Version	Word Count	Changes From Previous Version	Percent Change
Introduced in House	10,660	n/a	n/a
Reported in House	13,558	162	29%
Engrossed in House	16,535	63	27%
Referred in Senate	16,446	5 Show Changes Hide Changes	0%

Display Version Introduced in House Reported in House Engrossed in House Referred in Senate

HR 5013 EHRFSCommentsClose CommentsPermalink

111th CONGRESSCommentsClose CommentsPermalink

2d SessionCommentsClose CommentsPermalink

H. R. 5013CommentsClose CommentsPermalink

AN ACTCommentsClose CommentsPermalink

To amend title 10, United States Code, to provide for performance management of the defense acquisition system, and for other purposes.CommentsClose CommentsPermalink

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

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’.CommentsClose CommentsPermalink

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.CommentsClose CommentsPermalink

SEC. 3. TABLE OF CONTENTS.

The table of contents for this Act is as follows:CommentsClose CommentsPermalink





Sec. 1. Short title.CommentsClose CommentsPermalink





Sec. 2. Definition of congressional defense committees.CommentsClose CommentsPermalink





Sec. 3. Table of contents.CommentsClose CommentsPermalink

TITLE I--DEFENSE ACQUISITION SYSTEM

Sec. 101. Performance management of the defense acquisition system.CommentsClose CommentsPermalink





Sec. 102. Meaningful consideration by Joint Requirements Oversight Council of input from certain officials.CommentsClose CommentsPermalink





Sec. 103. Performance management for the Joint Capabilities Integration and Development System.CommentsClose CommentsPermalink





Sec. 104. Requirements for the acquisition of services.CommentsClose CommentsPermalink





Sec. 105. Joint evaluation task forces.CommentsClose CommentsPermalink





Sec. 106. Review of defense acquisition guidance.CommentsClose CommentsPermalink





Sec. 107. Requirement to include references to services acquisition throughout the Federal Acquisition Regulation.CommentsClose CommentsPermalink





Sec. 108. Procurement of military purpose nondevelopmental items.CommentsClose CommentsPermalink

TITLE II--DEFENSE ACQUISITION WORKFORCE

Sec. 201. Acquisition workforce excellence.CommentsClose CommentsPermalink





Sec. 202. Amendments to the acquisition workforce demonstration project.CommentsClose CommentsPermalink





Sec. 203. Incentive programs for civilian and military personnel in the acquisition workforce.CommentsClose CommentsPermalink





Sec. 204. Career development for civilian and military personnel in the acquisition workforce.CommentsClose CommentsPermalink





Sec. 205. Recertification and training requirements.CommentsClose CommentsPermalink





Sec. 206. Information technology acquisition workforce.CommentsClose CommentsPermalink





Sec. 207. Definition of acquisition workforce.CommentsClose CommentsPermalink





Sec. 208. Defense Acquisition University curriculum review.CommentsClose CommentsPermalink





Sec. 209. Cost estimating internship and scholarship programs.CommentsClose CommentsPermalink





Sec. 210. Prohibition on personal services contracts for senior mentors.CommentsClose CommentsPermalink

TITLE III--FINANCIAL MANAGEMENT

Sec. 301. Incentives for achieving auditability.CommentsClose CommentsPermalink





Sec. 302. Measures required after failure to achieve auditability.CommentsClose CommentsPermalink





Sec. 303. Review of obligation and expenditure thresholds.CommentsClose CommentsPermalink





Sec. 304. Disclosure and traceability of the cost of Department of Defense health care contracts.CommentsClose CommentsPermalink

TITLE IV--INDUSTRIAL BASE

Sec. 401. Expansion of the industrial base.CommentsClose CommentsPermalink





Sec. 402. Commercial pricing analysis.CommentsClose CommentsPermalink





Sec. 403. Contractor and grantee disclosure of delinquent Federal tax debts.CommentsClose CommentsPermalink





Sec. 404. Independence of contract audits and business system reviews.CommentsClose CommentsPermalink





Sec. 405. Blue ribbon panel on eliminating barriers to contracting with the Department of Defense.CommentsClose CommentsPermalink





Sec. 406. Inclusion of the providers of services and information technology in the national technology and industrial base.CommentsClose CommentsPermalink





Sec. 407. Construction of Act on competition requirements for the acquisition of services.CommentsClose CommentsPermalink





Sec. 408. Acquisition Savings Program.CommentsClose CommentsPermalink





Sec. 409. Sense of Congress regarding compliance with the Berry Amendment, the Buy American Act, and labor standards of the United States.CommentsClose CommentsPermalink





Sec. 410. Industrial Base Council and Fund.CommentsClose CommentsPermalink

TITLE V--OTHER MATTERS

Sec. 501. Clothing allowance requirement.CommentsClose CommentsPermalink





Sec. 502. Requirement that cost or price to the Federal Government be given at least equal importance as technical or other criteria in evaluating competitive proposals for defense contracts.CommentsClose CommentsPermalink

TITLE I--DEFENSE ACQUISITION SYSTEMCommentsClose CommentsPermalink

SEC. 101. PERFORMANCE MANAGEMENT OF THE DEFENSE ACQUISITION SYSTEM.

