H. Rept. 111-465 - IMPLEMENTING MANAGEMENT FOR PERFORMANCE AND RELATED REFORMS TO OBTAIN VALUE IN EVERY ACQUISITION ACT OF 2010111th Congress (2009-2010)
Committee Report
| Report Type: | House Report |
|---|---|
| Accompanies: | H.R.5013 |
| Committees: |
H. Rept. 111-465 - 111th Congress (2009-2010)
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House Report 111-465 - IMPLEMENTING MANAGEMENT FOR PERFORMANCE AND RELATED REFORMS TO OBTAIN VALUE IN EVERY ACQUISITION ACT OF 2010
[House Report 111-465]
[From the U.S. Government Publishing Office]
111th Congress
2d Session HOUSE OF REPRESENTATIVES Rept. 111-465
Part 1
_______________________________________________________________________
IMPLEMENTING MANAGEMENT FOR PERFORMANCE AND RELATED REFORMS TO OBTAIN
VALUE IN EVERY ACQUISITION ACT OF 2010
__________
R E P O R T
OF THE
COMMITTEE ON ARMED SERVICES
HOUSE OF REPRESENTATIVES
ON
H.R. 5013
together with
ADDITIONAL VIEWS
[Including cost estimate of the Congressional Budget Office]
April 23, 2010.--Ordered to be printed
-----
U.S. GOVERNMENT PRINTING OFFICE
89-006 WASHINGTON : 2010
HOUSE COMMITTEE ON ARMED SERVICES
One Hundred Eleventh Congress
IKE SKELTON, Missouri, Chairman
JOHN SPRATT, South Carolina HOWARD P. ``BUCK'' McKEON,
SOLOMON P. ORTIZ, Texas California
GENE TAYLOR, Mississippi ROSCOE G. BARTLETT, Maryland
SILVESTRE REYES, Texas MAC THORNBERRY, Texas
VIC SNYDER, Arkansas WALTER B. JONES, North Carolina
ADAM SMITH, Washington W. TODD AKIN, Missouri
LORETTA SANCHEZ, California J. RANDY FORBES, Virginia
MIKE McINTYRE, North Carolina JEFF MILLER, Florida
ROBERT A. BRADY, Pennsylvania JOE WILSON, South Carolina
ROBERT ANDREWS, New Jersey FRANK A. LoBIONDO, New Jersey
SUSAN A. DAVIS, California ROB BISHOP, Utah
JAMES R. LANGEVIN, Rhode Island MICHAEL TURNER, Ohio
RICK LARSEN, Washington JOHN KLINE, Minnesota
JIM COOPER, Tennessee MIKE ROGERS, Alabama
JIM MARSHALL, Georgia TRENT FRANKS, Arizona
MADELEINE Z. BORDALLO, Guam BILL SHUSTER, Pennsylvania
BRAD ELLSWORTH, Indiana CATHY McMORRIS RODGERS, Washington
PATRICK J. MURPHY, Pennsylvania K. MICHAEL CONAWAY, Texas
HANK JOHNSON, Georgia DOUG LAMBORN, Colorado
CAROL SHEA-PORTER, New Hampshire ROB WITTMAN, Virginia
JOE COURTNEY, Connecticut MARY FALLIN, Oklahoma
DAVID LOEBSACK, Iowa DUNCAN HUNTER, California
JOE SESTAK, Pennsylvania JOHN C. FLEMING, Louisiana
GABRIELLE GIFFORDS, Arizona MIKE COFFMAN, Colorado
NIKI TSONGAS, Massachusetts THOMAS J. ROONEY, Florida
GLENN NYE, Virginia TODD RUSSELL PLATTS, Pennsylvania
CHELLIE PINGREE, Maine
LARRY KISSELL, North Carolina
MARTIN HEINRICH, New Mexico
FRANK M. KRATOVIL, Jr., Maryland
BOBBY BRIGHT, Alabama
SCOTT MURPHY, New York
WILLIAM L. OWENS, New York
DAN BOREN, Oklahoma
Paul Arcangeli, Staff Director
C O N T E N T S
----------
Page
Purpose and Background........................................... 21
Legislative History.............................................. 23
Hearings......................................................... 23
Section-by-Section Analysis...................................... 23
Section 1--Short Title....................................... 23
Section 2--Definition of Congressional Defense Committees.... 23
Section 3--Table of Contents................................. 24
TITLE I--DEFENSE ACQUISITION SYSTEM.............................. 24
OVERVIEW....................................................... 24
ITEMS OF SPECIAL INTEREST...................................... 25
Acquisition Process for Information Technology............... 25
Military Purpose Non-Developmental Items..................... 26
Tailoring of Metrics......................................... 26
Treatment of Services Acquisition in the Federal Acquisition
Regulation................................................. 27
LEGISLATIVE PROVISIONS......................................... 27
Section 101--Performance Management of the Defense
Acquisition System......................................... 27
Section 102--Meaningful Consideration by Joint Requirements
Oversight Council of Input from Certain Officials.......... 28
Section 103--Performance Management for the Joint
Capabilities Integration and Development System............ 29
Section 104--Requirements for the Acquisition of Services.... 29
Section 105--Joint Evaluation Task Forces.................... 30
Section 106--Review of Defense Acquisition Guidance.......... 30
Section 107--Requirement To Include References to Services
Contracting throughout the Federal Acquisition Regulation.. 30
Section 108--Procurement of Military Purpose Nondevelopmental
Items...................................................... 31
TITLE II--DEFENSE ACQUISITION WORKFORCE.......................... 31
OVERVIEW....................................................... 31
LEGISLATIVE PROVISIONS......................................... 32
Section 201--Acquisition Workforce Excellence................ 32
Section 202--Amendments to the Acquisition Workforce
Demonstration Project...................................... 33
Section 203--Incentive Programs for Civilian and Military
Personnel in the Acquisition Workforce..................... 34
Section 204--Career Development for Civilian and Military
Personnel in the Acquisition Workforce..................... 35
Section 205--Recertification and Training Requirements....... 35
Section 206--Information Technology Acquisition Workforce.... 36
Section 207--Definition of Acquisition Workforce............. 36
Section 208--Defense Acquisition University Curriculum Review 36
Section 209--Cost Estimating Internship and Scholarship
Programs................................................... 37
TITLE III--FINANCIAL MANAGEMENT.................................. 37
OVERVIEW....................................................... 37
LEGISLATIVE PROVISIONS......................................... 38
Section 301--Incentives for Achieving Auditability........... 38
Section 302--Measures Required after Failure To Achieve
Auditability............................................... 38
Section 303--Review of Obligation and Expenditure Thresholds. 39
TITLE IV--INDUSTRIAL BASE........................................ 39
OVERVIEW....................................................... 39
ITEMS OF SPECIAL INTEREST...................................... 40
Contract Payment Withholding................................. 40
Department of Defense Utilization of Service Disabled
Veteran-Owned Small Businesses............................. 40
Multiyear Procurement Authority.............................. 41
LEGISLATIVE PROVISIONS......................................... 42
Section 401--Expansion of the Industrial Base................ 42
Section 402--Commercial Pricing Analysis..................... 42
Section 403--Contractor and Grantee Disclosure of Delinquent
Federal Tax Debts.......................................... 42
Section 404--Independence of Contract Audits and Business
System Reviews............................................. 43
Section 405--Blue Ribbon Panel on Eliminating Barriers to
Contracting with the Department of Defense................. 44
Section 406--Inclusion of the Providers of Services and
Information Technology in the National Technology and
Industrial Base............................................ 44
Communications from Other Committees............................. 44
Committee Position............................................... 46
Congressional Budget Office Estimate............................. 46
Committee Cost Estimate.......................................... 50
Compliance with House Rule XXI................................... 50
Oversight Findings............................................... 50
General Performance Goals and Objectives......................... 50
Constitutional Authority Statement............................... 51
Federal Advisory Committee Statement............................. 51
Applicability to the Legislative Branch.......................... 51
Statement of Federal Mandates.................................... 51
Record Vote...................................................... 51
Changes in Existing Law Made by the Bill, as Reported............ 53
Additional Views................................................. 78
Additional Views of Representative K. Michael Conaway.......... 78
Additional Views of Representative Rick Larsen................. 80
Additional Views of Representative James R. Langevin........... 81
111th Congress Rept. 111-465
HOUSE OF REPRESENTATIVES
2d Session Part 1
======================================================================
IMPLEMENTING MANAGEMENT FOR PERFORMANCE AND RELATED REFORMS TO OBTAIN
VALUE IN EVERY ACQUISITION ACT OF 2010
_______
April 23, 2010.--Ordered to be printed
_______
Mr. Skelton, from the Committee on Armed Services, submitted the
following
R E P O R T
together with
ADDITIONAL VIEWS
[To accompany H.R. 5013]
[Including cost estimate of the Congressional Budget Office]
The Committee on Armed Services, to whom was referred the
bill (H.R. 5013) to amend title 10, United States Code, to
provide for performance management of the defense acquisition
system, and for other purposes, having considered the same,
report favorably thereon with an amendment and recommend that
the bill as amended do pass.
The amendment is as follows:
Strike all after the enacting clause and insert the
following:
SECTION 1. SHORT TITLE.
This Act may be cited as the ``Implementing Management for
Performance and Related Reforms to Obtain Value in Every Acquisition
Act of 2010''.
SEC. 2. DEFINITION OF CONGRESSIONAL DEFENSE COMMITTEES.
In this Act, the term ``congressional defense committees'' has the
meaning given that term in section 101(a)(16) of title 10, United
States Code.
SEC. 3. TABLE OF CONTENTS.
The table of contents for this Act is as follows:
Sec. 1. Short title.
Sec. 2. Definition of congressional defense committees.
Sec. 3. Table of contents.
TITLE I--DEFENSE ACQUISITION SYSTEM
Sec. 101. Performance management of the defense acquisition system.
Sec. 102. Meaningful consideration by Joint Requirements Oversight
Council of input from certain officials.
Sec. 103. Performance management for the Joint Capabilities Integration
and Development System.
Sec. 104. Requirements for the acquisition of services.
Sec. 105. Joint evaluation task forces.
Sec. 106. Review of defense acquisition guidance.
Sec. 107. Requirement to include references to services contracting
throughout the Federal Acquisition Regulation.
Sec. 108. Procurement of military purpose nondevelopmental items.
TITLE II--DEFENSE ACQUISITION WORKFORCE
Sec. 201. Acquisition workforce excellence.
Sec. 202. Amendments to the acquisition workforce demonstration
project.
Sec. 203. Incentive programs for civilian and military personnel in the
acquisition workforce.
Sec. 204. Career development for civilian and military personnel in the
acquisition workforce.
Sec. 205. Recertification and training requirements.
Sec. 206. Information technology acquisition workforce.
Sec. 207. Definition of acquisition workforce.
Sec. 208. Defense Acquisition University curriculum review.
Sec. 209. Cost estimating internship and scholarship programs.
TITLE III--FINANCIAL MANAGEMENT
Sec. 301. Incentives for achieving auditability.
Sec. 302. Measures required after failure to achieve auditability.
Sec. 303. Review of obligation and expenditure thresholds.
TITLE IV--INDUSTRIAL BASE
Sec. 401. Expansion of the industrial base.
Sec. 402. Commercial pricing analysis.
Sec. 403. Contractor and grantee disclosure of delinquent Federal tax
debts.
Sec. 404. Independence of contract audits and business system reviews.
Sec. 405. Blue ribbon panel on eliminating barriers to contracting with
the Department of Defense.
Sec. 406. Inclusion of the providers of services and information
technology in the national technology and industrial base.
TITLE I--DEFENSE ACQUISITION SYSTEM
SEC. 101. PERFORMANCE MANAGEMENT OF THE DEFENSE ACQUISITION SYSTEM.
(a) Performance Management of the Defense Acquisition System.--
(1) In general.--Part IV of title 10, United States Code, is
amended by inserting after chapter 148 the following new
chapter:
``CHAPTER 149--PERFORMANCE MANAGEMENT OF THE DEFENSE ACQUISITION SYSTEM
``Sec.
``2545. Performance assessment of the defense acquisition system.
``2546. Audits of performance assessment.
``2547. Use of performance assessments for managing performance.
``2548. Acquisition-related functions of the Chiefs of Staff of the
armed forces.
``Sec. 2545. Performance assessment of the defense acquisition system
``(a) Performance Assessments Required.--(1) The Secretary of Defense
shall ensure that all elements of the defense acquisition system are
subject to regular performance assessments--
``(A) to determine the extent to which such elements deliver
appropriate value to the Department of Defense; and
``(B) to enable senior officials of the Department of Defense
to manage the elements of the defense acquisition system to
maximize their value to the Department.
``(2) The performance of each element of the defense acquisition
system shall be assessed as needed, but not less often than annually.
``(3) The Secretary shall ensure that the performance assessments
required by this subsection are appropriately tailored to reflect the
diverse nature of defense acquisition so that the performance
assessment of each element of the defense acquisition system accurately
reflects the work performed by such element.
``(b) Systemwide Categories.--(1) The Secretary of Defense shall
establish categories of metrics for the defense acquisition system,
including, at a minimum, categories relating to cost, quality,
delivery, workforce, and policy implementation that apply to all
elements of the defense acquisition system.
``(2) The Secretary of Defense shall issue guidance for service
acquisition executives within the Department of Defense on the
establishment of metrics, and goals and standards relating to such
metrics, within the categories established by the Secretary under
paragraph (1) to ensure that there is sufficient uniformity in
performance assessments across the defense acquisition system so that
elements of the defense acquisition system can be meaningfully
compared.
``(c) Metrics, Goals, and Standards.--(1) Each service acquisition
executive of the Department of Defense shall establish metrics to be
used in the performance assessments required by subsection (a) for each
element of the defense acquisition system for which such executive is
responsible within the categories established by the Secretary under
subsection (b). Such metrics shall be appropriately tailored pursuant
to subsection (a)(3) and may include measures of--
``(A) cost, quality, and delivery;
``(B) contractor performance;
``(C) excessive use of contract bundling and availability of
non-bundled contract vehicles;
``(D) workforce quality and program manager tenure (where
applicable);
``(E) the quality of market research;
``(F) appropriate use of integrated testing;
``(G) appropriate consideration of long-term sustainment; and
``(H) appropriate acquisition of technical data and other
rights and assets necessary to support long-term sustainment.
``(2) Each service acquisition executive within the Department of
Defense shall establish goals and standards (including, at a minimum, a
threshold standard and an objective goal) for each metric established
under paragraph (1) by the executive. In establishing the goals and
standards for an element of the defense acquisition system, a service
acquisition executive shall consult with the head of the element to the
maximum extent practicable, but the service acquisition executive shall
retain the final authority to determine the goals and standards
established. The service acquisition executive shall update the goals
and standards as necessary and appropriate consistent with the guidance
issued under subsection (b)(2).
``(3) The Under Secretary of Defense for Acquisition, Technology, and
Logistics shall periodically review the metrics, goals, and standards
established by service acquisition executives under this subsection to
ensure that they are consistent with the guidance issued under
subsection (b)(2).
``(d) Responsibility for Oversight and Direction of Performance
Assessments.--(1) Performance assessments required by subsection (a)
shall either be carried out by, or shall be subject to the oversight
of, the Director of the Office of Performance Assessment and Root Cause
Analysis. The authority and responsibility granted by this subsection
is in addition to any other authority or responsibility granted to the
Director of the Office of Performance Assessment and Root Cause
Analysis by the Secretary of Defense or by any other provision of law.
In the performance of duties pursuant to this section, the Director of
the Office of Performance Assessment and Root Cause analysis shall
coordinate with the Deputy Chief Management Officer to ensure that
performance assessments carried out pursuant to this section are
consistent with the performance management initiatives of the
Department of Defense.
``(2) A performance assessment may be carried out by an organization
under the control of the service acquisition executive of a military
department if--
``(A) the assessment fulfills the requirements of subsection
(a);
``(B) the organization is approved to carry out the
assessment by the Director of the Office of Performance
Assessment and Root Cause Analysis; and
``(C) the assessment is subject to the oversight of the
Director of the Office of Performance Assessment and Root Cause
Analysis in accordance with paragraph (1).
``(e) Retention and Access to Records of Performance Assessments
Within the Military Departments and Defense Agencies.--The Secretary of
Defense shall ensure that information from performance assessments of
all elements of the defense acquisition system are retained
electronically and that the Director of the Office of Performance
Assessment and Root Cause Analysis--
``(1) promptly receives the results of all performance
assessments conducted by an organization under the control of
the service acquisition executive of a military department; and
``(2) has timely access to any records and data in the
Department of Defense (including the records and data of each
military department and Defense Agency and including classified
and proprietary information) that the Director considers
necessary to review in order to perform or oversee performance
assessments pursuant to this section.
``(f) Definitions.--In this section:
``(1) The term `defense acquisition system' means the
acquisition workforce; the process by which the Department of
Defense manages the acquisition of goods and services,
including weapon systems, commodities, commercial and military
unique services, and information technology; and the management
structure for carrying out the acquisition function within the
Department of Defense.
``(2) The term `element of the defense acquisition system'
means an organization that operates within the defense
acquisition system and that focuses primarily on acquisition.
``(3) The term `metric' means a specific measure that serves
as a basis for comparison.
``(4) The term `threshold performance standard' means the
minimum acceptable level of performance in relation to a
metric.
``(5) The term `objective performance goal' means the most
desired level of performance in relation to a metric.
``(6) The term `Office of Performance Assessment and Root
Cause Analysis' means the office reporting to the senior
official designated by the Secretary of Defense under section
103(a) of the Weapon Systems Acquisition Reform Act of 2009
(Public Law 111-23, 10 U.S.C. 2430 note).
``Sec. 2546. Audits of performance assessment
``(a) Audits Required.--The Secretary of Defense shall ensure that
the performance assessments of the defense acquisition system required
by section 2545 of this title are subject to periodic audits to
determine the accuracy, reliability, and completeness of such
assessments.
``(b) Standards and Approach.--In performing the audits required by
subsection (a), the Secretary shall ensure that such audits--
``(1) comply with generally accepted government auditing
standards issued by the Comptroller General;
``(2) use a risk-based approach to audit planning; and
``(3) appropriately account for issues associated with
auditing assessments of activities occurring in a contingency
operation.
``Sec. 2547. Use of performance assessments for managing performance
``(a) In General.--The Secretary of Defense shall ensure that the
results of performance assessments are used in the management of
elements of the defense acquisition system through direct linkages
between the results of a performance assessment and the following:
``(1) The size of the bonus pool available to the workforce
of an element of the defense acquisition system.
``(2) Rates of promotion in the workforce of an element of
the defense acquisition system.
``(3) Awards for acquisition excellence.
``(4) The scope of work assigned to an element of the defense
acquisition system.
``(b) Additional Requirements.--The Secretary of Defense shall ensure
that actions taken to manage the acquisition workforce pursuant to
subsection (a) are undertaken in accordance with the requirements of
subsections (c) and (d) of section 1701a of this title.
``Sec. 2548. Acquisition-related functions of the Chiefs of Staff of
the armed forces
``(a) Assistance.--The Secretary of Defense shall ensure,
notwithstanding section 3014(c)(1)(A), section 5014(c)(1)(A), and
section 8014(c)(1)(A) of this title, that the Chief of Staff of the
Army, the Chief of Naval Operations, the Chief of Staff of the Air
Force, and the Commandant of the Marine Corps assist the Secretary of
the military department concerned in the performance of the following
acquisition-related functions of such department:
``(1) The development of requirements relating to the defense
acquisition system.
``(2) The development of measures to control requirements
creep in the defense acquisition system.
``(3) The development of career paths in acquisition for
military personnel (as required by section 1722a of this
title).
``(4) The assignment and training of contracting officer
representatives when such representatives are required to be
members of the armed forces because of the nature of the
contract concerned.
``(b) Definitions.--In this section:
``(1) The term `requirements creep' means the addition of new
technical or operational specifications after a requirements
document is approved.
``(2) The term `requirements document' means a document
produced in the requirements process that is provided for an
acquisition program to guide the subsequent development,
production, and testing of the program and that--
``(A) justifies the need for a materiel approach, or
an approach that is a combination of materiel and non-
materiel, to satisfy one or more specific capability
gaps;
``(B) details the information necessary to develop an
increment of militarily useful, logistically
supportable, and technically mature capability,
including key performance parameters; or
``(C) identifies production attributes required for a
single increment of a program.''.
(2) Clerical amendments.--The table of chapters at the
beginning of subtitle A of title 10, United States Code, and at
the beginning of part IV of such subtitle, are each amended by
inserting after the item relating to chapter 148 the following
new item:
``149. Performance Management of the Defense Acquisition 2545''.
System.
(b) Phased Implementation of Performance Assessments.--The Secretary
of Defense shall implement the requirements of chapter 149 of title 10,
United States Code, as added by subsection (a), in a phased manner
while guidance is issued, and categories, metrics, goals, and standards
are established. Implementation shall begin with a cross section of
elements of the defense acquisition system representative of the entire
system and shall be completed for all elements not later than two years
after the date of the enactment of this Act.
SEC. 102. MEANINGFUL CONSIDERATION BY JOINT REQUIREMENTS OVERSIGHT
COUNCIL OF INPUT FROM CERTAIN OFFICIALS.
(a) Advisors to the Joint Requirements Oversight Council.--
(1) Additional civilian advisors.--Subsection (d)(1) of
section 181 of title 10, United States Code, is amended by
striking ``The Under Secretary'' and all that follows through
``and expertise.'' and inserting the following: ``The following
officials of the Department of Defense shall serve as advisors
to the Council on matters within their authority and expertise:
``(A) The Under Secretary of Defense for Acquisition,
Technology, and Logistics.
``(B) The Under Secretary of Defense (Comptroller).
``(C) The Under Secretary of Defense for Policy.
``(D) The Director of Cost Assessment and Program
Evaluation.''.
(2) Role of combatant commanders as members of the jroc.--
Paragraph (1) of subsection (c) of such section is amended--
(A) by striking ``and'' at the end of subparagraph
(D);
(B) by striking the period at the end of subparagraph
(E) and inserting ``; and''; and
(C) by adding at the end the following new
subparagraph:
``(F) when directed by the chairman, the commander of
any combatant command (or, as directed by that
commander, the deputy commander of that command) when
matters related to the area of responsibility or
functions of that command will be under consideration
by the Council.''.
(b) Amendment Related to Report.--Paragraph (2) of section 105(c) of
the Weapon System Acquisition Reform Act of 2009 (Public Law 111-23;
123 Stat. 1718) is amended to read as follows:
``(2) Matters covered.--The report shall include, at a
minimum, an assessment of--
``(A) the extent to which the Council has effectively
sought, and the commanders of the combatant commands
have provided, meaningful input on proposed joint
military requirements;
``(B) the extent to which the Council has
meaningfully considered the input and expertise of the
Under Secretary of Defense for Acquisition, Technology,
and Logistics in its discussions;
``(C) the extent to which the Council has
meaningfully considered the input and expertise of the
Director of Cost Assessment and Program Evaluation in
its discussions;
``(D) the quality and effectiveness of efforts to
estimate the level of resources needed to fulfill joint
military requirements; and
``(E) the extent to which the Council has considered
trade-offs among cost, schedule, and performance
objectives.''.
SEC. 103. PERFORMANCE MANAGEMENT FOR THE JOINT CAPABILITIES INTEGRATION
AND DEVELOPMENT SYSTEM.
(a) Requirement for Program.--The Secretary of Defense shall ensure
that the Department of Defense develops and implements a program to
manage performance in establishing joint military requirements pursuant
to section 181 of title 10, United States Code.
(b) Leaders.--The Secretary of Defense shall designate an officer
identified or designated as a joint qualified officer to serve as
leader of a joint effort to develop the performance management program
required by subsection (a). The Secretary shall also designate an
officer from each Armed Force to serve as leader of the effort within
the Armed Force concerned. Officers designated pursuant to this section
shall have the seniority and authority necessary to oversee and direct
all personnel engaged in establishing joint military requirements
within the Joint Staff or within the Armed Force concerned.
(c) Matters Covered.--The program developed pursuant to subsection
(a) shall:
(1) Measure the following in relation to each joint military
requirement:
(A) The time a requirements document takes to receive
validation through the requirements process.
(B) The quality of cost information associated with
the requirement and the extent to which cost
information was considered during the requirements
process.
(C) The extent to which the requirements process
established a meaningful level of priority for the
requirement.
(D) The extent to which the requirements process
considered trade-offs between cost, schedule, and
performance objectives.
(E) The quality of information on sustainment
associated with the requirement and the extent to which
sustainment information was considered during the
requirements process.
(F) Such other matters as the Secretary shall
determine appropriate.
(2) Achieve, to the maximum extent practicable, the following
outcomes in the requirements process:
(A) Timeliness in delivering capability to the
warfighter.
(B) Mechanisms for controlling requirements creep.
(C) Responsiveness to fact-of-life changes occurring
after the approval of a requirements document,
including changes to the threat environment, the
emergence of new capabilities, or changes in the
resources estimated to procure or sustain a capability.
