Collapse to view only § 4211. Acquisition strategy
- § 4211. Acquisition strategy
- § 4212. Risk management and mitigation in major defense acquisition programs and major systems
- § 4214. Baseline description
§ 4211. Acquisition strategy
(a)Acquisition Strategy Required.—There shall be an acquisition strategy for each major defense acquisition program, each major automated information system, and each major system approved by a milestone decision authority.
(b)Responsible Official.—For each acquisition strategy required by subsection (a), the Under Secretary of Defense for Acquisition and Sustainment, or the milestone decision authority, when the milestone decision authority is the service acquisition executive of the military department that is managing the program, is responsible for issuing and maintaining the requirements for—
(1) the span of the strategy; and
(2) the review and approval process for the strategy.
(c)Considerations.—
(1) In issuing requirements for the span of an acquisition strategy for a major defense acquisition program, major automated information system, or major system, the Under Secretary, or the milestone decision authority, when the milestone decision authority is the service acquisition executive of the military department that is managing the program, shall ensure that—
(A) the strategy clearly describes the proposed top-level business and technical management approach for the program or system, in sufficient detail to allow the milestone decision authority to assess the viability of the proposed approach, the method of implementing laws and policies, and program objectives;
(B) the strategy contains a clear explanation of how the strategy is designed to be implemented with available resources, such as time, funding, and management capacity;
(C) the strategy is tailored to address program requirements and constraints; and
(D) the strategy considers the items listed in paragraph (2).
(2) Each strategy shall, where appropriate, consider the following:
(A) An approach that delivers required capability in increments, each depending on available mature technology, and that recognizes up front the need for future capability improvements.
(B) Acquisition approach, including industrial base considerations in accordance with section 4820 of this title.
(C) Risk management, including such methods as competitive prototyping at the system, subsystem, or component level.
(D) Business strategy, including measures to ensure competition at the system and subsystem level throughout the life-cycle of the program or system in accordance with section 4324 of this title.
(E) Contracting strategy, including—
(i) contract type and how the type selected relates to level of program risk in each acquisition phase;
(ii) how the plans for the program or system to reduce risk enable the use of fixed-price elements in subsequent contracts and the timing of the use of those fixed price elements;
(iii) market research; and
(iv) consideration of small business participation.
(F) Intellectual property strategy in accordance with sections 3771 through 3775 of this title.
(G) International involvement, including foreign military sales and cooperative opportunities, in accordance with section 2350a of this title.
(H) Multiyear procurement in accordance with sections 3501 through 3511 1
1 See References in Text note below.
of this title.(I) Integration of current intelligence assessments into the acquisition process.
(J) Requirements related to logistics, maintenance, and sustainment in accordance with sections 2464 and 2466 of this title.
(d)Review.—
(1) The milestone decision authority shall review and approve, as appropriate, the acquisition strategy for a major defense acquisition program, major automated information system, or major system at each of the following times:
(A) Milestone A approval.
(B) The decision to release the request for proposals for development of the program or system.
(C) Milestone B approval.
(D) Each subsequent milestone.
(E) Review of any decision to enter into full-rate production.
(F) When there has been—
(i) a significant change to the cost of the program or system;
(ii) a critical change to the cost of the program or system;
(iii) a significant change to the schedule of the program or system; or
(iv) a significant change to the performance of the program or system.
(G) Any other time considered relevant by the milestone decision authority.
(2) If the milestone decision authority revises an acquisition strategy for a program or system because of a change described in paragraph (1)(F), the milestone decision authority shall provide notice of the revision to the congressional defense committees.
(e)Definitions.—In this section:
(1) The term “Milestone A approval” means a decision to enter into technology maturation and risk reduction pursuant to guidance prescribed by the Secretary of Defense for the management of Department of Defense acquisition programs.
(2) The term “Milestone B approval” has the meaning provided in section 4172(e)(7) of this title.
(3) The term “milestone decision authority”, with respect to a major defense acquisition program, major automated information system, or major system, means the official within the Department of Defense designated with the overall responsibility and authority for acquisition decisions for the program or system, including authority to approve entry of the program or system into the next phase of the acquisition process.
(4) The term “management capacity”, with respect to a major defense acquisition program, major automated information system, or major system, means the capacity to manage the program or system through the use of highly qualified organizations and personnel with appropriate experience, knowledge, and skills.
(5) The term “significant change to the cost”, with respect to a major defense acquisition program or major system, means a significant cost growth threshold, as that term is defined in section 4371(a)(2) of this title.
(6) The term “critical change to the cost”, with respect to a major defense acquisition program or major system, means a critical cost growth threshold, as that term is defined in section 4371(a)(3) of this title.
