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TITLE VIII--ACQUISITION POLICY, ACQUISITION MANAGEMENT, AND RELATED MATTERS

Subtitle C — Provisions Relating to Major Defense Acquisition Programs

P. L. 115-

House Conference Report. 115-404

SEC. 835. LICENSING OF APPROPRIATE INTELLECTUAL PROPERTY TO SUPPORT MAJOR WEAPON SYSTEMS.

(a) Negotiation Of Price For Technical Data Before Development Or Production Of Major Weapon System.—

(1) REQUIREMENT.—Chapter 144 of title 10, United States Code, is amended by inserting after section 2438 the following new section:

Ҥ 2439. Negotiation of price for technical data before development or production of major weapon systems

“The Secretary of Defense shall ensure that the Department of Defense, before selecting a contractor for the engineering and manufacturing development of a major weapon system, or for the production of a major weapon system, negotiates a price for technical data to be delivered under a contract for such development or production.”.

(2) CLERICAL AMENDMENT.—The table of sections at the beginning of such chapter is amended by inserting after the item relating to section 2438 the following new item:

“2439. Negotiation of price for technical data before development or production of major weapon systems.”.

(3) EFFECTIVE DATE.—Section 2439 of title 10, United States Code, as added by paragraph (1), shall apply with respect to any contract for engineering and manufacturing development of a major weapon system, or for the production of a major weapon system, for which the contract solicitation is issued on or after the date occurring one year after the date of the enactment of this Act.

(b) Written Determination For Milestone B Approval.—

(1) IN GENERAL.—Subsection (a)(3) of section 2366b of title 10, United States Code, is amended—

(A) by striking “and” at the end of subparagraph (M); and

(B) by inserting after subparagraph (N) the following new subparagraph:

“(O) appropriate actions have been taken to negotiate and enter into a contract or contract options for the technical data required to support the program; and”.

(2) EFFECTIVE DATE.—Section 2366b(a)(3)(O) of title 10, United States Code, as added by paragraph (1), shall apply with respect to any major defense acquisition program receiving Milestone B approval on or after the date occurring one year after the date of the enactment of this Act.

(c) Preference For Negotiation Of Customized License Agreements.—Section 2320 of title 10, United States Code, is amended—

(1) by redesignating subsections (f) and (g) as subsections (g) and (h), respectively; and

(2) by inserting after subsection (e) the following new subsection (f):

“(f) Preference For Specially Negotiated Licenses.—The Secretary of Defense shall, to the maximum extent practicable, negotiate and enter into a contract with a contractor for a specially negotiated license for technical data to support the product support strategy of a major weapon system or subsystem of a major weapon system. In performing the assessment and developing the corresponding strategy required under subsection (e) for such a system or subsystem, a program manager shall consider the use of specially negotiated licenses to acquire customized technical data appropriate for the particular elements of the product support strategy.”.

Licensing of appropriate intellectual property to support major weapon systems (sec. 835)

The House bill contained a provision (sec. 812) that would require the Department of Defense to work with contractors to determine prices for technical data the Department plans to acquire or license before selecting a contractor for the engineering and manufacturing development phase or the production phase of a major weapon system. Additionally, this provision would encourage program managers to negotiate with industry to obtain the custom set of technical data necessary to support each major defense acquisition program rather than, as a default approach, seeking greater rights to more extensive, detailed technical data than is necessary.

The Senate amendment contained no similar provision.

The Senate recedes.

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