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

P. L. 108-375

House Conference Report 108-767

SEC. 801. SOFTWARE-RELATED PROGRAM COSTS UNDER MAJOR DEFENSE ACQUISITION PROGRAMS.

(a) CONTENT OF QUARTERLY UNIT COST REPORT.   Subsection (b) of section 2433 of title 10, United
States Code, is amended by adding at the end the following new paragraph:

"(5) Any significant changes in the total program cost for development and procurement of the software component of the program, schedule milestones for the software component of the program, or expected performance for the software component of the program that are known, expected, or anticipated by the program manager..

(b) CONTENT OF SELECTED ACQUISITION REPORT.

(1) Subsection (g)(1) of such section is amended by adding at the end the following new subparagraph:

"(Q) In any case in which one or more problems with the software component of the program significantly contributed to the increase in program unit costs, the action taken and proposed to be taken to solve such problems.. 

(2) Section 2432(e) of title 10, United States Code, is amended

(A) by redesignating paragraphs (7), (8), and (9) as paragraphs (8), (9), and (10), respectively; and

(B) by inserting after paragraph (6) the following new paragraph (7):
 
     "(7) The reasons for any significant changes (from the previous Selected Acquisition Report) in the total program cost for development and procurement of the software component of the program, schedule milestones for the software component of the program, or expected performance for the software component of the program that are known, expected, or anticipated by the program manager.".

(c) EFFECTIVE DATE. The amendments made by this section shall take effect on the date occurring 60 days after the date of the enactment of this Act, and shall apply with respect to reports due to be submitted to Congress on or after such date.

The Senate amendment contained a provision (sec. 802) that would modify existing quarterly acquisition reports submitted to Congress by the Secretary of Defense to include information on significant changes in the cost, schedule, or performance of the computer software program of each major defense acquisition program.

The House bill contained no similar provision.

The House recedes with an amendment that would delay the effective date of the provision.

Senate Report 108-260

The committee recommends a provision that would modify existing quarterly acquisition reports submitted to Congress by the Secretary of Defense to include information on significant changes in the cost, schedule, or performance of the computer software component of each major defense acquisition program (MDAP).

The committee notes that the General Accounting Office (GAO) report entitled `Stronger Management Practices Are Needed to Improve DOD's Software-Intensive Weapon Acquisitions', dated March 2004, concludes that software has become a critical component of Department of Defense's weapon systems, and that in fiscal year 2003 alone, the Department might have spent as much as $8.0 billion to rework software because of quality-related issues. The committee also notes that many MDAPs, including the F-22 fighter jet, the Space-based Infrared Satellite System, and the Comanche helicopter have experienced significant cost overruns and schedule slips where software problems were a contributing factor. The GAO report recommends that the Secretary adopt controls to improve software acquisition outcomes, including the collection of software-related cost data. The committee concurs with the GAO recommendation, and believes that such software-related cost data also should be provided to Congress to enable more informed oversight of critical national defense activities.

 

 

 

 

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