(7) The term “significant change to the schedule”, with respect to a major defense acquisition program, major automated information system, or major system, means any schedule delay greater than six months in a reported event.
(Added Pub. L. 114–92, div. A, title VIII, § 821(a)(1), Nov. 25, 2015, 129 Stat. 897, § 2431a; amended Pub. L. 114–328, div. A, title VIII, § 848, Dec. 23, 2016, 130 Stat. 2292; Pub. L. 115–91, div. A, title X, § 1081(a)(39), Dec. 12, 2017, 131 Stat. 1596; Pub. L. 116–92, div. A, title IX, § 902(70), Dec. 20, 2019, 133 Stat. 1551; renumbered § 4211 and amended Pub. L. 116–283, div. A, title XVIII, § 1847(b)(1), (2), Jan. 1, 2021, 134 Stat. 4253; Pub. L. 117–81, div. A, title XVII, § 1701(s)(1), Dec. 27, 2021, 135 Stat. 2149.)
§ 4212. Risk management and mitigation in major defense acquisition programs and major systems
(a)Requirement.—The Secretary of Defense shall ensure that the initial acquisition strategy (required under section 4211 of this title) approved by the milestone decision authority and any subsequent revisions include the following:
(1) A comprehensive approach for managing and mitigating risk (including technical, cost, and schedule risk) during each of the following periods or when determined appropriate by the milestone decision authority:
(A) The period preceding engineering manufacturing development, or its equivalent.
(B) The period preceding initial production.
(C) The period preceding full-rate production.
(2) An identification of the major sources of risk in each of the periods listed in paragraph (1) to improve programmatic decisionmaking and appropriately minimize and manage program concurrency.
(b)Approach to Manage and Mitigate Risks.—The comprehensive approach to manage and mitigate risk included in the acquisition strategy for purposes of subsection (a)(1) shall, at a minimum, include consideration of risk mitigation techniques such as the following:
(1) Prototyping (including prototyping at the system, subsystem, or component level and competitive prototyping, where appropriate) and, if prototyping at either the system, subsystem, or component level is not used, an explanation of why it is not appropriate.
(2) Modeling and simulation, the areas that modeling and simulation will assess, and identification of the need for development of any new modeling and simulation tools in order to support the comprehensive strategy.
(3) Technology demonstrations and decision points for disciplined transition of planned technologies into programs or the selection of alternative technologies.
(4) Multiple design approaches.
(5) Alternative designs, including any designs that meet requirements but do so with reduced performance.
(6) Phasing of program activities or related technology development efforts in order to address high-risk areas as early as feasible.
(7) Manufacturability and industrial base availability.
(8) Independent risk element assessments by outside subject matter experts.
(9) Schedule and funding margins for identified risks.
(c)Preference for Prototyping.—To the maximum extent practicable and consistent with the economical use of available financial resources, the milestone decision authority for each major defense acquisition program shall ensure that the acquisition strategy for the program provides for—
(1) the production of competitive prototypes at the system or subsystem level before Milestone B approval; or
(2) if the production of competitive prototypes is not practicable, the production of single prototypes at the system or subsystem level.
(d)Concurrency Defined.—In this section, the term “concurrency” means, with respect to an acquisition strategy, the combination or overlap of program phases or activities.
(Added Pub. L. 114–92, div. A, title VIII, § 822(a)(1), Nov. 25, 2015, 129 Stat. 900, § 2431b; amended Pub. L. 114–328, div. A, title X, § 1081(a)(7), Dec. 23, 2016, 130 Stat. 2417; renumbered § 4212 and amended Pub. L. 116–283, div. A, title XVIII, § 1847(b)(3), Jan. 1, 2021, 134 Stat. 4254.)
§ 4214. Baseline description
(a)Baseline Description Requirement.—
(1) The Secretary of a military department shall establish a baseline description for each major defense acquisition program and for each designated major subprogram under the program under the jurisdiction of such Secretary.
(2) The baseline shall include sufficient parameters to describe the cost estimate (referred to as the “Baseline Estimate” in sections 4371 through 4375 of this title), schedule, performance, supportability, and any other factor of such major defense acquisition program or designated major subprogram.
(b)Funding Limit.—No amount appropriated or otherwise made available to the Department of Defense for carrying out a major defense acquisition program or any designated major subprogram under the program may be obligated after the program or subprogram enters system development and demonstration without an approved baseline description unless such obligation is specifically approved by the Under Secretary of Defense for Acquisition and Sustainment.
