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115th Congress }                                            { Report
                        HOUSE OF REPRESENTATIVES
 2d Session    }                                            { 115-496

======================================================================

 
     SECURING DEPARTMENT OF HOMELAND SECURITY FIREARMS ACT OF 2017

                                _______
                                

January 9, 2018.--Committed to the Committee of the Whole House on the 
              State of the Union and ordered to be printed

                                _______
                                

  Mr. McCaul, from the Committee on Homeland Security, submitted the 
                               following

                              R E P O R T

                        [To accompany H.R. 4433]

    The Committee on Homeland Security, to whom was referred 
the bill (H.R. 4433) to amend the Homeland Security Act of 2002 
to require the Under Secretary for Management of the Department 
of Homeland Security to achieve security of sensitive assets 
among the components of the Department of Homeland Security, 
and for other purposes, having considered the same, report 
favorably thereon with an amendment and recommend that the bill 
as amended do pass.

                                CONTENTS

                                                                   Page
Purpose and Summary..............................................     3
Background and Need for Legislation..............................     4
Hearings.........................................................     4
Committee Consideration..........................................     4
Committee Votes..................................................     4
Committee Oversight Findings.....................................     4
New Budget Authority, Entitlement Authority, and Tax Expenditures     5
Congressional Budget Office Estimate.............................     5
Statement of General Performance Goals and Objectives............     5
Duplicative Federal Programs.....................................     5
Congressional Earmarks, Limited Tax Benefits, and Limited Tariff 
  Benefits.......................................................     5
Federal Mandates Statement.......................................     6
Preemption Clarification.........................................     6
Disclosure of Directed Rule Makings..............................     6
Advisory Committee Statement.....................................     6
Applicability to Legislative Branch..............................     6
Section-by-Section Analysis of the Legislation...................     6
Changes in Existing Law Made by the Bill, as Reported............     7

    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 ``Securing Department of Homeland 
Security Firearms Act of 2017'' or the ``Securing DHS Firearms Act of 
2017''.

SEC. 2. DEFINITIONS.

  In this Act:
          (1) Department.--The term ``Department'' means the Department 
        of Homeland Security.
          (2) Lost.--The term ``lost'' includes loss by theft.
          (3) Sensitive assets.--The term ``sensitive assets'' means 
        any asset, regardless of value--
                  (A) that the Department of Homeland Security issues 
                to a Department employee; and
                  (B) that either the Under Secretary for Management of 
                the Department or a component head determines requires 
                special control and accounting.
          (4) Under secretary for management.--The term ``Under 
        Secretary for Management'' means the Under Secretary for 
        Management of the Department of Homeland Security.

SEC. 3. INCLUSION OF SECURING FIREARMS AND OTHER SENSITIVE ASSETS IN 
                    RESPONSIBILITIES OF UNDER SECRETARY FOR MANAGEMENT.

  Section 701 of the Homeland Security Act of 2002 (6 U.S.C. 341) is 
amended--
          (1) in subsection (a)(6), by inserting ``(including firearms 
        and other sensitive assets)'' after ``equipment'';
          (2) by redesignating the second subsection (e) (relating to 
        the definition of interoperable communications) as subsection 
        (f); and
          (3) by amending such redesignated subsection (f) to read as 
        follows:
  ``(f) Definitions.--In this section:
          ``(1) Interoperable communications.--The term `interoperable 
        communications' has the meaning given such term in section 
        7303(g) of the Intelligence Reform and Terrorism Prevention Act 
        of 2004 (6 U.S.C. 194(g)).
          ``(2) Sensitive assets.--The term `sensitive assets' means 
        any asset, regardless of value--
                  ``(A) that the Department of Homeland Security issues 
                to a Department employee; and
                  ``(B) that either the Under Secretary for Management 
                of the Department or a component head determines 
                requires special control and accounting.''.

SEC. 4. MANAGEMENT DIRECTIVE.

