CHAPTER 322 - MAJOR SYSTEMS AND MAJOR DEFENSE ACQUISITION PROGRAMS GENERALLY
Title 10 > CHAPTER 322
Sections (15)
§ 4211 Acquisition strategy
(a) Acquisition Strategy Required.— There shall be an acquisition strategy for each major defense acquisition program and each major system approved by a decision authority.
(b) Responsible Official.— For each acquisition strategy required by subsection (a), the Under Secretary of Defense for Acquisition and Sustainment, or the decision authority, when the 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— the content of the strategy; and the review and approval process for the strategy.
(c) Considerations.— In issuing requirements for the content of an acquisition strategy for a major defense acquisition program or major system, the Under Secretary, or the decision authority, when the decision authority is the service acquisition executive of the military department that is managing the program, shall ensure that— the strategy clearly describes the proposed business case and capability management approach for the program or system, and to the maximum extent practicable, describes how capability requirements will be met through delivery of such program or system; the strategy contains a clear explanation of the resources, such as time, funding, and management capacity, necessary to meet capability requirements; the strategy is tailored to address program requirements and constraints; and the strategy considers the items listed in paragraph (2). Each strategy shall, where appropriate, consider the following: An approach that delivers required capabilities in increments, each depending on available mature technology, and that recognizes up front the need for future capability improvements or transitions to alternative end items through use of continuous competition. Requirements related to logistics, maintenance, and sustainment in accordance with sections 2464 and 2466 of this title, and the acquisition of technical data, computer software, and associated licenses, to enable such requirements in accordance with sections 3771 through 3775 of this title. A process for collaborative interaction and market research with the science and technology community, including Department of Defense science and technology reinvention laboratories, government innovation cells, academia, small businesses, nontraditional defense contractors, and other contractors. Identification of enterprise-wide designs and standards in support of an architecture that provides for an integrated suite of capabilities that focuses on simplicity of implementation and speed of delivery. Overarching roadmaps that create integrated strategic schedules of legacy systems and new capabilities. A contracting strategy that develops long-term partnerships with multiple companies to actively contribute to architectures, development, production, and sustainment across the capabilities to be developed by decomposing large systems into smaller sets of projects across time and technical component. An assignment of roles and responsibilities of key personnel of the acquisition workforce, identification of external stakeholder dependencies, and the need for subject matter expert inputs at critical points in the program, including the need for special hiring authority or advisory and assistance services, in order to deliver the desired capabilities. A process of testing and experimentation with the test community and end users to ensure continuous user feedback, acceptance, and development of concepts of operations.
(d) Review.— The decision authority shall review and approve, as appropriate, the acquisition strategy for a major defense acquisition program or major system prior to the acquisition decision memorandum and ensure that the strategy is updated at regular intervals to incorporate significant changes to program requirements, resourcing, or acquisition decisions.
(e) Decision Authority Defined.— In this section, the term “decision authority”, with respect to a major defense acquisition program 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.
§ 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: 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: The period preceding engineering manufacturing development, or its equivalent. The period preceding initial production. The period preceding full-rate production. 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: 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. 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. Technology demonstrations and decision points for disciplined transition of planned technologies into programs or the selection of alternative technologies. Multiple design approaches. Alternative designs, including any designs that meet requirements but do so with reduced performance. Phasing of program activities or related technology development efforts in order to address high-risk areas as early as feasible. Manufacturability and industrial base availability. Independent risk element assessments by outside subject matter experts. 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— the production of competitive prototypes at the system or subsystem level before Milestone B approval; or 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.
§ 4214 Baseline description
(a) Baseline Description Requirement.— 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. 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— before the program or subprogram enters system development and demonstration; before the program or subprogram enters production and deployment; and before the program or subprogram enters full rate production.
(d) Original Baseline Estimate.— 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)). 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 . 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: The content of baseline descriptions under this section. 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. Procedures for review of such deviation reports within the Department of Defense. Procedures for submission to, and approval by, the Secretary of Defense of revised baseline descriptions.