(a) Performance Management of the Defense Acquisition System-CommentsClose CommentsPermalink





(1) IN GENERAL- Part IV of title 10, United States Code, is amended by inserting after chapter 148 the following new chapter:CommentsClose CommentsPermalink

‘CHAPTER 149--PERFORMANCE MANAGEMENT OF THE DEFENSE ACQUISITION SYSTEM

‘Sec.CommentsClose CommentsPermalink





‘2545. Performance assessments of the defense acquisition system.CommentsClose CommentsPermalink





‘2546. Audits of performance assessments.CommentsClose CommentsPermalink





‘2547. Use of performance assessments for managing performance.CommentsClose CommentsPermalink





‘2548. Acquisition-related functions of the Chiefs of Staff of the armed forces.CommentsClose CommentsPermalink

‘Sec. 2545. Performance assessments 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--CommentsClose CommentsPermalink





‘(A) to determine the extent to which such elements deliver appropriate value to the Department of Defense; andCommentsClose CommentsPermalink





‘(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.CommentsClose CommentsPermalink





‘(2) The performance of each element of the defense acquisition system shall be assessed as needed, but not less often than annually.CommentsClose CommentsPermalink





‘(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.CommentsClose CommentsPermalink





‘(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.CommentsClose CommentsPermalink





‘(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.CommentsClose CommentsPermalink





‘(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--CommentsClose CommentsPermalink





‘(A) cost, quality, and delivery;CommentsClose CommentsPermalink





‘(B) contractor performance, including compliance with the Department of Defense policy regarding the participation of small business concerns owned and controlled by socially and economically disadvantaged individuals, veteran-owned small businesses, service-disabled, veteran-owned small businesses, and women-owned small businesses;CommentsClose CommentsPermalink





‘(C) excessive use of contract bundling and availability of non-bundled contract vehicles;CommentsClose CommentsPermalink





‘(D) workforce quality and program manager tenure (where applicable);CommentsClose CommentsPermalink





‘(E) the quality of market research;CommentsClose CommentsPermalink





‘(F) appropriate use of integrated testing;CommentsClose CommentsPermalink





‘(G) appropriate consideration of long-term sustainment and energy efficiency; andCommentsClose CommentsPermalink





‘(H) appropriate acquisition of technical data and other rights and assets necessary to support long-term sustainment.CommentsClose CommentsPermalink





‘(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).CommentsClose CommentsPermalink





‘(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).CommentsClose CommentsPermalink





‘(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.CommentsClose CommentsPermalink





‘(2) A performance assessment may be carried out by an organization under the control of the service acquisition executive of a military department if--CommentsClose CommentsPermalink





‘(A) the assessment fulfills the requirements of subsection (a);CommentsClose CommentsPermalink





‘(B) the organization is approved to carry out the assessment by the Director of the Office of Performance Assessment and Root Cause Analysis; andCommentsClose CommentsPermalink





‘(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).CommentsClose CommentsPermalink





‘(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--CommentsClose CommentsPermalink





‘(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; andCommentsClose CommentsPermalink





‘(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.CommentsClose CommentsPermalink





‘(f) Inclusion in Annual Report- The Director of the Office of Performance Assessment and Root Cause Analysis shall include information on the activities undertaken by the Director under this section in the annual report of the Director required under section 103(f) of the Weapon Systems Acquisition Reform Act of 2009 (Public Law 111-23; 123 Stat. 1716), including information on any performance assessment required by subsection (a) with significant findings. In addition, if a performance assessment uncovers particularly egregious problems, as identified by the Director, the Director shall submit to the Committees on Armed Services of the Senate and the House of Representatives a report on such problems within 30 days after the problems are identified.CommentsClose CommentsPermalink





‘(g) Definitions- In this section:CommentsClose CommentsPermalink





‘(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.CommentsClose CommentsPermalink





‘(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.CommentsClose CommentsPermalink





‘(3) The term ‘metric’ means a specific measure that serves as a basis for comparison.CommentsClose CommentsPermalink





‘(4) The term ‘threshold performance standard’ means the minimum acceptable level of performance in relation to a metric.CommentsClose CommentsPermalink





‘(5) The term ‘objective performance goal’ means the most desired level of performance in relation to a metric.CommentsClose CommentsPermalink





‘(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).CommentsClose CommentsPermalink

‘Sec. 2546. Audits of performance assessments

‘(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.CommentsClose CommentsPermalink





‘(b) Standards and Approach- In performing the audits required by subsection (a), the Secretary shall ensure that such audits--CommentsClose CommentsPermalink





‘(1) comply with generally accepted government auditing standards issued by the Comptroller General;CommentsClose CommentsPermalink





‘(2) use a risk-based approach to audit planning; andCommentsClose CommentsPermalink





‘(3) appropriately account for issues associated with auditing assessments of activities occurring in a contingency operation.CommentsClose CommentsPermalink

‘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:CommentsClose CommentsPermalink





‘(1) The size of the bonus pool available to the workforce of an element of the defense acquisition system.CommentsClose CommentsPermalink





‘(2) Rates of promotion in the workforce of an element of the defense acquisition system.CommentsClose CommentsPermalink





‘(3) Awards for acquisition excellence.CommentsClose CommentsPermalink





‘(4) The scope of work assigned to an element of the defense acquisition system.CommentsClose CommentsPermalink





‘(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.CommentsClose CommentsPermalink

‘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:CommentsClose CommentsPermalink





‘(1) The development of requirements relating to the defense acquisition system.CommentsClose CommentsPermalink





