10 U.S.C. § 2359b : US Code - Section 2359B: Defense Acquisition Challenge Program

Search 10 U.S.C. § 2359b : US Code - Section 2359B: Defense Acquisition Challenge Program

(a) Program Required. - (1) The Secretary of Defense, acting
through the Under Secretary of Defense for Acquisition, Technology,
and Logistics, shall carry out a program to provide opportunities
for the increased introduction of innovative and cost-saving
technology in acquisition programs of the Department of Defense.
(2) The program, to be known as the Defense Acquisition Challenge
Program (hereinafter in this section referred to as the "Challenge
Program"), shall provide any person or activity within or outside
the Department of Defense with the opportunity to propose
alternatives, to be known as challenge proposals, at the component,
subsystem, or system level of an existing Department of Defense
acquisition program that would result in improvements in
performance, affordability, manufacturability, or operational
capability of that acquisition program.
(b) Panels. - The Under Secretary shall establish one or more
panels of highly qualified scientists and engineers (hereinafter in
this section referred to as "Panels") to provide preliminary
evaluations of challenge proposals under subsection (c).
(c) Preliminary Evaluation by Panels. - (1) Under procedures
prescribed by the Under Secretary, a person or activity within or
outside the Department of Defense may submit challenge proposals to
a Panel, through the unsolicited proposal process or in response to
a broad agency announcement.
(2) The Under Secretary shall establish procedures pursuant to
which appropriate officials of the Department of Defense may
identify proposals submitted through the unsolicited proposal
process as challenge proposals. The procedures shall provide for
the expeditious referral of such proposals to a Panel for
preliminary evaluation under this subsection.
(3) The Under Secretary shall issue on an annual basis not less
than one such broad agency announcement inviting interested parties
to submit challenge proposals. Such announcements may also identify
particular technology areas and acquisition programs that will be
given priority in the evaluation of challenge proposals.
(4)(A) The Under Secretary shall establish procedures for the
prompt issuance of a solicitation for challenge proposals
addressing -
(i) any acquisition program for which, since the last such
announcement, the Secretary concerned has determined under
section 2433(d) of this title that the program's acquisition unit
cost or procurement unit cost has increased by a percentage equal
to or greater than the critical cost growth threshold for the
program (in this section referred to as a "critical cost growth
threshold breach"); and
(ii) any design, engineering, manufacturing, or technology
integration issues, in accordance with the assessment required by
section 2433(e)(2)(A) of this title, that have contributed
significantly to the cost growth of such program.
(B) A solicitation under this paragraph may be included in a
broad agency announcement issued pursuant to paragraph (3) as long
as the broad agency announcement is released in an expeditious
manner following the determination of the Secretary concerned that
a critical cost growth threshold breach has occurred with respect
to a major defense acquisition program.
(5) Under procedures established by the Under Secretary, a Panel
shall carry out a preliminary evaluation of each challenge proposal
submitted in response to a broad agency announcement, or submitted
through the unsolicited proposal process and identified as a
challenge proposal in accordance with paragraph (2), to determine
each of the following:
(A) Whether the challenge proposal has merit.
(B) Whether the challenge proposal is likely to result in
improvements in performance, affordability, manufacturability, or
operational capability at the component, subsystem, or system
level of an acquisition program.
(C) Whether the challenge proposal could be implemented in the
acquisition program rapidly, at an acceptable cost, and without
unacceptable disruption to the acquisition program.
(6) The Under Secretary -
(A) may establish procedures to ensure that the Challenge
Program does not become an avenue for the repetitive submission
of proposals that have been previously reviewed and found not to
have merit; and
(B) may establish procedures to ensure that the Challenge
Program establishes appropriate priorities for proposals from
businesses that are not major contractors with the Department of
Defense.
(7) If a Panel determines that a challenge proposal satisfies
each of the criteria specified in paragraph (5), the person or
activity submitting that challenge proposal shall be provided an
opportunity to submit such challenge proposal for a full review and
evaluation under subsection (d).