§ 4231 Major systems: determination of quantity for low-rate initial production
(a) Determination of Quantities To Be Procured for Low-Rate Initial Production.— 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— when the milestone B decision with respect to that system is made; and by the official of the Department of Defense who makes that decision. 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. Any increase from a quantity determined under paragraph (1) may only be made with the approval of the official making the determination. 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. 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— to provide production-configured or representative articles for operational tests pursuant to section 4171 of this title ; to establish an initial production base for the system; and 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.
§ 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: The term “lowest price technically acceptable source selection process” has the meaning given that term in part 15 of the Federal Acquisition Regulation. The term “engineering and manufacturing development contract” means a prime contract for the engineering and manufacturing development of a major defense acquisition program.
§ 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 .)
§ 4251 Major defense acquisition programs: factors to be considered before Milestone A approval
(a) Responsibilities.— Before granting Milestone A approval for a major defense acquisition program or a major subprogram, the milestone decision authority for the program or subprogram shall ensure that— information about the program or subprogram is sufficient to warrant entry of the program or subprogram into the risk reduction phase; the cost, schedule, technical feasibility, and performance trade-offs that have been made with regard to the program do not overly constrain future trade space; and there are sound plans for progression of the program or subprogram to the development phase.
(b) Factors to Be Considered for Milestone a Approval.— A major defense acquisition program or subprogram may not receive Milestone A approval or otherwise be initiated prior to Milestone B approval until the milestone decision authority confirms that the following factors were considered in the decision to grant Milestone A approval: The program or subprogram fulfills an approved requirements document. The program or subprogram has conducted appropriate market research. With respect to any identified areas of risk, there is a plan to reduce the risk. Planning for sustainment has been addressed. An analysis of alternatives has been performed consistent with study guidance developed by the Director of Cost Assessment and Program Evaluation, or in lieu of an analysis of alternatives, early experimentation with a combatant commander has been conducted. A life cycle cost estimate for the program or subprogram has been submitted by the component and that the level of resources required to complete the technology maturation and risk reduction phase of the program is sufficient for successful program execution. The program or subprogram meets any other considerations the milestone decision authority considers relevant.
(c) Written Record of a Milestone Decision.— The milestone decision authority shall issue a written record of a milestone decision at the time that Milestone A approval is granted. The record shall confirm compliance with subsection (b) and specifically state that the milestone decision authority considered the factors described in such subsection prior to the decision to grant milestone approval. The milestone decision authority shall retain records of the basis for the milestone decision.
(d) Submissions to Congress on Milestone A.— Not later than 15 days after granting Milestone A approval for a major defense acquisition program, the milestone decision authority for the program shall provide to the congressional defense committees and, in the case of intelligence or intelligence-related activities, the congressional intelligence committees a written record of the milestone decision. At the request of any of the congressional defense committees or, in the case of intelligence or intelligence-related activities, the congressional intelligence committees, the milestone decision authority shall submit to the committee an explanation of the basis for the decision to grant Milestone A approval with respect to a major defense acquisition program or major subprogram, and make available all underlying documentation.
(e) Definitions.— In this section: The term “requirements document” means any capabilities requirement document that establishes the need for a materiel approach to resolve a capability gap. 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. The term “Milestone B approval” has the meaning provided that term in section 4172(e)(7) of this title . The term “milestone decision authority”, with respect to a major defense acquisition program or a major subprogram, means the official within the Department of Defense designated with the overall responsibility and authority for acquisition decisions for the program or subprogram, including authority to approve entry of the program or subprogram into the next phase of the acquisition process. The term “congressional intelligence committees” has the meaning given that term in section 437(c) of this title .
§ 4252 Major defense acquisition programs: factors to be considered before Milestone B approval
(a) Responsibilities.— Before granting Milestone B approval for a major defense acquisition program or major subprogram, the milestone decision authority for the program or subprogram shall ensure that— information about the program or subprogram is sufficient to warrant entry of the program or subprogram into the engineering and manufacturing development phase; appropriate trade-offs among cost, schedule, technical feasibility, and performance objectives have been made to ensure that the program or subprogram is affordable when considering the per-unit cost and the total life-cycle cost, and the Secretary of the military department concerned and the Chief of the armed force concerned concur with these trade-offs; and there are sound plans for progression of the program or subprogram to the production phase.
