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Pilot program on total replacement value for Air Force Test Center ground test infrastructure

Division A · Title X: General Provisions · Subtitle D: Miscellaneous Authorities and Limitations

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The Air Force must run a pilot program to use a new method called Total Replacement Value to calculate the cost of its ground test infrastructure assets. This includes tracking the replacement costs of both physical structures and installed test equipment, reporting funding levels compared to these values, and planning to maintain adequate funding. After three years, the Air Force will assess the pilot's results and recommend whether to apply this method more broadly, with a final decision made by the Under Secretary of Defense for Research and Engineering.

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Section Text · Sec. 1063.
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(a) Pilot program

Not later than one year after the date of the enactment of this section, the Secretary of the Air Force shall carry out a pilot program to adopt Total Replacement Value as the standard methodology for calculating cost for ground test infrastructure assets of the Air Force Test Center.

(b) Elements

The pilot program shall include—

(1)

a calculation of the Total Replacement Value for each ground test infrastructure asset of the Air Force Test Center, including separate calculations of Plant Replacement Value and Equipment Replacement Value; and

(2)

an association of non-real property installed test equipment with Real Property Unique Identifiers (or a similar identifier for real property or other assets authorized by the Secretary of Defense) in the Defense Property Accountability System, or a successor system, to enable ongoing tracking of Equipment Replacement Value.

(c) Requirements

The Secretary of the Air Force shall—

(1)

beginning in fiscal year 2028, include in the budget justification materials submitted annually to Congress the Total Replacement Value for all ground test infrastructure assets of the Air Force Test Center, the amount requested for sustainment of such ground test infrastructure assets as a percentage of such Total Replacement Value, and, if that percentage is less than two percent, an explanation of the shortfall and the projected impact on infrastructure readiness; and

(2)

submit to the congressional defense committees, not later than one year after the date of the enactment of this section, a plan to achieve a funding level for sustainment of such ground test infrastructure assets of not less than two percent of the Total Replacement Value for such assets for a fiscal year, including projected milestones to maintain such funding level for a five-year period.

(d) Report

Not later than three years after the date of the enactment of this section, the Secretary of the Air Force shall submit to the congressional defense committees a report on the pilot program that includes—

(1)

an assessment of the use of Total Replacement Value as a methodology as the standard methodology for calculating costs for ground test infrastructure assets of the Air Force Test Center;

(2)

an assessment of funding levels for ground test infrastructure assets of the Air Force Test Center compared to the Total Replacement Value calculated during the pilot program; and

(3)

a recommendation on whether and how to expand the use of the Total Replacement Value methodology to all ground test infrastructure assets of the Major Range and Test Facility Base (as defined in section 4173(j) of title 10, United States Code).

(e) Recommendation

Not later than one year after the date of the submission of the report required under subsection (d), the Under Secretary of Defense for Research and Engineering shall review the recommendation described in subsection (d)(4) and determine whether to use the Total Replacement Value methodology for all ground test infrastructure assets of the Major Range and Test Facility Base.

(f) Termination

The pilot program shall terminate on the earlier of—

(1)

the date on which the Under Secretary of Defense of Research and Engineering begins use of the Total Replacement Value methodology for all ground test infrastructure assets of the Major Range and Test Facility Base; or

(2)

the date that is five years after the date of the enactment of this section.

(g) Definitions

In this section:

(1)

The term Equipment Replacement Value means the estimated cost to replace the non-real property installed test equipment within a ground test infrastructure asset, calculated using the same methodology as Plant Replacement Value is calculated.

(2)

The term Plant Replacement Value means the estimated cost to replace the physical structure of a ground test infrastructure asset.

(3)

The term Total Replacement Value means the sum of Plant Replacement Value and Equipment Replacement Value.