(D) The development of the personnel skills,
capacity, and training needed for an effective and
efficient requirements process.
(E) Such other outcomes as the Secretary shall
determine appropriate.
(d) Implementation.--The program required by subsection (a) shall be
developed and initially implemented not later than one year after the
date of the enactment of this Act and shall apply to requirements
documents entering the requirements process after the date of initial
implementation.
(e) Initial Report.--Not later than 90 days after the initial
implementation of the program required by subsection (a), the Secretary
shall submit to the congressional defense committees a report on the
steps taken to develop and implement the performance management program
for joint military requirements. The report shall address the measures
specified in subsection (c)(1).
(f) Final Report.--Not later than four years after the initial
implementation of the program required by subsection (a), the Secretary
shall submit to the congressional defense committees a report on the
effectiveness of the program for joint military requirements in
achieving the outcomes specified in subsection (c)(2).
(g) Definitions.--In this section:
(1) Requirements process.--The term ``requirements process''
means the Joint Capabilities Integration and Development System
(JCIDS) process or any successor to such process established by
the Chairman of the Joint Chiefs of Staff to support the
statutory responsibility of the Joint Requirements Oversight
Council in advising the Chairman and the Secretary of Defense
in identifying, assessing, and validating joint military
capability needs, with their associated operational performance
criteria, in order to successfully execute missions.
(2) Requirements document.--The term ``requirements
document'' means a document produced in the requirements
process that is provided for an acquisition program to guide
the subsequent development, production, and testing of the
program and that--
(A) justifies the need for a materiel approach, or an
approach that is a combination of materiel and non-
materiel, to satisfy one or more specific capability
gaps;
(B) details the information necessary to develop an
increment of militarily useful, logistically
supportable, and technically mature capability,
including key performance parameters; or
(C) identifies production attributes required for a
single increment of a program.
(3) Requirements creep.--The term ``requirements creep''
means the addition of new technical or operational
specifications after a requirements document is approved.
(h) Discretionary Implementation After 5 Years.--After the date that
is five years after the initial implementation of the performance
management program under this section, the requirement to implement a
program under this section shall be at the discretion of the Secretary
of Defense.
SEC. 104. REQUIREMENTS FOR THE ACQUISITION OF SERVICES.
(a) Process Required.--The Secretary of Defense shall ensure that
each military department establishes a process for identifying,
assessing, and approving requirements for the acquisition of services,
and that commanders of unified combatant commands and other officers
identified or designated as joint qualified officers have an
opportunity to participate in the process of each military department
to provide input on joint requirements for the acquisition of services.
(b) Guidance and Plan Required.--The Chief of Staff of the Army, the
Chief of Naval Operations, the Chief of Staff of the Air Force, and the
Commandant of the Marine Corps shall--
(1) issue and maintain guidance relating to each process
established under subsection (a); and
(2) develop a plan to implement each process established
under subsection (a).
(c) Matters Required in Guidance.--The guidance issued under
subsection (b) shall establish, in relation to a process for
identifying, assessing, and approving requirements for the acquisition
of services, the following:
(1) Organization of such process.
(2) The level of command responsibility required for
identifying and validating requirements for the acquisition of
services in accordance with the categories established under
section 2330(a)(1)(C) of title 10, United States Code.
(3) The composition of billets necessary to operate such
process.
(4) The training required for personnel engaged in such
process.
(5) The relationship between doctrine and such process.
(6) Methods of obtaining input on joint requirements for the
acquisition of services.
(7) Procedures for coordinating with the acquisition process.
(8) Considerations relating to opportunities for strategic
sourcing.
(d) Matters Required in Implementation Plan.--Each plan required
under subsection (b) shall provide for initial implementation of a
process for identifying, assessing, and approving requirements for the
acquisition of services not later than 180 days after the date of the
enactment of this Act and shall provide for full implementation of such
process at the earliest date practicable.
(e) Consistency With Joint Guidance.--Whenever, at any time, guidance
is issued by the Chairman of the Joint Chiefs of Staff relating to
requirements for the acquisition of services, each process established
under subsection (a) shall be revised in accordance with such joint
guidance.
(f) Definition.--The term ``requirements for the acquisition of
services'' means objectives to be achieved through acquisitions
primarily involving the procurement of services.
SEC. 105. JOINT EVALUATION TASK FORCES.
(a) Task Forces Required.--For each joint military requirement
involving a materiel solution for which the Chairman of the Joint
Requirements Oversight Council is the validation authority, the
Chairman shall designate a commander of a unified combatant command to
provide a joint evaluation task force to participate in such materiel
solution. Such task force shall--
(1) come from a military unit or units designated by the
combatant commander concerned;
(2) be selected based on the relevance of such materiel
solution to the mission of the unit; and
(3) participate consistent with its operational obligations.
(b) Responsibilities.--A task force provided pursuant to subsection
(a) shall, for the materiel solution concerned--
(1) provide input to the analysis of alternatives;
(2) participate in testing (including limited user tests and
prototype testing);
(3) provide input on a concept of operations and doctrine;
(4) provide end user feedback to the resource sponsor; and
(5) participate, through the combatant commander concerned,
in any alteration of the requirement for such solution.
(c) Administrative Support.--The resource sponsor for the joint
military requirement shall provide administrative support to the joint
evaluation task force for purposes of carrying out this section.
(d) Definitions.--In this section:
(1) Resource sponsor.--The term ``resource sponsor'' means
the organization responsible for all common documentation,
periodic reporting, and funding actions required to support the
capabilities development and acquisition process for the
materiel solution.
(2) Materiel solution.--The term ``materiel solution'' means
the development, acquisition, procurement, or fielding of a new
item, or of a modification to an existing item, necessary to
equip, operate, maintain, and support military activities.
SEC. 106. REVIEW OF DEFENSE ACQUISITION GUIDANCE.
(a) Review of Guidance.--The Secretary of Defense shall review the
acquisition guidance of the Department of Defense, including, at a
minimum, the guidance contained in Department of Defense Instruction
5000.02 entitled ``Operation of the Defense Acquisition System''.
(b) Matters Considered.--The review performed under subsection (a)
shall consider--
(1) the extent to which it is appropriate to apply guidance
relating to the acquisition of weapon systems to acquisitions
not involving weapon systems (including the acquisition of
commercial goods and commodities, commercial and military
unique services, and information technology);
(2) whether long-term sustainment of weapon systems is
appropriately emphasized;
(3) whether appropriate mechanisms exist to communicate
information relating to the mission needs of the Department of
Defense to the industrial base in a way that allows the
industrial base to make appropriate investments in
infrastructure, capacity, and technology development to help
meet such needs;
(4) the extent to which earned value management should be
required on acquisitions not involving the acquisition of
weapon systems and whether measures of quality and technical
performance should be included in any earned value management
system;
(5) the extent to which it is appropriate to apply processes
primarily relating to the acquisition of weapon systems to the
acquisition of information technology systems, consistent with
the requirement to develop an alternative process for such
systems contained in section 804 of the National Defense
Authorization Act for Fiscal Year 2010 (Public Law 111-84; 123
Stat. 2401; 10 U.S.C. 2225 note); and
(6) such other matters as the Secretary considers
appropriate.
(c) Report.--Not later than 270 days after the date of the enactment
of this Act, the Secretary of Defense shall submit to the Committees on
Armed Services of the Senate and of the House of Representatives a
report detailing any changes in the acquisition guidance of the
Department of Defense identified during the review required by
subsection (a), and any actions taken, or planned to be taken, to
implement such changes
SEC. 107. REQUIREMENT TO INCLUDE REFERENCES TO SERVICES CONTRACTING
THROUGHOUT THE FEDERAL ACQUISITION REGULATION.
(a) Findings.--Congress finds the following:
(1) The acquisition of services can be extremely complex, and
program management skills, tools, and processes need to be
applied to services acquisitions.
(2) An emphasis on the concept of ``services'' throughout the
Federal Acquisition Regulation would enhance and support the
procurement and project management community in all aspects of
the acquisition planning process, including requirements
development, assessment of reasonableness, and post-award
management and oversight.
(b) Requirement for Changes to FAR.--The Federal Acquisition
Regulation shall be revised to provide, throughout the Regulation,
appropriate references to services contracting that are in addition to
references provided in part 37 (which relates specifically to services
contracting).
(c) Deadline.--This section shall be carried out within 270 days
after the date of the enactment of this Act.
SEC. 108. PROCUREMENT OF MILITARY PURPOSE NONDEVELOPMENTAL ITEMS.
(a) In General.--
(1) Procurement of military purpose nondevelopmental items.--
Chapter 141 of title 10, United States Code, is amended by
adding at the end the following new section:
``Sec. 2410r. Military purpose nondevelopmental items
``(a) Definitions.--In this section:
``(1) The term `military purpose nondevelopmental item' means
an item--
``(A) developed exclusively at private expense;
``(B) that meets a validated military requirement and
for which the United States has rights in technical
data as prescribed in section 2320(a)(2)(B) of this
title, as certified in writing by the responsible
program manager;
``(C) for which delivery of an initial lot of
production-representative items may be made within nine
months after contract award; and
``(D) for which the unit cost is less than
$10,000,000.
``(2) The term `item' has the meaning provided in section
2302(3) of this title.
``(b) Requirements.--The Secretary of Defense shall ensure that, with
respect to a contract for the acquisition of a military purpose
nondevelopmental item, the following requirements apply:
``(1) The contract shall be awarded using competitive
procedures in accordance with section 2304 of this title.
``(2) Certain contract clauses, as specified in regulations
prescribed under subsection (c), shall be included in each such
contract.
``(3) The type of contract used shall be a firm, fixed price
type contract.
``(c) Regulations.--The Secretary of Defense shall prescribe
regulations to carry out this section. Such regulations shall be
included in regulations of the Department of Defense prescribed as part
of the Federal Acquisition Regulation. At a minimum, the regulations
shall include--
``(1) a list of contract clauses to be included in each
contract for the acquisition of a military purpose
nondevelopmental item;
``(2) definitions for the terms `developed' and `exclusively
at private expense' that--
``(A) are consistent with the definitions developed
for such terms in accordance with 2320(a)(3) of this
title; and
``(B) also exclude an item developed in part or in
whole with--
``(i) foreign government funding; or
``(ii) foreign or Federal Government loan
financing at nonmarket rates; and
``(3) standards for evaluating the reasonableness of price
for the military purpose nondevelopmental item, in lieu of
certified cost or pricing data.''.
(2) Clerical amendment.--The table of sections at the
beginning of such chapter is amended by adding at the end the
following new item:
``2410r. Military purpose nondevelopmental items.''.
(b) Cost or Pricing Data Exception.--Section 2306a(b)(1) of title 10,
United States Code, is amended--
(1) by striking ``or'' at the end of subparagraph (B);
(2) by striking the period at the end of subparagraph (C) and
inserting ``; or''; and
(3) by adding at the end the following new subparagraph:
``(D) for the acquisition of a military purpose
nondevelopmental item, as defined in section 2410r of
this title, if the contracting officer determines in
writing that--
``(i) the contract, subcontract or
modification will be a firm, fixed price type
contract; and
``(ii) the offeror has submitted sufficient
information to evaluate, through price
analysis, the reasonableness of the price for
the military purpose nondevelopmental item.''.
(c) Effective Date.--Section 2410r of title 10, United States Code,
as added by subsection (a), and the amendment made by subsection (b),
shall apply with respect to contracts entered into after the date that
is 120 days after the date of the enactment of this Act.
TITLE II--DEFENSE ACQUISITION WORKFORCE
SEC. 201. ACQUISITION WORKFORCE EXCELLENCE.
(a) In General.--
(1) Acquisition workforce excellence.--Subchapter I of
chapter 87 of title 10, United States Code, is amended by
inserting after section 1701 the following new section:
``Sec. 1701a. Management for acquisition workforce excellence
``(a) Purpose.--The purpose of this chapter is to require the
Department of Defense to develop and manage a highly skilled
professional acquisition workforce--
``(1) in which excellence and contribution to mission is
rewarded;
``(2) which has the technical expertise and business skills
to ensure the Department receives the best value for the
expenditure of public resources;
``(3) which serves as a model for performance management of
employees of the Department; and
``(4) which is managed in a manner that complements and
reinforces the performance management of the defense
acquisition system pursuant to chapter 149 of this title.
``(b) Performance Management.--In order to achieve the purpose set
forth in subsection (a), the Secretary of Defense shall--
``(1) use the full authorities provided in subsections (a)
through (d) of section 9902 of title 5, including flexibilities
related to performance management and hiring and to training of
managers;
``(2) require managers to develop performance plans for
individual members of the acquisition workforce in order to
give members an understanding of how their performance
contributes to their organization's mission and the success of
the defense acquisition system (as defined in section 2545 of
this title);
``(3) to the extent appropriate, use the lessons learned from
the acquisition demonstration project carried out under section
1762 of this title related to contribution-based compensation
and appraisal, and how those lessons may be applied within the
General Schedule system;
``(4) develop attractive career paths;
``(5) encourage continuing education and training;
``(6) develop appropriate procedures for warnings during
performance evaluations and due process for members of the
acquisition workforce who consistently fail to meet performance
standards;
``(7) take full advantage of the Defense Civilian Leadership
Program established under section 1112 of the National Defense
Authorization Act for Fiscal Year 2010, (Public Law 111-84; 123
Stat. 2496; 10 U.S.C. 1580 note prec.);
``(8) use the authorities for highly qualified experts under
section 9903 of title 5, to hire experts who are skilled
acquisition professionals to--
``(A) serve in leadership positions within the
acquisition workforce to strengthen management and
oversight;
``(B) provide mentors to advise individuals within
the acquisition workforce on their career paths and
opportunities to advance and excel within the
acquisition workforce; and
``(C) assist with the design of education and
training courses and the training of individuals in the
acquisition workforce; and
``(9) use the authorities for expedited security clearance
processing pursuant to section 1564 of this title.
``(c) Negotiations.--Any action taken by the Secretary under this
section, or to implement this section, shall be subject to the
requirements of chapter 71 of title 5.
``(d) Regulations.--Any rules or regulations prescribed pursuant to
this section shall be deemed an agency rule or regulation under section
7117(a)(2) of title 5, and shall not be deemed a Government-wide rule
or regulation under section 7117(a)(1) of such title.''.
(2) Clerical amendment.--The table of sections at the
beginning of such subchapter is amended by inserting after the
item relating to section 1701 the following new item:
``1701a. Management for acquisition workforce excellence.''.
(b) Authority to Appoint Highly Qualified Experts on Part-time
Basis.--Section 9903(b)(1) of title 5, United States Code, is amended
by inserting ``, on a full-time or part-time basis,'' after ``positions
in the Department of Defense'' the first place it appears.
SEC. 202. AMENDMENTS TO THE ACQUISITION WORKFORCE DEMONSTRATION
PROJECT.
(a) Codification Into Title 10.--
(1) In general.--Chapter 87 of title 10, United States Code,
is amended by inserting after section 1761 the following new
section:
``Sec. 1762. Demonstration project relating to certain acquisition
personnel management policies and procedures
``(a) Commencement.--The Secretary of Defense is encouraged to carry
out a demonstration project, the purpose of which is to determine the
feasibility or desirability of one or more proposals for improving the
personnel management policies or procedures that apply with respect to
the acquisition workforce of the Department of Defense and supporting
personnel assigned to work directly with the acquisition workforce.
``(b) Terms and Conditions.--(1) Except as otherwise provided in this
subsection, any demonstration project described in subsection (a) shall
be subject to section 4703 of title 5 and all other provisions of such
title that apply with respect to any demonstration project under such
section.
``(2) Subject to paragraph (3), in applying section 4703 of title 5
with respect to a demonstration project described in subsection (a)--
``(A) `180 days' in subsection (b)(4) of such section shall
be deemed to read `120 days';
``(B) `90 days' in subsection (b)(6) of such section shall be
deemed to read `30 days'; and
``(C) subsection (d)(1) of such section shall be disregarded.
``(3) Paragraph (2) shall not apply with respect to a demonstration
project unless--
``(A) for each organization or team participating in the
demonstration project--
``(i) at least one-third of the workforce
participating in the demonstration project consists of
members of the acquisition workforce; and
``(ii) at least two-thirds of the workforce
participating in the demonstration project consists of
members of the acquisition workforce and supporting
personnel assigned to work directly with the
acquisition workforce; and
``(B) the demonstration project commences before October 1,
2007.
``(c) Limitation on Number of Participants.--The total number of
persons who may participate in the demonstration project under this
section may not exceed 120,000.
``(d) Effect of Reorganizations.--The applicability of paragraph (2)
of subsection (b) to an organization or team shall not terminate by
reason that the organization or team, after having satisfied the
conditions in paragraph (3) of such subsection when it began to
participate in a demonstration project under this section, ceases to
meet one or both of the conditions set forth in subparagraph (A) of
such paragraph (3) as a result of a reorganization, restructuring,
realignment, consolidation, or other organizational change.
``(e) Assessment.--(1) The Secretary of Defense shall designate an
independent organization to review the acquisition workforce
demonstration project described in subsection (a).
``(2) Such assessment shall include:
``(A) A description of the workforce included in the project.
``(B) An explanation of the flexibilities used in the project
to appoint individuals to the acquisition workforce and whether
those appointments are based on competitive procedures and
recognize veteran's preferences.
``(C) An explanation of the flexibilities used in the project
to develop a performance appraisal system that recognizes
excellence in performance and offers opportunities for
improvement.
``(D) The steps taken to ensure that such system is fair and
transparent for all employees in the project.
``(E) How the project allows the organization to better meet
mission needs.
``(F) An analysis of how the flexibilities in subparagraphs
(B) and (C) are used, and what barriers have been encountered
that inhibit their use.
``(G) Whether there is a process for (i) ensuring ongoing
performance feedback and dialogue among supervisors, managers,
and employees throughout the performance appraisal period, and
(ii) setting timetables for performance appraisals.
``(H) The project's impact on career progression.
``(I) The project's appropriateness or inappropriateness in
light of the complexities of the workforce affected.
``(J) The project's sufficiency in terms of providing
protections for diversity in promotion and retention of
personnel.
``(K) The adequacy of the training, policy guidelines, and
other preparations afforded in connection with using the
project.
``(L) Whether there is a process for ensuring employee
involvement in the development and improvement of the project.
``(3) The first such assessment under this subsection shall be
completed not later than September 30, 2011, and subsequent assessments
shall be completed every two years thereafter until the termination of
the project. The Secretary shall submit to the covered congressional
committees a copy of the assessment within 30 days after receipt by the
Secretary of the assessment.
``(f) Covered Congressional Committees.--In this section, the term
`covered congressional committees' means--
``(1) the Committees on Armed Services of the Senate and the
House of Representatives;
``(2) the Committee on Homeland Security and Governmental
Affairs of the Senate; and
``(3) the Committee on Oversight and Government Reform of the
House of Representatives.
``(g) Termination of Authority.--The authority to conduct a
demonstration program under this section shall terminate on September
30, 2017.
``(h) Conversion.--Within six months after the authority to conduct a
demonstration project under this section is terminated as provided in
subsection (g), employees in the project shall convert to the civilian
personnel system created pursuant to section 9902 of title 5.''.
(2) Clerical amendment.--The table of sections at the
beginning of subchapter V of chapter 87 of title 10, United
States Code, is amended by inserting after the item relating to
section 1761 the following new item:
``1762. Demonstration project relating to certain acquisition personnel
management policies and procedures.''.
(b) Conforming Repeal.--Section 4308 of the National Defense
Authorization Act for Fiscal Year 1996 (Public Law 104-106; 10 U.S.C.
1701 note) is repealed.
SEC. 203. INCENTIVE PROGRAMS FOR CIVILIAN AND MILITARY PERSONNEL IN THE
ACQUISITION WORKFORCE.
(a) In General.--Chapter 87 of title 10, United States Code, is
amended by inserting after section 1762, as added by section 202, the
following new section:
``Sec. 1763. Incentive programs for civilian and military personnel in
the acquisition workforce
``(a) Civilian Acquisition Workforce Incentives.--The Secretary of
Defense, acting through the Under Secretary of Defense for Acquisition,
Technology, and Logistics, shall provide for an enhanced system of
incentives for the encouragement of excellence in the acquisition
workforce by providing rewards for employees who contribute to
achieving the agency's performance goals. The system of incentives
shall include provisions that--
``(1) relate salary increases, bonuses, and awards to
performance and contribution to the agency mission (including
the extent to which the performance of personnel in such
workforce contributes to achieving the goals and standards
established for acquisition programs pursuant to section 2545
of this title;
``(2) provide for consideration, in personnel evaluations and
promotion decisions, of the extent to which the performance of
personnel in such workforce contributes to achieving such goals
and standards;
``(3) use the Department of Defense Civilian Workforce
Incentive Fund established pursuant to section 9902(a) of title
5; and
``(4) provide opportunities for career broadening experiences
for high performers.
``(b) Military Acquisition Workforce Incentives.--The Secretaries of
the military departments shall fully use and enhance incentive programs
that reward individuals, through recognition certificates or cash
awards, for suggestions of process improvements that contribute to
improvements in efficiency and economy and a better way of doing
business.''.
(b) Clerical Amendment.--The table of sections at the beginning of
subchapter V of chapter 87 of title 10, United States Code, is amended
by inserting after the item relating to section 1762, as added by
section 202, the following new item:
``1763. Incentive programs for civilian and military personnel in the
acquisition workforce.''.
SEC. 204. CAREER DEVELOPMENT FOR CIVILIAN AND MILITARY PERSONNEL IN THE
ACQUISITION WORKFORCE.
(a) Career Paths.--
(1) Amendment.--Chapter 87 of title 10, United States Code,
is amended by inserting after section 1722a the following new
section:
``Sec. 1722b. Special requirements for civilian employees in the
acquisition field
``(a) Requirement for Policy and Guidance Regarding Civilian
Personnel in Acquisition.--The Secretary of Defense, acting through the
Under Secretary of Defense for Acquisition, Technology, and Logistics,
shall establish policies and issue guidance to ensure the proper
development, assignment, and employment of civilian members of the
acquisition workforce to achieve the objectives specified in subsection
(b).
``(b) Objectives.--Policies established and guidance issued pursuant
to subsection (a) shall ensure, at a minimum, the following:
``(1) A career path in the acquisition field that attracts
the highest quality civilian personnel, from either within or
outside the Federal Government.
``(2) A deliberate workforce development strategy that
increases attainment of key experiences that contribute to a
highly qualified acquisition workforce.
``(3) Sufficient opportunities for promotion and advancement
in the acquisition field.
``(4) A sufficient number of qualified, trained members
eligible for and active in the acquisition field to ensure
adequate capacity, capability, and effective succession for
acquisition functions, including contingency contracting, of
the Department of Defense.
``(c) Inclusion of Information in Annual Report.--The Secretary of
Defense shall include in the report to Congress required under section
115b(d) of this title the following information related to the
acquisition workforce for the period covered by the report (which shall
be shown for the Department of Defense as a whole and separately for
the Army, Navy, Air Force, Marine Corps, Defense Agencies, and Office
of the Secretary of Defense):
``(1) The total number of persons serving in the Acquisition
Corps, set forth separately for members of the armed forces and
civilian employees, by grade level and by functional specialty.
``(2) The total number of critical acquisition positions
held, set forth separately for members of the armed forces and
civilian employees, by grade level and by other appropriate
categories (including by program manager, deputy program
manager, and division head positions). For each such category,
the report shall specify the number of civilians holding such
positions compared to the total number of positions filled.
``(3) The number of employees to whom the requirements of
subsections (b)(2)(A) and (b)(2)(B) of section 1732 of this
title did not apply because of the exceptions provided in
paragraphs (1) and (2) of section 1732(c) of this title, set
forth separately by type of exception.
``(4) The number of program managers and deputy program
managers who were reassigned after completion of a major
milestone occurring closest in time to the date on which the
person has served in the position for four years (as required
under section 1734(b) of this title), and the proportion of
those reassignments to the total number of reassignments of
program managers and deputy program managers, set forth
separately for program managers and deputy program managers.
The Secretary also shall include the average length of
assignment served by program managers and deputy program
managers so reassigned.
``(5) The number of persons, excluding those reported under
paragraph (4), in critical acquisition positions who were
reassigned after a period of three years or longer (as required
under section 1734(a) of this title), and the proportion of
those reassignments to the total number of reassignments of
persons, excluding those reported under paragraph (4), in
critical acquisition positions.
``(6) The number of times a waiver authority was exercised
under section 1724(d), 1732(d), 1734(d), or 1736(c) of this
title or any other provision of this chapter (or other
provision of law) which permits the waiver of any requirement
relating to the acquisition workforce, and in the case of each
such authority, the reasons for exercising the authority. The
Secretary may present the information provided under this
paragraph by category or grouping of types of waivers and
reasons.''.
(2) Clerical amendment.--The table of sections at the
beginning of subchapter II of chapter 87 of title 10, United
States Code, is amended by inserting after the item relating to
section 1722a the following new item:
``1722b. Special requirements for civilian employees in the acquisition
field.''.