(b) Factors to Be Considered for Milestone B Approval.— A major defense acquisition program or major subprogram may not receive Milestone B approval until the milestone decision authority confirms the following factors were considered in the decision to grant Milestone B approval: The program or subprogram has received a preliminary design review and a formal post-preliminary design review or an equivalent assessment was conducted. The technology in the program or subprogram has been demonstrated in a relevant environment. The program or subprogram is affordable when considering the ability of the Department of Defense to accomplish the program’s or subprogram’s general mission using alternative systems. Reasonable lifecycle cost and schedule estimates have been developed to execute, with the concurrence of the Director of Cost Assessment and Program Evaluation, the plan under the program or subprogram. The estimated procurement unit cost for the program or subprogram and the estimated date for initial operational capability for the baseline description for the program or subprogram (under section 4214 of this title ) have been established. Funding is expected to be available to execute the product development and production plan for the program or subprogram, consistent with the estimates described in paragraph (4) for the program or subprogram. Appropriate market research has been conducted prior to technology development, including market research of commercial products, commercial services, and nondevelopmental items (as defined in section 110 of title 41 ). The Department of Defense has completed an analysis of alternatives with respect to the program or subprogram, or in lieu of an analysis of alternatives, early experimentation with a combatant commander has been conducted. Life-cycle sustainment planning has identified and evaluated relevant sustainment cost elements, factors, risks, and gaps that are likely to drive readiness of the system as well as operating and supporting costs. An estimate has been made of the requirements for core logistics capabilities and the associated sustaining workloads required to support such requirements. The program or subprogram complies with all relevant policies, regulations, and directives of the Department of Defense. Appropriate actions are planned for the acquisition of technical data required to support the program or subprogram. The program or subprogram has an approved life cycle sustainment plan required under section 4324(b) of this title . In the case of a naval vessel program or subprogram, such program or subprogram is in compliance with the requirements of section 8669b of this title .
(c) Written Record of Milestone Decision.— The milestone decision authority shall issue a written record of decision at the time that Milestone B approval is granted. The record shall confirm compliance with subsection (b) and specifically state that the milestone decision authority considered the factors described in subsection (b) prior to the decision to grant milestone approval. The milestone decision authority shall retain records of the basis for the milestone decision.
(d) Changes to Basis for Milestone Approval.— The program manager for a major defense acquisition program that has received a written record of the milestone decision under subsection (c) shall immediately notify the milestone decision authority of any changes to the program or a designated major subprogram of such program that— alter the substantive basis for the decision of the milestone decision authority relating to any component of such decision specified in subsection (b); or otherwise cause the program or subprogram to deviate significantly from the material provided to the milestone decision authority in support of such decision. Upon receipt of information under paragraph (1), the milestone decision authority may rescind Milestone B approval if the milestone decision authority determines that such approval is no longer valid.
(e) Submissions to Congress on Milestone B.— Not later than 15 days after granting Milestone B approval for a major defense acquisition program or major subprogram, the milestone decision authority for the program or subprogram shall provide to the congressional defense committees and, in the case of intelligence or intelligence-related activities, the congressional intelligence committees a written record of the milestone decision. At the request of any of the congressional defense committees or, in the case of intelligence or intelligence-related activities, the congressional intelligence committees, the milestone decision authority shall submit to the committee an explanation of the basis for the decision to grant Milestone B approval with respect to a major defense acquisition program or major subprogram, or further information or underlying documentation. The explanation or additional information shall be submitted in unclassified form, but may include a classified annex.
(f) Definitions.— In this section: The term “milestone decision authority”, with respect to a major defense acquisition program, means the official within the Department of Defense designated with the overall responsibility and authority for acquisition decisions for the program, including authority to approve entry of the program into the next phase of the acquisition process. The term “Milestone B approval” has the meaning provided that term in section 4172(e)(7) of this title . The term “core logistics capabilities” means the core logistics capabilities identified under section 2464(a) of this title . The term “congressional intelligence committees” has the meaning given that term in section 437(c) of this title . The term “written record of milestone decision”, with respect to a major defense acquisition program or a major subprogram, means a document signed by the milestone decision authority that formalizes approved entry of the program or subprogram into the next phase of the acquisition process.