  (a) Safeguarding Firearms and Sensitive Assets Directive.--
          (1) In general.--Not later than 120 days after the date of 
        the enactment of this Act, the Under Secretary for Management 
        shall develop and disseminate a Department-wide directive for 
        achieving adequate security over firearms and other sensitive 
        assets across the Department.
          (2) Contents.--The directive required under subsection (a) 
        shall, at a minimum, include the following:
                  (A) Descriptions of what equipment, in addition to 
                firearms, is classified as a sensitive asset for the 
                purpose of carrying out this Act.
                  (B) Requirements for securing Department-issued 
                firearms and other sensitive assets.
                  (C) A classification system for all categories of 
                Department-issued badges and corresponding requirements 
                for safeguarding such assets.
                  (D) Reporting requirements for lost firearms and 
                other sensitive assets, including timelines for such 
                reporting, to supervisors, local law enforcement, the 
                Federal Bureau of Investigation's National Crime 
                Information Center, and Department headquarters.
                  (E) Recordkeeping requirements for lost firearms and 
                other sensitive assets in inventory systems, including 
                a timeline for recording such losses.
          (3) Review and update of directive.--Not later than one year 
        after the issuance of the directive required under subsection 
        (a) the Under Secretary for Management shall review and update, 
        as necessary, such directive, including adding a requirement 
        relating to recording in the inventory systems maintained by 
        each component of the Department the acceptance or transfer of 
        a firearm or other sensitive asset by such component.
  (b) Personal Property Asset Management Program Manual.--Together with 
the issuance of the directive pursuant to subsection (a), the Under 
Secretary for Management shall disseminate a revised version of the 
Personal Property Asset Management Program Manual that includes the 
following:
          (1) Requirements for component heads to develop procedures to 
        safeguard firearms and other sensitive assets during on and 
        off-duty time.
          (2) Requirements for the issuance of safety locking devices 
        and policies on the use of such assets, as applicable.
          (3) Requirements for initial, recurrent, and remedial 
        training on safeguarding such assets.
          (4) Examples, with detail, of how to report and record lost 
        sensitive assets across components of the Department, and an 
        enforcement mechanism to ensure supervisors maintain such 
        records.
          (5) A requirement that the file maintained on a lost firearm 
        or other sensitive asset contains both the corresponding police 
        report and the Department report detailing the circumstances 
        surrounding such loss, including information on adherence to 
        safeguarding procedures.

SEC. 5. COMPONENT RESPONSIBILITIES.

  Department component heads shall--
          (1) comply with Federal law, Federal regulations, executive 
        branch guidance, and Department policy, including directives 
        required by this Act, relating to the management and oversight 
        of securing firearms and other sensitive assets;
          (2) review the need for non-law enforcement badges;
          (3) require component personnel to safeguard firearms and 
        other sensitive assets in accordance with the directive issued 
        by the Under Secretary for Management under section 4;
          (4) require that component personnel adhere to the procedures 
        and timelines for properly reporting to supervisors lost 
        firearms and other sensitive assets;
          (5) require that lost firearms and other sensitive assets are 
        reported to local law enforcement, the Federal Bureau of 
        Investigation's National Crime Information Center, and 
        Department headquarters in the timeframe established in such 
        directive; and
          (6) require that lost firearms and other sensitive assets are 
        recorded in inventory systems in the timeframe established by 
        such directive.

SEC. 6. INSPECTOR GENERAL REVIEW.

  The Inspector General of the Department of Homeland Security shall, 
on an ongoing basis, review implementation of this Act and, not later 
than 180 days after issuance of the directive under section 4, submit 
to the Committee on Homeland Security of the House of Representatives 
and the Committee on Homeland Security and Governmental Affairs of the 
Senate a review of the progress and effectiveness of such directive, 
including an assessment of the adequacy of such directive, as well as 
the level of compliance among the components of the Department to 
achieve adequate security of sensitive assets across Department 
components.