(b) Career Education and Training.--Chapter 87 of title 10, United
States Code, is amended in section 1723 by redesignating subsection (b)
as subsection (c) and inserting after subsection (a) the following new
subsection:
``(b) Career Path Requirements.--For each career path, the Secretary
of Defense, acting through the Under Secretary of Defense for
Acquisition, Technology, and Logistics shall establish requirements for
the completion of course work and related on-the-job training and
demonstration of qualifications in the critical acquisition-related
duties and tasks of the career path. The Secretary of Defense, acting
through the Under Secretary, shall also--
``(1) encourage individuals in the acquisition workforce to
maintain the currency of their acquisition knowledge and
generally enhance their knowledge of related acquisition
management disciplines through academic programs and other
self-developmental activities; and
``(2) develop key work experiences, including the creation of
a program sponsored by the Department of Defense that
facilitates the periodic interaction between individuals in the
acquisition workforce and the end user in such end user's
environment to enhance the knowledge base of such workforce,
for individuals in the acquisition workforce so that the
individuals may gain in-depth knowledge and experience in the
acquisition process and become seasoned, well-qualified members
of the acquisition workforce.''.
SEC. 205. RECERTIFICATION AND TRAINING REQUIREMENTS.
(a) Continuing Education.--Section 1723 of title 10, United States
Code, as amended by section 204, is further amended by amending
subsection (a) to read as follows:
``(a) Qualification Requirements.--(1) The Secretary of Defense shall
establish education, training and experience requirements for each
acquisition position, based on the level of complexity of duties
carried out in the position. In establishing such requirements, the
Secretary shall ensure the availability and sufficiency of training in
all areas of acquisition, including additional training courses with an
emphasis on services contracting, long-term sustainment strategies,
information technology, and rapid acquisition.
``(2) In establishing such requirements for positions other than
critical acquisition positions designated pursuant to section 1733 of
this title, the Secretary may state the requirements by categories of
positions.
``(3) The Secretary of Defense, acting through the Under Secretary of
Defense for Acquisition, Technology, and Logistics, shall establish
requirements for continuing education and periodic renewal of an
individual's certification. Any requirement for a certification renewal
shall not require a renewal more often than once every five years.''.
(b) Standards for Training.--
(1) In general.--Subchapter IV of Chapter 87 of title 10,
United States Code, is amended by adding at the end the
following new section:
``Sec. 1748. Guidance and standards for acquisition workforce training
``(a) Fulfillment Standards.--The Secretary of Defense, acting
through the Under Secretary of Defense for Acquisition, Technology, and
Logistics, shall develop fulfillment standards, and implement and
maintain a program, for purposes of the training requirements of
sections 1723, 1724, and 1735 of this title. Such fulfillment standards
shall consist of criteria for determining whether an individual has
demonstrated competence in the areas that would be taught in the
training courses required under those sections. If an individual meets
the appropriate fulfillment standard, the applicable training
requirement is fulfilled.
``(b) Guidance and Standards Relating to Contracts for Training.--The
Secretary of Defense shall develop appropriate guidance and standards
to ensure that the Department of Defense will continue, where
appropriate and cost-effective, to enter into contracts for the
training requirements of sections 1723, 1724, and 1735 of this title,
while maintaining appropriate control over the content and quality of
such training.''.
(2) Clerical amendment.--The table of sections at the
beginning of such subchapter is amended by adding at the end
the following new item:
``1748. Guidance and standards for acquisition workforce training.''.
(3) Deadline for fulfillment standards.--The fulfillment
standards required under section 1748(a) of title 10, United
States Code, as added by paragraph (1), shall be developed not
later than 90 days after the date of the enactment of this Act.
(4) Conforming repeal.--Section 853 of Public Law 105-85 (111
Stat. 1851) is repealed.
SEC. 206. INFORMATION TECHNOLOGY ACQUISITION WORKFORCE.
(a) In General.--
(1) Information technology.--Subchapter II of chapter 87 of
title 10, United States Code, is amended by adding at the end
the following new section:
``Sec. 1725. Information technology acquisition positions
``(a) Plan Required.--The Secretary of Defense shall develop and
carry out a plan to strengthen the part of the acquisition workforce
that specializes in information technology. The plan shall include the
following:
``(1) Defined targets for billets devoted to information
technology acquisition.
``(2) Specific certification requirements for individuals in
the acquisition workforce who specialize in information
technology acquisition.
``(3) Defined career paths for individuals in the acquisition
workforce who specialize in information technology
acquisitions.
``(b) Definitions.--In this section:
``(1) The term `information technology' has the meaning
provided such term in section 11101 of title 40 and includes
information technology incorporated into a major weapon system.
``(2) The term `major weapon system' has the meaning provided
such term in section 2379(f) of this title.''.
(2) Clerical amendment.--The table of sections at the
beginning of such subchapter is amended by adding at the end
the following new item:
``1725. Information technology acquisition positions.''.
(b) Deadline.--The Secretary of Defense shall develop the plan
required under section 1725 of title 10, United States Code, as added
by subsection (a), not later than 180 days after the date of the
enactment of this Act.
SEC. 207. DEFINITION OF ACQUISITION WORKFORCE.
Section 101(a) of title 10, United States Code, is amended by
inserting after paragraph (17) the following new paragraph:
``(18) The term `acquisition workforce' means the persons
serving in acquisition positions within the Department of
Defense, as designated pursuant to section 1721(a) of this
title.''.
SEC. 208. DEFENSE ACQUISITION UNIVERSITY CURRICULUM REVIEW.
(a) Curriculum Review.--Not later than one year after the date of the
enactment of this Act, the Under Secretary of Defense for Acquisition,
Technology, and Logistics shall lead a review of the curriculum offered
by the Defense Acquisition University to ensure it adequately supports
the training and education requirements of acquisition professionals,
particularly in service contracting, long term sustainment strategies,
information technology, and rapid acquisition. The review shall also
involve the service acquisition executives of each military department.
(b) Analysis of Funding Requirements for Training.--Following the
review conducted under subsection (a), the Secretary of Defense shall
analyze the most recent future-years defense program to determine the
amounts of estimated expenditures and proposed appropriations necessary
to support the training requirements of the amendments made by section
205 of this Act, including any new training requirements determined
after the review conducted under subsection (a). The Secretary shall
identify any additional funding needed for such training requirements
in the separate chapter on the defense acquisition workforce required
in the next annual strategic workforce plan under 115b of title 10,
United States Code.
(c) Requirement for Ongoing Curriculum Development With Certain
Schools.--
(1) Requirement.--Section 1746 of title 10, United States
Code, is amended by adding at the end the following new
subsection:
``(c) Curriculum Development.--The President of the Defense
Acquisition University shall work with the relevant professional
schools and degree-granting institutions of the Department of Defense
and military departments to ensure that best practices are used in
curriculum development to support acquisition workforce positions.''.
(2) Amendment to section heading.--(A) The heading of section
1746 of such title is amended to read as follows:
``Sec. 1746. Defense Acquisition University''.
(B) The item relating to section 1746 in the table of
sections at the beginning of subchapter IV of chapter 87 of
such title is amended to read as follows:
``1746. Defense Acquisition University.''.
SEC. 209. COST ESTIMATING INTERNSHIP AND SCHOLARSHIP PROGRAMS.
(a) Purpose.--The purpose of this section is to require the
Department of Defense to develop internship and scholarship programs in
cost estimating to underscore the importance of cost estimating, as a
core acquisition function, to the acquisition process.
(b) Requirement.--The Secretary of Defense shall develop intern and
scholarship programs in cost estimating for purposes of improving
education and training in cost estimating and providing an opportunity
to meet any certification requirements in cost estimating.
(c) Implementation.--Such programs shall be established not later
than 270 days after the date of the enactment of this Act and shall be
implemented for a four-year period following establishment of the
programs.
TITLE III--FINANCIAL MANAGEMENT
SEC. 301. INCENTIVES FOR ACHIEVING AUDITABILITY.
(a) Preferential Treatment Authorized.--The Under Secretary of
Defense (Comptroller) shall ensure that any component of the Department
of Defense that the Under Secretary determines has financial statements
validated as ready for audit earlier than September 30, 2017, shall
receive preferential treatment, as the Under Secretary determines
appropriate--
(1) in financial matter matters, including--
(A) consistent with the need to fund urgent
warfighter requirements and operational needs, priority
in the release of appropriated funds to such component;
(B) relief from the frequency of financial reporting
of such component in cases in which such reporting is
not required by law;
(C) relief from departmental obligation and
expenditure thresholds to the extent that such
thresholds establish requirements more restrictive than
those required by law; or
(D) such other measures as the Under Secretary
considers appropriate; and
(2) in the availability of personnel management incentives,
including--
(A) the size of the bonus pool available to the
financial and business management workforce of the
component;
(B) the rates of promotion within the financial and
business management workforce of the component;
(C) awards for excellence in financial and business
management; or
(D) the scope of work assigned to the financial and
business management workforce of the component.
(b) Inclusion of Information in Report.--The Under Secretary shall
include information on any measure initiated pursuant to this section
in the next semiannual report pursuant to section 1003(b) of the
National Defense Authorization Act for Fiscal Year 2010 (Public Law
111-84; 123 Stat. 2439; 10 U.S.C. 2222 note) after such measure is
initiated.
(c) Expiration.--This section shall expire on September 30, 2017.
(d) Definition.--In this section, the term ``component of the
Department of Defense'' means any organization within the Department of
Defense that is required to submit an auditable financial statement to
the Secretary of Defense.
SEC. 302. MEASURES REQUIRED AFTER FAILURE TO ACHIEVE AUDITABILITY.
(a) In General.--The Secretary of Defense shall ensure that
corrective measures are immediately taken to address the failure of a
component of the Department of Defense to achieve a financial statement
validated as ready for audit by September 30, 2017.
(b) Measures Required.--Not later than 180 days after the date of the
enactment of this Act, the Secretary shall develop and issue guidance
detailing measures to be taken in accordance with subsection (a). Such
measures shall include--
(1) the development of a remediation plan to ensure the
component can achieve a financial statement validated as ready
for audit within one year;
(2) additional reporting requirements that may be necessary
to mitigate financial risk to the component;
(3) delaying the release of appropriated funds to such
component, consistent with the need to fund urgent warfighter
requirements and operational needs, until such time as the
Secretary is assured that the component will achieve a
financial statement validated as ready for audit within one
year;
(4) specific consequences for key personnel in order to
ensure accountability within the leadership of the component;
and
(5) such other measures as the Secretary considers
appropriate.
(c) Definition.--The term ``component'' of the Department of Defense
means any organization within the Department of Defense that is
required to submit an auditable financial statement to the Secretary of
Defense.
SEC. 303. REVIEW OF OBLIGATION AND EXPENDITURE THRESHOLDS.
(a) Sense of Congress.--It is the sense of Congress that--
(1) Department of Defense program managers should be
encouraged to place a higher priority on seeking the best value
for the Government than on meeting arbitrary benchmarks for
spending; and
(2) actions to carry out paragraph (1) should be supported by
the Department's leadership at every level.
(b) Policy Review.--Not later than 180 days after the date of the
enactment of this Act, the Chief Management Officer of the Department
of Defense, in coordination with the Chief Management Officer of each
military department, shall review and update as necessary all relevant
policy and instruction regarding obligation and expenditure benchmarks
to ensure that such guidance does not inadvertantly prevent achieving
the best value for the Government in the obligation and expenditure of
funds.
(c) Process Review.--Not later than one year after the date of the
enactment of this Act, the Chief Management Officer, in coordination
with the Chief Management Officer of each military department, the
Director of the Office of Performance Assessment and Root Cause
Analysis, the Under Secretary of Defense (Comptroller), and the
Comptrollers of the military departments, shall conduct a comprehensive
review of the use and value of obligation and expenditure benchmarks
and propose new benchmarks or processes for tracking financial
performance, including, as appropriate--
(1) increased reliance on individual obligation and
expenditure plans for measuring program financial performance;
(2) mechanisms to improve funding stability and to increase
the predictability of the release of funding for obligation and
expenditure; and
(3) streamlined mechanisms for a program manager to submit an
appeal for funding changes and to have such appeal evaluated
promptly.
(d) Training.--The Under Secretary of Defense for Acquisition,
Technology, and Logistics and the Under Secretary of Defense
(Comptroller) shall ensure that as part of the training required for
program managers and business managers, an emphasis is placed on
obligating and expending appropriated funds in a manner that achieves
the best value for the Government and that the purpose and limitations
of obligation and expenditure benchmarks are made clear.
TITLE IV--INDUSTRIAL BASE
SEC. 401. EXPANSION OF THE INDUSTRIAL BASE.
(a) Program to Expand Industrial Base Required.--The Secretary of
Defense shall establish a program to expand the industrial base of the
Department of Defense to increase the Department's access to innovation
and the benefits of competition.
(b) Identifying and Communicating With Nontraditional Suppliers.--The
program established under subsection (a) shall use tools and resources
available within the Federal Government and available from the private
sector, to provide a capability for identifying and communicating with
nontraditional suppliers, including commercial firms and firms of all
business sizes, that are engaged in markets of importance to the
Department of Defense.
(c) Industrial Base Review.--The program required by subsection (a)
shall include a continuous effort to review the industrial base
supporting the Department of Defense, including the identification of
markets of importance to the Department of Defense.
(d) Definition.--In this section:
(1) Nontraditional suppliers.--The term ``nontraditional
suppliers'' means firms that have received contracts from the
Department of Defense with a total value of not more than
$100,000 in the previous 5 years.
(2) Markets of importance to the department of defense.--The
term ``markets of importance to the Department of Defense''
means industrial sectors in which the Department of Defense
spends more than $500,000,000 annually.
SEC. 402. COMMERCIAL PRICING ANALYSIS.
Section 803(c) of the Strom Thurmond National Defense Authorization
Act for Fiscal Year 1999 (Public Law 105-261; 10 U.S.C. 2306a note) is
amended to read as follows:
``(c) Commercial Price Trend Analysis.--
``(1) The Secretary of Defense shall develop and implement
procedures that, to the maximum extent practicable, provide for
the collection and analysis of information on price trends for
categories of exempt commercial items described in paragraph
(2).
``(2) A category of exempt commercial items referred to in
paragraph (1) consists of exempt commercial items that are in a
single Federal Supply Group or Federal Supply Class, are
provided by a single contractor, or are otherwise logically
grouped for the purpose of analyzing information on price
trends.
``(3) The analysis of information on price trends under
paragraph (1) shall include, in any category in which
significant escalation in prices is identified, a more detailed
examination of the causes of escalation for such prices within
the category and whether such price escalation is consistent
across the Department of Defense.
``(4) The head of a Department of Defense agency or the
Secretary of a military department shall take appropriate
action to address any unjustified escalation in prices being
paid for items procured by that agency or military department
as identified in an analysis conducted pursuant to paragraph
(1).
``(5) Not later than April 1 of each of year, the Secretary
of Defense shall submit to the Committee on Armed Services of
the Senate and the Committee on Armed Services of the House of
Representatives a report on the analyses of price trends that
were conducted for categories of exempt commercial items during
the preceding fiscal year under the procedures prescribed
pursuant to paragraph (1). The report shall include a
description of the actions taken to identify and address any
unjustified price escalation for the categories of items.
``(6) This subsection shall not be in effect on and after
April 1, 2013.''.
SEC. 403. CONTRACTOR AND GRANTEE DISCLOSURE OF DELINQUENT FEDERAL TAX
DEBTS.
(a) Requirement.--
(1) In general.--Chapter 37 of title 31, United States Code,
is amended by adding at the end of subchapter II the following
new section:
``Sec. 3720F. Contractor and grantee disclosure of delinquent Federal
tax debts
``(a) Requirement Relating to Contracts.--The head of any executive
agency that issues an invitation for bids or a request for proposals
for a contract in an amount greater than the simplified acquisition
threshold shall require each person that submits a bid or proposal to
submit with the bid or proposal a form--
``(1) certifying that the person does not have a seriously
delinquent tax debt; and
``(2) authorizing the Secretary of the Treasury to disclose
to the head of the agency information strictly limited to
verifying whether the person has a seriously delinquent tax
debt.
``(b) Requirement Relating to Grants.--The head of any executive
agency that offers a grant in excess of an amount equal to the
simplified acquisition threshold may not award such grant to any person
unless such person submits with the application for such grant a form--
``(1) certifying that the person does not have a seriously
delinquent tax debt; and
``(2) authorizing the Secretary of the Treasury to disclose
to the head of the executive agency information strictly
limited to verifying whether the person has a seriously
delinquent tax debt.
``(c) Form for Release of Information.--The Secretary of the Treasury
shall make available to all executive agencies a standard form for the
certification and authorization described in subsections (a) and (b).
``(d) Definitions.--In this section:
``(1) Contract.--The term `contract' means a binding
agreement entered into by an executive agency for the purpose
of obtaining property or services, but does not include--
``(A) a contract for property or services that is
intended to be entered into through the use of
procedures other than competitive procedures by reason
of section 2304(c)(2) of this title; or
``(B) a contract designated by the head of the agency
as necessary to the national security of the United
States.
``(2) Executive agency.--The term `executive agency' has the
meaning given that term in section 4(1) of the Office of
Federal Procurement Policy Act (41 U.S.C. 403(1)).
``(3) Person.--The term `person' includes--
``(A) an individual;
``(B) a partnership; and
``(C) a corporation.
``(4) Seriously delinquent tax debt.--The term `seriously
delinquent tax debt'--
``(A) means any Federal tax liability--
``(i) that exceeds $3,000;
``(ii) that has been assessed by the
Secretary of the Treasury and not paid; and
``(iii) for which a notice of lien has been
filed in public records; and
``(B) does not include any Federal tax liability--
``(i) being paid in a timely manner under an
offer-in-compromise or installment agreement;
``(ii) with respect to which collection due
process proceedings are not completed; or
``(iii) with respect to which collection due
process proceedings are completed and no
further payment is required.
``(5) Simplified acquisition threshold.--The term `simplified
acquisition threshold' has the meaning given that term in
section 4(11) of the Office of Federal Procurement Policy Act
(41 U.S.C. 403(11)).
``(e) Regulations.--The Administrator for Federal Procurement Policy,
in consultation with the Secretary of the Treasury, shall promulgate
regulations that--
``(1) treat corporations and partnerships as having a
seriously delinquent tax debt if such corporation or
partnership is controlled (directly or indirectly) by persons
who have a seriously delinquent tax debt;
``(2) provide for the proper application of subsections
(a)(2) and (b)(2) in the case of corporations and partnerships;
and
``(3) provide for the proper application of subsection (a) to
first-tier subcontractors that are identified in a bid or
proposal and are a significant part of a bid or proposal
team.''.
(2) Clerical amendment.--The table of sections at the
beginning of chapter 37 of such title is amended by adding
after the item relating to section 3720E the following new
item:
``3720F. Contractor and grantee disclosure of delinquent Federal tax
debts.''.
(b) Revision of Federal Acquisition Regulation.--Not later than 90
days after the final promulgation of regulations under section 3720F(e)
of title 31, United States Code, as added by subsection (a), the
Federal Acquisition Regulation shall be revised to incorporate the
requirements of section 3720F of such title.
SEC. 404. INDEPENDENCE OF CONTRACT AUDITS AND BUSINESS SYSTEM REVIEWS.
(a) Defense Contract Audit Agency General Counsel.--
(1) In general.--Subchapter II of chapter 8 of title 10,
United States Code, is amended by adding at the end the
following new section:
``Sec. 204. Defense Contract Audit Agency general counsel
``(a) General Counsel.--The Director of the Defense Contract Audit
Agency shall appoint a General Counsel of the Defense Contract Audit
Agency.
``(b) Duties.--(1) The General Counsel shall perform such functions
as the Director may prescribe and shall serve at the discretion of the
Director.
``(2) Notwithstanding section 140(b) of this title, the General
Counsel shall be the chief legal officer of the Defense Contract Audit
Agency.
``(3) The Defense Contract Audit Agency shall be the exclusive legal
client of the General Counsel.
``(c) Office of the General Counsel.--There is established an Office
of the General Counsel within the Defense Contract Audit Agency. The
Director may appoint to the Office to serve as staff of the General
Counsel such legal counsel as the Director determines is
appropriate.''.
(2) Clerical amendment.--The table of sections at the
beginning of subchapter II of chapter 8 of such title is
amended by adding at the end the following new item:
``204. Defense Contract Audit Agency general counsel.''.
(b) Criteria for Business System Reviews.--
(1) In general.--Chapter 131 of title 10, United States Code,
is amended by inserting after section 2222 the following new
section:
``Sec. 2222a. Criteria for business system reviews
``(a) Criteria for Business System Reviews.--The Secretary of Defense
shall ensure that any contractor business system review carried out by
a military department, a Defense Agency, or a Department of Defense
Field Activity--
``(1) complies with generally accepted government auditing
standards issued by the Comptroller General;
``(2) is performed by an audit team that does not engage in
any other official activity (audit-related or otherwise)
involving the contractor concerned;
``(3) is performed in a time and manner consistent with a
documented assessment of the risk to the Federal Government;
and
``(4) involves testing on a representative sample of
transactions sufficient to fully examine the integrity of the
contractor business system concerned.
``(b) Contractor Business System Review Defined.--In this section,
the term `contractor business system review' means an audit of
policies, procedures, and internal controls relating to accounting and
management systems of a contractor.''.
(2) Clerical amendment.--The table of sections at the
beginning of chapter 131 of such title is amended by inserting
after the item relating to section 2222 the following new item:
``2222a. Criteria for business system reviews.''.
(c) Contract Audit Guidance.--Not later than 180 days after the date
of the enactment of this Act, the Secretary of Defense shall issue
guidance relating to contract audits carried out by a military
department, a defense agency, or a Department of Defense field activity
that are not contractor business system reviews, as described under
section 2222a of title 10, United States Code, that--
(1) requires that such audits comply with generally accepted
government auditing standards issued by the Comptroller General
and are performed in a time and manner consistent with a
documented assessment of risk to the Federal Government;
(2) establishes guidelines for discussions of the scope of
the audit with the contractor concerned that ensure that such
scope is not improperly influenced by the contractor;
(3) provides for withholding of contract payments when
necessary to compel the submission of documentation from the
contractor; and
(4) requires that the results of contract audits performed on
behalf of an agency of the Department of Defense be shared with
other Federal agencies upon request, without reimbursement.
(d) Effective Dates.--
(1) Section 204.--Section 204 of title 10, United States
Code, as added by subsection (a), shall take effect on the date
of the enactment of this Act.
(2) Section 2222a.--Section 2222a of title 10, United States
Code, as added by subsection (b), shall take effect 180 days
after the date of the enactment of this Act.
SEC. 405. BLUE RIBBON PANEL ON ELIMINATING BARRIERS TO CONTRACTING WITH
THE DEPARTMENT OF DEFENSE.
(a) Requirement to Establish.--The Secretary of Defense shall
establish a panel consisting of owners of large and small businesses
that are not traditional defense suppliers, for purposes of creating a
set of recommendations on eliminating barriers to contracting with the
Department of Defense and its defense supply centers.
(b) Members.--The panel shall consist of nine members, of whom--
(1) three shall be appointed by the Secretary of the Army;
(2) three shall be appointed by the Secretary of the Navy;
and
(3) three shall be appointed by the Secretary of the Air
Force.
(c) Appointment Deadline.--Members shall be appointed to the panel
not later than 180 days after the date of the enactment of this Act.
(d) Duties.--The panel shall be responsible for developing a set of
recommendations on eliminating barriers to contracting with the
Department of Defense and its defense supply centers.
(e) Report.--Not later than one year after the date of the enactment
of this Act, the panel shall submit to Congress a report containing its
recommendations.
SEC. 406. INCLUSION OF THE PROVIDERS OF SERVICES AND INFORMATION
TECHNOLOGY IN THE NATIONAL TECHNOLOGY AND
INDUSTRIAL BASE.
(a) Revised Definitions.--Section 2500 of title 10, United States
Code, is amended--
(1) in paragraph (1), by striking ``or maintenance'' and
inserting ``integration, services, or information technology'';
(2) in paragraph (4), by striking ``or production'' and
inserting ``production, integration, services, or information
technology'';
(3) in paragraph (9)(A), by striking ``and manufacturing''
and inserting ``manufacturing, integration, services, and
information technology''; and
(4) by adding at the end the following new paragraph:
``(15) The term `integration' means the process of providing
systems engineering and technical direction for a system for
the purpose of achieving capabilities that satisfy contract
requirements.''.
(b) Revised Objectives.--Section 2501(a) of such title is amended--
(1) in paragraph (1), by striking ``Supplying and equipping''
and inserting ``Supplying, equipping, and supporting'';
(2) in paragraph (2), by striking ``and logistics for'' and
inserting ``logistics, and other activities in support of'';
(3) in paragraph (4), by striking ``and produce'' and
inserting ``, produce, and support''; and
(4) by redesignating paragraph (6) as paragraph (8) and
inserting after paragraph (5) the following new paragraphs:
``(6) Providing for the generation of services capabilities
that are not core functions of the armed forces and that are
critical to military operations within the national technology
and industrial base.
``(7) Providing for the development, production, and
integration of information technology within the national
technology and industrial base.''.
