1. (a) Program Cost and Fielding Targets.—

   1. (1) Before funds are obligated for technology development, systems development, or production of a major defense acquisition program, the Secretary of Defense shall ensure, by establishing the goals described in paragraph (2), that the milestone decision authority for the major defense acquisition program approves a program that will—

      1. (A) be affordable;
      2. (B) incorporate program planning that anticipates the evolution of capabilities to meet changing threats, technology insertion, and interoperability; and
      3. (C) be fielded when needed.

   2. (2) The goals described in this paragraph are goals for—

      1. (A) the procurement unit cost and sustainment cost (referred to in this section as the “program cost targets”);
      2. (B) the date for initial operational capability (referred to in this section as the “fielding target”); and
      3. (C) technology maturation, prototyping, and a modular open system approach to evolve system capabilities and improve interoperability.
2. (b) Delegation.— The responsibilities of the Secretary of Defense in subsection (a) may be delegated only to the Deputy Secretary of Defense.

3. (c) Definitions.— In this section:

   1. (1) The term “procurement unit cost” has the meaning provided in section 2432(a)(2) of this title.
   2. (2) The term “initial capabilities document” has the meaning provided in section 2366a(d)(2) of this title.

(Added Pub. L. 114–328, div. A, title VIII, § 807(a)(1), Dec. 23, 2016, 130 Stat. 2260.)

Effective Date

Pub. L. 114–328, div. A, title VIII, § 807(a)(2), Dec. 23, 2016, 130 Stat. 2261, provided that:

“Subchapter III of chapter 144B of title 10, United States Code, as added by paragraph (1), shall apply with respect to major defense acquisition programs that reach Milestone A after

October 1, 2017.”

Program Cost and Field Targets

Pub. L. 114–328, div. A, title IX, § 925(b), Dec. 23, 2016, 130 Stat. 2361, provided that:

“The Secretary of Defense shall establish a process to develop program cost and fielding targets pursuant to section 2448a of title 10, United States Code, that—

1. “(1) is co-chaired by the Deputy Secretary of Defense and the Vice Chairman of the Joint Chiefs of Staff;

2. “(2) is supported by—

   1. “(A) the Joint Staff, to provide expertise on joint military capabilities, capability gaps, and performance requirements;
   2. “(B) the Office of Cost Assessment and Program Evaluation, to provide expertise in resource allocation, operations research, systems analysis, and cost estimation; and
   3. “(C) other Department of Defense organizations determined appropriate by the Secretary; and
3. “(3) ensures that appropriate trade-offs are made among life-cycle cost, schedule, and performance objectives and procurement quantity objectives.”