                          Purpose and Summary

    The purpose of H.R. 4433 is to require the Under Secretary 
for Management of the Department of Homeland Security (DHS) to 
develop and oversee policies meant to secure firearms and other 
sensitive assets among the components of DHS.
    H.R. 4433, the Securing Department of Homeland Security 
Firearms Act of 2017, requires the Under Secretary for 
Management at the Department to disseminate a Department-wide 
directive for achieving adequate security over firearms and 
other sensitive assets across the Department. This directive 
shall include descriptions of what equipment is classified as a 
sensitive asset, requirements for securing Department-issued 
firearms and other sensitive assets, and reporting requirements 
for lost firearms and other sensitive assets, among other 
items. H.R. 4433 requires the Under Secretary for Management to 
update and disseminate the Personal Property Asset Management 
Program Manual and requires component personnel to safeguard 
firearms and other sensitive assets in accordance with the 
directive, among other items. The Inspector General shall 
review the implementation of this Act.

                  Background and Need for Legislation

    According to the Department of Homeland Security (DHS) 
Office of Inspector General, DHS personnel do not always 
safeguard sensitive assets that, if lost, would result in 
critical mission impact or loss of life. Between fiscal years 
2014 and 2016, the Department of Homeland Security personnel 
lost a total of 2,142 highly sensitive assets--228 firearms; 
1,889 badges; and 25 secure immigration stamps. For example, 
the OIG reported that two off duty Immigration and Customs 
Enforcement officers left their firearms unsecured and 
unattended in backpacks while on a beach in Puerto Rico. When 
the officers returned, the bags were gone. Other examples 
include U.S. Customs and Border officers leaving firearms and 
other equipment in unattended vehicles, public gym lockers, and 
homes of friends. In each circumstance, the assets were taken.
    In approximately 27 cases of missing assets, the case file 
for the incident did not include sufficient detail to determine 
whether the officer properly safeguarded the asset. Further, in 
many cases, personnel are not being held accountable for 
failing to safeguard their sensitive assets, nor are they 
receiving remedial training on how to properly safeguard such 
materials. Additionally, components are not effectively 
tracking sensitive assets, and oftentimes provide insufficient 
guidance on property management policies. H.R. 4433 supports 
recommendations made in a recent Office of Inspector General 
report (OIG-18-05) entitled, ``DHS' Controls Over Firearms and 
Other Sensitive Assets.''

                                Hearings

    No hearings were held on H.R. 4433.

                        Committee Consideration

    The Committee met on December 13, 2017, to consider H.R. 
4433, and ordered the measure to be reported to the House with 
a favorable recommendation, as amended, by unanimous consent. 
The Committee took the following actions:
    The following amendment was offered:
 An Amendment in the Nature of a Substitute offered by Mr. 
Correa (#1); was AGREED TO by unanimous consent.

                            Committee Votes

    Clause 3(b) of Rule XIII of the Rules of the House of 
Representatives requires the Committee to list the recorded 
votes on the motion to report legislation and amendments 
thereto.
    No recorded votes were requested during consideration of 
H.R. 4433.

                      Committee Oversight Findings

    Pursuant to clause 3(c)(1) of Rule XIII of the Rules of the 
House of Representatives, the Committee has held oversight 
hearings and made findings that are reflected in this report.

   New Budget Authority, Entitlement Authority, and Tax Expenditures

    In compliance with clause 3(c)(2) of Rule XIII of the Rules 
of the House of Representatives, the Committee finds that H.R. 
4433, the Securing Department of Homeland Security Firearms Act 
of 2017, would result in no new or increased budget authority, 
entitlement authority, or tax expenditures or revenues.

                  Congressional Budget Office Estimate

    Pursuant to clause 3(c)(3) of Rule XIII of the Rules of the 
House of Representatives, a cost estimate provided by the 
Congressional Budget Office pursuant to section 402 of the 
Congressional Budget Act of 1974 was not made available to the 
Committee in time for the filing of this report. The Chairman 
of the Committee shall cause such estimate to be printed in the 
Congressional Record upon its receipt by the Committee.