‘(2) The development of measures to control requirements creep in the defense acquisition system.CommentsClose CommentsPermalink





‘(3) The development of career paths in acquisition for military personnel (as required by section 1722a of this title).CommentsClose CommentsPermalink





‘(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.CommentsClose CommentsPermalink





‘(b) Definitions- In this section:CommentsClose CommentsPermalink





‘(1) The term ‘requirements creep’ means the addition of new technical or operational specifications after a requirements document is approved.CommentsClose CommentsPermalink





‘(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--CommentsClose CommentsPermalink





‘(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;CommentsClose CommentsPermalink





‘(B) details the information necessary to develop an increment of militarily useful, logistically supportable, and technically mature capability, including key performance parameters; orCommentsClose CommentsPermalink





‘(C) identifies production attributes required for a single increment of a program.’.CommentsClose CommentsPermalink





(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:CommentsClose CommentsPermalink

2545’.CommentsClose CommentsPermalink

(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 2 years after the date of the enactment of this Act.CommentsClose CommentsPermalink

SEC. 102. MEANINGFUL CONSIDERATION BY JOINT REQUIREMENTS OVERSIGHT COUNCIL OF INPUT FROM CERTAIN OFFICIALS.

(a) Advisors to the Joint Requirements Oversight Council-CommentsClose CommentsPermalink





(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:CommentsClose CommentsPermalink





‘(A) The Under Secretary of Defense for Acquisition, Technology, and Logistics.CommentsClose CommentsPermalink





‘(B) The Under Secretary of Defense (Comptroller).CommentsClose CommentsPermalink





‘(C) The Under Secretary of Defense for Policy.CommentsClose CommentsPermalink





‘(D) The Director of Cost Assessment and Program Evaluation.’.CommentsClose CommentsPermalink





(2) ROLE OF COMBATANT COMMANDERS AS MEMBERS OF THE JROC- Paragraph (1) of subsection (c) of such section is amended--CommentsClose CommentsPermalink





(A) by striking ‘and’ at the end of subparagraph (D);CommentsClose CommentsPermalink





(B) by striking the period at the end of subparagraph (E) and inserting ‘; and’; andCommentsClose CommentsPermalink





(C) by adding at the end the following new subparagraph:CommentsClose CommentsPermalink





‘(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.’.CommentsClose CommentsPermalink





(b) Amendment Related to Report- Paragraph (2) of section 105(c) of the Weapon Systems Acquisition Reform Act of 2009 (Public Law 111-23; 123 Stat. 1718) is amended to read as follows:CommentsClose CommentsPermalink





‘(2) MATTERS COVERED- The report shall include, at a minimum, an assessment of--CommentsClose CommentsPermalink





‘(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;CommentsClose CommentsPermalink





‘(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;CommentsClose CommentsPermalink





‘(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;CommentsClose CommentsPermalink





‘(D) the quality and effectiveness of efforts to estimate the level of resources needed to fulfill joint military requirements; andCommentsClose CommentsPermalink





‘(E) the extent to which the Council has considered trade-offs among cost, schedule, and performance objectives.’.CommentsClose CommentsPermalink





(c) Assessment of Independence of Cost Estimators and Cost Analysts Required in Next Annual Report on Cost Assessment Activities- In the next annual report prepared by the Director of Cost Assessment and Program Evaluation under section 2334(e) of title 10, United States Code, the Director shall include an assessment of whether and to what extent personnel responsible for cost estimates or cost analysis developed by a military department or defense agency for a major defense acquisition program are independent and whether their independence or lack thereof affects their ability to generate reliable cost estimates.CommentsClose CommentsPermalink

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.CommentsClose CommentsPermalink





(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.CommentsClose CommentsPermalink





(c) Matters Covered- The program developed pursuant to subsection (a) shall:CommentsClose CommentsPermalink





(1) Measure the following in relation to each joint military requirement:CommentsClose CommentsPermalink





(A) The time a requirements document takes to receive validation through the requirements process.CommentsClose CommentsPermalink





(B) The quality of cost information associated with the requirement and the extent to which cost information was considered during the requirements process.CommentsClose CommentsPermalink





(C) The extent to which the requirements process established a meaningful level of priority for the requirement.CommentsClose CommentsPermalink





(D) The extent to which the requirements process considered trade-offs between cost, schedule, and performance objectives.CommentsClose CommentsPermalink





(E) The quality of information on sustainment associated with the requirement and the extent to which sustainment information was considered during the requirements process.CommentsClose CommentsPermalink





(F) Such other matters as the Secretary shall determine appropriate.CommentsClose CommentsPermalink





(2) Achieve, to the maximum extent practicable, the following outcomes in the requirements process:CommentsClose CommentsPermalink





(A) Timeliness in delivering capability to the warfighter.CommentsClose CommentsPermalink





(B) Mechanisms for controlling requirements creep.CommentsClose CommentsPermalink





(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.CommentsClose CommentsPermalink





(D) The development of the personnel skills, capacity, and training needed for an effective and efficient requirements process.CommentsClose CommentsPermalink





(E) Such other outcomes as the Secretary shall determine appropriate.CommentsClose CommentsPermalink





(d) Implementation- The program required by subsection (a) shall be developed and initially implemented not later than 1 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.CommentsClose CommentsPermalink





(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).CommentsClose CommentsPermalink