(c) Revised Assessments.--Section 2505(b)(4) of such title is amended
by inserting after ``of this title)'' the following ``or major
automated information systems (as defined in section 2445a of this
title)''.
(d) Revised Policy Guidance.--Section 2506(a) of such title is
amended by striking ``budget allocation, weapons'' and inserting
``strategy, management, budget allocation,''.
Purpose and Background
The purpose of H.R. 5013, the Implementing Management for
Performance and Related Reforms to Obtain Value in Every
Acquisition Act of 2010, is to amend title 10, United States
Code, and to establish other new statutory requirements, to
improve performance and the quality of outcomes in the defense
acquisition system. On March 17, 2009, Chairman Ike Skelton and
then-Ranking Member John McHugh appointed a Panel on Defense
Acquisition Reform from among members of the committee to carry
out a comprehensive review of the defense acquisition system.
The review was motivated by a general sense that the Department
of Defense's (DOD) acquisition system was not responsive enough
to today's mission needs, not rigorous enough in protecting
taxpayers, and not disciplined enough in the acquisition of
weapon systems for tomorrow's wars.
A central finding of this review was that while the nature
of defense acquisition has substantially changed in the last
two decades, the defense acquisition system has not kept pace.
The system remains structured primarily for the acquisition of
weapon systems at a time when services represent a much larger
share of the Department's acquisitions. As a result, the
Department's formal acquisition policy has limited application
to the majority of the Department's acquisitions. Furthermore,
while the Department is currently working to modernize in the
``information age,'' the acquisition system is particularly
poorly designed for the acquisition of information technology.
Even in the acquisition of weapon systems, the Department's
historical strength, the system continues to generate
development timeframes for major systems measured in decades,
an approach which has resulted in unacceptable cost growth,
negative effects on industry, and in too many cases, a failure
to timely meet warfighter needs.
The acquisition of weapon systems, the acquisition of
commercial goods and commodities, the acquisition of services,
and the acquisition of information technology have diverse
features and challenges. Across all categories of acquisition,
however, significant improvements can be made in: managing the
acquisition system; improving the requirements process;
developing and incentivizing the highest quality acquisition
workforce; reforming financial management; and getting the best
from the industrial base. This bill would put in place the
statutory framework needed to achieve these improvements.
For most categories of acquisition, only anecdotal
information exists about instances where the system either
performed well, or poorly. Even where real performance metrics
currently exist, they are not sufficient. H.R. 5013 would
establish a performance management program that would allow
DOD's senior leaders to identify and correct problems in the
defense acquisition system, and reinforce and reward success.
This bill would expand the mandate of the Office of Performance
Assessment and Root Cause Analysis (PARCA) to serve a
performance assessment function for the acquisition system.
PARCA would track organizations throughout the defense
acquisition system in meeting pre-negotiated goals for
acquisition performance. Organizations would see real
consequences for both success and failure in meeting their
goals.
In addition to instituting performance management for the
acquisition system, this bill would establish a performance
management approach for the requirements processes upon which
the acquisition process depends. Challenges with the
requirements process are a major factor in poor acquisition
outcomes. Most concerning is that the requirements process for
the acquisition of services, the largest category of
acquisition, is almost entirely ad hoc. The process for
developing requirements for the acquisition of weapon systems
is overly cumbersome, but also lacking in the expertise and
capacity required to truly vet joint military requirements.
This bill would substantially improve both processes.
H.R. 5013 would establish the acquisition workforce as a
model within the Department for more flexible personnel
management that rewards success and includes accountability.
The Department's Acquisition Workforce Demonstration Project
and the authorities in section 1113 of the National Defense
Authorization Act for Fiscal Year 2010 (Public Law 111-84)
provide a solid foundation for creating an acquisition
workforce that can obtain the value the Department needs. The
Department requires flexibility to efficiently hire qualified
new employees, and to manage its workforce in a manner that
promotes superior performance. This bill provides these tools
so that the Department can develop new regulations for the
civilian workforce including fair, credible, and transparent
methods for hiring and assigning personnel, and for appraising
and incentivizing employee performance.
Underlying the success of the defense acquisition system is
the Department's financial management system. The inability to
provide accurate and timely financial information prevents the
Department from adequately managing its acquisition programs
and from implementing true acquisition reform. The implications
of poor financial management stretch beyond the Department of
Defense. Indeed, given that the Department is the largest
agency in the federal government, owning 86 percent of the
government's assets (estimated at $4.6 trillion), it is
essential that the Department maintain strong financial
management and business systems. This bill would provide
incentives to DOD components that are able to obtain clean
audit opinions before the statutory deadline of September 30,
2017, and also imposes consequences if this deadline is not
met.
H.R. 5013 also focuses on how to get the most out of the
industrial base. The Department has long worked to protect
those elements of the defense industrial base that are
perishable and unique to the Department. The committee supports
this priority. However, the committee believes that the
Department can enhance competition and gain access to more
innovative technology by developing measures to utilize more of
the industrial base, especially small- and mid-tier businesses.
The committee also believes that the Department is best served
when it deals with responsible contractors. Contracting
officers need access to accurate information on contractors
that are known to be in violation of the law in making the
determination about whether a contractor is responsible.
Legislative History
H.R. 5013 was introduced on April 14, 2010, and referred to
the Committee on Armed Services, and in addition to the
Committee on Oversight and Government Reform.
On April 21, 2010, the Committee on Armed Services held a
mark-up session to consider H.R. 5013, as introduced. The
committee, a quorum being present, ordered reported H.R. 5013,
as amended, to the House with a favorable recommendation by a
record vote of 56-0.
Hearings
Committee consideration of the matters contained in H.R.
5013, the Implementing Management for Performance and Related
Reforms to Obtain Value in Every Acquisition Act of 2010, was
informed by multiple committee hearings. The committee's Panel
on Defense Acquisition Reform held 14 hearings and 2 briefings
on various aspects of the defense acquisition system. These
hearings involved testimony from many current and former
officials of the Department of Defense who are knowledgeable on
acquisition matters as well as representatives of industry and
of the acquisition workforce. The panel's work culminated in a
hearing on March 11, 2010, with the Honorable Ashton Carter,
Under Secretary of Defense for Acquisition, Technology, and
Logistics, the Honorable Robert Hale, Under Secretary of
Defense (Comptroller), Ms. Elizabeth A. McGrath, Acting Deputy
Chief Management Officer, Department of Defense, and Mr. Shay
Assad, Acting Assistant Secretary of Defense for Acquisition
and Director, Defense Procurement and Acquisition Policy, on
Administration perspectives on managing the defense acquisition
system and the defense acquisition workforce. The witnesses
provided testimony on the panel's interim findings and
recommendations allowing the committee to gain the
Administration's views on the matters that form the core of
H.R. 5013.
Section-by-Section Analysis
The following is a section-by-section analysis of those
sections of H.R. 5013, as amended, by the Committee on Armed
Services.
Section 1--Short Title
This section would establish the short title of the bill as
the ``Implementing Management for Performance and Related
Reforms to Obtain Value in Every Acquisition Act of 2010.''
Section 2--Definition of Congressional Defense Committees
This section would define the term ``congressional defense
committee'' as it is defined in section 101 of title 10, United
States Code. The term would include the Senate Armed Services
Committee, the House Armed Services Committee, the Subcommittee
on Defense of the Senate Appropriations Committee, and the
Subcommittee on Defense of the House Appropriations Committee.
Section 3--Table of Contents
This section would contain the table of contents for the
bill.
TITLE I--DEFENSE ACQUISITION SYSTEM
OVERVIEW
Although Department of Defense policy and the name of this
title refer explicitly to a ``defense acquisition system,''
there is in fact very little of the unity in the system that
such a term implies. The Under Secretary of Defense for
Acquisition, Technology, and Logistics (USD(AT&L)) exercises
direct oversight over a relatively small percentage of
acquisitions, mostly major defense acquisition programs, and
recently, very large service contracts. Likewise, the bulk of
overarching defense acquisition policy and congressional
oversight focus applies to this portion of the defense
acquisition system. The rest of the system, representing a
majority of acquisition spending, is largely outside the day to
day purview of USD (AT&L) and many of the most well known
acquisition statutes do not apply. Much of the defense
acquisition system is run entirely by the military departments
and is not centrally managed. Furthermore, the character of the
defense acquisition system varies greatly depending on the
nature of the item being acquired. Acquisition at the
Department of Defense (DOD) is funded, managed, overseen, and
operated according to notably different processes depending on
whether the category of item being acquired is a weapon system;
a commercial good or commodity; an item being acquired rapidly
in response to an urgent operational need; a military-unique or
commercial service; or information technology.
The diversity in the acquisition system is in many cases
appropriate. It does, however, present a significant management
challenge, one that the Department is often unable to meet. Two
of the major purposes of this title are to create a structure
flexible enough to be used in managing the entire defense
acquisition system, and to manage the system to achieve
specific performance goals.
The Goldwater Nichols Act (Public Law 99-433) assigned
control of the acquisition system to the civilian leadership of
the Department of Defense. The committee continues to support
this principle, but is concerned that the perceived divide
between acquisition and the responsibilities of the military
service chiefs has become so wide that it hinders both the
acquisition and requirements processes. This title would
clarify that the military service chiefs have a role in
assigning and guiding the training of military personnel in the
acquisition process and in coordinating requirements with
acquisition.
Obtaining consistent, realistic requirements able to serve
as a basis for the acquisition process is a critical problem in
the defense acquisition system. Requirements in the weapon
system acquisition context are governed by the Joint
Capabilities Integration and Development System (JCIDS). The
committee has received significant feedback about problems with
the JCIDS process and its ability to coordinate with
acquisition. While the challenges in JCIDS are concerning, an
even greater challenge exists in the context of requirements
for the acquisition of services which are determined almost
entirely in an ad hoc process. This title is intended to create
a tool for improving JCIDS and requires the Department to
establish a workable process for identifying, assessing, and
approving requirements for the acquisition of services.
The Department's policy guidance on acquisition is found
primarily in DOD Instruction (DODI) 5000.02, ``Operation of the
Defense Acquisition System.'' DODI 5000.02 was revised in
December 2008 and again in December 2009 to reflect passage of
the Weapon Systems Acquisition Reform Act of 2009 (Public Law
111-23). It is in many ways an excellent document with
significant improvements in the areas of weapon systems
acquisition and in establishing a policy for the acquisition of
services. However, the Department needs to improve the
communication of its policy guidance on service contracting and
reexamine DODI 5000.02 and related guidance to ensure that
mandates and requirements that are particular to the
acquisition of weapon systems are not being inappropriately
applied to other areas of acquisition, particularly the
acquisition of services and information technology. The
committee also recognizes that there will be acquisitions
involving one or more categories of acquisition, such as a
contract involving hardware and information technology
elements. The Department should ensure that its acquisition
professionals have sufficient guidance and expertise in all
categories of acquisition to best meet the needs of the
government. The Department should also develop guidance for
formally communicating information on the Department's mission
needs with industry that is independent of specific acquisition
program and contracts. The purpose of this dialogue would be to
provide industry with the insight needed to make necessary
investments in capacity, infrastructure, and technology
development to meet the Department's needs. Therefore, the
committee urges the Department to involve the commercial and
defense industrial bases in the assessment of mechanisms to
communicate information to industry. This title would require
the Department to review its acquisition policy guidance to
address these matters.
ITEMS OF SPECIAL INTEREST
Acquisition Process for Information Technology
The National Defense Authorization Act for Fiscal Year 2010
(Public Law 111-84) included section 804, which called for an
alternative acquisition process for information technology (IT)
systems. The committee's Panel on Defense Acquisition Reform
held a detailed hearing on issues in the acquisition of IT as
part of its comprehensive review of the defense acquisition
system.
The committee endorses the panel's IT acquisition-related
findings, and encourages the Department of Defense to integrate
these findings into its implementation plan for section 804.
The panel's full set of findings can be found in its report,
and includes recommendations that an alternative process for IT
acquisition:
(1) Determine clear performance metrics for specific
programs from the start;
(2) Foster an ongoing dialogue during the technology
development process between the system developers and
the warfighters;
(3) Promote an open architecture approach that allows
for more modularization of hardware and software;
(4) Develop a plan for how to strengthen the IT
acquisition workforce;
(5) Implement alternative milestone decision points
that are more consistent with commercial product
development for IT;
(6) Develop a process for competitive prototyping in
the IT environment;
(7) Develop a new test and evaluation approach that
merges developmental and operational testing in a
parallel fashion;
(8) Place greater emphasis on the up-front market
analysis; and
(9) Conduct a rigorous analysis of contracting
mechanisms and contract incentive structures to
determine which work best for IT acquisitions.
Military Purpose Non-Developmental Items
The committee is aware of firms who develop products
exclusively for the military, but accept no government research
and development funding. These are typically smaller firms
motivated to keep overhead costs to a minimum, much like firms
competing in the commercial market. The committee notes that
section 108 of this Act is intended to provide the Department
of Defense with another tool to gain access to the country's
total industrial base, especially smaller and non-traditional
suppliers, as recommended by the Panel on Defense Acquisition
Reform. The proposed military purpose non-developmental item
exception to the submission of certified cost or pricing data,
which is similar in effect to an existing exception for
commercial items, is narrowly focused. The committee urges the
Department to appropriately utilize this authority to eliminate
the need for government research and development in cases where
industry can and will develop its own solutions for military
requirements and to speed the delivery of components and
products to the warfighter.
Tailoring of Metrics
The proposed new performance assessment system that would
be established by section 101 of this Act includes a list of
potential metrics. This list is illustrative of the kinds of
metrics the committee intends the Department of Defense to
address. The committee notes that metrics relating to contract
bundling and the acquisition of technical data were added to
the list by a vote of the committee. The committee has provided
the Secretary of Defense with discretion in the use of these
metrics so that the system retains the flexibility to tailor
metrics to each element of the defense acquisition system as
the section requires. The committee recognizes that some
metrics could not be usefully applied across the entire defense
acquisition system. However, the committee intends that these
metrics should be applied where their application is relevant.
The committee also urges the Department, in implementing a
performance assessment system, to include a metric or metrics
relating to small business utilization wherever appropriate for
elements of the defense acquisition system. As with other
metrics, a metric relating to small business utilization would
require each applicable element of the defense acquisition
system to develop a minimum standard and an objective goal for
small business utilization. The committee notes that while the
totality of the goals and standards for the defense acquisition
system should support the Department in achieving its overall
goals for small business utilization, goals and standards for
different elements of the defense acquisition system can and
should vary widely from each other and from the overall
Department of Defense goal for utilization of small businesses.
Treatment of Services Acquisition in the Federal Acquisition Regulation
The committee recognizes that while specific rules have
been created over the last few decades on government purchases
and practices, the focus in the past primarily has been on
goods, hardware, and real property, which has resulted in a
culture that failed to fully recognize the applicability of
certain regulatory principles to services acquisitions. As
highlighted in the report of the Panel on Defense Acquisition
Reform, ``services require at least the same level of
discipline as weapon systems acquisition. Such discipline is
critical for planning, requirements definition, market
research, price reasonableness determinations, and project
management and oversight.'' While the Federal Acquisition
Regulation (FAR) now includes references to the term
``services'', the committee believes that a more focused
emphasis on services acquisition throughout the FAR would
enhance and support the procurement and project management
community in all aspects of the acquisition planning process.
The congressional findings in section 107 of this Act would
reinforce this view by noting that specific program management
skills, tools, and processes need to be applied to services
acquisitions. Appropriate cross references within FAR Part 37
(which specifically covers services acquisition) to other
relevant parts of the FAR, as well as additional references to
services throughout the remainder of the FAR, would facilitate
this focus.
LEGISLATIVE PROVISIONS
Section 101--Performance Management of the Defense Acquisition System
This section would create a new chapter 149 in title 10,
United States Code, entitled ``Performance Management of the
Defense Acquisition System'', adding the following new
sections: section 2545, relating to performance assessments of
the defense acquisition system; section 2546, relating to
audits of performance assessments; section 2547, relating to
the use of performance assessments for managing performance;
and section 2548, relating to the acquisition-related functions
of the Chiefs of Staff of the Armed Forces. This section would
direct the Secretary of Defense to implement the requirements
of the new chapter 149 in a phased manner over a 2 year period
beginning on the date of enactment of this Act.
Section 2545, as added by this section, would require the
Secretary of Defense to ensure that all elements of the defense
acquisition system are subject to regular performance
assessments at least annually. It would require each service
acquisition executive within the Department of Defense to
create metrics for each element of the defense acquisition
system within system-wide categories developed by the
Secretary. Each metric would be associated with specific goals
and standards. The metrics, goals, and standards would be
tailored to, and negotiated with, the specific element of the
defense acquisition system being assessed. The Director of the
Office of Performance Assessment and Root Cause Analysis
(PARCA) would be responsible for overseeing all performance
assessments in the Department and this section would provide
PARCA with the authority to access and retain all records
necessary to fulfill this function.
Section 2546, as added by this section, would require that
the performance assessments performed under the new section
2545 be subjected to periodic audits to determine their
accuracy, reliability, and completeness. Audits under this
section would be required to meet generally accepted government
auditing standards; use a risk based approach to audit
planning; and appropriately account for issues associated with
auditing assessments of activities occurring in a contingency
operation.
Section 2547, as added by this section, would require that
the results of the performance assessments performed under the
new section 2545 be used in the management of elements of the
defense acquisition system through: adjustments to the size of
bonus pools available to the workforce of an element of the
defense acquisition system; changes in rates of promotion;
awards for acquisition excellence; and changes in the scope of
work assigned to the organization. Section 2547 would require
that actions taken to manage the acquisition workforce under
such section would be subject to existing requirements relating
to labor negotiations and the issuance of regulations, as
referenced in subsections (c) and (d) of section 1701a of title
10, United States Code, as added by section 201 of this Act.
Section 2548, as added by this section, would clarify that
the Chiefs of Staff of the Armed Forces may assist the
secretaries of their respective military departments in the
following acquisition-related functions: the development of
requirements; the development of measures to control
requirements creep; the development of career paths in
acquisition for military personnel; and the assignment and
training of contracting officer representatives when such
representatives are required to be members of the armed forces.
Section 102--Meaningful Consideration by Joint Requirements Oversight
Council of Input from Certain Officials
This section would amend section 181 of title 10, United
States Code, to add the Under Secretary of Defense for Policy
to the list of civilian advisors to the Joint Requirements
Oversight Council (JROC) and to allow the Chairman of the JROC
to invite a combatant commander, or the deputy commander, to
serve as a member of the JROC when matters related to such
command are under discussion. This section would also require
the Government Accountability Office (GAO) to assess whether
the JROC is giving meaningful consideration to the input of:
combatant commanders; the Under Secretary of Defense for
Acquisition, Technology, and Logistics; and the Director of
Cost Assessment and Performance Evaluation. This section would
require GAO to assess the extent to which consideration is
being given to input from these officials during the evaluation
of joint military requirements and report its findings, along
with a report on related matters, to be submitted to the Senate
Committee on Armed Services and the House Committee on Armed
Services by May 22, 2011, in accordance with section 105 of the
Weapon System Acquisition Reform Act of 2009 (Public Law 111-
23).
Section 103--Performance Management for the Joint Capabilities
Integration and Development System
This section would require the Secretary of Defense to
develop a performance management program for the Joint
Capabilities Integration and Development System (JCIDS) to
measure performance in JCIDS and to ensure that JCIDS: delivers
timely capability to the warfighter; controls requirements
creep (including the growth of requirements at a level below
those specified in the requirements documents considered by
JCIDS); is responsive to changes in threats, emerging
capabilities, and costs; and develops skilled requirements
personnel. The program required by this section would be
initially implemented within one year after the date of
enactment of this Act and would apply to requirements documents
entering JCIDS after that date. This section would require an
initial report on measures of performance for JCIDS within 90
days after initial implementation and a final report on the
outcomes of the performance management program four years after
the date of initial implementation. This section would make
continuation of the performance management program subject to
the Secretary of Defense's discretion five years after the date
of enactment of this Act.
Section 104--Requirements for the Acquisition of Services
This section would require each of the Chiefs of Staff of
the Armed Forces to establish a process for identifying,
assessing, and approving requirements for the acquisition of
services. This section would require that each process provide
an opportunity for combatant commanders to provide input on
their joint requirements and that each process be revised to be
consistent with any future guidance issued by the Chairman of
the Joint Chiefs of Staff relating to joint requirements for
the acquisition of services. This section would require the
issuance of guidance for each military service relating to: the
organization of the requirements process; the level of command
responsibility required to validate requirements for each
category of services acquisition; the composition of billets
necessary to operate the requirements process; the training
required; the relationship to doctrine; methods of obtaining
input on joint requirements for services; procedures for
coordinating with the acquisition process; and opportunities
for strategic sourcing. This section would require that such
processes be initially implemented within 180 days after the
date of enactment of this Act and fully implemented at the
earliest date practicable. Lastly, the committee expects that
such processes be consistent with the management structure for
the procurement of services, as required by section 2330 of
title 10, United States Code, and to provide for appropriate
interaction and communication with the senior officials
designated by section 2330 as responsible for the management of
acquisition of contract services.
Section 105--Joint Evaluation Task Forces
This section would require the Chairman of the Joint
Requirements Oversight Council to designate the commander of a
unified combatant command to provide a joint evaluation task
force to participate in each major defense acquisition program.
The task force would come from a military unit selected by the
combatant commander, based on the relevance of the program to
the unit's mission, and consistent with the unit's operational
obligations. The task force would participate in all stages of
the development and low rate initial production of the program
and would provide user feedback to the resource sponsor for the
program. This section would require that the task force receive
administrative support from the program's resource sponsor.
Section 106--Review of Defense Acquisition Guidance
This section would require the Secretary of Defense to
review the acquisition guidance of the Department of Defense
(DOD) to consider the extent to which guidance related to
weapon systems acquisition is appropriately applied to other
areas of acquisition; whether long-term sustainment of weapon
systems is appropriately emphasized; whether appropriate
mechanisms exist to communicate information relating to DOD's
mission needs to the industrial base; the extent to which
earned value management (as described in the Office of
Management and Budget circular A-11) should be required on non-
weapon systems and whether measures of quality and technical
performance should be included in the Department's
implementation of earned value management; and the extent to
which weapon systems processes should apply to the acquisition
of information technology. This section would require that a
report on the review and all actions taken, be submitted to the
Senate Committee on Armed Services and the House Committee on
Armed Services within 270 days of the date of enactment of this
Act. Finally, the committee does not intend for this review to
unnecessarily impose additional government unique requirements
on the acquisition of commercial and commodity items.
Section 107--Requirement To Include References to Services Contracting
Throughout the Federal Acquisition Regulation
This section includes congressional findings related to the
complexity of services acquisition. This section would require
that the Federal Acquisition Regulation (FAR) be revised to
provide appropriate references to services contracting
throughout the FAR within 270 days after the date of enactment
of this Act.
Section 108--Procurement of Military Purpose Nondevelopmental Items
This section would create an exception to the requirement
for an offer or to submit certified cost or pricing data with a
bid or proposal in accordance with section 2306a of title 10,
United States Code, in certain circumstances involving the
acquisition of a military purpose non-developmental item
(MPNDI). This section would also amend chapter 141 of title 10,
United States Code, by inserting a new section 2410r, which
would define a MPNDI as an item developed exclusively at
private expense; that meets a validated military requirement;
that can be delivered in production quantities within nine
months of contract award; and has a unit cost less than $10.0
million. Additionally, section 2410r, as added by this section,
would require the Secretary of Defense to issue regulations
regarding the procurement of a MPNDI, specifying at a minimum,
that a contract for a MPNDI be awarded utilizing competitive
procedures in accordance with section 2304 of title 10, United
States Code; that the contract be a firm fixed price contract;
that an item developed exclusively at private expense may not
have been funded in whole or in part with funding from a
foreign government or through a government sponsored loan whose
terms are more favorable than the prevailing market terms for a
similar loan; and standards to evaluate price reasonableness in
lieu of certified cost or pricing data from the contractor. The
amendments to title 10 made by this section would apply with
respect to contracts entered into 120 days after the date of
enactment of this Act.
TITLE II--DEFENSE ACQUISITION WORKFORCE
OVERVIEW
The Department of Defense (DOD) acquisition workforce is at
the heart of the Department's acquisition system. The committee
recognizes, however, that the size of the acquisition workforce
was significantly downsized in the post-cold war drawdown and
has remained relatively steady, at the decreased levels,
despite significant increases during the last decade in the
number and complexity of DOD contract actions, and the higher
dollar values of DOD contracts.
The committee notes that a consistent theme throughout the
hearings held by the Panel on Defense Acquisition Reform was
the need for a renewed emphasis on the DOD acquisition
workforce, both military and civilian. As stated in the panel's
report, ``Ensuring that the acquisition workforce is adequately
staffed, skilled and trained, and improving the workforce's
quality and performance are as important as improvements to
acquisition processes and structures.'' This is particularly
important given that the Government Accountability Office,
since 1992, has identified the Department's contract management
as a high-risk area and cited problems caused by an inadequate
acquisition workforce, such as unmet expectations, contract
overpayment, and increased exposure to potential waste, fraud
and abuse.