         Statement of General Performance Goals and Objectives

    Pursuant to clause 3(c)(4) of Rule XIII of the Rules of the 
House of Representatives, H.R. 4433 contains the following 
general performance goals and objectives, including outcome 
related goals and objectives authorized.
    The performance goals and objectives of H.R. 4433 include 
helping the Department to better secure and safeguard its 
sensitive assets, assist and ensure that its components do the 
same, and to enhance its ability to report and record any 
instances in which sensitive assets are lost. H.R. 4433 
requires the Under Secretary for Management to issue a 
Department-wide directive regarding the security of sensitive 
assets, and to then review and update the directive within 1 
year. Department component heads must comply with this 
directive and require that their personnel follow it and other 
relevant rules and regulations for securing sensitive assets. 
The Inspector General of the Department is further required to 
review the implementation of this Act and submit a report to 
Congress within 180 days of the issuance of the directive 
required by this Act.

                      Duplicative Federal Programs

    Pursuant to clause 3(c) of Rule XIII, the Committee finds 
that H.R. 4433 does not contain any provision that establishes 
or reauthorizes a program known to be duplicative of another 
Federal program.

   Congressional Earmarks, Limited Tax Benefits, and Limited Tariff 
                                Benefits

    In compliance with Rule XXI of the Rules of the House of 
Representatives, this bill, as reported, contains no 
congressional earmarks, limited tax benefits, or limited tariff 
benefits as defined in clause 9(e), 9(f), or 9(g) of the Rule 
XXI.

                       Federal Mandates Statement

    An estimate of Federal mandates prepared by the Director of 
the Congressional Budget Office pursuant to section 423 of the 
Unfunded Mandates Reform Act was not made available to the 
Committee in time for the filing of this report. The Chairman 
of the Committee shall cause such estimate to be printed in the 
Congressional Record upon its receipt by the Committee.

                        Preemption Clarification

    In compliance with section 423 of the Congressional Budget 
Act of 1974, requiring the report of any Committee on a bill or 
joint resolution to include a statement on the extent to which 
the bill or joint resolution is intended to preempt State, 
local, or Tribal law, the Committee finds that H.R. 4433 does 
not preempt any State, local, or Tribal law.

                  Disclosure of Directed Rule Makings

    The Committee estimates that H.R. 4433 would require no 
directed rule makings.

                      Advisory Committee Statement

    No advisory committees within the meaning of section 5(b) 
of the Federal Advisory Committee Act were created by this 
legislation.

                  Applicability to Legislative Branch

    The Committee finds that the 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.

             Section-by-Section Analysis of the Legislation


Section 1.   Short Title.

    This section provides that this bill may be cited as the 
``"Securing Department of Homeland Security Firearms Act of 
2017''.

Sec. 2.   Definitions.

    This section provides definitions to be used in this Act 
for the following terms: ``department''; ``lost''; ``sensitive 
assets''; and ``Under Secretary for Management''.

Sec. 3.   Inclusion of securing Firearms and Other Sensitive Assets in 
        Responsibilities of Under Secretary for Management.

    This section inserts ``including firearms and other 
sensitive assets'' into the Under Secretary for Management's 
responsibility to secure equipment for the Department. It also 
adds definitions for ``interoperable communications'' and 
``sensitive assets'' to that section of the Homeland Security 
Act of 2002.

Sec. 4.   Management Directive.

    This section requires the Under Secretary of Management to 
develop and disseminate a Department-wide directive within 120 
days for achieving adequate security over firearms and other 
sensitive assets. The directive, at a minimum, must include 
descriptions of what equipment qualifies as a sensitive asset, 
requirements for securing, cataloguing, and safeguarding 
sensitive assets and reporting lost sensitive assets, and 
recordkeeping requirements. The Under Secretary for Management 
must further review and update the directive within 1 year.
    The Under Secretary for Management must also issue a 
revised version of the Personal Property Asset Management 
Program Manual that includes requirements for component heads 
to develop procedures to safeguard sensitive assets, issue 
safety locking policies and devices, requirements for recurrent 
training on sensitive assets, examples of how to report and 
record lost sensitive assets, and a recordkeeping requirements 
for lost sensitive assets.

Sec. 5.   Component Responsibilities.