(f) Final Report- Not later than 4 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).CommentsClose CommentsPermalink





(g) Definitions- In this section:CommentsClose CommentsPermalink





(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.CommentsClose CommentsPermalink





(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--CommentsClose CommentsPermalink





(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;CommentsClose CommentsPermalink





(B) details the information necessary to develop an increment of militarily useful, logistically supportable, and technically mature capability, including key performance parameters; orCommentsClose CommentsPermalink





(C) identifies production attributes required for a single increment of a program.CommentsClose CommentsPermalink





(3) REQUIREMENTS CREEP- The term ‘requirements creep’ means the addition of new technical or operational specifications after a requirements document is approved.CommentsClose CommentsPermalink





(h) Discretionary Implementation After 5 Years- After the date that is 5 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.CommentsClose CommentsPermalink

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.CommentsClose CommentsPermalink





(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--CommentsClose CommentsPermalink





(1) issue and maintain guidance relating to each process established under subsection (a); andCommentsClose CommentsPermalink





(2) develop a plan to implement each process established under subsection (a).CommentsClose CommentsPermalink





(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:CommentsClose CommentsPermalink





(1) Organization of such process.CommentsClose CommentsPermalink





(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.CommentsClose CommentsPermalink





(3) The composition of billets necessary to operate such process.CommentsClose CommentsPermalink





(4) The training required for personnel engaged in such process.CommentsClose CommentsPermalink





(5) The relationship between doctrine and such process.CommentsClose CommentsPermalink





(6) Methods of obtaining input on joint requirements for the acquisition of services.CommentsClose CommentsPermalink





(7) Procedures for coordinating with the acquisition process.CommentsClose CommentsPermalink





(8) Considerations relating to opportunities for strategic sourcing.CommentsClose CommentsPermalink





(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.CommentsClose CommentsPermalink





(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.CommentsClose CommentsPermalink





(f) Definition- The term ‘requirements for the acquisition of services’ means objectives to be achieved through acquisitions primarily involving the procurement of services.CommentsClose CommentsPermalink

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--CommentsClose CommentsPermalink





(1) come from a military unit or units designated by the combatant commander concerned;CommentsClose CommentsPermalink





(2) be selected based on the relevance of such materiel solution to the mission of the unit; andCommentsClose CommentsPermalink





(3) participate consistent with its operational obligations.CommentsClose CommentsPermalink





(b) Responsibilities- A task force provided pursuant to subsection (a) shall, for the materiel solution concerned--CommentsClose CommentsPermalink





(1) provide input to the analysis of alternatives;CommentsClose CommentsPermalink





(2) participate in testing (including limited user tests and prototype testing);CommentsClose CommentsPermalink





(3) provide input on a concept of operations and doctrine;CommentsClose CommentsPermalink





(4) provide end user feedback to the resource sponsor; andCommentsClose CommentsPermalink





(5) participate, through the combatant commander concerned, in any alteration of the requirement for such solution.CommentsClose CommentsPermalink





(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.CommentsClose CommentsPermalink





(d) Definitions- In this section:CommentsClose CommentsPermalink





(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.CommentsClose CommentsPermalink





(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.CommentsClose CommentsPermalink

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’.CommentsClose CommentsPermalink





(b) Matters Considered- The review performed under subsection (a) shall consider--CommentsClose CommentsPermalink





(1) the extent to which it is appropriate to apply guidance primarily 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);CommentsClose CommentsPermalink





(2) whether long-term sustainment and energy efficiency of weapon systems is appropriately emphasized;CommentsClose CommentsPermalink





(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;CommentsClose CommentsPermalink





(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;CommentsClose CommentsPermalink





(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); andCommentsClose CommentsPermalink





(6) such other matters as the Secretary considers appropriate.CommentsClose CommentsPermalink





(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.CommentsClose CommentsPermalink

SEC. 107. REQUIREMENT TO INCLUDE REFERENCES TO SERVICES ACQUISITION THROUGHOUT THE FEDERAL ACQUISITION REGULATION.

(a) Findings- Congress finds the following:CommentsClose CommentsPermalink





(1) The acquisition of services can be extremely complex, and program management skills, tools, and processes need to be applied to services acquisitions.CommentsClose CommentsPermalink





(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.CommentsClose CommentsPermalink





(b) Requirement for Changes to FAR- The Federal Acquisition Regulation shall be revised to provide, throughout the Regulation, appropriate references to services acquisition that are in addition to references provided in part 37 (which relates specifically to services acquisition).CommentsClose CommentsPermalink





(c) Deadline- This section shall be carried out within 270 days after the date of the enactment of this Act.CommentsClose CommentsPermalink

SEC. 108. PROCUREMENT OF MILITARY PURPOSE NONDEVELOPMENTAL ITEMS.