The committee agrees with the panel's assessment that ``the
Department should establish the acquisition workforce as a
model within the Department for more flexible personnel
management that rewards success and includes accountability.''
The committee notes that the authorities and flexibilities
provided under section 9902 of title 5, United States Code, and
the Department's Acquisition Workforce Demonstration Project
provide a solid foundation for creating an acquisition
workforce that will provide the value the Department needs.
According to the panel's findings and recommendations, ``to
achieve this, the Department requires flexibility to
efficiently hire qualified new employees, and to manage its
workforce in a manner that promotes superior performance. Using
these tools the Department can develop new regulations for the
civilian workforce which include fair, credible, and
transparent methods for hiring and assigning personnel, and for
appraising and incentivizing employee performance.'' To that
end, the committee recommends legislation, elsewhere in this
title, that would require the Department to develop and manage
a highly skilled professional acquisition workforce. This title
would build upon the original foundation for a professional
acquisition workforce established pursuant to the Defense
Acquisition Workforce Improvement Act, codified at chapter 87
of title 10, United States Code. It also would reinforce the
management, hiring, and training flexibilities enacted last
year in the National Defense Authorization Act for Fiscal Year
2010 (Public Law 111-84) and codified as section 9902 of title
5, United States Code.
The panel's report also stated that ``the Department's need
for acquisition personnel extends beyond contracting officials
to systems engineers, development planners, software engineers,
cost estimators, developmental testers, product support
managers, and other highly skilled professionals. The quality
of the new employees is at least as important as the
quantity.'' Therefore, the Panel recommended in its report that
the military services be given a clearer responsibility for
staffing, training and rewarding their buying activities to
meet performance standards, including developing individual and
organizational goals to achieve cost savings and efficiency
improvements.
To ensure that the Department has the most effective
workforce possible, this title also would provide additional
tools to the Department to rebuild its acquisition workforce.
These provisions are based on the panel's recommendations that
called for the development of career paths, and requirements
for continuing education, including obtaining key work
experiences, and periodic recertification. Finally, this title
would enact recommendations made by the panel regarding the
need to strengthen the information technology (IT) workforce in
order to improve outcomes for IT acquisitions.
LEGISLATIVE PROVISIONS
Section 201--Acquisition Workforce Excellence
This section would amend title 10, United States Code by
inserting a new section 1701a, that would require the
Department of Defense (DOD) to develop and manage a highly
skilled professional acquisition workforce. This section would
implement the recommendations of the Panel on Defense
Acquisition Reform by authorizing the Secretary of Defense to
develop a system focused on rewarding, when appropriate, the
acquisition workforce for its excellence and contribution to
mission, ensuring that the technical expertise and business
skills needed to obtain best value are resident within the
workforce, and managing the workforce in a manner that
complements and reinforces the performance management of the
defense acquisition system pursuant to section 101 of this Act.
This section would require the Department of Defense to use
several existing authorities. The committee notes that the most
significant of these authorities are the flexibilities provided
pursuant to section 9902 of title 5, United States Code,
related to performance management, hiring, and training of
managers within the General Schedule (GS) system. The committee
further notes that the defense acquisition demonstration
project, which is extended for an additional five years
elsewhere under this Act, may provide some important lessons
for the Department's efforts to develop a DOD-wide performance
management program within the GS system. This section also
would direct the Secretary of Defense to require managers to
develop individual performance plans for members of the
acquisition workforce as well as appropriate procedures for due
process for members of the acquisition workforce who
consistently fail to meet performance standards. This section
also would authorize additional actions to be taken to restore
the focus on professionalizing the acquisition workforce
through the development of attractive career paths, encouraging
continuing education and training, and utilizing the Defense
Civilian Leadership Program established under section 1112 of
the National Defense Authorization Act for Fiscal Year 2010
(Public Law 111-84). In order to facilitate the hiring for
positions within the acquisition workforce, this section would
allow the use of expedited security clearance processing as
authorized pursuant to section 1564 of title 10, United States
Code.
The committee recognizes that while the Department is
aggressively moving forward with hiring new personnel within
the acquisition workforce, there still may be a significant gap
in personnel with relevant knowledge and experience. Therefore,
this section would provide the Department with greater
authority to hire highly qualified experts, pursuant to section
9903 of title 5, United States Code, for temporary leadership
roles in critical positions, providing mentors to advise
employees on their career paths and opportunities to advance
and excel in the acquisition profession, and assist with the
design of education and training programs for the acquisition
workforce. This section would clarify that highly qualified
experts hired by the Department could be hired on a part-time
basis.
Finally, actions taken under this section would be subject
to the requirements of chapter 71 of title 5, United States
Code, and would be deemed an agency rule or regulation under
section 7177(a)(2) of title 5, United States Code.
Section 202--Amendments to the Acquisition Workforce Demonstration
Project
This section would amend title 10, United States Code, by
inserting a new section 1762 that would codify the authority
for the Department of Defense Acquisition Workforce
Demonstration (DAWD) Project, which originally was established
pursuant to section 4303 of the National Defense Authorization
Act for Fiscal Year 1996 (Public Law 104-106). The original
authority was to expire on September 30, 2012. The committee
recognizes that the organizations that had transitioned to the
DAWD project had limited experience with the project before
they were converted to the National Security Personnel System
(NSPS). Now that the authority for NSPS has been repealed,
pursuant to section 1113 of the National Defense Authorization
Act for Fiscal Year 2010 (Public Law 111-84), those
organizations that had been in the DAWD project previously will
be converted back to the project. However, the committee is
aware of the stress that may be imposed on the personnel system
and the individual employees if they were converted from NSPS
back to the DAWD project and, within less than two years,
converted to the General Schedule (GS) system. Therefore, this
section would extend the authority for the project to September
30, 2017; within six months after the authority terminates, all
employees within the acquisition demonstration project must be
transferred to the performance management system, under the GS
system, that is being developed pursuant to section 9902 of
title 5, United States Code. This is intended to provide a more
orderly transition for the affected employees. However, the
committee intends that the extension of this authority is only
for those organizations that had fully implemented a defense
acquisition workforce demonstration project, pursuant to Office
of Personnel Management regulations, including the issuance of
a Federal Register notice that such project would be initiated.
This section also would require the Secretary of Defense to
undertake an independent assessment of the project to capture
the lessons learned from it and the adequacy of the project in
establishing career paths, promoting training, and protecting
diversity in promotion. A copy of the assessment would be
provided to the Senate Committee on Armed Services, the House
Committee on Armed Services, the Senate Committee on Homeland
Security and Governmental Affairs, and the House Committee on
Oversight and Government Reform beginning in 2011, and every
two years thereafter, until the termination of the DAWD
project.
Section 203--Incentive Programs for Civilian and Military Personnel in
the Acquisition Workforce
This section would amend title 10, United States Code, by
inserting a new section 1763 that would require the Secretary
of Defense to develop an enhanced system of incentives for the
encouragement of excellence in the civilian acquisition
workforce, including connecting salary increases, bonuses,
promotions and awards to performance and contribution to agency
mission. In addition to other incentives that may be
considered, this section also would direct the Secretary to use
the Department of Defense Civilian Workforce Incentive Fund
established pursuant to section 9902 of title 5, United States
Code. This section would encourage opportunities for special
career broadening experiences for high performers. The
committee intends that such experiences would include broad
opportunities, to include but not be limited to, educational
sabbaticals, or attendance at acquisition relevant seminars or
conferences both within the United States or overseas.
This section also would direct the military departments to
enhance their existing incentive programs. The committee is
aware that at least the Defense Logistics Agency, the
Department of the Navy, and Department of the Air Force each
have programs that make cash awards or personal decorations to
employees that make suggestions for savings or process
improvements that benefit their organization. This section
would encourage the Secretary of Defense to extend such
incentives to members of the military in the acquisition
workforce wherever possible.
Section 204--Career Development for Civilian and Military Personnel in
the Acquisition Workforce
This section would amend title 10, United States Code, by
inserting a new section 1722b that would require the Secretary
of Defense to develop attractive career paths for civilians in
the acquisition workforce. The committee agrees with the
assessment of the Panel on Defense Acquisition Reform that a
renewed focus on career development for civilians in the
acquisition workforce is necessary. Similar action already was
taken for military personnel in the Duncan Hunter National
Defense Authorization Act for Fiscal Year 2009 (Public Law 110-
417). This section would require the Secretary of Defense to
issue guidance to fulfill this requirement to ensure career
paths exist that attract the highest quality civilian
personnel, are consistent with a deliberate workforce
development strategy, provide sufficient opportunities for
promotion and advancement, and provide a sufficient number of
trained and qualified people in the workforce. This section
would require detailed information on the status of the
civilian and military acquisition workforce, including
information on this effort, be included in the Department's
strategic human capital management plan, required by section
115b of title 10, United States Code.
This section also would amend section 1723 of title 10,
United States Code, to require the Secretary to develop and
support career training and development for each career path
(for both civilian and military career paths), including key
work experiences that allow individuals to develop in-depth
knowledge in the acquisition process. Key work experiences for
members of the acquisition workforce would include periodic
interaction with the end-user community to develop greater
knowledge and understanding of how the hardware or service
provided is used in the field.
Section 205--Recertification and Training Requirements
This section would further amend section 1723 of title 10,
United States Code, by requiring the Secretary of Defense to
increase training for members of the acquisition workforce,
with additional emphasis on the acquisition of services, long
term sustainment strategies, acquisition of information
technology, and rapid acquisition. With regard specifically to
services acquisition, the committee is aware that while the
volume of service contracting has grown, services contracting
training has not kept pace. The committee recognizes that
Defense Acquisition University has created the Learning Center
of Excellence for Service Acquisition, but is concerned that
adequate professional-level courses for services program
managers continue to be lacking.
This section also would direct the Secretary to establish
requirements for continuing education and periodic
recertification. The committee notes that currently the
Department makes its training investment up front for
certification, which means that once an individual obtains a
level three certification (currently, the highest certification
level), that individual retains that certification for the
remainder of his or her career. The committee believes that
periodic recertification, not more than every five years, would
add value to ensuring the professionalism of the acquisition
workforce, as well as currency of their knowledge, similar to
that afforded other professions that have continuing education
and recertification requirements.
This section would further amend title 10, United States
Code, by inserting a new section 1748 that would require the
Secretary to establish fulfillment standards to supplement this
training that takes into account an individual's demonstrated
competencies in certain areas, as well as creating standards
relating to the appropriate use of private sector contractors
to provide training.
Section 206--Information Technology Acquisition Workforce
This section would amend title 10, United States Code, by
inserting a new section 1725 that would require the Secretary
of Defense to strengthen the part of the acquisition workforce
that specializes in information technology (IT), including
establishing defined targets for billets for IT acquisition,
defined career paths in IT acquisition and specific
certification requirements for IT acquisition. This section
would require that such actions be taken within 180 days of
enactment of this Act. These actions would implement the
recommendations of the Panel on Defense Acquisition Reform for
the Department to ``develop a plan for how to strengthen the IT
acquisition workforce, especially as it increases the size of
the overall acquisition workforce in the coming years.'' The
committee urges the Secretary to ensure the plan for the IT
workforce developed in accordance with this section is tied to
key attributes of any new IT acquisition system, as required by
section 804 of the National Defense Authorization Act for
Fiscal Year 2010 (Public Law 111-84), and is integrated into
the Department's overall acquisition workforce strategic plan.
Section 207--Definition of Acquisition Workforce
This section would add a definition of the acquisition
workforce to section 101 of title 10, United States Code. The
acquisition workforce is defined as those designated pursuant
to section 1721(a) of title 10, United States Code.
Section 208--Defense Acquisition University Curriculum Review
This section would require the Under Secretary of Defense
for Acquisition, Technology, and Logistics to conduct a review
of the curriculum offered by the Defense Acquisition University
(DAU), not later than one year following the date of enactment
of this Act, to ensure its support for the training and
education of members of the acquisition workforce. The review
would include a focus on education and training courses
developed in services contracting, long-term sustainment
strategies, information technology and rapid acquisition. This
section also would require the Secretary of Defense, following
the review of the Under Secretary of Defense for Acquisition,
Technology, and Logistics, to determine the adequacy of funding
for training and education and identify any additional funding
needed in the next annual strategic workforce plan required by
section 115(b) of title 10, United States Code.
This section also would amend 1746 of title 10, United
States Code, to require the DAU president to coordinate with
the relevant professional schools and degree granting
institutions within the Department of the Defense and the
military departments on best practices for curriculum
development. This section is intended to improve the
interaction between the various educational entities within the
Department related to training and education of the acquisition
workforce.
Section 209--Cost Estimating Internship and Scholarship Programs
This section would require the Secretary of Defense to
establish internship and scholarship programs in cost
estimating within 270 days after the date of enactment of this
Act. As noted in the report of the Panel on Defense Acquisition
Reform, courses taught on financial economics do not address
the underlying sources for cost estimating. Yet sound cost
estimating is essential to the acquisition process and should
be considered a core acquisition function. As recommended by
the panel, the committee agrees that internship and scholarship
programs specifically focused on cost estimating will benefit
the acquisition process. The programs established by this
section would be for a four year period.
TITLE III--FINANCIAL MANAGEMENT
OVERVIEW
The committee remains concerned that the inability to
provide accurate and timely financial information prevents the
Department of Defense from adequately managing its acquisition
programs and from implementing true acquisition reform. The
Government Accountability Office (GAO) has repeatedly reported
on the vulnerability of the Department's financial management
systems. In its most recent update to its high-risk series, GAO
found that, ``Weaknesses in DOD's financial management
adversely affect not only the reliability of reported financial
data, but also the efficiency and effectiveness of its business
operations. Transforming DOD's financial management operations
to provide timely, reliable, accurate, and useful information
for management operations, including financial reporting and
decision making, is a significant challenge.''
Several major pieces of legislation, such as the Chief
Financial Officers Act of 1990 (Public Law 101-576) and the
Federal Financial Management Improvement Act of 1996 (Title
VIII of Public Law 104-208) have required published audits of
financial statements, reporting by auditors regarding whether
the Department's financial management systems comply
substantially with federal accounting standards, and other
measures intended to ensure financial management systems
provide accurate, reliable, and timely financial management
information. In response to a congressional mandate, the
Department issued its first biennial Financial Improvement and
Audit Readiness Plan in December 2005, to delineate its
strategy for addressing financial management challenges and
achieving clean audit opinions. This 2005 report projected that
69 percent of assets and 80 percent of liabilities would be
``clean'' by 2009; yet in the March 2009 report, the Department
projects it will have only achieved an unqualified audit on 45
percent of its assets and liabilities by 2009. The Department
appears to be falling behind its original plan to achieve full
compliance with the law by 2017.
In response to these concerns, in section 1003 of the
National Defense Authorization Act for Fiscal Year 2010 (Public
Law 111-84), Congress adopted a more detailed statutory
requirement for the Secretary of Defense to develop a plan to
ensure that the financial statements of the Department are
validated as ready for audit by September 30, 2017. The
committee's recommendations in this title are intended to
provide both organizational and personal incentives to the
defense financial and business management workforce to not only
meet this deadline, but to accelerate preparation of such
financial statements in order to provide greater accountability
and minimize fraud, waste, and abuse. Finally, the committee
intends for the Department to make the necessary improvements
in its own financial control systems in order to comply with
the law by 2017 and notes that compliance cannot be achieved by
simply passing these requirements to industry without
addressing the Department's internal problems.
LEGISLATIVE PROVISIONS
Section 301--Incentives for Achieving Auditability
This section would require the Under Secretary of Defense
(Comptroller) to extend preferential treatment, as the Under
Secretary considers appropriate, to a Department of Defense
component that has financial statements validated as ready for
audit earlier than the current statutory deadline of September
30, 2017. Such preferential treatment may include priority in
the release of appropriated funds; relief from non-statutory
financial reporting; relief from departmental obligation and
expenditure thresholds, the size of the bonus pools available
to the component's financial and business management workforce;
the rates of promotion for such workforce; awards for
excellence for such workforce; and the scope of work assigned
to such workforce. This section would require that actions
taken by the Under Secretary be reported as part of the
existing report on financial audit improvement efforts,
pursuant to section 1003(b) of the National Defense
Authorization Act for Fiscal Year 2010 (Public Law 111-84). The
authority to provide such preferential treatment would expire
in 2017.
Section 302--Measures Required after Failure To Achieve Auditability
This section would require the Secretary of Defense to take
corrective measures to immediately address the failure of a
Department of Defense component to achieve a financial
statement validated as ready for audit by September 30, 2017.
This section would further require the Secretary to issue
guidance within 180 days after the date of enactment of this
Act detailing corrective measures to be taken, including the
development of a one-year remediation plan; additional
financial reporting consistent with the level of financial risk
to the component; the delay of release of appropriated funds,
consistent with warfighting requirements and operational needs;
and specific consequences for key personnel to ensure
accountability within the leadership of the component.
Section 303--Review of Obligation and Expenditure Thresholds
This section would express the sense of Congress that
program managers should be encouraged to place higher priority
on seeking and obtaining best value than on meeting arbitrary
benchmarks for spending, and that Department of Defense leaders
at every level should support this priority. This section also
would require that the Chief Management Officer (CMO) of the
Department of Defense review existing policy regarding
obligation and expenditure benchmarks, within 180 days after
the date of enactment of this Act, to ensure that such guidance
does not inadvertently prevent the Department from obtaining
best value. Further, this section would require the CMO, within
one year after the date of enactment of this Act and in
coordination with additional officials, to conduct a
comprehensive review of the use and value of obligation and
expenditure benchmarks. This review would consider new
benchmarks or processes for tracking financial performance,
including: an increased reliance on individual obligation and
expenditure plans for measuring programs' financial
performance; mechanisms to improve funding stability; and
streamlined mechanisms for a program manager to submit an
appeal for funding changes. Lastly, this section would require
the Under Secretary of Defense for Acquisition, Technology, and
Logistics and the Under Secretary of Defense (Comptroller) to
ensure that training for program managers and business managers
emphasizes obligating and expending funds in a manner that
achieves best value for the government.
TITLE IV--INDUSTRIAL BASE
OVERVIEW
The management of the defense industrial base has been a
challenge for the Department dating back to the creation of the
armed forces. Discussions of the industrial base often focus on
retaining unique and perishable defense industrial
capabilities. The committee supports this important strategic
priority for the Department. However, the committee believes
that priority also must be placed on giving the Department
access to as much of the country's total industrial base as
possible, including business firms of all sizes. The committee
notes that many innovative technologies are being developed at
smaller firms, and that even among larger firms, companies that
are primarily commercial in nature have been technology leaders
in recent years.
Federal agencies, with certain exceptions, are required to
provide public notice of solicitations for contracts. However,
the simple posting of a solicitation notice on a website does
not represent a concerted effort to push information about
potential contracts to relevant firms. The committee
acknowledges that industry also bears a responsibility to
develop its own business. Firms interested in doing business
with the Department must cultivate relationships within
industry and the Department, attend conferences and industry
days, and utilize other methods to proactively gain insight
into the Department's future needs, rather than waiting for a
notice of solicitation. However, the committee believes that
the Department of Defense would benefit by utilizing resources
from the Department of Commerce, Small Business Administration,
General Service Administration, and the private sector to
directly notify firms in relevant industrial classifications of
upcoming contract awards. A small investment in additional
outreach to industry could demonstrate a large return in
increased competition, lower prices, and innovation. This title
is intended to impel the Department of Defense to expand the
defense industrial base to increase competition and expand the
Department of Defense's access to innovation. It would also
expand the Department of Defense's efforts to monitor the
industrial base by increasing the focus on providers of
services and information technology.
While expanding the industrial base is an important goal,
it supports the mission of the Department of Defense only to
the extent that firms obtaining defense contracts are
responsible, high-quality suppliers. The Government
Accountability Office reported that in 2007, more than 60,000
federal contractors have tax debts totaling $7.7 billion. This
title would provide the Department of Defense with additional
tools to identify irresponsible contractors and to detect
unjustifiable price escalation.
ITEMS OF SPECIAL INTEREST
Contract Payment Withholding
The committee concurs with the assessment of the Panel on
Defense Acquisition Reform that Congress created a new obstacle
to federal agencies accessing the commercial marketplace by
establishing a requirement that agencies withhold three percent
of all contract payments in anticipation of taxes owed to the
Treasury in section 511 of the Tax Increase Prevention and
Reconciliation Act of 2005 (Public Law 109-222). This
requirement is currently scheduled to take effect in 2012. The
committee is concerned that this requirement would place an
unfair burden on tax compliant firms and will discourage such
firms from bidding on defense contracts. The committee supports
repeal of the three percent contract payment withholding
requirement for defense contracts. The committee addresses
concerns about contractors with seriously delinquent tax debts
in a more targeted and effective way in section 403 of this
Act.
Department of Defense Utilization of Service Disabled Veteran-Owned
Small Businesses
The committee notes that the Government Accountability
Office (GAO) released a report on October 23, 2009, entitled,
``Service Disabled Veteran-Owned Small Business Program: Case
Studies Show Fraud and Abuse Allowed Ineligible Firms to Obtain
Millions of Dollars in Contracts'' which identified $100.0
million of contracts awarded to firms under the set-aside
program for Service Disabled Veteran-Owned Small Businesses
(SDVOB) even though the firms did not actually qualify to
participate in the program. The committee supports the SDVOB
program and is concerned that the award of contracts to
ineligible firms denied actual SDVOBs the opportunity to obtain
these contracts. The committee notes that the Department of
Veterans Affairs maintains a Vendor Information Pages database
that has been designated by the Office of Federal Procurement
Policy as a definitive source of information on veterans in
business and urges the Department of Defense to utilize this
resource in determining eligibility for SDVOB set-asides
awarded by the Department. The committee directs the Secretary
of Defense to review the issues identified in the GAO report
and determine whether any measures should be taken by the
Department to address them, and further directs the Secretary
to submit a report to the Senate Committee on Armed Services
and the House Committee on Armed Services on what, if any,
measures the Secretary has taken or intends to take as a result
of the review by April 1, 2011.
Multiyear Procurement Authority
The committee concurs with the assessment of the Panel on
Defense Acquisition Reform that multiyear procurement contracts
are a potentially useful tool that allows the Department of
Defense to reduce procurement costs and provide funding
stability for defense acquisition programs. The committee also
notes that multiyear procurement contracts should not be
entered into frivolously, as such contracts commit taxpayers to
significant liability in the event the Department changes its
procurement plans and substantially alters the terms of such a
contract or terminates the contract. Subsection 2306b(a) of
title 10, United States Code, provides a description of the
numerous factors to be considered prior to entering into a
multiyear procurement contract. In particular, paragraph (1) of
subsection 2306b(a) requires the potential for ``substantial
savings'' for a multiyear contract in comparison to single-year
procurements. During consideration of the National Defense
Authorization Act for Fiscal Year 2008 (Public Law 110-181),
Congress debated and ultimately declined to set a statutory
definition for the term ``substantial savings''. Instead, the
conferees stated in the conference report (H. Rept. 110-477)
accompanying the National Defense Authorization Act for Fiscal
Year 2008 that the term ``means savings that exceed 10 percent
of the total costs of carrying out the program through annual
contracts, except that multiyear contracts for major systems
providing savings estimated at less than 10 percent should only
be considered if the Department presents an exceptionally
strong case that the proposal meets the other requirements of
section 2306b(a).'' The committee is concerned that although
Congress explicitly declined to impose criteria for
``substantial savings'', the Department may be rigidly applying
a 10 percent savings standard as the threshold for
``substantial savings''.
Therefore, the committee urges the Secretary of Defense to
consider the totality of the factors required to be considered
under subsection 2306b(a) of title 10, United States Code, when
deciding whether to request multiyear procurement authority.
Further, the committee discourages the Secretary from applying
a universal standard for savings to be achieved in a multiyear
procurement contract. Finally, the committee directs the
Secretary to conduct an assessment of ongoing defense
procurements for property to identify those procurements that
meet the criteria of paragraphs (2), (3), (4), and (6) of
subsection 2306b(a) of title 10 and subparagraphs (1)(C) and
(1)(D) of subsection 2306b(i), United States Code, to determine
which procurements may merit further evaluation to assess the
benefits of a multiyear procurement contract. The committee
further directs the Secretary to submit a report on the
assessment to the Senate Armed Services Committee and the House
Armed Services Committee by April 1, 2011.
LEGISLATIVE PROVISIONS
Section 401--Expansion of the Industrial Base
This section would require the Secretary of Defense to
establish a program to expand the defense industrial base by
identifying and communicating with non-traditional suppliers
using tools and resources available within the federal
government and in the private sector. The program would include
a continuous effort to review the defense industrial base and
identify markets of importance to Department of Defense. The
committee notes that for the purposes of such a review, the
defense industrial base should include systems integrators,
suppliers of services and information technology, consistent
with the revision of the definition of the national technology
and industrial base required by section 406 of this Act.
