[Congressional Bills 118th Congress]
[From the U.S. Government Publishing Office]
[S. 2040 Introduced in Senate (IS)]

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118th CONGRESS
  1st Session
                                S. 2040

To reinstate the position of Chief Management Officer of the Department 
                  of Defense, and for other purposes.


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

                             June 15, 2023

Mr. Braun (for himself and Mr. Manchin) introduced the following bill; 
  which was read twice and referred to the Committee on Armed Services

_______________________________________________________________________

                                 A BILL


 
To reinstate the position of Chief Management Officer of the Department 
                  of Defense, and for other purposes.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Pentagon Management Oversight Act of 
2023''.

SEC. 2. REINSTATEMENT OF POSITION OF CHIEF MANAGEMENT OFFICER OF 
              DEPARTMENT OF DEFENSE.

    (a) Reinstatement of Position.--
            (1) In general.--Chapter 4 of title 10, United States Code, 
        is amended by inserting after the item relating to section 132 
        the following new item:
``Sec. 132a. Chief Management Officer
    ``(a) Appointment and Qualifications.--(1) There is a Chief 
Management Officer of the Department of Defense, appointed from 
civilian life by the President, by and with the advice and consent of 
the Senate.
    ``(2) The Chief Management Officer shall be appointed from among 
persons who have an extensive management or business background and 
experience with managing large or complex organizations. A person may 
not be appointed as Chief Management Officer within seven years after 
relief from active duty as a commissioned officer of a regular 
component of an armed force.
    ``(b) Responsibilities.--Subject to the authority, direction, and 
control of the Secretary of Defense and the Deputy Secretary of 
Defense, the Chief Management Officer shall perform such duties and 
exercise such powers as the Secretary or the Deputy Secretary may 
prescribe, including the following:
            ``(1) Serving as the chief management officer of the 
        Department of Defense with the mission of managing enterprise 
        business operations and shared services of the Department of 
        Defense.
            ``(2) Serving as the principal advisor to the Secretary and 
        the Deputy Secretary on establishing policies for, and 
        directing, all enterprise business operations of the 
        Department, including planning and processes, business 
        transformation, and performance measurement and management 
        activities and programs, including the allocation of resources 
        for enterprise business operations and unifying business 
        management efforts across the Department.
            ``(3) Exercising authority, direction, and control over the 
        Defense Agencies and Department of Defense Field Activities 
        providing shared business services for the Department.
            ``(4) Authority to direct the Secretaries of the military 
        departments and the heads of all other elements of the 
        Department with regard to matters for which the Chief 
        Management Officer has responsibility under this section.
            ``(5) Serving as the official with principal responsibility 
        in the Department for minimizing the duplication of efforts, 
        maximizing efficiency and effectiveness, and establishing 
        metrics for performance among and for all organizations and 
        elements of the Department.
    ``(c) Budget Authority.--(1)(A) Beginning in fiscal year 2025, the 
Secretary of Defense, acting through the Under Secretary of Defense 
(Comptroller), shall require the head of each Defense Agency and 
Department of Defense Field Activity (other than such agencies and 
activities that are under the direction of the Director of National 
Intelligence or are elements of the intelligence community) to transmit 
the proposed budget of such Agency or Activity for enterprise business 
operations for a fiscal year, and for the period covered by the future-
years defense program submitted to Congress under section 221 of this 
title for that fiscal year, to the Chief Management Officer for review 
under subparagraph (B) at the same time the proposed budget is 
submitted to the Under Secretary of Defense (Comptroller).
    ``(B) The Chief Management Officer shall review each proposed 
budget transmitted under subparagraph (A) and, not later than January 
31 of the year preceding the fiscal year for which the budget is 
proposed, shall submit to the Secretary a report containing the 
comments of the Chief Management Officer with respect to all such 
proposed budgets, together with the certification of the Chief 
Management Officer regarding whether each such proposed budget achieves 
the required level of efficiency and effectiveness for enterprise 
business operations, consistent with guidance for budget review 
established by the Chief Management Officer.
    ``(C) Not later than March 31 each year, the Secretary shall submit 
to Congress a report that includes the following:
            ``(i) Each proposed budget for the enterprise business 
        operations of a Defense Agency or Department of Defense Field 
        Activity that was transmitted to the Chief Management Officer 
        under subparagraph (A).
            ``(ii) Identification of each proposed budget contained in 
        the most recent report submitted under subparagraph (B) that 
        the Chief Management Officer did not certify as achieving the 
        required level of efficiency and effectiveness for enterprise 
        business operations.
            ``(iii) A discussion of the actions that the Secretary 
        proposes to take, together with any recommended legislation 
        that the Secretary considers appropriate, to address inadequate 
        levels of efficiency and effectiveness for enterprise business 
        operations achieved by the proposed budgets identified in the 
        report.
            ``(iv) Any additional comments that the Secretary considers 
        appropriate regarding inadequate levels of efficiency and 
        effectiveness for enterprise business operations achieved by 
        the proposed budgets.
    ``(2) Nothing in this subsection shall be construed to modify or 
interfere with the budget-related responsibilities of the Director of 
National Intelligence.
    ``(d) Precedence.--The Chief Management Officer takes precedence in 
the Department of Defense after the Secretary of Defense and the Deputy 
Secretary of Defense.
    ``(e) Enterprise Business Operation Defined.--In this section, the 
term `enterprise business operations' means those activities that 
constitute the cross-cutting business operations used by multiple 
components of the Department of Defense, but not those activities that 
are directly tied to a single military department or Department of 
Defense component. The term includes business-support functions 
designated by the Secretary of Defense or the Deputy Secretary of 
Defense for purposes of this section, such as aspects of financial 
management, healthcare, acquisition and procurement, supply chain and 
logistics, certain information technology, real property, and human 
resources operations.''.
            (2) Clerical amendment.--The table of sections at the 
        beginning of chapter 4 of such title is amended by inserting 
        after the item relating to section 132 the following new item:

``132a. Chief Management Officer.''.
    (b) Management and Oversight of Defense Business Systems.--Section 
2222 of such title is amended--
            (1) in subsection (c)(2), by striking ``the Chief 
        Information Officer of the Department of Defense'' and 
        inserting ``the Chief Management Officer of the Department of 
        Defense'';
            (2) in subsection (e)--
                    (A) in paragraph (1), by striking ``the Chief 
                Information Officer'' and inserting ``the Chief 
                Management Officer''; and
                    (B) in paragraph (6)--
                            (i) in subparagraph (A), in the matter 
                        preceding clause (i)--
                                    (I) in the first sentence, by 
                                striking ``The Chief Information 
                                Officer of the Department of Defense, 
                                in coordination with the Chief Data and 
                                Artificial Intelligence Officer,'' and 
                                inserting ``The Chief Management 
                                Officer of the Department of Defense''; 
                                and
                                    (II) in the second sentence, by 
                                striking ``the Chief Information 
                                Officer shall'' and inserting ``the 
                                Chief Management Officer shall''; and
                            (ii) in subparagraph (B), in the matter 
                        preceding clause (i), by striking ``The Chief 
                        Information Officer'' and inserting ``The Chief 
                        Management Officer'';
            (3) in subsection (f)(1), in the second sentence, by 
        inserting ``the Chief Management Officer and'' after ``chaired 
        by'';
            (4) in subsection (g)(2), by striking ``the Chief 
        Information Officer of the Department of Defense'' each place 
        it appears and inserting ``the Chief Management Officer of the 
        Department of Defense''; and
            (5) in subsection (i)(5)(B), by striking ``the Chief 
        Information Officer'' and inserting ``the Chief Management 
        Officer''.
    (c) Conforming Amendment.--Section 131(b) of title 10, United 
States Code, is amended by inserting after paragraph (1) the following 
new paragraph (2):
            ``(2) The Chief Management Officer of the Department of 
        Defense.''.
    (d) Guidance Required.--Not later than 30 days after the date of 
the enactment of this Act, the Secretary of Defense shall--
            (1) issue guidance to clearly delineate the authorities and 
        responsibilities of the Chief Management Officer of the 
        Department of Defense; and
            (2) provide a charter for the position of the Chief 
        Management Officer to fully vest the authority of the Chief 
        Management Officer within the Department of Defense.
    (e) Report on Effect of Lapse in Management Oversight on Defense 
Business Systems.--
            (1) In general.--Not later than 180 days after the date of 
        the enactment of this Act, the Deputy Secretary of Defense 
        shall submit to the congressional defense committees a report 
        on the effect on defense business systems of the abolishment of 
        the position of Chief Management Officer and the failure to 
        reassign the responsibilities of the Chief Management Officer 
        with respect to defense business systems for two years.
            (2) Defense business system defined.--In this subsection, 
        the term ``defense business system'' has the meaning given that 
        term in section 2222(i) of title 10, United States Code.
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