    This section outlines the responsibilities of the 
Department component heads, which include: complying with law 
and policy regarding the securing of firearms and sensitive 
assets, reviewing the need for non-law enforcement badges, 
requiring component personnel to safeguard sensitive assets in 
compliance with the Directive required by this Act, requiring 
component personnel to adhere to reporting procedures for lost 
sensitive assets, requiring lost sensitive assets to be 
reported to law enforcement authorities and recorded in an 
inventory system.

Sec. 6.   Inspector General Review.

    This section requires the Inspector General to review, not 
later than 180 days after issuance, the management directive 
required by this Act, and to report to Congress on it.

         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, and existing law in which no 
change is proposed is shown in roman):

                     HOMELAND SECURITY ACT OF 2002



           *       *       *       *       *       *       *
                         TITLE VII--MANAGEMENT

SEC. 701. UNDER SECRETARY FOR MANAGEMENT.

  (a) In General.--The Under Secretary for Management shall 
serve as the Chief Management Officer and principal advisor to 
the Secretary on matters related to the management of the 
Department, including management integration and transformation 
in support of homeland security operations and programs. The 
Secretary, acting through the Under Secretary for Management, 
shall be responsible for the management and administration of 
the Department, including the following:
          (1) The budget, appropriations, expenditures of 
        funds, accounting, and finance.
          (2) Procurement.
          (3) Human resources and personnel.
          (4) Information technology and communications 
        systems, including policies and directives to achieve 
        and maintain interoperable communications among the 
        components of the Department.
          (5) Facilities, property, equipment, vehicle fleets 
        (under subsection (c)), and other material resources.
          (6) Security for personnel, information technology 
        and communications systems, facilities, property, 
        equipment (including firearms and other sensitive 
        assets), and other material resources.
          (7) Strategic management planning and annual 
        performance planning and identification and tracking of 
        performance measures relating to the responsibilities 
        of the Department.
          (8) Grants and other assistance management programs.
          (9) The management integration and transformation 
        within each functional management discipline of the 
        Department, including information technology, financial 
        management, acquisition management, and human capital 
        management, to ensure an efficient and orderly 
        consolidation of functions and personnel in the 
        Department, including--
                  (A) the development of centralized data 
                sources and connectivity of information systems 
                to the greatest extent practicable to enhance 
                program visibility, transparency, and 
                operational effectiveness and coordination;
                  (B) the development of standardized and 
                automated management information to manage and 
                oversee programs and make informed decisions to 
                improve the efficiency of the Department;
                  (C) the development of effective program 
                management and regular oversight mechanisms, 
                including clear roles and processes for program 
                governance, sharing of best practices, and 
                access to timely, reliable, and evaluated data 
                on all acquisitions and investments; and
                  (D) the overall supervision, including the 
                conduct of internal audits and management 
                analyses, of the programs and activities of the 
                Department, including establishment of 
                oversight procedures to ensure a full and 
                effective review of the efforts by components 
                of the Department to implement policies and 
                procedures of the Department for management 
                integration and transformation.
          (10) The development of a transition and succession 
        plan, before December 1 of each year in which a 
        Presidential election is held, to guide the transition 
        of Department functions to a new Presidential 
        administration, and making such plan available to the 
        next Secretary and Under Secretary for Management and 
        to the congressional homeland security committees.
          (11) Reporting to the Government Accountability 
        Office every six months to demonstrate measurable, 
        sustainable progress made in implementing the 
        corrective action plans of the Department to address 
        the designation of the management functions of the 
        Department on the bi-annual high risk list of the 
        Government Accountability Office, until the Comptroller 
        General of the United States submits to the appropriate 
        congressional committees written notification of 
        removal of the high-risk designation.
          (12) The conduct of internal audits and management 
        analyses of the programs and activities of the 
        Department.
          (13) Any other management duties that the Secretary 
        may designate.
  (b) Waivers for Conducting Business With Suspended or 
Debarred Contractors.--Not later than five days after the date 
on which the Chief Procurement Officer or Chief Financial 
Officer of the Department issues a waiver of the requirement 
that an agency not engage in business with a contractor or 