Section 402--Commercial Pricing Analysis
This section would revise and extend an existing report on
commercial price trends established in section 803 of the Strom
Thurmond National Defense Authorization Act for Fiscal Year
1999 (Public Law 105-261) to identify and evaluate cases where
the Department of Defense is facing unjustified price
escalation for a category of commercial items. This section
would require the report to be submitted annually on April 1 to
the Senate Armed Services Committee and the House Armed
Services Committee. The reporting requirement would expire on
April 1, 2013.
Section 403--Contractor and Grantee Disclosure of Delinquent Federal
Tax Debts
This section would require potential federal contractors
and grantees to submit certifications as to whether they have a
seriously delinquent tax debt during the bid proposal and grant
application processes and to authorize the Secretary of the
Treasury to verify these certifications. This section would
require the Secretary of the Treasury to develop and
disseminate a standard authorization form for this purpose. The
requirement for disclosure would apply to individuals,
partnerships, and corporations. This section defines a
seriously delinquent tax debt as a debt exceeding $3,000; which
has been assessed by the Secretary of the Treasury and not
paid; and for which a notice of lien has been filed in public
records. A seriously delinquent tax debt would not include a
tax liability being paid in a timely manner in accordance with
an agreement with the Department of Treasury; a liability still
involved in collection due process proceedings; or an assessed
liability for which no further payment is required at the end
of a collection due process proceeding. This section would
require the Administrator of the Office of Federal Procurement
Policy, in consultation with the Secretary of the Treasury, to
promulgate regulations that would also cover corporations and
partnerships controlled by individuals, partnerships, or
corporations with a seriously delinquent tax debt and would
apply the requirements of this section to first-tier
subcontractors that are a significant part of a bid proposal
team. The Federal Acquisition Regulation (FAR) would be revised
90 days after such regulations are finalized.
The committee is aware that FAR part 52.209-5 currently
requires an offeror to certify whether it has been notified of
any delinquent federal taxes within a three-year period
preceding an offer. The committee did not include a time limit
on a look-back period for the disclosure required by this
section. The committee intends for an offeror or grant
applicant to disclose any tax liability that meets the
definition of a seriously delinquent tax debt. However, the
committee notes that a previous tax liability that has been
paid would not constitute a seriously delinquent tax debt.
Further, the committee intends for the regulations promulgated
in accordance with subsection (e)(1) to apply to individuals,
partnerships, or corporations that have a controlling ownership
stake in an offeror or grant applicant. The committee does not
intend for such regulations to compel the disclosure of a
personal tax liability for an individual who is an officer or
an employee of a partnership or corporation, but who has no
controlling equity. Lastly, the committee intends that the FAR
be revised to remove any requirement that principals without
control of a partnership or corporation disclose personal tax
information.
Section 404--Independence of Contract Audits and Business System
Reviews
This section would add a new section 204 to title 10,
United States Code, to provide for an independent General
Counsel within the Defense Contract Audit Agency (DCAA) to
serve as DCAA's chief legal officer effective on the date of
enactment of this Act. This section would also add new section
2222a to title 10, United States Code, to require the
Department of Defense, effective 180 days after the date of
enactment of this Act, to carry out reviews of contractor
business systems: in accordance with generally accepted
government auditing standards; using an independent audit team;
using risk-based audit planning; and by performing testing on a
representative sample sufficient to fully validate the
integrity of the systems concerned. This section would further
require the Secretary of Defense to issue guidance within 180
days of the date of enactment of this Act relating to contract
audits that are not business system reviews. Such guidance
should require contract audits to comply with generally
accepted government auditing standards; establish guidelines
for discussions of audit scope with the contractor; provide for
withholding of contract payments when necessary to compel the
submission of documentation; and require that the results of
contract audits be shared with other federal agencies upon
request without reimbursement.
Section 405--Blue Ribbon Panel on Eliminating Barriers to Contracting
with the Department of Defense
This section would require the Secretary of Defense to
establish a panel consisting of owners of large and small
businesses that are not traditional defense suppliers to
formulate recommendations on eliminating barriers to
contracting with the Department of Defense and its supply
centers. The panel would consist of a total of nine members,
three members appointed by the secretaries of each of the
military departments. The appointments would be made within 180
days of the date of enactment of this Act. This section would
require the panel to submit a report to Congress within one
year of the date of enactment of this Act.
Section 406--Inclusion of the Providers of Services and Information
Technology in the National Technology and Industrial Base
This section would insert references to services and
information technology in several places in chapter 148 of
title 10, United States Code, which relates to the National
Technology and Industrial Base, including: the definition of
the industrial base; the national security objectives for the
industrial base; assessments of the industrial base; and
industrial base policy. This section would also add references
to integration as an important industrial capability.
Communications From Other Committees
House of Representatives,
Committee on Oversight and Government Reform,
Washington, DC, April 22, 2010.
Hon. Ike Skelton,
Chairman, Committee on Armed Services,
House of Representatives, Washington, DC.
Dear Mr. Chairman: I am writing about H.R. 5013, the
``Implementing Management for Performance and Related Reforms
to Obtain Value in Every Acquisition Act of 2010'', which the
Committee on Armed Services ordered reported on April 21, 2010.
I appreciate your efforts to consult with the Committee on
Oversight and Government Reform regarding those provisions of
H.R. 5013 that fall within the Oversight Committee's
jurisdiction. These provisions involve the federal workforce
and federal acquisition policy.
In the interest of expediting consideration of H.R. 5013,
the Oversight Committee will not object to its consideration in
the House. I would, however, request your support for the
appointment of conferees from the Oversight Committee should
H.R. 5013 or a similar Senate bill be considered in conference
with the Senate. Moreover, this letter should not be construed
to prejudice the Oversight Committee's jurisdictional interest
or prerogatives in the subject matter of H.R. 5013, or any
other similar legislation.
I request that you include our exchange of letters on this
matter in the Congressional Record during consideration of this
legislation on the House floor.
With warm regards, I am
Sincerely,
Edolphus Towns,
Chairman.
------
House of Representatives,
Committee on Armed Services,
Washington, DC, April 23, 2010.
Hon. Edolphus Towns,
Chairman, Committee on Oversight and Government Reform,
House of Representatives, Washington, DC.
Dear Mr. Chairman: Thank you for your letter regarding your
Committee's jurisdictional interest in H.R. 5013, the
Implementing Management for Performance and Related Reforms to
Obtain Value in Every Acquisition Act of 2010.
I appreciate your willingness to support expediting floor
consideration of this important legislation. I acknowledge that
H.R. 5013 contains provisions under the jurisdiction of the
Committee on Oversight and Government Reform. I understand and
agree that your willingness to waive further consideration of
the bill is without prejudice to your Committee's
jurisdictional interests in this or similar legislation in the
future. In the event a House-Senate conference on this or
similar legislation is convened, I would support your request
for an appropriate number of conferees.
I will include a copy of your letter and this response in
the Congressional Record in the debate on the bill. Thank you
for your cooperation as we work towards enactment of this
legislation.
Very truly yours,
Ike Skelton,
Chairman.
------
House of Representatives,
Committee on Ways and Means,
Washington, DC, April 21, 2010.
Hon. Ike Skelton,
Chairman, Committee on Armed Services,
House of Representatives, Washington, DC.
Dear Mr. Chairman: Thank you for working with the Committee
on Ways and Means (``Committee'') on H.R. 5013, the
``Implementing Management for Performance and Related Reforms
to Obtain Value in Every Acquisition Act of 2010.'' As you
know, section 403 of H.R. 5013 is of jurisdictional interest to
the Committee as it would require tax return information to be
supplied by the Internal Revenue Service (``IRS'').
Generally, tax return information is confidential. However,
Section 6103(c) of the Internal Revenue Code permits the
Secretary of the Treasury to disclose the tax return
information of a taxpayer to such person as the taxpayer
designates. The Committee continues to monitor the expanding
IRS workload and remains concerned about programs that greatly
increase the agency's workload outside of its core mission. In
calendar year 2009, the IRS made nearly 11,000 tax disclosures
under section 6103(c). It is unknown how many additional
disclosures will be made under H.R. 5013. As such, the
Committee worked with the Armed Services Committee to develop a
provision that is administrable by the IRS. The Committee
remains committed to ensuring that any additional
responsibilities imposed on the IRS do not strain agency
resources and welcomes the opportunity to re-evaluate this
provision in the future.
As we have discussed, this exchange of letters will be
placed in the Committee Report on H.R. 5013 and inserted in the
Congressional Record as part of the consideration of this
legislation in the House. Thank you for the cooperative spirit
in which you have worked with the Committee regarding this
matter.
Sincerely,
Sander M. Levin,
Chairman.
------
House of Representatives,
Committee on Armed Services,
Washington, DC, April 23, 2010.
Hon. Sander Levin,
Chairman, Committee on Ways and Means,
House of Representatives, Washington, DC.
Dear Mr. Chairman: Thank you for your letter regarding H.R.
5013, the Implementing Management for Performance and Related
Reforms to Obtain Value in Every Acquisition Act of 2010. I
agree that the Committee on Ways and Means has valid
jurisdictional claims to certain provisions in this important
legislation, and I am most appreciative of your decision not to
schedule a mark-up of this bill in the interest of expediting
consideration. I agree that by agreeing to waive consideration
of certain provisions of the bill, the Committee on Ways and
Means is not waiving its jurisdiction over these matters.
This exchange of letters will be included in the committee
report of the bill and inserted in the Congressional Record as
part of consideration of the bill in the House. Thank you for
your cooperation as we work towards enactment of this
legislation.
Very truly yours,
Ike Skelton,
Chairman.
Committee Position
On April 21, 2010, the Committee on Armed Services, a
quorum being present, ordered reported H.R. 5013, as amended,
to the House with a favorable recommendation by a record vote
of 56-0.
Congressional Budget Office Estimate
In compliance with clause 3(c)(3) of rule XIII of the Rules
of the House of Representatives, the cost estimate prepared by
the Congressional Budget Office and submitted pursuant to
section 402 of the Congressional Budget Act of 1974 is as
follows:
U.S. Congress,
Congressional Budget Office,
Washington DC, April 23, 2010.
Hon. Ike Skelton,
Chairman, Committee on Armed Services,
House of Representatives, Washington, DC.
Dear Mr. Chairman: The Congressional Budget Office has
prepared the enclosed cost estimate for H.R. 5013, the
Implementing Management for Performance and Related Reforms to
Obtain Value in Every Acquisition Act of 2010.
If you wish further details on this estimate, we will be
pleased to provide them. The CBO staff contact is David Newman.
Sincerely,
Douglas W. Elmendorf,
Director.
Enclosure.
H.R. 5013--Implementing Management for Performance and Related Reforms
to Obtain Value in Every Acquisition Act of 2010
Summary: H.R. 5013 would require the Department of Defense
(DoD) to use performance management techniques to improve the
defense acquisition system and the acquisition workforce. The
bill also would require new standards and techniques for
training and rewarding that workforce.
CBO estimates that implementing H.R. 5013 would cost about
$250 million over the 2011-2015 period, assuming the
appropriation of the necessary amounts. That estimate reflects
the direct costs of implementing H.R. 5013. Although the bill
might yield improvements in the efficiency and effectiveness of
DoD's acquisition system, CBO has no basis for determining
whether such improvements would occur or to what extent they
might result in savings to the government to offset some or all
of the above implementation cost.
Pay-as-you-go procedures do not apply to this legislation
because it would not affect direct spending or revenues.
H.R. 5013 contains no intergovernmental or private-sector
mandates as defined in the Unfunded Mandates Reform Act (UMRA)
and would not affect the budgets of state, local, or tribal
governments.
Estimated cost to the Federal Government: The estimated
budgetary impact of H.R. 5013 is shown in the following table.
The costs of this legislation fall within budget function 050
(national defense).
----------------------------------------------------------------------------------------------------------------
By fiscal year, in millions of dollars--
------------------------------------------------------------
2011 2012 2013 2014 2015 2011-2015
----------------------------------------------------------------------------------------------------------------
CHANGES IN SPENDING SUBJECT TO APPROPRIATION
Performance Management and Assessments:
Estimated Authorization Level.................. 4 8 8 8 9 37
Estimated Outlays.............................. 3 8 8 8 9 36
Increased Bonuses:
Estimated Authorization Level.................. 0 7 7 7 7 28
Estimated Outlays.............................. 0 7 7 7 7 28
Training and Recertification:
Estimated Authorization Level.................. 12 23 45 45 45 170
Estimated Outlays.............................. 10 21 42 45 45 163
Scholarships for Cost Estimators:
Estimated Authorization Level.................. 0 2 3 4 5 14
Estimated Outlays.............................. 0 2 3 4 5 14
General Counsel:
Estimated Authorization Level.................. 1 1 1 1 1 5
Estimated Outlays.............................. 1 1 1 1 1 5
Total Changes:
Estimated Authorization Level.............. 17 41 64 65 67 254
Estimated Outlays.......................... 14 39 61 65 67 246
----------------------------------------------------------------------------------------------------------------
Basis of estimate: For this estimate, CBO assumes that H.R.
5013 will be enacted near the start of fiscal year 2011 and
that the estimated authorization amounts will be appropriated
starting in that year.
TITLE I--PERFORMANCE MANAGEMENT AND ASSESSMENTS
Section 101 would require DoD to establish performance
metrics and specific goals for the defense acquisition system
and would require the Office of Performance Assessment and Root
Cause Analysis (PARCA) to assess whether those metrics and
goals were being achieved. PARCA was established in May 2009,
and under current law, will grow to a staff of about 30 people
that will assess the performance of the acquisition system in
developing and procuring major weapon systems. Under section
101, PARCA's assessment responsibilities would expand to other
areas such as the acquisition of information technology systems
and of contracts for services. On the basis of information from
DoD, CBO estimates that accomplishing those additional
oversight responsibilities could require another 25 personnel.
CBO expects those additional personnel would be hired over the
2011-2012 period at a cost of $3 million in 2011 and $36
million over the 2011-2015 period.
TITLE II--THE DEFENSE ACQUISITION WORKFORCE
Title II includes several provisions that would require DoD
to improve the skills and performance of the acquisition
workforce.
Increased Bonuses. Under section 203, DoD would be required
to develop an enhanced system of incentives to encourage
excellence in and improve the performance of the acquisition
workforce. Such incentives include providing attractive career
paths for acquisition personnel, tying promotions to
accomplishments, and connecting bonuses and awards to personnel
performance and agency outcomes. It would direct DoD to extend
such incentives to military personnel to the extent possible.
CBO expects that such a system could result in the payment of
additional bonuses. In 2008, the last year for which such data
is available, DoD paid an average of about $1,000 in bonuses
for each DoD civilian. Because it would take time to develop
performance standards and the criteria to connect those
standards to enhanced bonus payments, such payments probably
would not begin before 2012. Assuming bonuses then increased
modestly (for example, by about 5 percent), the 136,000-person
acquisition workforce could receive additional payments of $7
million in 2012 and $28 million over the 2012-2015 period,
assuming appropriation of the necessary amounts.
Training and Recertification. Section 205 would require
that DoD provide more training for the defense acquisition
workforce and would institute a requirement for periodic
recertification of acquisition personnel.
The bill would direct DoD to provide additional training on
the acquisition of services and information technology systems,
and on the use of rapid acquisition authorities. To meet that
directive, the Defense Acquisition University would need to
develop and deliver three new curricula for those subjects
consisting of three online courses each (one for entry-level
personnel, one for mid-career personnel, and one for senior
management) at a total cost of about $5 million per year, CBO
estimates.
Under section 205, acquisition personnel would be required
to recertify their qualifications every five years and that
recertification process would require attendance at one
resident course and one online course, CBO estimates. Some
personnel would advance to the next level of acquisition
workforce certification, rather than recertify at their current
level. Others would not recertify because of noncompliance or
attrition from the workforce. CBO estimates that about 25
percent of the acquisition workforce would pursue
recertification every five years at an annual cost of about $40
million. CBO expects that the recertification process would not
begin in full until 2013 to allow time for the development of
course materials.
In total, additional training for and recertification of
acquisition workforce personnel would cost $10 million in 2011
and $163 million over the 2011-2015 period, assuming
appropriation of the necessary amounts.
Scholarships for Cost Estimators. Title 2 also would direct
DoD to establish a program to provide scholarships and
internships in cost estimating for acquisition workforce
personnel. CBO estimates that DoD would provide scholarships of
around $15,000 annually for masters degree programs to 100
students in 2012, and to 250 students a year by 2015. Such a
program would cost $2 million in 2012 and $14 million over the
2012-2015 period, CBO estimates.
TITLE IV--EXPANSION AND ASSESSMENT OF THE INDUSTRIAL BASE
Title IV includes provisions to expand the base of
companies and industries that supply goods and services to DoD,
and to improve the way that those industries are monitored.
General Counsel's Office. Section 404 would establish a
dedicated office of the general counsel for the Defense
Contract Audit Agency at a cost of $1 million per year and a
total of $5 million over the 2011-2015 period, CBO estimates.
Pay-as-you-go considerations: None.
Intergovernmental and private-sector impact: H.R. 5013
contains no intergovernmental or private-sector mandates as
defined in UMRA and would not affect the budgets of state,
local, or tribal governments.
Estimate prepared by: Federal Costs: David B. Newman.
Impact on State, Local, and Tribal Governments: Burke Doherty.
Impact on the Private Sector: Elizabeth Bass.
Estimate approved by: Theresa Gullo, Deputy Assistant
Director for Budget Analysis.
Committee Cost Estimate
Pursuant to clause 3(d) of rule XIII of the Rules of the
House of Representatives, the committee generally concurs with
the estimate as contained in the report of the Congressional
Budget Office.
Compliance With House Rule XXI
H.R. 5013, the Implementing Management for Performance and
Related Reforms to Obtain Value in Every Acquisition Act of
2010, does not contain any congressional earmarks, limited tax
benefits, or limited tariff benefits as defined in clause 9 of
rule XXI.
Oversight Findings
With respect to clause 3(c)(1) of rule XIII of the Rules of
the House of Representatives, the committee reports that the
findings and recommendations of the committee, based on
oversight activities pursuant to clause 2(b)(1) of rule X, are
incorporated in the descriptive portions of this report.
With respect to clause 3(c)(2) of rule XIII of the Rules of
the House of Representatives, this legislation does not include
any new spending or credit authority, nor does it provide for
any increase or decrease in tax revenues or expenditures.
With respect to clause 3(c)(4) of rule XIII of the Rules of
the House of Representatives, the bill does not authorize
specific program funding.
General Performance Goals and Objectives
In compliance with clause 3(c)(4) of rule XIII of the Rules
of the House of Representatives, the goal of H.R. 5013 is to
overhaul the defense acquisition system to clean up waste,
fraud, and abuse through the following four objectives: (1)
introducing real accountability standards in the acquisition
process; (2) improving the management of the acquisition
workforce; (3) reforming the Department of Defense's financial
management; and (4) expanding and strengthening the industrial
base.
To introduce real accountability standards in the
acquisition process, this bill would require the Department of
Defense to apply performance management to the defense
acquisition system, create metrics with specific goals and
standards, better manage requirements for weapons, and create a
requirements process for the acquisition of services, and
establish a joint evaluation task force to bring a greater
operational perspective to acquisition.
To improve the management of the acquisition workforce,
this bill would require the Department of Defense to develop
and manage a highly skilled, performance-based workforce
focused on creating incentives for and rewarding excellence. It
would require the Department to develop attractive career paths
for acquisition personnel, increase training opportunities and
recertification requirements, and strengthen the information
technology portion of the workforce.
To reform the Department of Defense's financial management
system, the bill would require the Department to develop
meaningful consequences for success and failure in financial
management in order to achieve a clean audit by September 2017,
and encourage program managers to place a higher priority on
achieving best value rather than meeting arbitrary benchmarks
for spending.
To expand and strengthen the industrial base, this bill
would require the Secretary of Defense to establish a program
that would identify and communicate with non-traditional
suppliers and continually review the industrial base and
identify markets of importance. It would create a blue ribbon
panel of businesses to provide recommendations for eliminating
barriers to working with the Department. Additionally, it would
require federal contractors to disclose any seriously
delinquent tax debt and require the Department of Defense to
review contractor business systems using an independent audit
team.
Constitutional Authority Statement
Pursuant to clause 3(d)(1) of rule XIII of the Rules of the
House of Representatives, the committee finds the authority for
this legislation in Article I, Section 8 of the United States
Constitution.
Federal Advisory Committee Statement
The committee finds that this legislation establishes or
authorizes the establishment of an advisory committee within
the definition of 5 U.S.C. App., section 5(b).
Applicability to the Legislative Branch
The committee finds that this legislation does not relate
to the terms and conditions of employment or access to public
services or accommodations within the meaning of section
102(b)(3) of the Congressional Accountability Act (Public Law
104-1).
Statement of Federal Mandates
Pursuant to section 423 of Public Law 104-4, this
legislation contains no federal mandates with respect to state,
local, and tribal governments, nor with respect to the private
sector. Similarly, the bill provides no unfunded federal
intergovernmental mandates.
Record Vote
In accordance with clause 3(b) of rule XIII of the Rules of
the House of Representatives, a record vote was taken with
respect to the committee's consideration of H.R. 5013. The
record of this vote is included in this report.
The committee ordered reported H.R. 5013, as amended, to
the House with a favorable recommendation by a record vote of
56-0, a quorum being present.
Changes in Existing Law Made by the Bill, as Reported
In compliance with clause 3(e) of rule XIII of the Rules of
the House of Representatives, changes in existing law made by
the bill, as reported, are shown as follows (existing law
proposed to be omitted is enclosed in black brackets, new
matter is printed in italic, existing law in which no change is
proposed is shown in roman):
TITLE 10, UNITED STATES CODE
Subtitle A--General Military Law
PART I. ORGANIZATION AND GENERAL MILITARY POWERS
Chapter Sec.
Definitions....................................................101
* * * * * * *
PART IV. SERVICE, SUPPLY, AND PROCUREMENT
Planning and Coordination.....................................2201
* * * * * * *
2545Performance Management of the Defense Acquisition System..........
* * * * * * *
PART I--ORGANIZATION AND GENERAL MILITARY POWERS
* * * * * * *
CHAPTER 1--DEFINITIONS
Sec. 101. Definitions
(a) In General.--The following definitions apply in this
title:
(1)* * *
* * * * * * *
(18) The term ``acquisition workforce'' means the
persons serving in acquisition positions within the
Department of Defense, as designated pursuant to
section 1721(a) of this title.
* * * * * * *
CHAPTER 7--BOARDS, COUNCILS, AND COMMITTEES
* * * * * * *
Sec. 181. Joint Requirements Oversight Council
(a)* * *
* * * * * * *
(c) Composition.--(1) The Joint Requirements Oversight
Council is composed of--
(A)* * *
* * * * * * *
(D) an Air Force officer in the grade of general;
[and]
(E) a Marine Corps officer in the grade of
general[.]; and
(F) when directed by the chairman, the commander of
any combatant command (or, as directed by that
commander, the deputy commander of that command) when
matters related to the area of responsibility or
functions of that command will be under consideration
by the Council.
* * * * * * *
(d) Advisors.--(1) [The Under Secretary of Defense for
Acquisition, Technology, and Logistics, the Under Secretary of
Defense (Comptroller), and the Director of Cost Assessment and
Program Evaluation shall serve as advisors to the Council on
matters within their authority and expertise.] The following
officials of the Department of Defense shall serve as advisors
to the Council on matters within their authority and expertise:
(A) The Under Secretary of Defense for Acquisition,
Technology, and Logistics.
(B) The Under Secretary of Defense (Comptroller).
(C) The Under Secretary of Defense for Policy.
(D) The Director of Cost Assessment and Program
Evaluation.
* * * * * * *
CHAPTER 8--DEFENSE AGENCIES AND DEPARTMENT OF DEFENSE FIELD
* * * * * * *
SUBCHAPTER II--MISCELLANEOUS DEFENSE AGENCY MATTERS
Sec
201. Certain intelligence officials: consultation and concurrence
regarding appointments; evaluation of performance.
* * * * * * *
204. Defense Contract Audit Agency general counsel.
* * * * * * *
Sec. 204. Defense Contract Audit Agency general counsel
(a) General Counsel.--The Director of the Defense Contract
Audit Agency shall appoint a General Counsel of the Defense
Contract Audit Agency.
(b) Duties.--(1) The General Counsel shall perform such
functions as the Director may prescribe and shall serve at the
discretion of the Director.
(2) Notwithstanding section 140(b) of this title, the General
Counsel shall be the chief legal officer of the Defense
Contract Audit Agency.
(3) The Defense Contract Audit Agency shall be the exclusive
legal client of the General Counsel.
(c) Office of the General Counsel.--There is established an
Office of the General Counsel within the Defense Contract Audit
Agency. The Director may appoint to the Office to serve as
staff of the General Counsel such legal counsel as the Director
determines is appropriate.
* * * * * * *
PART II--PERSONNEL
* * * * * * *
CHAPTER 87--DEFENSE ACQUISITION WORKFORCE
SUBCHAPTER I--GENERAL AUTHORITIES AND RESPONSIBILITIES
Sec.
1701. Management policies.
1701a. Management for acquisition workforce excellence.