§ 4253 Major defense acquisition programs: submissions to Congress on Milestone C
(a) Brief Summary Report.— Not later than 15 days after granting Milestone C approval for a major defense acquisition program, the milestone decision authority for the program shall provide to the congressional defense committees and, in the case of intelligence or intelligence-related activities, the congressional intelligence committees a brief summary report that contains the following: The estimated cost and schedule for the program established by the military department concerned, including— the dollar values estimated for the program acquisition unit cost, average procurement unit cost, and total life-cycle cost; and the planned dates for initial operational test and evaluation and initial operational capability. The independent estimated cost for the program established pursuant to section 3221(b)(6) of this title , and any independent estimated schedule for the program, including— the dollar values estimated for the program acquisition unit cost, average procurement unit cost, and total life-cycle cost; and the planned dates for initial operational test and evaluation and initial operational capability. A summary of any production, manufacturing, and fielding risks associated with the program. An assessment of the sufficiency of the developmental test and evaluation completed, including the use of automated data analytics or modeling and simulation tools and methodologies.
(b) Additional Information.— At the request of any of the congressional defense committees or, in the case of intelligence or intelligence-related activities, the congressional intelligence committees, the milestone decision authority shall submit to the committee further information or underlying documentation for the information in a brief summary report submitted under subsection (a), including the independent cost and schedule estimates and the independent technical risk assessments referred to in that subsection.
(c) Congressional Intelligence Committees Defined.— In this section, the term “congressional intelligence committees” has the meaning given that term in section 437(c) of this title .
§ 4271 Program cost, fielding, and performance goals in planning major defense acquisition programs
(a) Program Cost and Fielding Targets.— Before funds are obligated for technology development, systems development, or production of a major defense acquisition program, the designated milestone decision authority for the program shall ensure, by establishing the goals described in paragraph (2), that the program will— be affordable; incorporate program planning that anticipates the evolution of capabilities to meet changing threats, technology insertion, and interoperability; and be fielded when needed. The goals described in this paragraph are goals for— the procurement unit cost and sustainment cost (referred to in this section as the “program cost targets”); the date for initial operational capability (referred to in this section as the “fielding target”); and technology maturation, prototyping, and a modular open system approach to evolve system capabilities and improve interoperability.
(b) Definitions.— In this section: The term “procurement unit cost” has the meaning provided in section 4351(a)(2) of this title . The term “initial capabilities document” has the meaning provided in section 4251(d)(1) of this title .
§ 4272 Independent technical risk assessments
(a) In General.— With respect to a major defense acquisition program, the Secretary of Defense shall conduct or approve independent technical risk assessments before any decision to grant Milestone B approval for the program pursuant to section 4252 of this title , any decision to enter into low-rate initial production or full-rate production, or at any other time considered appropriate by the Secretary, that includes the identification of any critical technologies or manufacturing processes that have not been successfully demonstrated in a relevant environment.
(b) Guidance.— The Secretary shall issue guidance and a framework for the conduct, execution, and approval of independent technical risk assessments.
§ 4273 Performance assessments and root cause analyses
(a) Designation of Senior Official Responsibility for Performance Assessments and Root Cause Analyses.— The Secretary of Defense shall designate a senior official in the Office of the Secretary of Defense as the principal official of the Department of Defense responsible for conducting and overseeing performance assessments and root cause analyses for major defense acquisition programs. The Secretary shall ensure that the senior official designated under paragraph (1) is not responsible for program execution. The Secretary shall assign to the senior official designated under paragraph (1) appropriate staff and resources necessary to carry out the senior official’s function under this section.
