2) Support.—The Secretary of Defense shall ensure that the Director, in carrying out the requirements of paragraph (1)—
"(A) promptly receives the results of all cost estimates and cost analyses conducted by each Secretary of a military department with regard to operating and support costs of major weapon systems acquired pursuant to a major defense acquisition program (as defined in section 4201 of title 10, United States Code); and
"(B) has timely access to any records and data of military departments (including classified and proprietary information) that the Director considers necessary to carry out such requirements.
"(3) Coordination.—The Secretary of Defense may direct each Secretary of a military department, with concurrence of the Under Secretary of Defense for Acquisition and Sustainment, to collect and retain information necessary to support the database required in (1)."
Pilot Program on Time-Certain Development in Acquisition of Major Weapon Systems
Pub. L. 109–364, div. A, title VIII, §812, Oct. 17, 2006, 120 Stat. 2317, as amended by Pub. L. 110–417, [div. A], title VIII, §813(d)(3), Oct. 14, 2008, 122 Stat. 4527; Pub. L. 111–84, div. A, title X, §1073(c)(5), Oct. 28, 2009, 123 Stat. 2474; Pub. L. 116–283, div. A, title XVIII, §1806(e)(2)(D), Jan. 1, 2021, 134 Stat. 4155, which authorized a pilot program on the use of time-certain development in the acquisition of major weapon systems in order to deliver new capabilities to warfighters more rapidly, was repealed by Pub. L. 119–60, div. A, title VIII, §811(b)(16)(A), Dec. 18, 2025, 139 Stat. 949.
§4328. Weapon system design: sustainment factors
(a) In General.—The Secretary of Defense shall ensure that the defense acquisition system gives ample emphasis to sustainment factors, particularly those factors that are affected principally by the design of a weapon system, in the development of a weapon system.
(b) Requirements Process.—The Secretary shall ensure that reliability and maintainability are included in the performance attributes of the key performance parameter on sustainment during the development of capabilities requirements.
(c) Solicitation and Award of Contracts.—
(1) Requirement.—The program manager of a weapon system shall include in the solicitation for and terms of a covered contract for the weapon system clearly defined and measurable requirements for engineering activities and design specifications for reliability and maintainability.
(2) Exception.—If the program manager determines that engineering activities and design specifications for reliability or maintainability should not be a requirement in a covered contract or a solicitation for such a contract, the program manager shall document in writing the justification for the decision.
(3) Source selection criteria.—The Secretary shall ensure that sustainment factors, including reliability and maintainability, are given ample emphasis in the process for source selection. The Secretary shall encourage the use of objective reliability and maintainability criteria in the evaluation of competitive proposals.
(d) Contract Performance.—
(1) In general.—The Secretary shall ensure that the Department of Defense uses best practices for responding to the positive or negative performance of a contractor in meeting the sustainment requirements of a covered contract for a weapon system. The Secretary shall encourage the use of incentive fees and penalties as appropriate and authorized in paragraph (2) in all covered contracts for weapons systems.
(2) Authority for incentive fees and penalties.—The Secretary of Defense is authorized to include in any covered contract provisions for the payment of incentive fees to the contractor based on achievement of design specification requirements for reliability and maintainability of weapons systems under the contract, or the imposition of penalties to be paid by the contractor to the Government for failure to achieve such design specification requirements. Information about such fees or penalties shall be included in the solicitation for any covered contract that includes such fees or penalties.
(3) Measurement of reliability and maintainability.—In carrying out paragraph (2), the program manager shall base determinations of a contractor's performance on reliability and maintainability data collected during the program. Such data collection and associated evaluation metrics shall be described in detail in the covered contract. To the maximum extent practicable, such data shall be shared with appropriate contractor and government organizations.
(4) Notification.—The Secretary of Defense shall notify the congressional defense committees upon entering into a covered contract that includes incentive fees or penalties authorized in paragraph (2).
(e) Covered Contract Defined.—In this section, the term "covered contract", with respect to a weapon system, means a contract—
(1) for the engineering and manufacturing development of a weapon system, including embedded software; or
(2) for the production of a weapon system, including embedded software.
(Added Pub. L. 115–91, div. A, title VIII, §834(a)(1), Dec. 12, 2017, 131 Stat. 1469, §2443; renumbered §4328 and amended Pub. L. 116–283, div. A, title XVIII, §1848(e), Jan. 1, 2021, 134 Stat. 4259.)
Editorial Notes
Prior Provisions
Prior sections 4331 to 4338 were renumbered sections 7431 to 7438 of this title, respectively.
A prior section 4339, act Aug. 10, 1956, ch. 1041, 70A Stat. 240, authorized public quarters and fuel and light therefor for the organist and choirmaster of the Academy and for civilian instructors in the departments of foreign languages and tactics, prior to repeal by Pub. L. 89–716, §1, Nov. 2, 1966, 80 Stat. 1114.
Prior sections 4340 to 4343 were renumbered sections 7440 to 7443 of this title, respectively.
Prior sections 4344 to 4345a were repealed by Pub. L. 114–328, div. A, title XII, §1248(b)(1), Dec. 23, 2016, 130 Stat. 2525.