other recipient of funds listed as a party suspended or 
debarred from receiving contracts, grants, or other types of 
Federal assistance in the System for Award Management 
maintained by the General Services Administration, or any 
successor thereto, the Under Secretary for Management shall 
submit to the congressional homeland security committees and 
the Inspector General of the Department notice of the waiver 
and an explanation of the finding by the Under Secretary that a 
compelling reason exists for the waiver.
  (c) Vehicle Fleets.--
          (1) In general.--In carrying out responsibilities 
        regarding vehicle fleets pursuant to subsection (a)(5), 
        the Under Secretary for Management shall be responsible 
        for overseeing and managing vehicle fleets throughout 
        the Department. The Under Secretary shall also be 
        responsible for the following:
                  (A) Ensuring that components are in 
                compliance with Federal law, Federal 
                regulations, executive branch guidance, and 
                Department policy (including associated 
                guidance) relating to fleet management and use 
                of vehicles from home to work.
                  (B) Developing and distributing a 
                standardized vehicle allocation methodology and 
                fleet management plan for components to use to 
                determine optimal fleet size in accordance with 
                paragraph (4).
                  (C) Ensuring that components formally 
                document fleet management decisions.
                  (D) Approving component fleet management 
                plans, vehicle leases, and vehicle 
                acquisitions.
          (2) Component responsibilities.--
                  (A) In general.--Component heads--
                          (i) shall--
                                  (I) comply with Federal law, 
                                Federal regulations, executive 
                                branch guidance, and Department 
                                policy (including associated 
                                guidance) relating to fleet 
                                management and use of vehicles 
                                from home to work;
                                  (II) ensure that data related 
                                to fleet management is accurate 
                                and reliable;
                                  (III) use such data to 
                                develop a vehicle allocation 
                                tool derived by using the 
                                standardized vehicle allocation 
                                methodology provided by the 
                                Under Secretary for Management 
                                to determine the optimal fleet 
                                size for the next fiscal year 
                                and a fleet management plan; 
                                and
                                  (IV) use vehicle allocation 
                                methodologies and fleet 
                                management plans to develop 
                                annual requests for funding to 
                                support vehicle fleets pursuant 
                                to paragraph (6); and
                          (ii) may not, except as provided in 
                        subparagraph (B), lease or acquire new 
                        vehicles or replace existing vehicles 
                        without prior approval from the Under 
                        Secretary for Management pursuant to 
                        paragraph (5)(B).
                  (B) Exception regarding certain leasing and 
                acquisitions.--If exigent circumstances warrant 
                such, a component head may lease or acquire a 
                new vehicle or replace an existing vehicle 
                without prior approval from the Under Secretary 
                for Management. If under such exigent 
                circumstances a component head so leases, 
                acquires, or replaces a vehicle, such component 
                head shall provide to the Under Secretary an 
                explanation of such circumstances.
          (3) Ongoing oversight.--
                  (A) Quarterly monitoring.--In accordance with 
                paragraph (4), the Under Secretary for 
                Management shall collect, on a quarterly basis, 
                information regarding component vehicle fleets, 
                including information on fleet size, 
                composition, cost, and vehicle utilization.
                  (B) Automated information.--The Under 
                Secretary for Management shall seek to achieve 
                a capability to collect, on a quarterly basis, 
                automated information regarding component 
                vehicle fleets, including the number of trips, 
                miles driven, hours and days used, and the 
                associated costs of such mileage for leased 
                vehicles.
                  (C) Monitoring.--The Under Secretary for 
                Management shall track and monitor component 
                information provided pursuant to subparagraph 
                (A) and, as appropriate, subparagraph (B), to 
                ensure that component vehicle fleets are the 
                optimal fleet size and cost effective. The 
                Under Secretary shall use such information to 
                inform the annual component fleet analyses 
                referred to in paragraph (4).
          (4) Annual review of component fleet analyses.--
                  (A) In general.--To determine the optimal 