* * * * * * *
Sec. 1701a. Management for acquisition workforce excellence
(a) Purpose.--The purpose of this chapter is to require the
Department of Defense to develop and manage a highly skilled
professional acquisition workforce--
(1) in which excellence and contribution to mission
is rewarded;
(2) which has the technical expertise and business
skills to ensure the Department receives the best value
for the expenditure of public resources;
(3) which serves as a model for performance
management of employees of the Department; and
(4) which is managed in a manner that complements and
reinforces the performance management of the defense
acquisition system pursuant to chapter 149 of this
title.
(b) Performance Management.--In order to achieve the purpose
set forth in subsection (a), the Secretary of Defense shall--
(1) use the full authorities provided in subsections
(a) through (d) of section 9902 of title 5, including
flexibilities related to performance management and
hiring and to training of managers;
(2) require managers to develop performance plans for
individual members of the acquisition workforce in
order to give members an understanding of how their
performance contributes to their organization's mission
and the success of the defense acquisition system (as
defined in section 2545 of this title);
(3) to the extent appropriate, use the lessons
learned from the acquisition demonstration project
carried out under section 1762 of this title related to
contribution-based compensation and appraisal, and how
those lessons may be applied within the General
Schedule system;
(4) develop attractive career paths;
(5) encourage continuing education and training;
(6) develop appropriate procedures for warnings
during performance evaluations and due process for
members of the acquisition workforce who consistently
fail to meet performance standards;
(7) take full advantage of the Defense Civilian
Leadership Program established under section 1112 of
the National Defense Authorization Act for Fiscal Year
2010, (Public Law 111-84; 123 Stat. 2496; 10 U.S.C.
1580 note prec.);
(8) use the authorities for highly qualified experts
under section 9903 of title 5, to hire experts who are
skilled acquisition professionals to--
(A) serve in leadership positions within the
acquisition workforce to strengthen management
and oversight;
(B) provide mentors to advise individuals
within the acquisition workforce on their
career paths and opportunities to advance and
excel within the acquisition workforce; and
(C) assist with the design of education and
training courses and the training of
individuals in the acquisition workforce; and
(9) use the authorities for expedited security
clearance processing pursuant to section 1564 of this
title.
(c) Negotiations.--Any action taken by the Secretary under
this section, or to implement this section, shall be subject to
the requirements of chapter 71 of title 5.
(d) Regulations.--Any rules or regulations prescribed
pursuant to this section shall be deemed an agency rule or
regulation under section 7117(a)(2) of title 5, and shall not
be deemed a Government-wide rule or regulation under section
7117(a)(1) of such title.
* * * * * * *
SUBCHAPTER II--DEFENSE ACQUISITION POSITIONS
Sec
1721. Designation of acquisition positions.
* * * * * * *
1722b. Special requirements for civilian employees in the acquisition
field.
* * * * * * *
1725. Information technology acquisition positions.
* * * * * * *
Sec. 1722b. Special requirements for civilian employees in the
acquisition field
(a) Requirement for Policy and Guidance Regarding Civilian
Personnel in Acquisition.--The Secretary of Defense, acting
through the Under Secretary of Defense for Acquisition,
Technology, and Logistics, shall establish policies and issue
guidance to ensure the proper development, assignment, and
employment of civilian members of the acquisition workforce to
achieve the objectives specified in subsection (b).
(b) Objectives.--Policies established and guidance issued
pursuant to subsection (a) shall ensure, at a minimum, the
following:
(1) A career path in the acquisition field that
attracts the highest quality civilian personnel, from
either within or outside the Federal Government.
(2) A deliberate workforce development strategy that
increases attainment of key experiences that contribute
to a highly qualified acquisition workforce.
(3) Sufficient opportunities for promotion and
advancement in the acquisition field.
(4) A sufficient number of qualified, trained members
eligible for and active in the acquisition field to
ensure adequate capacity, capability, and effective
succession for acquisition functions, including
contingency contracting, of the Department of Defense.
(c) Inclusion of Information in Annual Report.--The Secretary
of Defense shall include in the report to Congress required
under section 115b(d) of this title the following information
related to the acquisition workforce for the period covered by
the report (which shall be shown for the Department of Defense
as a whole and separately for the Army, Navy, Air Force, Marine
Corps, Defense Agencies, and Office of the Secretary of
Defense):
(1) The total number of persons serving in the
Acquisition Corps, set forth separately for members of
the armed forces and civilian employees, by grade level
and by functional specialty.
(2) The total number of critical acquisition
positions held, set forth separately for members of the
armed forces and civilian employees, by grade level and
by other appropriate categories (including by program
manager, deputy program manager, and division head
positions). For each such category, the report shall
specify the number of civilians holding such positions
compared to the total number of positions filled.
(3) The number of employees to whom the requirements
of subsections (b)(2)(A) and (b)(2)(B) of section 1732
of this title did not apply because of the exceptions
provided in paragraphs (1) and (2) of section 1732(c)
of this title, set forth separately by type of
exception.
(4) The number of program managers and deputy program
managers who were reassigned after completion of a
major milestone occurring closest in time to the date
on which the person has served in the position for four
years (as required under section 1734(b) of this
title), and the proportion of those reassignments to
the total number of reassignments of program managers
and deputy program managers, set forth separately for
program managers and deputy program managers. The
Secretary also shall include the average length of
assignment served by program managers and deputy
program managers so reassigned.
(5) The number of persons, excluding those reported
under paragraph (4), in critical acquisition positions
who were reassigned after a period of three years or
longer (as required under section 1734(a) of this
title), and the proportion of those reassignments to
the total number of reassignments of persons, excluding
those reported under paragraph (4), in critical
acquisition positions.
(6) The number of times a waiver authority was
exercised under section 1724(d), 1732(d), 1734(d), or
1736(c) of this title or any other provision of this
chapter (or other provision of law) which permits the
waiver of any requirement relating to the acquisition
workforce, and in the case of each such authority, the
reasons for exercising the authority. The Secretary may
present the information provided under this paragraph
by category or grouping of types of waivers and
reasons.
Sec. 1723. General education, training, and experience requirements
[(a) Qualification Requirements.--The Secretary of Defense
shall establish education, training, and experience
requirements for each acquisition position, based on the level
of complexity of duties carried out in the position. In
establishing such requirements for positions other than
critical acquisition positions designated pursuant to section
1733 of this title, the Secretary may state the requirements by
categories of positions.]
(a) Qualification Requirements.--(1) The Secretary of Defense
shall establish education, training and experience requirements
for each acquisition position, based on the level of complexity
of duties carried out in the position. In establishing such
requirements, the Secretary shall ensure the availability and
sufficiency of training in all areas of acquisition, including
additional training courses with an emphasis on services
contracting, long-term sustainment strategies, information
technology, and rapid acquisition.
(2) In establishing such requirements for positions other
than critical acquisition positions designated pursuant to
section 1733 of this title, the Secretary may state the
requirements by categories of positions.
(3) The Secretary of Defense, acting through the Under
Secretary of Defense for Acquisition, Technology, and
Logistics, shall establish requirements for continuing
education and periodic renewal of an individual's
certification. Any requirement for a certification renewal
shall not require a renewal more often than once every five
years.
(b) Career Path Requirements.--For each career path, the
Secretary of Defense, acting through the Under Secretary of
Defense for Acquisition, Technology, and Logistics shall
establish requirements for the completion of course work and
related on-the-job training and demonstration of qualifications
in the critical acquisition-related duties and tasks of the
career path. The Secretary of Defense, acting through the Under
Secretary, shall also--
(1) encourage individuals in the acquisition
workforce to maintain the currency of their acquisition
knowledge and generally enhance their knowledge of
related acquisition management disciplines through
academic programs and other self-developmental
activities; and
(2) develop key work experiences, including the
creation of a program sponsored by the Department of
Defense that facilitates the periodic interaction
between individuals in the acquisition workforce and
the end user in such end user's environment to enhance
the knowledge base of such workforce, for individuals
in the acquisition workforce so that the individuals
may gain in-depth knowledge and experience in the
acquisition process and become seasoned, well-qualified
members of the acquisition workforce.
[(b)] (c) Limitation on Credit for Training or Education.--
Not more than one year of a period of time spent pursuing a
program of academic training or education in acquisition may be
counted toward fulfilling any requirement established under
this chapter for a certain period of experience.
* * * * * * *
Sec. 1725. Information technology acquisition positions
(a) Plan Required.--The Secretary of Defense shall develop
and carry out a plan to strengthen the part of the acquisition
workforce that specializes in information technology. The plan
shall include the following:
(1) Defined targets for billets devoted to
information technology acquisition.
(2) Specific certification requirements for
individuals in the acquisition workforce who specialize
in information technology acquisition.
(3) Defined career paths for individuals in the
acquisition workforce who specialize in information
technology acquisitions.
(b) Definitions.--In this section:
(1) The term ``information technology'' has the
meaning provided such term in section 11101 of title 40
and includes information technology incorporated into a
major weapon system.
(2) The term ``major weapon system'' has the meaning
provided such term in section 2379(f) of this title.
* * * * * * *
SUBCHAPTER IV--EDUCATION AND TRAINING
Sec
1741. Policies and programs: establishment and implementation.
* * * * * * *
[1746. Defense acquisition university structure.]
1746. Defense Acquisition University.
* * * * * * *
1748. Guidance and standards for acquisition workforce training.
* * * * * * *
[Sec. 1746. Defense acquisition university structure]
Sec. 1746. Defense Acquisition University
(a)* * *
* * * * * * *
(c) Curriculum Development.--The President of the Defense
Acquisition University shall work with the relevant
professional schools and degree-granting institutions of the
Department of Defense and military departments to ensure that
best practices are used in curriculum development to support
acquisition workforce positions.
* * * * * * *
Sec. 1748. Guidance and standards for acquisition workforce training
(a) Fulfillment Standards.--The Secretary of Defense, acting
through the Under Secretary of Defense for Acquisition,
Technology, and Logistics, shall develop fulfillment standards,
and implement and maintain a program, for purposes of the
training requirements of sections 1723, 1724, and 1735 of this
title. Such fulfillment standards shall consist of criteria for
determining whether an individual has demonstrated competence
in the areas that would be taught in the training courses
required under those sections. If an individual meets the
appropriate fulfillment standard, the applicable training
requirement is fulfilled.
(b) Guidance and Standards Relating to Contracts for
Training.--The Secretary of Defense shall develop appropriate
guidance and standards to ensure that the Department of Defense
will continue, where appropriate and cost-effective, to enter
into contracts for the training requirements of sections 1723,
1724, and 1735 of this title, while maintaining appropriate
control over the content and quality of such training.
SUBCHAPTER V--GENERAL MANAGEMENT PROVISIONS
Sec.
1761. Management information system.
1762. Demonstration project relating to certain acquisition personnel
management policies and procedures.
1763. Incentive programs for civilian and military personnel in the
acquisition workforce.
* * * * * * *
Sec. 1762. Demonstration project relating to certain acquisition
personnel management policies and procedures
(a) Commencement.--The Secretary of Defense is encouraged to
carry out a demonstration project, the purpose of which is to
determine the feasibility or desirability of one or more
proposals for improving the personnel management policies or
procedures that apply with respect to the acquisition workforce
of the Department of Defense and supporting personnel assigned
to work directly with the acquisition workforce.
(b) Terms and Conditions.--(1) Except as otherwise provided
in this subsection, any demonstration project described in
subsection (a) shall be subject to section 4703 of title 5 and
all other provisions of such title that apply with respect to
any demonstration project under such section.
(2) Subject to paragraph (3), in applying section 4703 of
title 5 with respect to a demonstration project described in
subsection (a)--
(A) ``180 days'' in subsection (b)(4) of such section
shall be deemed to read ``120 days'';
(B) ``90 days'' in subsection (b)(6) of such section
shall be deemed to read ``30 days''; and
(C) subsection (d)(1) of such section shall be
disregarded.
(3) Paragraph (2) shall not apply with respect to a
demonstration project unless--
(A) for each organization or team participating in
the demonstration project--
(i) at least one-third of the workforce
participating in the demonstration project
consists of members of the acquisition
workforce; and
(ii) at least two-thirds of the workforce
participating in the demonstration project
consists of members of the acquisition
workforce and supporting personnel assigned to
work directly with the acquisition workforce;
and
(B) the demonstration project commences before
October 1, 2007.
(c) Limitation on Number of Participants.--The total number
of persons who may participate in the demonstration project
under this section may not exceed 120,000.
(d) Effect of Reorganizations.--The applicability of
paragraph (2) of subsection (b) to an organization or team
shall not terminate by reason that the organization or team,
after having satisfied the conditions in paragraph (3) of such
subsection when it began to participate in a demonstration
project under this section, ceases to meet one or both of the
conditions set forth in subparagraph (A) of such paragraph (3)
as a result of a reorganization, restructuring, realignment,
consolidation, or other organizational change.
(e) Assessment.--(1) The Secretary of Defense shall designate
an independent organization to review the acquisition workforce
demonstration project described in subsection (a).
(2) Such assessment shall include:
(A) A description of the workforce included in the
project.
(B) An explanation of the flexibilities used in the
project to appoint individuals to the acquisition
workforce and whether those appointments are based on
competitive procedures and recognize veteran's
preferences.
(C) An explanation of the flexibilities used in the
project to develop a performance appraisal system that
recognizes excellence in performance and offers
opportunities for improvement.
(D) The steps taken to ensure that such system is
fair and transparent for all employees in the project.
(E) How the project allows the organization to better
meet mission needs.
(F) An analysis of how the flexibilities in
subparagraphs (B) and (C) are used, and what barriers
have been encountered that inhibit their use.
(G) Whether there is a process for (i) ensuring
ongoing performance feedback and dialogue among
supervisors, managers, and employees throughout the
performance appraisal period, and (ii) setting
timetables for performance appraisals.
(H) The project's impact on career progression.
(I) The project's appropriateness or
inappropriateness in light of the complexities of the
workforce affected.
(J) The project's sufficiency in terms of providing
protections for diversity in promotion and retention of
personnel.
(K) The adequacy of the training, policy guidelines,
and other preparations afforded in connection with
using the project.
(L) Whether there is a process for ensuring employee
involvement in the development and improvement of the
project.
(3) The first such assessment under this subsection shall be
completed not later than September 30, 2011, and subsequent
assessments shall be completed every two years thereafter until
the termination of the project. The Secretary shall submit to
the covered congressional committees a copy of the assessment
within 30 days after receipt by the Secretary of the
assessment.
(f) Covered Congressional Committees.--In this section, the
term ``covered congressional committees'' means--
(1) the Committees on Armed Services of the Senate
and the House of Representatives;
(2) the Committee on Homeland Security and
Governmental Affairs of the Senate; and
(3) the Committee on Oversight and Government Reform
of the House of Representatives.
(g) Termination of Authority.--The authority to conduct a
demonstration program under this section shall terminate on
September 30, 2017.
(h) Conversion.--Within six months after the authority to
conduct a demonstration project under this section is
terminated as provided in subsection (g), employees in the
project shall convert to the civilian personnel system created
pursuant to section 9902 of title 5.
Sec. 1763. Incentive programs for civilian and military personnel in
the acquisition workforce
(a) Civilian Acquisition Workforce Incentives.--The Secretary
of Defense, acting through the Under Secretary of Defense for
Acquisition, Technology, and Logistics, shall provide for an
enhanced system of incentives for the encouragement of
excellence in the acquisition workforce by providing rewards
for employees who contribute to achieving the agency's
performance goals. The system of incentives shall include
provisions that--
(1) relate salary increases, bonuses, and awards to
performance and contribution to the agency mission
(including the extent to which the performance of
personnel in such workforce contributes to achieving
the goals and standards established for acquisition
programs pursuant to section 2545 of this title;
(2) provide for consideration, in personnel
evaluations and promotion decisions, of the extent to
which the performance of personnel in such workforce
contributes to achieving such goals and standards;
(3) use the Department of Defense Civilian Workforce
Incentive Fund established pursuant to section 9902(a)
of title 5; and
(4) provide opportunities for career broadening
experiences for high performers.
(b) Military Acquisition Workforce Incentives.--The
Secretaries of the military departments shall fully use and
enhance incentive programs that reward individuals, through
recognition certificates or cash awards, for suggestions of
process improvements that contribute to improvements in
efficiency and economy and a better way of doing business.
* * * * * * *
PART IV--SERVICE, SUPPLY, AND PROCUREMENT
Chapter Sec.
Planning and Coordination.....................................2201
* * * * * * *
2545Performance Management of the Defense Acquisition System..........
* * * * * * *
CHAPTER 131--PLANNING AND COORDINATION
Sec.
2201. Apportionment of funds: authority for exemption; excepted
expenses.
* * * * * * *
2222a. Criteria for business system reviews.
* * * * * * *
Sec. 2222a. Criteria for business system reviews
(a) Criteria for Business System Reviews.--The Secretary of
Defense shall ensure that any contractor business system review
carried out by a military department, a Defense Agency, or a
Department of Defense Field Activity--
(1) complies with generally accepted government
auditing standards issued by the Comptroller General;
(2) is performed by an audit team that does not
engage in any other official activity (audit-related or
otherwise) involving the contractor concerned;
(3) is performed in a time and manner consistent with
a documented assessment of the risk to the Federal
Government; and
(4) involves testing on a representative sample of
transactions sufficient to fully examine the integrity
of the contractor business system concerned.
(b) Contractor Business System Review Defined.--In this
section, the term ``contractor business system review'' means
an audit of policies, procedures, and internal controls
relating to accounting and management systems of a contractor.
* * * * * * *
CHAPTER 137--PROCUREMENT GENERALLY
* * * * * * *
Sec. 2306a. Cost or pricing data: truth in negotiations
(a)* * *
(b) Exceptions.--
(1) In general.--Submission of certified cost or
pricing data shall not be required under subsection (a)
in the case of a contract, a subcontract, or
modification of a contract or subcontract--
(A)* * *
(B) for the acquisition of a commercial item;
[or]
(C) in an exceptional case when the head of
the procuring activity, without delegation,
determines that the requirements of this
section may be waived and justifies in writing
the reasons for such determination[.]; or
(D) for the acquisition of a military purpose
nondevelopmental item, as defined in section
2410r of this title, if the contracting officer
determines in writing that--
(i) the contract, subcontract or
modification will be a firm, fixed
price type contract; and
(ii) the offeror has submitted
sufficient information to evaluate,
through price analysis, the
reasonableness of the price for the
military purpose nondevelopmental item.
* * * * * * *
CHAPTER 141--MISCELLANEOUS PROCUREMENT PROVISIONS
Sec
2381. Contracts: regulations for bids.
* * * * * * *
2410r. Military purpose nondevelopmental items.
* * * * * * *
Sec. 2410r. Military purpose nondevelopmental items
(a) Definitions.--In this section:
(1) The term ``military purpose nondevelopmental
item'' means an item--
(A) developed exclusively at private expense;
(B) that meets a validated military
requirement and for which the United States has
rights in technical data as prescribed in
section 2320(a)(2)(B) of this title, as
certified in writing by the responsible program
manager;
(C) for which delivery of an initial lot of
production-representative items may be made
within nine months after contract award; and
(D) for which the unit cost is less than
$10,000,000.
(2) The term ``item'' has the meaning provided in
section 2302(3) of this title.
(b) Requirements.--The Secretary of Defense shall ensure
that, with respect to a contract for the acquisition of a
military purpose nondevelopmental item, the following
requirements apply:
(1) The contract shall be awarded using competitive
procedures in accordance with section 2304 of this
title.
(2) Certain contract clauses, as specified in
regulations prescribed under subsection (c), shall be
included in each such contract.
(3) The type of contract used shall be a firm, fixed
price type contract.
(c) Regulations.--The Secretary of Defense shall prescribe
regulations to carry out this section. Such regulations shall
be included in regulations of the Department of Defense
prescribed as part of the Federal Acquisition Regulation. At a
minimum, the regulations shall include--
(1) a list of contract clauses to be included in each
contract for the acquisition of a military purpose
nondevelopmental item;
(2) definitions for the terms ``developed'' and
``exclusively at private expense'' that--
(A) are consistent with the definitions
developed for such terms in accordance with
2320(a)(3) of this title; and
(B) also exclude an item developed in part or
in whole with--
(i) foreign government funding; or
(ii) foreign or Federal Government
loan financing at nonmarket rates; and
(3) standards for evaluating the reasonableness of
price for the military purpose nondevelopmental item,
in lieu of certified cost or pricing data.
* * * * * * *
CHAPTER 148--NATIONAL DEFENSE TECHNOLOGY AND INDUSTRIAL BASE, DEFENSE
REINVESTMENT, AND DEFENSE CONVERSION
* * * * * * *
SUBCHAPTER I--DEFINITIONS
Sec. 2500. Definitions
In this chapter:
(1) The term ``national technology and industrial
base'' means the persons and organizations that are
engaged in research, development, production, [or
maintenance] integration, services, or information
technology activities conducted within the United
States and Canada.
* * * * * * *
(4) The term ``technology and industrial base
sector'' means a group of public or private persons and
organizations that engage in, or are capable of
engaging in, similar research, development, [or
production] production, integration, services, or
information technology activities.
* * * * * * *
(9) The term ``eligible firm'' means a company or
other business entity that, as determined by the
Secretary of Commerce--
(A) conducts a significant level of its
research, development, engineering, [and
manufacturing] manufacturing, integration,
services, and information technology activities
in the United States; and
* * * * * * *
(15) The term ``integration'' means the process of
providing systems engineering and technical direction
for a system for the purpose of achieving capabilities
that satisfy contract requirements.
SUBCHAPTER II--POLICIES AND PLANNING
Sec. 2501. National security objectives concerning national technology
and industrial base
(a) National Security Objectives for National Technology And
Industrial Base.--It is the policy of Congress that the
national technology and industrial base be capable of meeting
the following national security objectives:
(1) [Supplying and equipping] Supplying, equipping,
and supporting the force structure of the armed forces
that is necessary to achieve--
(A)* * *
* * * * * * *
(2) Sustaining production, maintenance, repair, [and
logistics for] logistics, and other activities in
support of military operations of various durations and
intensity.
* * * * * * *
(4) Reconstituting within a reasonable period the
capability to develop [and produce], produce, and
support supplies and equipment, including
technologically advanced systems, in sufficient
quantities to prepare fully for a war, national
emergency, or mobilization of the armed forces before
the commencement of that war, national emergency, or
mobilization.
* * * * * * *
(6) Providing for the generation of services
capabilities that are not core functions of the armed
forces and that are critical to military operations
within the national technology and industrial base.
(7) Providing for the development, production, and
integration of information technology within the
national technology and industrial base.
[(6)] (8) Maintaining critical design skills to
ensure that the armed forces are provided with systems
capable of ensuring technological superiority over
potential adversaries.
* * * * * * *
Sec. 2505. National technology and industrial base: periodic defense
capability assessments
(a)* * *
(b) Assessment Process.--The Secretary of Defense shall
ensure that technology and industrial capability assessments--
(1)* * *
* * * * * * *
(4) consider the effects of the termination of major
defense acquisition programs (as the term is defined in
section 2430 of this title) or major automated
information systems (as defined in section 2445a of
this title) in the previous fiscal year on the sectors
and capabilities in the assessment.
* * * * * * *
Sec. 2506. Department of Defense technology and industrial base policy
guidance
(a) Departmental Guidance.--The Secretary of Defense shall
prescribe departmental guidance for the attainment of each of
the national security objectives set forth in section 2501(a)
of this title. Such guidance shall provide for technological
and industrial capability considerations to be integrated into
the [budget allocation, weapons] strategy, management, budget
allocation, acquisition, and logistics support decision
processes.
* * * * * * *
CHAPTER 149--PERFORMANCE MANAGEMENT OF THE DEFENSE ACQUISITION SYSTEM
Sec.
2545. Performance assessment of the defense acquisition system.
2546. Audits of performance assessment.
2547. Use of performance assessments for managing performance.
2548. Acquisition-related functions of the Chiefs of Staff of the armed
forces.
Sec. 2545. Performance assessment of the defense acquisition system
(a) Performance Assessments Required.--(1) The Secretary of
Defense shall ensure that all elements of the defense
acquisition system are subject to regular performance
assessments--
(A) to determine the extent to which such elements
deliver appropriate value to the Department of Defense;
and
(B) to enable senior officials of the Department of
Defense to manage the elements of the defense
acquisition system to maximize their value to the
Department.
(2) The performance of each element of the defense
acquisition system shall be assessed as needed, but not less
often than annually.
(3) The Secretary shall ensure that the performance
assessments required by this subsection are appropriately
tailored to reflect the diverse nature of defense acquisition
so that the performance assessment of each element of the
defense acquisition system accurately reflects the work
performed by such element.
(b) Systemwide Categories.--(1) The Secretary of Defense
shall establish categories of metrics for the defense
acquisition system, including, at a minimum, categories
relating to cost, quality, delivery, workforce, and policy
implementation that apply to all elements of the defense
acquisition system.