(a) In General-CommentsClose CommentsPermalink





(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:CommentsClose CommentsPermalink

‘Sec. 2410r. Military purpose nondevelopmental items

‘(a) Definitions- In this section:CommentsClose CommentsPermalink





‘(1) The term ‘military purpose nondevelopmental item’ means an item--CommentsClose CommentsPermalink





‘(A) developed exclusively at private expense;CommentsClose CommentsPermalink





‘(B) that meets a validated military requirement, as certified in writing by the responsible program manager;CommentsClose CommentsPermalink





‘(C) for which delivery of an initial lot of production-representative items may be made within nine months after contract award; andCommentsClose CommentsPermalink





‘(D) for which the unit cost is less than $10,000,000.CommentsClose CommentsPermalink





‘(2) The term ‘item’ has the meaning provided in section 2302(3) of this title.CommentsClose CommentsPermalink





‘(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:CommentsClose CommentsPermalink





‘(1) The contract shall be awarded using competitive procedures in accordance with section 2304 of this title.CommentsClose CommentsPermalink





‘(2) Certain contract clauses, as specified in regulations prescribed under subsection (c), shall be included in each such contract.CommentsClose CommentsPermalink





‘(3) The type of contract used shall be a firm, fixed price type contract.CommentsClose CommentsPermalink





‘(4) Nothing in the contract shall further restrict or otherwise affect the rights in technical data of the Government, the contractor, or any subcontractor of the contractor for items developed by the contractor or any such subcontractor exclusively at private expense, as prescribed in regulations implementing section 2320(a)(2)(B) of this title.CommentsClose CommentsPermalink





‘(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--CommentsClose CommentsPermalink





‘(1) a list of contract clauses to be included in each contract for the acquisition of a military purpose nondevelopmental item;CommentsClose CommentsPermalink





‘(2) definitions for the terms ‘developed’ and ‘exclusively at private expense’ that--CommentsClose CommentsPermalink





‘(A) are consistent with the definitions developed for such terms in accordance with 2320(a)(3) of this title; andCommentsClose CommentsPermalink





‘(B) also exclude an item developed in part or in whole with--CommentsClose CommentsPermalink





‘(i) foreign government funding; orCommentsClose CommentsPermalink





‘(ii) foreign or Federal Government loan financing at nonmarket rates; andCommentsClose CommentsPermalink





‘(3) standards for evaluating the reasonableness of price for the military purpose nondevelopmental item, in lieu of certified cost or pricing data.’.CommentsClose CommentsPermalink





(2) CLERICAL AMENDMENT- The table of sections at the beginning of such chapter is amended by adding at the end the following new item:CommentsClose CommentsPermalink





‘2410r. Military purpose nondevelopmental items.’.CommentsClose CommentsPermalink





(b) Cost or Pricing Data Exception- Section 2306a(b)(1) of title 10, United States Code, is amended--CommentsClose CommentsPermalink





(1) by striking ‘or’ at the end of subparagraph (B);CommentsClose CommentsPermalink





(2) by striking the period at the end of subparagraph (C) and inserting ‘; or’; andCommentsClose CommentsPermalink





(3) by adding at the end the following new subparagraph:CommentsClose CommentsPermalink





‘(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--CommentsClose CommentsPermalink





‘(i) the contract, subcontract or modification will be a firm, fixed price type contract; andCommentsClose CommentsPermalink





‘(ii) the offeror has submitted sufficient information to evaluate, through price analysis, the reasonableness of the price for the military purpose nondevelopmental item.’.CommentsClose CommentsPermalink





(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.CommentsClose CommentsPermalink

TITLE II--DEFENSE ACQUISITION WORKFORCECommentsClose CommentsPermalink

SEC. 201. ACQUISITION WORKFORCE EXCELLENCE.

(a) In General-CommentsClose CommentsPermalink





(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:CommentsClose CommentsPermalink

‘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--CommentsClose CommentsPermalink





‘(1) in which excellence and contribution to mission is rewarded;CommentsClose CommentsPermalink





‘(2) which has the technical expertise and business skills to ensure the Department receives the best value for the expenditure of public resources;CommentsClose CommentsPermalink





‘(3) which serves as a model for performance management of employees of the Department; andCommentsClose CommentsPermalink





‘(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.CommentsClose CommentsPermalink





‘(b) Performance Management- In order to achieve the purpose set forth in subsection (a), the Secretary of Defense shall--CommentsClose CommentsPermalink





‘(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;CommentsClose CommentsPermalink





‘(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);CommentsClose CommentsPermalink





‘(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;CommentsClose CommentsPermalink





‘(4) develop attractive career paths;CommentsClose CommentsPermalink





‘(5) encourage continuing education and training;CommentsClose CommentsPermalink





‘(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;CommentsClose CommentsPermalink





‘(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.);CommentsClose CommentsPermalink





‘(8) use the authorities for highly qualified experts under section 9903 of title 5, to hire experts who are skilled acquisition professionals to--CommentsClose CommentsPermalink





‘(A) serve in leadership positions within the acquisition workforce to strengthen management and oversight;CommentsClose CommentsPermalink





‘(B) provide mentors to advise individuals within the acquisition workforce on their career paths and opportunities to advance and excel within the acquisition workforce; andCommentsClose CommentsPermalink





‘(C) assist with the design of education and training courses and the training of individuals in the acquisition workforce; andCommentsClose CommentsPermalink





‘(9) use the authorities for expedited security clearance processing pursuant to section 1564 of this title.CommentsClose CommentsPermalink





‘(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.CommentsClose CommentsPermalink





‘(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.’.CommentsClose CommentsPermalink





(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:CommentsClose CommentsPermalink





‘1701a. Management for acquisition workforce excellence.’.CommentsClose CommentsPermalink





(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.CommentsClose CommentsPermalink

SEC. 202. AMENDMENTS TO THE ACQUISITION WORKFORCE DEMONSTRATION PROJECT.

