PUBLIC LAW 103-355—OCT. 13, 1994 108 STAT. 3349 (c) COST TYPE CONTRACTS.—Section 304(b) of such Act (41 U.S.C. 254(b)) is amended in the sentence beginning with "All cost and cost-plus-a -fixed-fee" by striking out "either $25,000" and inserting in lieu thereof "either the simplified acquisition threshold". SEC. 4403. OFFICE OF FEDERAL PROCUREMENT POLICY ACT. Section 19(a) of the Office of Federal Procurement PoUcy Act (41 U.S.C. 417(a)) is amended by striking out "procurements, other than small purchases," and inserting in lieu thereof "procurements greater than the simplified acquisition threshold". SEC. 4404. SIVIALL BUSINESS ACT. (a) DEFINITION. —Section 3(m) of the Small Business Act (15 U.S.C. 632(m)) is amended by striking out " 'small purchase threshold'" and inserting in lieu thereof "'simplified acquisition threshold'". (b) USE OF SIMPLIFIED ACQUISITION THRESHOLD TERM.— Section 8(d)(2)(A) of the Small Business Act (15 U.S.C. 637(d)(2)(A)) is amended by striking out "small purchase threshold" and inserting in lieu thereof "simplified acquisition threshold". TITLE V—ACQUISITION MANAGEMENT Subtitle A—Armed Services Acquisitions SEC. SOOl. PERFORMANCE BASED MANAGEMENT. (a) POLICY AND (JOALS FOR PERFORMANCE BASED MANAGEMENT OF PROGRAMS. — (1) Chapter 131 of title 10, United States Code, is amended by adding at the end the following new section: '^§2220. Performance based management: acquisition programs "(a) ESTABLISHMENT OF GOALS.— (1) The Secretary of Defense shall approve or define the cost, performance, and schedule goals for m£gor defense acquisition programs of the Department of Defense and for each phase of the acquisition cycle of such programs. "(2) The Comptroller of the Department of Defense shall evaluate the cost goals proposed for each major defense acquisition program of the Department. "(b) ANNUAL REPORTING REQUIREMENT. —The Secretary of Defense shall include in the annual report submitted to Congress pursuant to section 113(c) of this title an assessment of whether major and nonmsgor acquisition programs of the Department of Defense are achieving, on average, 90 percent of cost, performance, and schedule goals established pursuant to subsection (a) and whether the average period for converting emerging technology into operational capability has decreased by 50 percent or more ' from the average period required for such conversion as of the date of the enactment of the Federal Acquisition Streamlining Act of 1994. The Secretary shall use data from existing management systems in making the assessment. "(c) PERFORMANCE EVALUATION.— Whenever the Secretary of Defense, in the assessment required by subsection (b), determines that major defense acquisition programs of the IDepartment of Defense are not achieving, on average, 90 percent of cost, perform-
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