Page:United States Statutes at Large Volume 120.djvu/2346

 PUBLIC LAW 109–364—OCT. 17, 2006

120 STAT. 2315

‘‘(9) funding is available to execute the product development and production plan under the program, through the period covered by the future-years defense program submitted during the fiscal year in which the certification is made, consistent with the estimates described in paragraph (8) for the program; and’’. (b) WAIVER FOR NATIONAL SECURITY.—Subsection (c) of such section is amended by striking ‘‘(5), or (6)’’ and inserting ‘‘(5), (6), (7), (8), or (9)’’. SEC. 806. ORIGINAL BASELINE ESTIMATE FOR MAJOR DEFENSE ACQUISITION PROGRAMS.

Section 2435(d)(1) of title 10, United States Code, is amended by inserting after ‘‘with respect to the program under subsection (a)’’ the following: ‘‘prepared before the program enters system development and demonstration, or at program initiation, whichever occurs later’’. SEC. 807. LEAD SYSTEM INTEGRATORS.

(a) LIMITATIONS ON CONTRACTORS ACTING AS LEAD SYSTEM INTEGRATORS.— (1) IN GENERAL.—Chapter 141 of title 10, United States Code, is amended by adding at the end the following new section: ‘‘§ 2410p. Contracts: limitations on lead system integrators ‘‘(a) IN GENERAL.—Except as provided in subsection (b), no entity performing lead system integrator functions in the acquisition of a major system by the Department of Defense may have any direct financial interest in the development or construction of any individual system or element of any system of systems. ‘‘(b) EXCEPTION.—An entity described in subsection (a) may have a direct financial interest in the development or construction of an individual system or element of a system of systems if— ‘‘(1) the Secretary of Defense certifies to the Committees on Armed Services of the Senate and the House of Representatives that— ‘‘(A) the entity was selected by the Department of Defense as a contractor to develop or construct the system or element concerned through the use of competitive procedures; and ‘‘(B) the Department took appropriate steps to prevent any organizational conflict of interest in the selection process; or ‘‘(2) the entity was selected by a subcontractor to serve as a lower-tier subcontractor, through a process over which the entity exercised no control. ‘‘(c) CONSTRUCTION.—Nothing in this section shall be construed to preclude an entity described in subsection (a) from performing work necessary to integrate two or more individual systems or elements of a system of systems with each other.’’. (2) CLERICAL AMENDMENT.—The table of sections at the beginning of chapter 141 of such title is amended by adding at the end the following new item: ‘‘2410p. Contracts: limitations on lead system integrators’’.

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