(d) Full Review and Evaluation. - (1) Under procedures prescribed
by the Under Secretary, for each challenge proposal submitted for a
full review and evaluation as provided in subsection (c)(7), the
office carrying out the acquisition program to which the proposal
relates shall, in consultation with the prime system contractor
carrying out such program, conduct a full review and evaluation of
the proposal.
(2) The full review and evaluation shall, independent of the
determination of a Panel under subsection (c)(5), determine each of
the matters specified in subparagraphs (A), (B), and (C) of such
subsection. The full review and evaluation shall also include -
(A) an assessment of the cost of adopting the challenge
proposal and implementing it in the acquisition program; and
(B) consideration of any intellectual property issues
associated with the challenge proposal.
(e) Action Upon Favorable Full Review and Evaluation. - (1) Under
procedures prescribed by the Under Secretary, each challenge
proposal determined under a full review and evaluation to satisfy
each of the criteria specified in subsection (c)(5) with respect to
an acquisition program shall be considered by the office carrying
out the applicable acquisition program and the prime system
contractor for incorporation into the acquisition program as a new
technology insertion at the component, subsystem, or system level.
(2) The Under Secretary shall encourage the adoption of each
challenge proposal referred to in paragraph (1) by providing
suitable incentives to the office carrying out the acquisition
program and the prime system contractor carrying out such program.
(3) In the case of a challenge proposal submitted in response to
a solicitation issued as a result of a critical cost growth
threshold breach that is determined under full review and
evaluation to satisfy each of the criteria specified in subsection
(c)(5), the Under Secretary shall establish guidelines for covering
the costs of the challenge proposal. If appropriate, such
guidelines shall not be restricted to funding provided by the
Defense Acquisition Challenge Program, but shall also consider
alternative funding sources, such as the acquisition program with
respect to which the breach occurred.
(f) Action Upon Unfavorable Full Review and Evaluation. - Under
procedures prescribed by the Under Secretary, if a challenge
proposal is determined by a Panel to satisfy each of the criteria
specified in subsection (c)(5), but is not determined under a full
review and evaluation to satisfy such criteria, the following
provisions apply:
(1) The office carrying out the full review and evaluation
shall provide to the Panel that conducted the preliminary
evaluation a statement containing a summary of the rationale for
the unfavorable evaluation.
(2) If the Panel disagrees with the rationale provided under
paragraph (1), the Panel may return the challenge proposal to the
office for further consideration.
(g) Access to Technical Resources. - (1) Under procedures
established by the Under Secretary, the technical resources of the
laboratories, research, development, and engineering centers, test
and evaluation activities, and other elements of the Department may
be called upon to support the activities of the Challenge Program.
(2) Funds available to carry out this program may be used to
compensate such laboratories, centers, activities, and elements for
technical assistance provided to a Panel pursuant to paragraph (1).
(h) Conflicts of Interest and Confidentiality. - In carrying out
each preliminary evaluation under subsection (c) and full review
under subsection (d), the Under Secretary shall ensure the
elimination of conflicts of interest and that the identity of any
person or activity submitting a challenge proposal is not disclosed
outside the Federal Government, prior to contract award, without
the consent of the person or activity. For purposes of the
proceeding sentence, the term "Federal Government" includes both
employees of the Federal Government and employees of Federal
Government contractors providing advisory and assistance services
as described in part 37 of the Federal Acquisition Regulation.
(i) Limitation on Use of Funds. - Funds made available for the
Challenge Program may be used only for activities authorized by
this section, and not for implementation of challenge proposals.
(j) Annual Report. - The Under Secretary shall submit an annual
report on the Challenge Program to Congress. The report shall be
submitted at the same time as the President submits the budget for
a fiscal year to Congress under section 1105(a) of title 31, and
shall cover the conduct of the Challenge Program for the preceding
fiscal year. The report shall include the number and scope of
challenge proposals submitted, preliminarily evaluated, subjected
to full review and evaluation, and adopted. The report shall also
include a list of each challenge proposal that was determined by a
Panel to satisfy each of the criteria specified in subsection
(c)(5), but was not determined under a full review and evaluation
to satisfy such criteria, together with a detailed rationale for
the Department's determination that such criteria were not
satisfied.
(k) Termination of Authority. - The Secretary may not carry out
the Challenge Program under this section after September 30, 2012.