(2) The Secretary of Defense shall issue guidance for service
acquisition executives within the Department of Defense on the
establishment of metrics, and goals and standards relating to
such metrics, within the categories established by the
Secretary under paragraph (1) to ensure that there is
sufficient uniformity in performance assessments across the
defense acquisition system so that elements of the defense
acquisition system can be meaningfully compared.
(c) Metrics, Goals, and Standards.--(1) Each service
acquisition executive of the Department of Defense shall
establish metrics to be used in the performance assessments
required by subsection (a) for each element of the defense
acquisition system for which such executive is responsible
within the categories established by the Secretary under
subsection (b). Such metrics shall be appropriately tailored
pursuant to subsection (a)(3) and may include measures of--
(A) cost, quality, and delivery;
(B) contractor performance;
(C) excessive use of contract bundling and
availability of non-bundled contract vehicles;
(D) workforce quality and program manager tenure
(where applicable);
(E) the quality of market research;
(F) appropriate use of integrated testing;
(G) appropriate consideration of long-term
sustainment; and
(H) appropriate acquisition of technical data and
other rights and assets necessary to support long-term
sustainment.
(2) Each service acquisition executive within the Department
of Defense shall establish goals and standards (including, at a
minimum, a threshold standard and an objective goal) for each
metric established under paragraph (1) by the executive. In
establishing the goals and standards for an element of the
defense acquisition system, a service acquisition executive
shall consult with the head of the element to the maximum
extent practicable, but the service acquisition executive shall
retain the final authority to determine the goals and standards
established. The service acquisition executive shall update the
goals and standards as necessary and appropriate consistent
with the guidance issued under subsection (b)(2).
(3) The Under Secretary of Defense for Acquisition,
Technology, and Logistics shall periodically review the
metrics, goals, and standards established by service
acquisition executives under this subsection to ensure that
they are consistent with the guidance issued under subsection
(b)(2).
(d) Responsibility for Oversight and Direction of Performance
Assessments.--(1) Performance assessments required by
subsection (a) shall either be carried out by, or shall be
subject to the oversight of, the Director of the Office of
Performance Assessment and Root Cause Analysis. The authority
and responsibility granted by this subsection is in addition to
any other authority or responsibility granted to the Director
of the Office of Performance Assessment and Root Cause Analysis
by the Secretary of Defense or by any other provision of law.
In the performance of duties pursuant to this section, the
Director of the Office of Performance Assessment and Root Cause
analysis shall coordinate with the Deputy Chief Management
Officer to ensure that performance assessments carried out
pursuant to this section are consistent with the performance
management initiatives of the Department of Defense.
(2) A performance assessment may be carried out by an
organization under the control of the service acquisition
executive of a military department if--
(A) the assessment fulfills the requirements of
subsection (a);
(B) the organization is approved to carry out the
assessment by the Director of the Office of Performance
Assessment and Root Cause Analysis; and
(C) the assessment is subject to the oversight of the
Director of the Office of Performance Assessment and
Root Cause Analysis in accordance with paragraph (1).
(e) Retention and Access to Records of Performance
Assessments Within the Military Departments and Defense
Agencies.--The Secretary of Defense shall ensure that
information from performance assessments of all elements of the
defense acquisition system are retained electronically and that
the Director of the Office of Performance Assessment and Root
Cause Analysis--
(1) promptly receives the results of all performance
assessments conducted by an organization under the
control of the service acquisition executive of a
military department; and
(2) has timely access to any records and data in the
Department of Defense (including the records and data
of each military department and Defense Agency and
including classified and proprietary information) that
the Director considers necessary to review in order to
perform or oversee performance assessments pursuant to
this section.
(f) Definitions.--In this section:
(1) The term ``defense acquisition system'' means the
acquisition workforce; the process by which the
Department of Defense manages the acquisition of goods
and services, including weapon systems, commodities,
commercial and military unique services, and
information technology; and the management structure
for carrying out the acquisition function within the
Department of Defense.
(2) The term ``element of the defense acquisition
system'' means an organization that operates within the
defense acquisition system and that focuses primarily
on acquisition.
(3) The term ``metric'' means a specific measure that
serves as a basis for comparison.
(4) The term ``threshold performance standard'' means
the minimum acceptable level of performance in relation
to a metric.
(5) The term ``objective performance goal'' means the
most desired level of performance in relation to a
metric.
(6) The term ``Office of Performance Assessment and
Root Cause Analysis'' means the office reporting to the
senior official designated by the Secretary of Defense
under section 103(a) of the Weapon Systems Acquisition
Reform Act of 2009 (Public Law 111-23, 10 U.S.C. 2430
note).
Sec. 2546. Audits of performance assessment
(a) Audits Required.--The Secretary of Defense shall ensure
that the performance assessments of the defense acquisition
system required by section 2545 of this title are subject to
periodic audits to determine the accuracy, reliability, and
completeness of such assessments.
(b) Standards and Approach.--In performing the audits
required by subsection (a), the Secretary shall ensure that
such audits--
(1) comply with generally accepted government
auditing standards issued by the Comptroller General;
(2) use a risk-based approach to audit planning; and
(3) appropriately account for issues associated with
auditing assessments of activities occurring in a
contingency operation.
Sec. 2547. Use of performance assessments for managing performance
(a) In General.--The Secretary of Defense shall ensure that
the results of performance assessments are used in the
management of elements of the defense acquisition system
through direct linkages between the results of a performance
assessment and the following:
(1) The size of the bonus pool available to the
workforce of an element of the defense acquisition
system.
(2) Rates of promotion in the workforce of an element
of the defense acquisition system.
(3) Awards for acquisition excellence.
(4) The scope of work assigned to an element of the
defense acquisition system.
(b) Additional Requirements.--The Secretary of Defense shall
ensure that actions taken to manage the acquisition workforce
pursuant to subsection (a) are undertaken in accordance with
the requirements of subsections (c) and (d) of section 1701a of
this title.
Sec. 2548. Acquisition-related functions of the Chiefs of Staff of the
armed forces
(a) Assistance.--The Secretary of Defense shall ensure,
notwithstanding section 3014(c)(1)(A), section 5014(c)(1)(A),
and section 8014(c)(1)(A) of this title, that the Chief of
Staff of the Army, the Chief of Naval Operations, the Chief of
Staff of the Air Force, and the Commandant of the Marine Corps
assist the Secretary of the military department concerned in
the performance of the following acquisition-related functions
of such department:
(1) The development of requirements relating to the
defense acquisition system.
(2) The development of measures to control
requirements creep in the defense acquisition system.
(3) The development of career paths in acquisition
for military personnel (as required by section 1722a of
this title).
(4) The assignment and training of contracting
officer representatives when such representatives are
required to be members of the armed forces because of
the nature of the contract concerned.
(b) Definitions.--In this section:
(1) The term ``requirements creep'' means the
addition of new technical or operational specifications
after a requirements document is approved.
(2) The term ``requirements document'' means a
document produced in the requirements process that is
provided for an acquisition program to guide the
subsequent development, production, and testing of the
program and that--
(A) justifies the need for a materiel
approach, or an approach that is a combination
of materiel and non-materiel, to satisfy one or
more specific capability gaps;
(B) details the information necessary to
develop an increment of militarily useful,
logistically supportable, and technically
mature capability, including key performance
parameters; or
(C) identifies production attributes required
for a single increment of a program.
* * * * * * *
----------
SECTION 105 OF THE WEAPON SYSTEM ACQUISITION REFORM ACT OF 2009
SEC. 105. ROLE OF THE COMMANDERS OF THE COMBATANT COMMANDS IN
IDENTIFYING JOINT MILITARY REQUIREMENTS.
(a) * * *
* * * * * * *
(c) Comptroller General of the United States Review of
Implementation.--
(1)* * *
[(2) Matters covered.--The report shall include, at a
minimum, an assessment of--
[(A) the extent to which the Council has
effectively sought, and the commanders of the
combatant commands have provided, meaningful
input on proposed joint military requirements;
[(B) the quality and effectiveness of efforts
to estimate the level of resources needed to
fulfill joint military requirements; and
[(C) the extent to which the Council has
considered trade-offs among cost, schedule, and
performance objectives.]
(2) Matters covered.--The report shall include, at a
minimum, an assessment of--
(A) the extent to which the Council has
effectively sought, and the commanders of the
combatant commands have provided, meaningful
input on proposed joint military requirements;
(B) the extent to which the Council has
meaningfully considered the input and expertise
of the Under Secretary of Defense for
Acquisition, Technology, and Logistics in its
discussions;
(C) the extent to which the Council has
meaningfully considered the input and expertise
of the Director of Cost Assessment and Program
Evaluation in its discussions;
(D) the quality and effectiveness of efforts
to estimate the level of resources needed to
fulfill joint military requirements; and
(E) the extent to which the Council has
considered trade-offs among cost, schedule, and
performance objectives.
* * * * * * *
----------
TITLE 5, UNITED STATES CODE
* * * * * * *
PART III--EMPLOYEES
* * * * * * *
SUBPART I--MISCELLANEOUS
* * * * * * *
CHAPTER 99--DEPARTMENT OF DEFENSE NATIONAL SECURITY PERSONNEL SYSTEM
* * * * * * *
Sec. 9903. Attracting highly qualified experts
(a)* * *
(b) Authority.--Under the program, the Secretary may--
(1) appoint personnel from outside the civil service
and uniformed services (as such terms are defined in
section 2101) to positions in the Department of
Defense, on a full-time or part-time basis, without
regard to any provision of this title governing the
appointment of employees to positions in the Department
of Defense;
* * * * * * *
----------
NATIONAL DEFENSE AUTHORIZATION ACT FOR FISCAL YEAR 1996
DIVISION D--FEDERAL ACQUISITION REFORM
* * * * * * *
TITLE XLIII--ADDITIONAL REFORM PROVISIONS
* * * * * * *
[SEC. 4308. DEMONSTRATION PROJECT RELATING TO CERTAIN PERSONNEL
MANAGEMENT POLICIES AND PROCEDURES.
[(a) Commencement.--The Secretary of Defense is encouraged to
take such steps as may be necessary to provide for the
commencement of a demonstration project, the purpose of which
would be to determine the feasibility or desirability of one or
more proposals for improving the personnel management policies
or procedures that apply with respect to the acquisition
workforce of the Department of Defense and supporting personnel
assigned to work directly with the acquisition workforce.
[(b) Terms and Conditions.--
[(1) In general.--Except as otherwise provided in
this subsection, any demonstration project described in
subsection (a) shall be subject to section 4703 of
title 5, United States Code, and all other provisions
of such title that apply with respect to any
demonstration project under such section.
[(2) Exceptions.--Subject to paragraph (3), in
applying section 4703 of title 5, United States Code,
with respect to a demonstration project described in
subsection (a)--
[(A) ``180 days'' in subsection (b)(4) of
such section shall be deemed to read ``120
days'';
[(B) ``90 days'' in subsection (b)(6) of such
section shall be deemed to read ``30 days'';
and
[(C) subsection (d)(1) of such section shall
be disregarded.
[(3) Conditions.--Paragraph (2) shall not apply with
respect to a demonstration project unless--
[(A) for each organization or team
participating in the demonstration project--
[(i) at least one-third of the
workforce participating in the
demonstration project consists of
members of the acquisition workforce;
and
[(ii) at least two-thirds of the
workforce participating in the
demonstration project consists of
members of the acquisition workforce
and supporting personnel assigned to
work directly with the acquisition
workforce; and
[(B) the demonstration project commences
before October 1, 2007.
[(c) Definition.--For purposes of this section, the term
``acquisition workforce'' refers to the persons serving in
acquisition positions within the Department of Defense, as
designated pursuant to section 1721(a) of title 10, United
States Code.
[(d) Limitation on Number of Participants.--The total number
of persons who may participate in the demonstration project
under this section may not exceed 120,000.
[(e) Effect of Reorganizations.--The applicability of
paragraph (2) of subsection (b) to an organization or team
shall not terminate by reason that the organization or team,
after having satisfied the conditions in paragraph (3) of such
subsection when it began to participate in a demonstration
project under this section, ceases to meet one or both of the
conditions set forth in subparagraph (A) of such paragraph (3)
as a result of a reorganization, restructuring, realignment,
consolidation, or other organizational change.
[(f) Termination of Authority.--The authority to conduct a
demonstration program under this section shall terminate on
September 30, 2012.]
* * * * * * *
----------
SECTION 853 OF THE NATIONAL DEFENSE AUTHORIZATION ACT FOR FISCAL YEAR
1998
(Public Law 105-85)
[SEC. 853. GUIDANCE AND STANDARDS FOR DEFENSE ACQUISITION WORKFORCE
TRAINING REQUIREMENTS.
[The Secretary of Defense shall develop appropriate guidance
and standards to ensure that the Department of Defense will
continue, where appropriate and cost-effective, to enter into
contracts for the training requirements of sections 1723, 1724,
and 1735 of title 10, United States Code, while maintaining
appropriate control over the content and quality of such
training.]
----------
STROM THURMOND NATIONAL DEFENSE AUTHORIZATION ACT FOR FISCAL YEAR 1999
DIVISION A--DEPARTMENT OF DEFENSE AUTHORIZATIONS
* * * * * * *
TITLE VIII--ACQUISITION POLICY, ACQUISITION MANAGEMENT, AND RELATED
MATTERS
* * * * * * *
SEC. 803. DEFENSE COMMERCIAL PRICING MANAGEMENT IMPROVEMENT.
(a)* * *
* * * * * * *
[(c) Commercial Price Trend Analysis.--(1) The Secretary of
Defense shall develop and implement procedures that, to the
maximum extent that is practicable and consistent with the
efficient operation of the Department of Defense, provide for
the collection and analysis of information on price trends for
categories of exempt commercial items described in paragraph
(2).
[(2) A category of exempt commercial items referred to in
paragraph (1) consists of exempt commercial items--
[(A) that are in a single Federal Supply Group or
Federal Supply Class, are provided by a single
contractor, or are otherwise logically grouped for the
purpose of analyzing information on price trends; and
[(B) for which there is a potential for the price
paid to be significantly higher (on a percentage basis)
than the prices previously paid in procurements of the
same or similar items for the Department of Defense, as
determined by the head of the procuring Department of
Defense agency or the Secretary of the procuring
military department on the basis of criteria prescribed
by the Secretary of Defense.
[(3) The head of a Department of Defense agency or the
Secretary of a military department shall take appropriate
action to address any unreasonable escalation in prices being
paid for items procured by that agency or military department
as identified in an analysis conducted pursuant to paragraph
(1).
[(4) Not later than April 1 of each of fiscal years 2000
through 2009, the Secretary of Defense shall submit to the
Committee on Armed Services of the Senate and the Committee on
Armed Services of the House of Representatives a report on the
analyses of price trends that were conducted by the Secretary
of each military department and the Director of the Defense
Logistics Agency for categories of exempt commercial items
during the preceding fiscal year under the procedures
prescribed pursuant to paragraph (1). The report shall include
a description of the actions taken by each Secretary and the
Director to identify and address any unreasonable price
escalation for the categories of items.]
(c) Commercial Price Trend Analysis.--
(1) The Secretary of Defense shall develop and
implement procedures that, to the maximum extent
practicable, provide for the collection and analysis of
information on price trends for categories of exempt
commercial items described in paragraph (2).
(2) A category of exempt commercial items referred to
in paragraph (1) consists of exempt commercial items
that are in a single Federal Supply Group or Federal
Supply Class, are provided by a single contractor, or
are otherwise logically grouped for the purpose of
analyzing information on price trends.
(3) The analysis of information on price trends under
paragraph (1) shall include, in any category in which
significant escalation in prices is identified, a more
detailed examination of the causes of escalation for
such prices within the category and whether such price
escalation is consistent across the Department of
Defense.
(4) The head of a Department of Defense agency or the
Secretary of a military department shall take
appropriate action to address any unjustified
escalation in prices being paid for items procured by
that agency or military department as identified in an
analysis conducted pursuant to paragraph (1).
(5) Not later than April 1 of each of year, the
Secretary of Defense shall submit to the Committee on
Armed Services of the Senate and the Committee on Armed
Services of the House of Representatives a report on
the analyses of price trends that were conducted for
categories of exempt commercial items during the
preceding fiscal year under the procedures prescribed
pursuant to paragraph (1). The report shall include a
description of the actions taken to identify and
address any unjustified price escalation for the
categories of items.
(6) This subsection shall not be in effect on and
after April 1, 2013.
* * * * * * *
----------
TITLE 31, UNITED STATES CODE
* * * * * * *
Subtitle III--FINANCIAL MANAGEMENT
* * * * * * *
CHAPTER 37--CLAIMS
SUBCHAPTER I--GENERAL
Sec.
3701. Definitions and application.
* * * * * * *
SUBCHAPTER II--CLAIMS OF THE UNITED STATES GOVERNMENT
* * * * * * *
3720F. Contractor and grantee disclosure of delinquent Federal tax
debts.
* * * * * * *
SUBCHAPTER II--CLAIMS OF THE UNITED STATES GOVERNMENT
* * * * * * *
Sec. 3720F. Contractor and grantee disclosure of delinquent Federal tax
debts
(a) Requirement Relating to Contracts.--The head of any
executive agency that issues an invitation for bids or a
request for proposals for a contract in an amount greater than
the simplified acquisition threshold shall require each person
that submits a bid or proposal to submit with the bid or
proposal a form--
(1) certifying that the person does not have a
seriously delinquent tax debt; and
(2) authorizing the Secretary of the Treasury to
disclose to the head of the agency information strictly
limited to verifying whether the person has a seriously
delinquent tax debt.
(b) Requirement Relating to Grants.--The head of any
executive agency that offers a grant in excess of an amount
equal to the simplified acquisition threshold may not award
such grant to any person unless such person submits with the
application for such grant a form--
(1) certifying that the person does not have a
seriously delinquent tax debt; and
(2) authorizing the Secretary of the Treasury to
disclose to the head of the executive agency
information strictly limited to verifying whether the
person has a seriously delinquent tax debt.
(c) Form for Release of Information.--The Secretary of the
Treasury shall make available to all executive agencies a
standard form for the certification and authorization described
in subsections (a) and (b).
(d) Definitions.--In this section:
(1) Contract.--The term ``contract'' means a binding
agreement entered into by an executive agency for the
purpose of obtaining property or services, but does not
include--
(A) a contract for property or services that
is intended to be entered into through the use
of procedures other than competitive procedures
by reason of section 2304(c)(2) of this title;
or
(B) a contract designated by the head of the
agency as necessary to the national security of
the United States.
(2) Executive agency.--The term ``executive agency''
has the meaning given that term in section 4(1) of the
Office of Federal Procurement Policy Act (41 U.S.C.
403(1)).
(3) Person.--The term ``person'' includes--
(A) an individual;
(B) a partnership; and
(C) a corporation.
(4) Seriously delinquent tax debt.--The term
``seriously delinquent tax debt''--
(A) means any Federal tax liability--
(i) that exceeds $3,000;
(ii) that has been assessed by the
Secretary of the Treasury and not paid;
and
(iii) for which a notice of lien has
been filed in public records; and
(B) does not include any Federal tax
liability--
(i) being paid in a timely manner
under an offer-in-compromise or
installment agreement;
(ii) with respect to which collection
due process proceedings are not
completed; or
(iii) with respect to which
collection due process proceedings are
completed and no further payment is
required.
(5) Simplified acquisition threshold.--The term
``simplified acquisition threshold'' has the meaning
given that term in section 4(11) of the Office of
Federal Procurement Policy Act (41 U.S.C. 403(11)).
(e) Regulations.--The Administrator for Federal Procurement
Policy, in consultation with the Secretary of the Treasury,
shall promulgate regulations that--
(1) treat corporations and partnerships as having a
seriously delinquent tax debt if such corporation or
partnership is controlled (directly or indirectly) by
persons who have a seriously delinquent tax debt;
(2) provide for the proper application of subsections
(a)(2) and (b)(2) in the case of corporations and
partnerships; and
(3) provide for the proper application of subsection
(a) to first-tier subcontractors that are identified in
a bid or proposal and are a significant part of a bid
or proposal team.
* * * * * * *
Additional Views
------
ADDITIONAL VIEWS OF REPRESENTATIVE K. MICHAEL CONAWAY
I strongly support H.R. 5013. It will be instrumental in
improving the full range of the defense acquisition system and
I am particularly pleased that the measure takes bold steps
towards improving financial management within the Department of
Defense. The bill is the culmination of a year's worth of
effort by the Committee's Panel on Defense Acquisition Reform,
established by Chairman Skelton and former Ranking Member
McHugh in March, 2009. The members of the panel, led by
Chairman Rob Andrews, approached their work in a nonpartisan
basis and delivered a comprehensive report. I am pleased to
have been associated with this endeavor and thank the Chairman
and Ranking Member McKeon for acting so quickly to translate
the Panel's recommendations into legislation.
I believe this bill will go a long way to improving the way
we measure value in acquisition, creating a more responsive
requirements process, managing elements of the acquisition
system other than major weapon systems, and sustaining the
acquisition workforce. But this bill also plays a critical role
in improving the financial management practices of the
Department of Defense (DOD) by incentivizing the Department to
obtain an unqualified audit opinion. The publication of a clean
audit of DOD would finally give the American people confidence
that their tax dollars are being accounted for and spent wisely
in the defense of this great nation.
Since 1990, there has been a requirement for the Federal
Government to publish audited financial statements. But the
Federal Government has not complied. A large share of the
responsibility for this circumstance rests with DOD. The
Department of Defense is the largest agency in the Federal
Government, owning 86 percent of the Government's assets,
estimated at $4.6 trillion. Over the last two decades millions
of dollars have been spent by DOD in the quest to obtain
auditable financial statements. It will not be an easy task,
but it is possible and it is necessary to implement the
financial control systems necessary to generate auditable data.
This bill ensures that DOD is not held to a separate standard
from public business and the rest of government.
The reliability of financial data is crucial to improve
acquisition outcomes. Without understanding where the
Department's money is being spent or understanding what assets
it owns, there will never be any accountability for acquisition
costs or new requirements. Perhaps every dime they spend is
being well spent. But we will never know and neither will DOD,
unless financial accountability becomes a priority for the
Department.
If correctly implemented, this timely legislation will
allow America's tax dollars to be stretched further by yielding
greater savings and will have a substantial impact on reducing
waste, fraud and abuse.
I applaud the Panel and the House Armed Services Committee
for adopting these recommendations and encourage each of the
components of the Department of Defense to take full advantage
of the incentives provided in this bill to accelerate the
publication of auditable financial statements.
K. Michael Conaway.
ADDITIONAL VIEWS OF REPRESENTATIVE RICK LARSEN
Mr. Chairman, I strongly support the IMPROVE Acquisition
Act (H.R. 5013) and the efforts of the House Armed Services
Committee and Defense Acquisition Reform Panel to ensure that
the Department of Defense is spending taxpayer dollars wisely.
I would like to thank you, Ranking Member McKeon, Congressman
Andrews, and Congressman Mike Conaway for all of your diligent
work in drafting this legislation.
We are all aware that many major systems purchased by the
Department of Defense have experienced cost overruns and
delays; the Government Accountability Office has found that 95
major weapons programs were a combined $295 billion over-budget
and on average 21 months behind schedule. This is unacceptable.
Last year, Congress passed and the President signed into
law the Weapon Systems Acquisition Reform Act, which addresses
deep-seated and systemic problems in how we procure major
weapons systems. This law requires the Department of Defense to
provide more realistic estimates of how much weapons will cost
and punish those programs that are failing to meet schedule and
cost goals. This law also demands additional focus during the
early stages of weapons development, when small program changes
can have major long-term consequences. When it comes to defense
procurement, an ounce of oversight is worth a pound of cure.
While the Weapon Systems Acquisition Reform Act centered on
the problems associated with acquiring major weapons systems,
which comprise only about 20% of the Department of Defense's
acquisition budget, the IMPROVE Acquisition Act builds on this
work and focuses on making sure that the remaining 80% of
acquisition dollars are providing the best value for taxpayers.
This legislation will require the Department of Defense to
strengthen its acquisition workforce, ensure accountability in
its financial management system, and responsibly expand the
industrial base to foster competition that benefits taxpayers
and service members alike. I encourage my colleagues in the
Senate to consider similar legislation to drive cost savings
for taxpayers and achieve better results for our men and women
in uniform.
I recognize that the hard work of reforming defense
acquisition does not end with this legislation. The House Armed
Services Committee must continue to engage in active oversight
to ensure that taxpayer dollars are well spent and our military
service members have access to the weapons and equipment they
need to do their job. I look forward to working with you and
other members of the Committee to achieve these goals.
Rick Larsen.
ADDITIONAL VIEWS OF REPRESENTATIVE JAMES R. LANGEVIN
I would like to express my support for passage of H.R.
5013, the Implementing Management for Performance and Related
Reforms to Obtain Value in Every Acquisition Act of 2010. This
legislation reflects the hard work of the Committee's
Acquisition Reform Panel and goes a long way to reforming our
defense acquisition system to better serve and protect our
nation. Due to unavoidable circumstances, I regrettably missed
casting a vote in favor of the bill in the Committee. I look
forward to supporting it once it is considered on the floor of
the House of Representatives.
James R. Langevin.