(a) Codification Into Title 10-CommentsClose CommentsPermalink





(1) IN GENERAL- Chapter 87 of title 10, United States Code, is amended by inserting after section 1761 the following new section:CommentsClose CommentsPermalink

‘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.CommentsClose CommentsPermalink





‘(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.CommentsClose CommentsPermalink





‘(2) Subject to paragraph (3), in applying section 4703 of title 5 with respect to a demonstration project described in subsection (a)--CommentsClose CommentsPermalink





‘(A) ‘180 days’ in subsection (b)(4) of such section shall be deemed to read ‘120 days’;CommentsClose CommentsPermalink





‘(B) ‘90 days’ in subsection (b)(6) of such section shall be deemed to read ‘30 days’; andCommentsClose CommentsPermalink





‘(C) subsection (d)(1) of such section shall be disregarded.CommentsClose CommentsPermalink





‘(3) Paragraph (2) shall not apply with respect to a demonstration project unless--CommentsClose CommentsPermalink





‘(A) for each organization or team participating in the demonstration project--CommentsClose CommentsPermalink





‘(i) at least one-third of the workforce participating in the demonstration project consists of members of the acquisition workforce; andCommentsClose CommentsPermalink





‘(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; andCommentsClose CommentsPermalink





‘(B) the demonstration project commences before October 1, 2007.CommentsClose CommentsPermalink





‘(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.CommentsClose CommentsPermalink





‘(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.CommentsClose CommentsPermalink





‘(e) Assessment- (1) The Secretary of Defense shall designate an independent organization to review the acquisition workforce demonstration project described in subsection (a).CommentsClose CommentsPermalink





‘(2) Such assessment shall include:CommentsClose CommentsPermalink





‘(A) A description of the workforce included in the project.CommentsClose CommentsPermalink





‘(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.CommentsClose CommentsPermalink





‘(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.CommentsClose CommentsPermalink





‘(D) The steps taken to ensure that such system is fair and transparent for all employees in the project.CommentsClose CommentsPermalink





‘(E) How the project allows the organization to better meet mission needs.CommentsClose CommentsPermalink





‘(F) An analysis of how the flexibilities in subparagraphs (B) and (C) are used, and what barriers have been encountered that inhibit their use.CommentsClose CommentsPermalink





‘(G) Whether there is a process for--CommentsClose CommentsPermalink





‘(i) ensuring ongoing performance feedback and dialogue among supervisors, managers, and employees throughout the performance appraisal period; andCommentsClose CommentsPermalink





‘(ii) setting timetables for performance appraisals.CommentsClose CommentsPermalink





‘(H) The project’s impact on career progression.CommentsClose CommentsPermalink





‘(I) The project’s appropriateness or inappropriateness in light of the complexities of the workforce affected.CommentsClose CommentsPermalink





‘(J) The project’s sufficiency in terms of providing protections for diversity in promotion and retention of personnel.CommentsClose CommentsPermalink





‘(K) The adequacy of the training, policy guidelines, and other preparations afforded in connection with using the project.CommentsClose CommentsPermalink





‘(L) Whether there is a process for ensuring employee involvement in the development and improvement of the project.CommentsClose CommentsPermalink





‘(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.CommentsClose CommentsPermalink





‘(f) Covered Congressional Committees- In this section, the term ‘covered congressional committees’ means--CommentsClose CommentsPermalink





‘(1) the Committees on Armed Services of the Senate and the House of Representatives;CommentsClose CommentsPermalink





‘(2) the Committee on Homeland Security and Governmental Affairs of the Senate; andCommentsClose CommentsPermalink





‘(3) the Committee on Oversight and Government Reform of the House of Representatives.CommentsClose CommentsPermalink





‘(g) Termination of Authority- The authority to conduct a demonstration program under this section shall terminate on September 30, 2017.CommentsClose CommentsPermalink





‘(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.’.CommentsClose CommentsPermalink





(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:CommentsClose CommentsPermalink





‘1762. Demonstration project relating to certain acquisition personnel management policies and procedures.’.CommentsClose CommentsPermalink





(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.CommentsClose CommentsPermalink

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:CommentsClose CommentsPermalink

‘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--CommentsClose CommentsPermalink





‘(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);CommentsClose CommentsPermalink





‘(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;CommentsClose CommentsPermalink





‘(3) use the Department of Defense Civilian Workforce Incentive Fund established pursuant to section 9902(a) of title 5; andCommentsClose CommentsPermalink





‘(4) provide opportunities for career broadening experiences for high performers.CommentsClose CommentsPermalink





‘(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.’.CommentsClose CommentsPermalink





(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:CommentsClose CommentsPermalink





‘1763. Incentive programs for civilian and military personnel in the acquisition workforce.’.CommentsClose CommentsPermalink

SEC. 204. CAREER DEVELOPMENT FOR CIVILIAN AND MILITARY PERSONNEL IN THE ACQUISITION WORKFORCE.