                fleet size and associated resources needed for 
                each fiscal year beginning with fiscal year 
                2018, component heads shall annually submit to 
                the Under Secretary for Management a vehicle 
                allocation tool and fleet management plan using 
                information described in paragraph (3)(A). Such 
                tools and plans may be submitted in classified 
                form if a component head determines that such 
                is necessary to protect operations or mission 
                requirements.
                  (B) Vehicle allocation tool.--Component heads 
                shall develop a vehicle allocation tool in 
                accordance with subclause (III) of paragraph 
                (2)(A)(i) that includes an analysis of the 
                following:
                          (i) Vehicle utilization data, 
                        including the number of trips, miles 
                        driven, hours and days used, and the 
                        associated costs of such mileage for 
                        leased vehicles, in accordance with 
                        such paragraph.
                          (ii) The role of vehicle fleets in 
                        supporting mission requirements for 
                        each component.
                          (iii) Any other information 
                        determined relevant by such component 
                        heads.
                  (C) Fleet management plans.--Component heads 
                shall use information described in subparagraph 
                (B) to develop a fleet management plan for each 
                such component. Such fleet management plans 
                shall include the following:
                          (i) A plan for how each such 
                        component may achieve optimal fleet 
                        size determined by the vehicle 
                        allocation tool required under such 
                        subparagraph, including the elimination 
                        of excess vehicles in accordance with 
                        paragraph (5), if applicable.
                          (ii) A cost benefit analysis 
                        supporting such plan.
                          (iii) A schedule each such component 
                        will follow to obtain optimal fleet 
                        size.
                          (iv) Any other information determined 
                        relevant by component heads.
                  (D) Review.--The Under Secretary for 
                Management shall review and make a 
                determination on the results of each 
                component's vehicle allocation tool and fleet 
                management plan under this paragraph to ensure 
                each such component's vehicle fleets are the 
                optimal fleet size and that components are in 
                compliance with applicable Federal law, Federal 
                regulations, executive branch guidance, and 
                Department policy (including associated 
                guidance) pursuant to paragraph (2) relating to 
                fleet management and use of vehicles from home 
                to work. The Under Secretary shall use such 
                tools and plans when reviewing annual component 
                requests for vehicle fleet funding in 
                accordance with paragraph (6).
          (5) Guidance to develop fleet management plans.--The 
        Under Secretary for Management shall provide guidance, 
        pursuant to paragraph (1)(B) on how component heads may 
        achieve optimal fleet size in accordance with paragraph 
        (4), including processes for the following:
                  (A) Leasing or acquiring additional vehicles 
                or replacing existing vehicles, if determined 
                necessary.
                  (B) Disposing of excess vehicles that the 
                Under Secretary determines should not be 
                reallocated under subparagraph (C).
                  (C) Reallocating excess vehicles to other 
                components that may need temporary or long-term 
                use of additional vehicles.
          (6) Annual review of vehicle fleet funding 
        requests.--As part of the annual budget process, the 
        Under Secretary for Management shall review and make 
        determinations regarding annual component requests for 
        funding for vehicle fleets. If component heads have not 
        taken steps in furtherance of achieving optimal fleet 
        size in the prior fiscal year pursuant to paragraphs 
        (4) and (5), the Under Secretary shall provide 
        rescission recommendations to the Committee on 
        Appropriations and the Committee on Homeland Security 
        of the House of Representatives and the Committee on 
        Appropriations and the Committee on Homeland Security 
        and Governmental Affairs of the Senate regarding such 
        component vehicle fleets.
          (7) Accountability for vehicle fleet management.--
                  (A) Prohibition on certain new vehicle leases 
                and acquisitions.--The Under Secretary for 
                Management and component heads may not approve 
                in any fiscal year beginning with fiscal year 
                2019 a vehicle lease, acquisition, or 
                replacement request if such component heads did 
                not comply in the prior fiscal year with 
                paragraph (4).
                  (B) Prohibition on certain performance 
                compensation.--No Department official with 
                vehicle fleet management responsibilities may 
                receive annual performance compensation in pay 
                in any fiscal year beginning with fiscal year 
