USC Chapter 205

USC Chapter 205
in effect

10 U.S.C. § 3101 Definitions

In this chapter: (1) The term “best value” means, with respect to an acquisition, the optimal combination of cost, quality, technical capability or solution quality, and delivery schedule. (2) The term “capability requirement” means a capability that is critical or essential to address an operational problem. (3) The term “cost-effective” means, with respect to an acquisition, delivering superior end-user results at equal or lower cost compared to alternatives. (4) The term “operational problem” means—(A) a challenge of a military department in achieving an assigned military objective based on current doctrine, emerging threats, or future concepts; and (B) may include limitations in capabilities, capacity, resources, or the ability to effectively and efficiently coordinate across the joint force, with another combatant command, or among military capabilities. (5) The term “service chief” means—(A) the Chief of Staff of the Army, with respect to matters concerning the Army; (B) the Chief of Naval Operations, with respect to matters concerning the Navy; (C) the Commandant of the Marine Corps, with respect to matters concerning the Marine Corps; (D) the Chief of Staff of the Air Force, with respect to matters concerning the Air Force; and (E) the Chief of Space Operations, with respect to matters concerning the Space Force.

10 U.S.C. § 3102 Objectives of the defense acquisition system

(a) In General.—The Secretary of Defense shall ensure that the defense acquisition system expeditiously provides the armed forces with the capabilities necessary to operate effectively, to address evolving threats, and to sustain the military advantage of the United States in the most cost-effective manner practicable. (b) Guidance.—The Secretary of Defense shall issue guidance to carry out subsection (a) and shall ensure that the defense acquisition system prioritizes the needs of end users and is validated by direct engagement, experimentation, and iteration. Such guidance shall require the following:(1) All activities of the defense acquisition system contribute to the expeditious delivery of capabilities to enhance the operational readiness of the armed forces and enable the missions of the Department of Defense. (2) A leadership culture and organizational structure that empowers individuals in the management of the defense acquisition system and encourages appropriate delegation authority, collaboration, and mission-focused risk-taking. (3) Sufficient numbers of members of the acquisition workforce to support the defense acquisition system, and that such members are properly trained and assigned. (4) Resource decisions for the defense acquisition system to prioritize best value and seek to balance life-cycle costs, schedule, performance, and quantity through continuous trade-off analysis informed by prototyping and direct feedback from end users. (5) Adoption and integration in the defense acquisition system of advanced approaches in digital engineering, model-based engineering, and simulation environments to enable rapid, iterative designs and technology insertion to maximize mission outcomes. (6) Active pursuit of innovative solutions to enhance effectiveness of the armed forces and responsiveness to emerging threats, including the acquisition and integration of commercial products and commercial services. (7) Approaches to workforce training and development that equally balance emphasis on functional and technical skills with skills in cross-functional integration, critical thinking, and innovative approaches that best deliver solutions to operational problems.

10 U.S.C. § 3103 Civilian management of the defense acquisition system

(a) Responsibility of the Under Secretary of Defense for Acquisition and Sustainment.—Subject to the authority, direction and control of the Secretary of Defense, the Under Secretary of Defense for Acquisition and Sustainment shall be responsible for the management of the defense acquisition system and shall exercise such control of the system and perform such duties as are necessary in accordance with the objectives of the defense acquisition system established pursuant to section 3102 of this title, including the duties enumerated and assigned to the Under Secretary elsewhere in this title. (b) Responsibility of the Service Acquisition Executives.—Subject to the direction of the Under Secretary of Defense for Acquisition and Sustainment on matters pertaining to acquisition, and subject to the authority, direction, and control of the Secretary of the military department concerned, a service acquisition executive of a military department shall be responsible for the management of elements of the defense acquisition system in that military department and shall exercise such control of the system and perform such duties as are necessary in accordance with the objectives of the defense acquisition system established pursuant to section 3102 of this title. In carrying out this subsection, each service acquisition executive shall—(1) implement strategies to adapt rapidly to evolving end-user requirements, validated through end user engagement; (2) use data analytics to manage trade-offs among life-cycle costs, delivery schedules, performance objectives, technical feasibility, and procurement quantity objectives to maximize best value for the end user; (3) conduct iterative cycles to develop, test with end-users, and terminate capabilities that deviate from priorities or significantly exceed cost or schedule thresholds; (4) notify the Joint Requirements Oversight Council within 30 days after changes to a defense acquisition program that result in a material difference in capability requirements, procurement quantities, or delivery schedules; (5) assign personnel to critical acquisition positions (as defined in section 1731 of this title) to build expertise and accountability, equipping such personnel with strategies to empower teams, delegate authority, and embrace mission-focused risk-taking; and (6) foster mutual transparency and cooperation between the Government and private sector entities and require collaboration with such entities to ensure delivery of safe, suitable, and effective systems on relevant timelines and on established cost baselines.