Section 4344, act Aug. 10, 1956, ch. 1041, 70A Stat. 242; Pub. L. 98–94, title X, §1004(a)(1), Sept. 24, 1983, 97 Stat. 657; Pub. L. 105–85, div. A, title V, §543(a), Nov. 18, 1997, 111 Stat. 1743; Pub. L. 106–65, div. A, title V, §534(a), Oct. 5, 1999, 113 Stat. 605; Pub. L. 106–398, §1 [[div. A], title V, §532(a)], Oct. 30, 2000, 114 Stat. 1654, 1654A-110; Pub. L. 107–107, div. A, title V, §533(a)(1), (2), Dec. 28, 2001, 115 Stat. 1105, related to selection of persons from foreign countries to receive instruction at the United States Military Academy. See section 347 of this title.
Section 4345, added Pub. L. 105–85, div. A, title V, §542(a)(1), Nov. 18, 1997, 111 Stat. 1740; amended Pub. L. 106–65, div. A, title V, §535(a), Oct. 5, 1999, 113 Stat. 605; Pub. L. 109–364, div. A, title V, §531(a), Oct. 17, 2006, 120 Stat. 2198, related to an exchange program with foreign military academies.
A prior section 4345, act Aug. 10, 1956, ch. 1041, 70A Stat. 242, related to selection of Filipinos for instruction at the Military Academy, prior to repeal by Pub. L. 98–94, title X, §1004(a)(2), (d), Sept. 24, 1983, 97 Stat. 658, 660, effective one year after Sept. 24, 1983.
Section 4345a, added Pub. L. 110–417, [div. A], title V, §541(a)(1), Oct. 14, 2008, 122 Stat. 4454; amended Pub. L. 113–291, div. A, title V, §553(a), Dec. 19, 2014, 128 Stat. 3377, related to foreign and cultural exchange activities.
Prior sections 4346 to 4349 were renumbered sections 7446 to 7449 of this title, respectively.
Amendments
2021—Pub. L. 116–283, §1848(e)(2), amended section catchline generally. Prior to amendment, section catchline read as follows: "Sustainment factors in weapon system design".
Pub. L. 116–283, §1848(e)(1), renumbered section 2443 of this title as this section. Section was inserted after section 4325 of this title to reflect the probable intent of Congress, notwithstanding directory language inserting it after section "4235".
Statutory Notes and Related Subsidiaries
Effective Date of 2021 Amendment
Amendment by Pub. L. 116–283 effective Jan. 1, 2022, with additional provisions for delayed implementation and applicability of existing law, see section 1801(d) of Pub. L. 116–283, set out as a note preceding section 3001 of this title.
Effective Date
Pub. L. 115–91, div. A, title VIII, §834(b), Dec. 12, 2017, 131 Stat. 1470, provided that: "Subsections (c) and (d) of section 2443 of title 10, United States Code [now 10 U.S.C. 4328], as added by subsection (a), shall apply with respect to any covered contract (as defined in that section) for which the contract solicitation is issued on or after the date occurring one year after the date of the enactment of this Act [Dec. 12, 2017]."
Implementation of Recommendations of the Independent Study on Consideration of Sustainment in Weapons Systems Life Cycle
Pub. L. 115–232, div. A, title VIII, §832, Aug. 13, 2018, 132 Stat. 1857, provided that:
"(a) Implementation Required.—Not later than 18 months after the date of the enactment of this Act [Aug. 13, 2018], the Secretary of Defense shall, except as provided under subsection (b), commence implementation of each recommendation submitted as part of the independent assessment produced under section 844 of the National Defense Authorization Act for Fiscal Year 2017 (Public Law 114–328; 130 Stat. 2290).
"(b) Exceptions.—
"(1) Delayed implementation.—The Secretary of Defense may commence implementation of a recommendation described under subsection (a) later than the date required under such subsection if the Secretary provides the congressional defense committees [Committees on Armed Services and Appropriations of the Senate and the House of Representatives] with a specific justification for the delay in implementation of such recommendation.
"(2) Nonimplementation.—The Secretary of Defense may opt not to implement a recommendation described under subsection (a) if the Secretary provides to the congressional defense committees—
"(A) the reasons for the decision not to implement the recommendation; and
"(B) a summary of the alternative actions the Secretary plans to take to address the purposes underlying the recommendation.
"(c) Implementation Plans.—For each recommendation that the Secretary is implementing, or that the Secretary plans to implement, the Secretary shall submit to the congressional defense committees—
"(1) a summary of actions that have been taken to implement the recommendation; and
"(2) a schedule, with specific milestones, for completing the implementation of the recommendation."
Engineering Change Authorized
Pub. L. 115–91, div. A, title VIII, §834(c), Dec. 12, 2017, 131 Stat. 1470, provided that: "Subject to the availability of appropriations, the Secretary of Defense may fund engineering changes to the design of a weapon system in the engineering and manufacturing development phase or in the production phase of an acquisition program to improve reliability or maintainability of the weapon system and reduce projected operating and support costs."