Defense Acquisition Reform Act of 2007 - Prohibits the Secretary of the military department concerned from reprogramming or otherwise providing additional funds for a major defense acquisition program (MDAP) that experiences a specified percentage in program acquisition unit costs until the Joint Requirements Oversight Council submits an assessment of the performance requirements for the item to be procured. Adds to the membership of the Council. Requires the Council to approve the initial operational test and evaluation of a MDAP in an environment not specified in its test and evaluation master plan.
Requires the Secretary of Defense to prescribe mechanisms that provide cost control measures in contracts for the acquisition of property for the Department of Defense (DOD) that may be authorized or approved by the program manager.
Designates military department deputies for acquisition matters.
Directs the Secretary to establish a committee on strategic investment in MDAPs.
Requires a report from the: (1) Comptroller General on potential modifications of DOD organization and structure for the acquisition of MDAPs; and (2) Secretary on the implementation of recommendations concerning total ownership costs and readiness rates for major weapon systems.
Prohibits the milestone decision authority for a MDAP from granting Milestone B approval until such authority obtains a program business case analysis from a federally funded research and development center.
Requires the Secretary to: (1) provide guidance on the use of award fees in contracts under DOD acquisition programs; (2) define "substantial savings" for purposes of DOD multiyear contracts; (3) submit an investment strategy for the allocation of funds among MDAPs; and (4) prescribe ethics compliance requirements for DOD contractors.