115 STAT. 1182 PUBLIC LAW 107-107—DEC. 28, 2001 Deadline. (2) Department of Defense Directive 5000.1, as revised in accordance with subsection (b) of section 811 of such Act, shall be further revised as necessary to comply with subsection (c) of such section, as amended by paragraph (1), within 60 days after the date of the enactment of this Act. (c) ADJUSTMENTS TO REQUIREMENT FOR DETERMINATION OF QUANTITY FOR LOW-RATE INITIAL PRODUCTION. —Section 2400(a) of title 10, United States Code, is amended— (1) by striking "milestone 11" each place it appears in paragraphs (1)(A), (2), (4) and (5) and inserting "milestone B"; and (2) in paragraph (2), by striking "engineering and manufacturing development" and inserting "system development and demonstration". (d) ADJUSTMENTS TO REQUIREMENTS FOR BASELINE DESCRIP- TION AND THE RELATED LIMITATION. —Section 2435 of title 10, United States Code, is amended— (1) in subsection (b), by striking "engineering and manufacturing development" and inserting "system development and demonstration"; and (2) in subsection (c)— (A) in paragraph (1), by striking "demonstration and validation" and inserting "system development and demonstration"; (B) in paragraph (2), by striking "engineering and manufacturing development" and inserting "production and deployment"; and (C) in paragraph (3), by striking "production and deplo3mient" and inserting "full rate production". SEC. 822. FOLLOW-ON PRODUCTION CONTRACTS FOR PRODUCTS DEVELOPED PURSUANT TO PROTOTYPE PROJECTS. Section 845 of the National Defense Authorization Act for Fiscal Year 1994 (10 U.S.C. 2371 note) is amended— (1) by redesignating subsection (f) as subsection (g); and (2) by inserting after subsection (e) the following new subsection (f): " (f) FOLLOW-ON PRODUCTION CONTRACTS.— (1) A transaction entered into under this section for a prototype project that satisfies the conditions set forth in subsection (d)(l)(B)(i) may provide for the award of a follow-on production contract to the participants in the transaction for a specific number of units at specific target prices. The number of units specified in the transaction shall be determined on the basis of a balancing of the level of the investment made in the project by the participants other than the Federal Government with the interest of the Federal Government in having competition among sources in the acquisition of the product or products prototyped under the project. "(2) A follow-on production contract provided for in a transaction under paragraph (1) may be awarded to the participants in the transaction without the use of competitive procedures, notwithstanding the requirements of section 2304 of title 10, United States Code, if— "(A) competitive procedures were used for the selection of parties for participation in the transaction; "(B) the participants in the transaction successfully completed the protot5T)e project provided for in the transaction;
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