                2019 if such official did not comply in the 
                prior fiscal year with paragraph (4).
                  (C) Prohibition on certain car services.--
                Notwithstanding any other provision of law, no 
                senior executive service official of the 
                Department whose office has a vehicle fleet may 
                receive access to a car service in any fiscal 
                year beginning with fiscal year 2019 if such 
                official did not comply in the prior fiscal 
                year with paragraph (4).
          (8) Motor pool.--
                  (A) In general.--The Under Secretary for 
                Management may determine the feasibility of 
                operating a vehicle motor pool to permit 
                components to share vehicles as necessary to 
                support mission requirements to reduce the 
                number of excess vehicles in the Department.
                  (B) Requirements.--The determination of 
                feasibility of operating a vehicle motor pool 
                under subparagraph (A) shall--
                          (i) include--
                                  (I) regions in the United 
                                States in which multiple 
                                components with vehicle fleets 
                                are located in proximity to one 
                                another, or a significant 
                                number of employees with 
                                authorization to use vehicles 
                                are located; and
                                  (II) law enforcement 
                                vehicles;
                          (ii) cover the National Capital 
                        Region; and
                          (iii) take into account different 
                        mission requirements.
                  (C) Report.--The Secretary shall include in 
                the Department's next annual performance report 
                required under current law the results of the 
                determination under this paragraph.
          (9) Definitions.--In this subsection:
                  (A) Component head.--The term ``component 
                head'' means the head of any component of the 
                Department with a vehicle fleet.
                  (B) Excess vehicle.--The term ``excess 
                vehicle'' means any vehicle that is not 
                essential to support mission requirements of a 
                component.
                  (C) Optimal fleet size.--The term ``optimal 
                fleet size'' means, with respect to a 
                particular component, the appropriate number of 
                vehicles to support mission requirements of 
                such component.
                  (D) Vehicle fleet.--The term ``vehicle 
                fleet'' means all owned, commercially leased, 
                or Government-leased vehicles of the Department 
                or of a component of the Department, as the 
                case may be, including vehicles used for law 
                enforcement and other purposes.
  (d) Appointment and Evaluation.--The Under Secretary for 
Management shall--
          (1) be appointed by the President, by and with the 
        advice and consent of the Senate, from among persons 
        who have--
                  (A) extensive executive level leadership and 
                management experience in the public or private 
                sector;
                  (B) strong leadership skills;
                  (C) a demonstrated ability to manage large 
                and complex organizations; and
                  (D) a proven record in achieving positive 
                operational results;
          (2) enter into an annual performance agreement with 
        the Secretary that shall set forth measurable 
        individual and organizational goals; and
          (3) be subject to an annual performance evaluation by 
        the Secretary, who shall determine as part of each such 
        evaluation whether the Under Secretary for Management 
        has made satisfactory progress toward achieving the 
        goals set out in the performance agreement required 
        under paragraph (2).
  (e) System for Award Management Consultation.--The Under 
Secretary for Management shall require that all Department 
contracting and grant officials consult the System for Award 
Management (or successor system) as maintained by the General 
Services Administration prior to awarding a contract or grant 
or entering into other transactions to ascertain whether the 
selected contractor is excluded from receiving Federal 
contracts, certain subcontracts, and certain types of Federal 
financial and non-financial assistance and benefits.
  [(e) Interoperable Communications Defined.--In this section, 
the term ``interoperable communications'' has the meaning given 
that term in section 7303(g) of the Intelligence Reform and 
Terrorism Prevention Act of 2004 (6 U.S.C. 194(g)).]
  (f) Definitions.--In this section:
          (1) Interoperable communications.--The term 
        ``interoperable communications'' has the meaning given 
        such term in section 7303(g) of the Intelligence Reform 
        and Terrorism Prevention Act of 2004 (6 U.S.C. 194(g)).
          (2) Sensitive assets.--The term ``sensitive assets'' 
        means any asset, regardless of value--
                  (A) that the Department of Homeland Security 
                issues to a Department employee; and
                  (B) that either the Under Secretary for 
                Management of the Department or a component 
                head determines requires special control and 
                accounting.

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