(a) Career Paths-CommentsClose CommentsPermalink





(1) AMENDMENT- Chapter 87 of title 10, United States Code, is amended by inserting after section 1722a the following new section:CommentsClose CommentsPermalink

‘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).CommentsClose CommentsPermalink





‘(b) Objectives- Policies established and guidance issued pursuant to subsection (a) shall ensure, at a minimum, the following:CommentsClose CommentsPermalink





‘(1) A career path in the acquisition field that attracts the highest quality civilian personnel, from either within or outside the Federal Government.CommentsClose CommentsPermalink





‘(2) A deliberate workforce development strategy that increases attainment of key experiences that contribute to a highly qualified acquisition workforce.CommentsClose CommentsPermalink





‘(3) Sufficient opportunities for promotion and advancement in the acquisition field.CommentsClose CommentsPermalink





‘(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.CommentsClose CommentsPermalink





‘(5) A deliberate workforce development strategy that ensures diversity in promotion, advancement, and experiential opportunities commensurate with the general workforce outlined in this section.CommentsClose CommentsPermalink





‘(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):CommentsClose CommentsPermalink





‘(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.CommentsClose CommentsPermalink





‘(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.CommentsClose CommentsPermalink





‘(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.CommentsClose CommentsPermalink





‘(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.CommentsClose CommentsPermalink





‘(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.CommentsClose CommentsPermalink





‘(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.’.CommentsClose CommentsPermalink





(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:CommentsClose CommentsPermalink





‘1722b. Special requirements for civilian employees in the acquisition field.’.CommentsClose CommentsPermalink





(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:CommentsClose CommentsPermalink





‘(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--CommentsClose CommentsPermalink





‘(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; andCommentsClose CommentsPermalink





‘(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.’.CommentsClose CommentsPermalink

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:CommentsClose CommentsPermalink





‘(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, market research strategies (including assessments of local contracting capabilities), long-term sustainment strategies, information technology, and rapid acquisition.CommentsClose CommentsPermalink





‘(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.CommentsClose CommentsPermalink





‘(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.’.CommentsClose CommentsPermalink





(b) Standards for Training-CommentsClose CommentsPermalink





(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:CommentsClose CommentsPermalink

‘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.CommentsClose CommentsPermalink





‘(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.’.CommentsClose CommentsPermalink





(2) CLERICAL AMENDMENT- The table of sections at the beginning of such subchapter is amended by adding at the end the following new item:CommentsClose CommentsPermalink





‘1748. Guidance and standards for acquisition workforce training.’.CommentsClose CommentsPermalink





(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.CommentsClose CommentsPermalink





(4) CONFORMING REPEAL- Section 853 of Public Law 105-85 (111 Stat. 1851) is repealed.CommentsClose CommentsPermalink

SEC. 206. INFORMATION TECHNOLOGY ACQUISITION WORKFORCE.

(a) In General-CommentsClose CommentsPermalink





(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:CommentsClose CommentsPermalink

‘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:CommentsClose CommentsPermalink





‘(1) Defined targets for billets devoted to information technology acquisition.CommentsClose CommentsPermalink





‘(2) Specific certification requirements for individuals in the acquisition workforce who specialize in information technology acquisition.CommentsClose CommentsPermalink





‘(3) Defined career paths for individuals in the acquisition workforce who specialize in information technology acquisitions.CommentsClose CommentsPermalink





‘(b) Definitions- In this section:CommentsClose CommentsPermalink





‘(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.CommentsClose CommentsPermalink





‘(2) The term ‘major weapon system’ has the meaning provided such term in section 2379(f) of this title.’.CommentsClose CommentsPermalink





(2) CLERICAL AMENDMENT- The table of sections at the beginning of such subchapter is amended by adding at the end the following new item:CommentsClose CommentsPermalink





‘1725. Information technology acquisition positions.’.CommentsClose CommentsPermalink





(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.CommentsClose CommentsPermalink

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:CommentsClose CommentsPermalink





‘(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.’.CommentsClose CommentsPermalink

SEC. 208. DEFENSE ACQUISITION UNIVERSITY CURRICULUM REVIEW.

(a) Curriculum Review- Not later than 1 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.CommentsClose CommentsPermalink





(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.CommentsClose CommentsPermalink





(c) Requirement for Ongoing Curriculum Development With Certain Schools-CommentsClose CommentsPermalink





(1) REQUIREMENT- Section 1746 of title 10, United States Code, is amended by adding at the end the following new subsection:CommentsClose CommentsPermalink





‘(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.’.CommentsClose CommentsPermalink





(2) AMENDMENT TO SECTION HEADING- (A) The heading of section 1746 of such title is amended to read as follows:CommentsClose CommentsPermalink

‘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:CommentsClose CommentsPermalink





‘1746. Defense Acquisition University.’.CommentsClose CommentsPermalink

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.CommentsClose CommentsPermalink





(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.CommentsClose CommentsPermalink





(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 4-year period following establishment of the programs.CommentsClose CommentsPermalink

SEC. 210. PROHIBITION ON PERSONAL SERVICES CONTRACTS FOR SENIOR MENTORS.

