To amend title 10, United States Code, to strengthen the requirements with respect to the preparation of independent cost estimates for major defense acquisition programs.

Bars the Secretary of Defense from approving the full-scale engineering development, or the production and deployment, of a major defense acquisition program unless specified requirements are met (as under current law) and unless all the requirements specified in Department of Defense (DOD) regulations with respect to independent cost estimates and supporting documentation that are applicable to the program have been met.

Specifies that: (1) an independent cost estimate prepared with respect to such program may not be prepared by, or with the assistance of, a contractor that is under the supervision, direction, or control of the military department or defense agency that is responsible for the program; (2) a highly sensitive classified program shall be considered to be a major defense acquisition program if it meets specified criteria; and (3) the office (or other entity) within the Office of the Secretary that has responsibility for the preparation of cost estimates for the Secretary may not be assigned any program analysis and evaluation functions.

Establishes a $20,000 civil penalty for any DOD civilian officer or employee who provides the Secretary a cost estimate for purposes of such provisions that is not an independent cost estimate.

 
HR 5062 IH
102d CONGRESS
2d Session
 H. R. 5062
To amend title 10, United States Code, to strengthen the requirements with
respect to the preparation of independent cost estimates for major defense
acquisition programs.
IN THE HOUSE OF REPRESENTATIVES
May 5, 1992
Mr. IRELAND introduced the following bill; which was referred to the Committee
on Armed Services
A BILL
To amend title 10, United States Code, to strengthen the requirements with
respect to the preparation of independent cost estimates for major defense
acquisition programs.
  Be it enacted by the Senate and House of Representatives of the United
  States of America in Congress assembled,
SECTION 1. INDEPENDENT COST ESTIMATES FOR MAJOR DEFENSE ACQUISITION PROGRAMS.
  Section 2434 of title 10, United States Code, is amended--
  (1) by striking out the period at the end of subsection (a) and inserting
  in lieu thereof the following: `and all the requirements specified in
  Department of Defense regulations with respect to independent cost estimates
  under this section and supporting documentation that are applicable to
  the program have been met.';
  (2) by redesignating subsection (b) as subsection (f); and
  (3) by inserting after subsection (a) the following new subsections:
  `(b) LIMITATION ON USE OF CONTRACTORS- An independent cost estimate
  prepared with respect to a major defense acquisition program for the
  purposes of this section may not be prepared by, or with the assistance of,
  a contractor that is under the supervision, direction, or control of the
  military department or Defense Agency that is responsible for the program.
  `(c) APPLICABILITY TO HIGHLY SENSITIVE CLASSIFIED PROGRAMS- For the
  purposes of this section, a highly sensitive classified program shall
  be considered to be a major defense acquisition program if it meets the
  criteria specified in paragraph (1) or (2) of section 2430 of this title.
  `(d) LIMITATION ON OSD OFFICE FUNCTIONS- The office (or other entity)
  within the Office of the Secretary of Defense that has responsibility for
  the preparation of cost estimates for the Secretary of Defense may not be
  assigned any program analysis and evaluation functions.
  `(e) CIVIL PENALTY- Any civilian officer or employee of the Department of
  Defense who provides to the Secretary of Defense a cost estimate for the
  purposes of this section that is not an independent cost estimate shall
  be subject to a civil penalty of $20,000.'.