2019 US Code
Title 10 - Armed Forces
Subtitle A - General Military Law
Part IV - Service, Supply, and Procurement
Chapter 137 - Procurement Generally
Sec. 2337a - Assessment, management, and control of operating and support costs for major weapon systems

(1) be issued in conjunction with the comprehensive guidance on life-cycle management and the development and implementation of product support strategies for major weapon systems required by section 2337 of this title;

(2) require the military departments to retain each estimate of operating and support costs that is developed at any time during the life cycle of a major weapon system, together with supporting documentation used to develop the estimate;

(3) require the military departments to update estimates of operating and support costs periodically throughout the life cycle of a major weapon system, to determine whether preliminary information and assumptions remain relevant and accurate, and identify and record reasons for variances;

(4) establish policies and procedures for the collection, organization, maintenance, and availability of standardized data on operating and support costs for major weapon systems in accordance with section 2222 of this title;

(5) establish standard requirements for the collection and reporting of data on operating and support costs for major weapon systems by contractors performing weapon system sustainment functions in an appropriate format, and develop contract clauses to ensure that contractors comply with such requirements;

(6) require the military departments—

(7) require the military departments to ensure that sustainment factors are fully considered at key life-cycle management decision points and that appropriate measures are taken to reduce operating and support costs by influencing system design early in development, developing sound sustainment strategies, and addressing key drivers of costs;

(8) require the military departments to conduct an independent logistics assessment of each major weapon system prior to key acquisition decision points (including milestone decisions) to identify features that are likely to drive future operating and support costs, changes to system design that could reduce such costs, and effective strategies for managing such costs;

(9) include—

(10) require the military departments to conduct periodic reviews of operating and support costs of major weapon systems after such systems achieve initial operational capability to identify and address factors resulting in growth in operating and support costs and adapt support strategies to reduce such costs.

(1) In general.—The Director of Cost Assessment and Program Evaluation shall be responsible for developing and maintaining a database on operating and support estimates, supporting documentation, and actual operating and support costs for major weapon systems.

(2) Support.—The Secretary of Defense shall ensure that the Director, in carrying out such responsibility—

"(1) aircraft cost per flying hour;

"(2) aircraft cost per aircraft tail per year;

"(3) total cost of ownership per flying hour for aircraft systems;

"(4) average annual operation and sustainment cost per aircraft; and

"(5) any other cost metrics the Under Secretary of Defense determines appropriate."

"(1) A description of the features of the should-cost review process.

"(2) Establishment of a process for communicating with the prime contractor on the program the elements of a proposed should-cost review.

"(3) A method for ensuring that identified should-cost savings opportunities are based on accurate, complete, and current information and can be quantified and tracked.

"(4) A description of the training, skills, and experience that Department of Defense and contractor officials carrying out a should-cost review in subsection (a) should possess.

"(5) A method for ensuring appropriate collaboration with the contractor throughout the review process.

"(6) Establishment of review process requirements that provide for sufficient analysis and minimize any impact on program schedule."