- § 4231. Major systems: determination of quantity for low-rate initial production
- § 4232. Prohibition on use of lowest price technically acceptable source selection process
- § 4236. Negotiation of price for technical data before development, production, or sustainment of major weapon systems
§ 4231. Major systems: determination of quantity for low-rate initial production
(a)Determination of Quantities To Be Procured for Low-Rate Initial Production.—
(1) In the course of the development of a major system, the determination of what quantity of articles of that system should be procured for low-rate initial production (including the quantity to be procured for preproduction verification articles) shall be made—
(A) when the milestone B decision with respect to that system is made; and
(B) by the official of the Department of Defense who makes that decision.
(2) In this section, the term “milestone B decision” means the decision to approve the system development and demonstration of a major system by the official of the Department of Defense designated to have the authority to make that decision.
(3) Any increase from a quantity determined under paragraph (1) may only be made with the approval of the official making the determination.
(4) The quantity of articles of a major system that may be procured for low-rate initial production may not be less than one operationally configured production unit unless another quantity is established at the milestone B decision.
(5) The Secretary of Defense shall include a statement of the quantity determined under paragraph (1) in the first SAR submitted with respect to the program concerned after that quantity is determined. If the quantity exceeds 10 percent of the total number of articles to be produced, as determined at the milestone B decision with respect to that system, the Secretary shall include in the statement the reasons for such quantity. For purposes of this paragraph, the term “SAR” means a Selected Acquisition Report submitted under section 4351 of this title.
(b)Low-Rate Initial Production of Weapon Systems.—Except as provided in subsection (c), low-rate initial production with respect to a new system is production of the system in the minimum quantity necessary—
(1) to provide production-configured or representative articles for operational tests pursuant to section 4171 of this title;
(2) to establish an initial production base for the system; and
(3) to permit an orderly increase in the production rate for the system sufficient to lead to full-rate production upon the successful completion of operational testing.
(c)Low-Rate Initial Production of Naval Vessel and Satellite Programs.—With respect to naval vessel programs and military satellite programs, low-rate initial production is production of items at the minimum quantity and rate that (1) preserves the mobilization production base for that system, and (2) is feasible, as determined pursuant to regulations prescribed by the Secretary of Defense.
(Added Pub. L. 101–189, div. A, title VIII, § 803(a), Nov. 29, 1989, 103 Stat. 1487, § 2400; amended Pub. L. 103–355, title III, § 3015, Oct. 13, 1994, 108 Stat. 3332; Pub. L. 104–106, div. A, title X, § 1062(d), div. D, title XLIII, § 4321(b)(13), Feb. 10, 1996, 110 Stat. 444, 673; Pub. L. 107–107, div. A, title VIII, § 821(c), Dec. 28, 2001, 115 Stat. 1182; renumbered § 4231 and amended Pub. L. 116–283, div. A, title XVIII, § 1847(c)(1), Jan. 1, 2021, 134 Stat. 4254; Pub. L. 117–81, div. A, title XVII, § 1701(o)(6)(C)(ii), Dec. 27, 2021, 135 Stat. 2147.)
§ 4232. Prohibition on use of lowest price technically acceptable source selection process
(a)In General.—The Department of Defense shall not use a lowest price technically acceptable source selection process for the engineering and manufacturing development contract of a major defense acquisition program.
(b)Definitions.—In this section:
(1)Lowest price technically acceptable source selection process.—The term “lowest price technically acceptable source selection process” has the meaning given that term in part 15 of the Federal Acquisition Regulation.
(2)Engineering and manufacturing development contract.—The term “engineering and manufacturing development contract” means a prime contract for the engineering and manufacturing development of a major defense acquisition program.
(Added Pub. L. 115–91, div. A, title VIII, § 832(a)(1), Dec. 12, 2017, 131 Stat. 1468, § 2442; renumbered § 4232 and amended Pub. L. 116–283, div. A, title XVIII, § 1847(c)(2), Jan. 1, 2021, 134 Stat. 4254.)
§ 4236. Negotiation of price for technical data before development, production, or sustainment of major weapon systems
The Secretary of Defense shall ensure, to the maximum extent practicable, that the Department of Defense, before selecting a contractor for the engineering and manufacturing development of a major weapon system, production of a major weapon system, or sustainment of a major weapon system, negotiates a price for technical data to be delivered under a contract for such development, production, or sustainment.
(Added Pub. L. 115–91, div. A, title VIII, § 835(a)(1), Dec. 12, 2017, 131 Stat. 1471, § 2439; amended Pub. L. 115–232, div. A, title VIII, § 867, Aug. 13, 2018, 132 Stat. 1901; renumbered § 4236, Pub. L. 116–283, div. A, title XVIII, § 1847(c)(3), Jan. 1, 2021, 134 Stat. 4254.)