(c)Schedule.—A baseline description for a major defense acquisition program or any designated major subprogram under the program shall be prepared under this section—
(1) before the program or subprogram enters system development and demonstration;
(2) before the program or subprogram enters production and deployment; and
(3) before the program or subprogram enters full rate production.
(d)Original Baseline Estimate.—
(1) In this subpart, the term “original Baseline Estimate”, with respect to a major defense acquisition program or any designated major subprogram under the program, means the baseline description established with respect to the program or subprogram under subsection (a) prepared before the program or subprogram enters system development and demonstration, or at program or subprogram initiation, whichever occurs later, without adjustment or revision (except as provided in paragraph (2)).
(2) An adjustment or revision of the original baseline description of a major defense acquisition program or any designated major subprogram under the program may be treated as the original Baseline Estimate for the program or subprogram for purposes of this chapter only if the percentage increase in the program acquisition unit cost or procurement unit cost under such adjustment or revision exceeds the critical cost growth threshold for the program or subprogram under sections 4371 through 4375 of this title, as determined by the Secretary of the military department concerned under section 4374 of this title.
(3) In the event of an adjustment or revision of the original baseline description of a major defense acquisition program or any designated major subprogram under the program, the Secretary of Defense shall include in the next Selected Acquisition Report to be submitted under section 4351 of this title after such adjustment or revision a notification to the congressional defense committees of such adjustment or revision, together with the reasons for such adjustment or revision.
(e)Regulations.—The Secretary of Defense shall prescribe regulations governing the following:
(1) The span of baseline descriptions under this section.
(2) The submission to the Secretary of the military department concerned and the Under Secretary of Defense for Acquisition and Sustainment by the program manager for a program for which there is an approved baseline description (or in the case of a major defense acquisition program with one or more designated major subprograms, approved baseline descriptions for such subprograms) under this section of reports of deviations from any such baseline description of the cost, schedule, performance, supportability, or any other factor of the program or subprogram.
(3) Procedures for review of such deviation reports within the Department of Defense.
(4) Procedures for submission to, and approval by, the Secretary of Defense of revised baseline descriptions.
(Added Pub. L. 99–500, § 101(c) [title X, § 904(a)(1)], Oct. 18, 1986, 100 Stat. 1783–82, 1783–133, and Pub. L. 99–591, § 101(c) [title X, § 904(a)(1)], Oct. 30, 1986, 100 Stat. 3341–82, 3341–133, § 2435; Pub. L. 99–661, div. A, title IX, formerly title IV, § 904(a)(1), Nov. 14, 1986, 100 Stat. 3912, renumbered title IX, Pub. L. 100–26, § 3(5), Apr. 21, 1987, 101 Stat. 273; amended Pub. L. 100–26, § 7(b)(6), Apr. 21, 1987, 101 Stat. 280; Pub. L. 100–180, div. A, title VIII, § 803(a), Dec. 4, 1987, 101 Stat. 1125; Pub. L. 100–370, § 1(i)(1), July 19, 1988, 102 Stat. 848; Pub. L. 100–456, div. A, title XII, § 1233(l)(4), Sept. 29, 1988, 102 Stat. 2058; Pub. L. 101–189, div. A, title VIII, § 811(b), Nov. 29, 1989, 103 Stat. 1493; Pub. L. 101–510, div. A, title XII, § 1207(b), title XIV, § 1484(k)(11), Nov. 5, 1990, 104 Stat. 1665, 1719; Pub. L. 103–160, div. A, title IX, § 904(d)(1), Nov. 30, 1993, 107 Stat. 1728; Pub. L. 103–355, title III, § 3005(a), Oct. 13, 1994, 108 Stat. 3330; Pub. L. 107–107, div. A, title VIII, § 821(d), title X, § 1048(b)(2), Dec. 28, 2001, 115 Stat. 1182, 1225; Pub. L. 109–163, div. A, title VIII, § 802(d)(1), Jan. 6, 2006, 119 Stat. 3369; Pub. L. 109–364, div. A, title VIII, § 806, Oct. 17, 2006, 120 Stat. 2315; Pub. L. 110–417, [div. A], title VIII, § 811(d), Oct. 14, 2008, 122 Stat. 4524; Pub. L. 116–92, div. A, title IX, § 902(71), Dec. 20, 2019, 133 Stat. 1551; renumbered § 4214 and amended Pub. L. 116–283, div. A, title XVIII, § 1847(b)(4), Jan. 1, 2021, 134 Stat. 4254; Pub. L. 117–81, div. A, title XVII, § 1701(o)(6)(C)(i), Dec. 27, 2021, 135 Stat. 2147.)