(b) Responsibilities.— The senior official designated under subsection (a) shall be responsible for the following: Carrying out performance assessments of major defense acquisition programs in accordance with the requirements of subsection (c) periodically or when requested by the Secretary of Defense, the Under Secretary of Defense for Acquisition and Sustainment, the Secretary of a military department, or the head of a Defense Agency. Conducting root cause analyses for major defense acquisition programs in accordance with the requirements of subsection (d) when required by section 4376(a)(1) of this title , or when requested by the Secretary of Defense, the Under Secretary of Defense for Acquisition and Sustainment, the Secretary of a military department, or the head of a Defense Agency. Issuing policies, procedures, and guidance governing the conduct of performance assessments and root cause analyses by the military departments and the Defense Agencies. Evaluating the utility of performance metrics used to measure the cost, schedule, and performance of major defense acquisition programs, and making such recommendations to the Secretary of Defense as the official considers appropriate to improve such metrics. Advising acquisition officials on performance issues regarding a major defense acquisition program that may arise— before certification under sections 4376 and 4377 of this title; before entry into full-rate production; or in the course of consideration of any decision to request authorization of a multiyear procurement contract for the program.
(c) Performance Assessments.— For purposes of this section, a performance assessment with respect to a major defense acquisition program is an evaluation of the following: The cost, schedule, and performance of the program, relative to current metrics, including performance requirements and baseline descriptions. The extent to which the level of program cost, schedule, and performance predicted relative to such metrics is likely to result in the timely delivery of a level of capability to the warfighter that is consistent with the level of resources to be expended and provides superior value to alternative approaches that may be available to meet the same military requirement.
(d) Root Cause Analyses.— For purposes of this section and sections 4376 and 4377 of this title, a root cause analysis with respect to a major defense acquisition program is an assessment of the underlying cause or causes of shortcomings in cost, schedule, or performance of the program, including the role, if any, of— unrealistic performance expectations; unrealistic baseline estimates for cost or schedule; immature technologies or excessive manufacturing or integration risk; unanticipated design, engineering, manufacturing, or technology integration issues arising during program performance; changes in procurement quantities; inadequate program funding or funding instability; poor performance by government or contractor personnel responsible for program management; or any other matters.
(e) Support of Applicable Capabilities and Expertise.— The Secretary of Defense shall ensure that the senior official designated under subsection (a) has the support of other Department of Defense officials with relevant capabilities and expertise needed to carry out the requirements of this section.
[§ 4274 Omitted]
§ 4292 Contracts: limitations on lead system integrators
(a) In General.— Except as provided in subsection (b), no entity performing lead system integrator functions in the acquisition of a major system by the Department of Defense may have any direct financial interest in the development or construction of any individual system or element of any system of systems.
(b) Exception.— An entity described in subsection (a) may have a direct financial interest in the development or construction of an individual system or element of a system of systems if— the Secretary of Defense certifies to the Committees on Armed Services of the Senate and the House of Representatives that— the entity was selected by the Department of Defense as a contractor to develop or construct the system or element concerned through the use of competitive procedures; and the Department took appropriate steps to prevent any organizational conflict of interest in the selection process; or the entity was selected by a subcontractor to serve as a lower-tier subcontractor, through a process over which the entity exercised no control.
(c) Construction.— Nothing in this section shall be construed to preclude an entity described in subsection (a) from performing work necessary to integrate two or more individual systems or elements of a system of systems with each other.
§ 4293 Major defense acquisition programs: incentive program for contractors to purchase capital assets manufactured in United States
(a) Establishment of Incentive Program.— The Secretary of Defense shall plan and establish an incentive program in accordance with this section for contractors to purchase capital assets manufactured in the United States in part with funds available to the Department of Defense.
(b) Defense Industrial Capabilities Fund May Be Used.— The Secretary of Defense may use the Defense Industrial Capabilities Fund, established under section 814 of the National Defense Authorization Act for Fiscal Year 2004, for incentive payments under the program established under this section.
(c) Applicability to Major Defense Acquisition Program Contracts.— The incentive program shall apply to contracts for the procurement of a major defense acquisition program.
(d) Consideration.— The Secretary of Defense shall provide consideration in source selection in any request for proposals for a major defense acquisition program for offerors with eligible capital assets.