10 U.S.C. § 3104 Acquisition-related functions of service chiefs

(a) Performance of Certain Acquisition-related Functions.—The Secretary of Defense shall ensure that the service chiefs assist the Secretary of the military department concerned, in accordance with the objectives established pursuant to section 3102 of this title, in the performance of the following acquisition-related functions of such department:(1) The development of capability requirement statements for equipping the armed force concerned that—(A) describes the operational problem to provide necessary context for the capability requirement; (B) proposes nonprescriptive solutions to operational problems; and (C) ensures system interoperability, where appropriate, between and among joint military capabilities (as defined in section 181 of this title). (2) Implement strategies to support timely adjustments to capability requirement statements developed in paragraph (1). (3) Advise on trade-offs among life-cycle costs, delivery schedules, performance objectives, technical feasibility, and procurement quantity objectives to maximize best value for the end user. (4) In consultation with the Joint Requirements Oversight Council, prioritize—(A) capability needs for investment; and (B) resource allocation to meet operational readiness requirements (as defined in section 4324 of this title) and the materiel readiness objectives established under section 118(c) of this title. (5) Make available appropriate personnel to provide end-user feedback for the development of new capabilities. (6) Recommend modification, discontinuation, or termination of the development of capabilities—(A) that no longer align with a capability requirement established by the Secretary of Defense; or (B) that are experiencing significant cost growth, technical or performance deficiencies, or delays in schedule. (7) Build acquisition career paths for officers and personnel (as required by section 1722a of this title) to ensure such officers and personnel have the necessary skills and opportunities for career progression to fulfill the objectives established pursuant to section 3102 of this title. (b) Adherence to Requirements in Major Defense Acquisition Programs.—(1) The Secretary of the military department concerned shall ensure that any requirements document for a major defense acquisition program may not be approved until the service chief concerned determines in writing that the requirements in the document are necessary and realistic in relation to the program cost and fielding targets established under section 4271(a) of this title. (2) Consistent with the performance of duties under subsection (a), the service chief concerned, or in the case of a joint program the service chiefs concerned, with respect to major defense acquisition programs, shall—(A) concur with the need for a materiel solution as identified in the Materiel Development Decision Review; (B) concur with the life-cycle cost, delivery schedule, performance objective, technical feasibility, and procurement quantity trade-offs that have been made with regard to the program before Milestone A approval is granted under section 4251 of this title; (C) concur that appropriate trade-offs among cost, schedule, technical feasibility, and performance objectives have been made to ensure that the program is affordable when considering the per unit cost and the total life-cycle cost before Milestone B approval is granted under section 4252 of this title; and (D) concur that the requirements in the program capability document are necessary and realistic in relation to program cost and fielding targets as required by paragraph (1) before Milestone C approval is granted. (c) Rule of Construction.—Nothing in this section shall be construed to affect the assignment of functions under section 7014(c)(1)(A), section 8014(c)(1)(A), or section 9014(c)(1)(A) of this title, except as explicitly provided in this section. (d) Requirements Document Defined.—In this section, the term “requirements document” means a document that establishes the need for a materiel approach to address an operational problem.

