Page:United States Statutes at Large Volume 119.djvu/3390

 119 STAT. 3372

PUBLIC LAW 109–163—JAN. 6, 2006

(2) An explanation of why the costs of the program have increased. (3) A justification for the continuation of the program notwithstanding the increase in costs. (c) MAJOR DEFENSE ACQUISITION PROGRAM DEFINED.—In this section, the term ‘‘major defense acquisition program’’ has the meaning given that term in section 2430 of title 10, United States Code. SEC. 805. REPORT ON USE OF LEAD SYSTEM INTEGRATORS IN THE ACQUISITION OF MAJOR SYSTEMS.

(a) REPORT REQUIRED.—Not later than September 30, 2006, the Secretary of Defense shall submit to the congressional defense committees a report on the use of lead system integrators for the acquisition by the Department of Defense of major systems. (b) CONTENTS.—The report required by subsection (a) shall include a detailed description of the actions taken, or to be taken (including a specific timetable), and the current regulations and guidelines regarding— (1) the definition of the respective rights of the Department of Defense, lead system integrators, and other contractors that participate in the development or production of any individual element of a major weapon system (including subcontractors under lead system integrators) in intellectual property that is developed by the other participating contractors in a manner that ensures that— (A) the Department of Defense obtains appropriate rights in technical data developed by the other participating contractors in accordance with the requirements of section 2320 of title 10, United States Code; and (B) lead system integrators obtain access to technical data developed by the other participating contractors only to the extent necessary to execute their contractual obligations as lead systems integrators; (2) the prevention or mitigation of organizational conflicts of interest on the part of lead system integrators; (3) minimization of the performance by lead system integrators of functions closely associated with inherently governmental functions; (4) the appropriate use of competitive procedures in the award of subcontracts by lead system integrators with system responsibility; (5) the prevention of organizational conflicts of interest arising out of any financial interest of lead system integrators without system responsibility in the development or production of individual elements of a major weapon system; and (6) the prevention of pass-through charges by lead system integrators with system responsibility on systems or subsystems developed or produced under subcontracts where such lead system integrators do not provide significant value added with regard to such systems or subsystems. (c) DEFINITIONS.—In this section: (1) The term ‘‘lead system integrator’’ includes lead system integrators with system responsibility and lead system integrators without system responsibility.

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