10 U.S.C. § 3105 Elements of the defense acquisition system: performance assessments

(a) Performance Assessments Required.—The Secretary of Defense, acting through the Under Secretary of Defense for Acquisition and Sustainment, the Director of Procurement and Acquisition Policy, and the Director of the Office of Performance Assessment and Root Cause Analysis, shall issue guidance, with detailed implementation instructions, for the Department of Defense to provide for periodic independent performance assessments of elements of the defense acquisition system for the purpose of—(1) determining the extent to which such elements of the defense acquisition system deliver value to the Department of Defense, taking into consideration the performance elements identified in subsection (b); (2) assisting senior officials of the Department of Defense in identifying and developing lessons learned from best practices and shortcomings in the performance of such elements of the defense acquisition system; and (3) assisting senior officials of the Department of Defense in developing acquisition workforce excellence under section 1701a of this title. (b) Areas Considered in Performance Assessments.—(1) Each performance assessment conducted pursuant to subsection (a) shall consider, at a minimum—(A) the extent to which acquisitions conducted by the element of the defense acquisition system under review meet applicable cost, schedule, and performance objectives; and (B) the staffing and quality of the acquisition workforce and the effectiveness of the management of the acquisition workforce, including workforce incentives and career paths. (2) The Secretary of Defense shall ensure that the performance assessments required by this section are appropriately tailored to reflect the diverse nature of the work performed by each element of the defense acquisition system. In addition to the mandatory areas under paragraph (1), a performance assessment may consider, as appropriate, specific areas of acquisition concern, such as—(A) the selection of contractors, including—(i) the extent of competition and the use of exceptions to competition requirements; (ii) compliance with Department of Defense policies regarding the participation of small business concerns and various categories of small business concerns, including the use of contract bundling and the availability of non-bundled contract vehicles; (iii) the quality of market research; (iv) the effective consideration of contractor past performance; and (v) the number of bid protests, the extent to which such bid protests have been successful, and the reasons for such success; (B) the negotiation of contracts, including—(i) the appropriate application of sections 3701 through 3708 of this title (relating to truth in negotiations); (ii) the appropriate use of contract types appropriate to specific procurements; (iii) the appropriate use of performance requirements; (iv) the appropriate acquisition of technical data and other rights and assets necessary to support long-term sustainment and follow-on procurement; and (v) the timely definitization of any undefinitized contract actions; and (C) the management of contractor performance, including—(i) the assignment of appropriately qualified contracting officer representatives and other contract management personnel; (ii) the extent of contract disputes, the reasons for such disputes, and the extent to which they have been successfully addressed; (iii) the appropriate consideration of long-term sustainment and energy efficiency objectives; and (iv) the appropriate use of integrated testing. (c) Contents of Guidance.—The guidance issued pursuant to subsection (a) shall ensure that each element of the defense acquisition system is subject to a performance assessment under this section not less often than once every four years, and shall address, at a minimum—(1) the designation of elements of the defense acquisition system that are subject to performance assessment at an organizational level that ensures such assessments can be performed in an efficient and integrated manner; (2) the frequency with which such performance assessments should be conducted; (3) goals, standards, tools, and metrics for use in conducting performance assessments; (4) the composition of the teams designated to perform performance assessments; (5) any phase-in requirements needed to ensure that qualified staff are available to perform performance assessments; (6) procedures for tracking the implementation of recommendations made pursuant to performance assessments; (7) procedures for developing and disseminating lessons learned from performance assessments; and (8) procedures for ensuring that information from performance assessments are retained electronically and are provided in a timely manner to the Under Secretary of Defense for Acquisition and Sustainment and the Director of the Office of Performance Assessment and Root Cause Analysis as needed to assist them in performing their responsibilities under this section.

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