(a) Prohibition- The Secretary of Defense shall prohibit the award of a contract for personal services by any component of the Department of Defense for the purpose of obtaining the services of a senior mentor.CommentsClose CommentsPermalink





(b) Interpretation- Nothing in this section shall be interpreted to prohibit the employment of a senior mentor as a highly qualified expert pursuant to section 9903 of title 5, United States Code, subject to the pay and term limitations of that section. A senior mentor employed as a highly qualified expert shall be required to submit a financial disclosure report and comply with all conflict of interest laws and regulations applicable to other Federal employees with similar conditions of service.CommentsClose CommentsPermalink





(c) Definitions- In this section:CommentsClose CommentsPermalink





(1) The term ‘contract for personal services’ means a contract awarded under the authority of section 129b(a) of title 10, United States Code, or section 3109 of title 5, United States Code.CommentsClose CommentsPermalink





(2) The term ‘component of the Department of Defense’ means a military department, a defense agency, a Department of Defense field activity, a unified combatant command, or the joint staff.CommentsClose CommentsPermalink





(3) The term ‘senior mentor’ means any person--CommentsClose CommentsPermalink





(A)(i) who has served as a general or flag officer in the Armed Forces; orCommentsClose CommentsPermalink





(ii) who has served in a position at a level at or above the level of the senior executive service;CommentsClose CommentsPermalink





(B) has retired within the 10 years preceding the award of a contract; andCommentsClose CommentsPermalink





(C) who serves as a mentor, teacher, trainer, or advisor to government personnel on matters pertaining to the former official duties of such person.CommentsClose CommentsPermalink

TITLE III--FINANCIAL MANAGEMENTCommentsClose CommentsPermalink

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--CommentsClose CommentsPermalink





(1) in financial matter matters, including--CommentsClose CommentsPermalink





(A) consistent with the need to fund urgent warfighter requirements and operational needs, priority in the release of appropriated funds to such component;CommentsClose CommentsPermalink





(B) relief from the frequency of financial reporting of such component in cases in which such reporting is not required by law;CommentsClose CommentsPermalink





(C) relief from departmental obligation and expenditure thresholds to the extent that such thresholds establish requirements more restrictive than those required by law; orCommentsClose CommentsPermalink





(D) such other measures as the Under Secretary considers appropriate; andCommentsClose CommentsPermalink





(2) in the availability of personnel management incentives, including--CommentsClose CommentsPermalink





(A) the size of the bonus pool available to the financial and business management workforce of the component;CommentsClose CommentsPermalink





(B) the rates of promotion within the financial and business management workforce of the component;CommentsClose CommentsPermalink





(C) awards for excellence in financial and business management; orCommentsClose CommentsPermalink





(D) the scope of work assigned to the financial and business management workforce of the component.CommentsClose CommentsPermalink





(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.CommentsClose CommentsPermalink





(c) Expiration- This section shall expire on September 30, 2017.CommentsClose CommentsPermalink





(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.CommentsClose CommentsPermalink

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.CommentsClose CommentsPermalink





(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--CommentsClose CommentsPermalink





(1) the development of a remediation plan to ensure the component can achieve a financial statement validated as ready for audit within 1 year;CommentsClose CommentsPermalink





(2) additional reporting requirements that may be necessary to mitigate financial risk to the component;CommentsClose CommentsPermalink





(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 1 year;CommentsClose CommentsPermalink





(4) specific consequences for key personnel in order to ensure accountability within the leadership of the component; andCommentsClose CommentsPermalink





(5) such other measures as the Secretary considers appropriate.CommentsClose CommentsPermalink





(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.CommentsClose CommentsPermalink

SEC. 303. REVIEW OF OBLIGATION AND EXPENDITURE THRESHOLDS.

(a) Sense of Congress- It is the sense of Congress that--CommentsClose CommentsPermalink





(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; andCommentsClose CommentsPermalink





(2) actions to carry out paragraph (1) should be supported by the Department’s leadership at every level.CommentsClose CommentsPermalink





(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 inadvertently prevent achieving the best value for the Government in the obligation and expenditure of funds.CommentsClose CommentsPermalink





(c) Process Review- Not later than 1 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--CommentsClose CommentsPermalink





(1) increased reliance on individual obligation and expenditure plans for measuring program financial performance;CommentsClose CommentsPermalink





(2) mechanisms to improve funding stability and to increase the predictability of the release of funding for obligation and expenditure; andCommentsClose CommentsPermalink





(3) streamlined mechanisms for a program manager to submit an appeal for funding changes and to have such appeal evaluated promptly.CommentsClose CommentsPermalink





(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.CommentsClose CommentsPermalink

SEC. 304. DISCLOSURE AND TRACEABILITY OF THE COST OF DEPARTMENT OF DEFENSE HEALTH CARE CONTRACTS.

(a) Disclosure Requirement- The Secretary of Defense shall require--CommentsClose CommentsPermalink





(1) an offeror that submits a bid or proposal in response to an invitation for bids or a request for proposals issued by a component of the Department of Defense for a health care contract to submit with the bid or proposal a disclosure of the additional cost, if any, contained in such bid or proposal associated with compliance with the Patient Protection and Affordable Care Act (Public Law 111-148) and the Health Care and Education Reconciliation Act of 2010 (Public Law 111-152); andCommentsClose CommentsPermalink





(2) a contractor for a health care contract awarded following the date of the enactment of this Act to disclose on an annual basis the additional cost, if any, incurred for such contract associated with compliance with the Patient Protection and Affordable Care Act (Public Law 111-148) and the Health Care and Education Reconciliation Act of 2010 (Public Law 111-152).CommentsClose CommentsPermalink





(b) Report-CommentsClose CommentsPermalink





(1) REQUIREMENT- Not later than April 1, 2011, and each April 1st thereafter until April 1, 2016, 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 detailed report on the additional cost to the Department of Defense associated with compliance with the Patient Protection and Affordable Care Act (Public Law 111-148) and the Health Care and Education Reconciliation Act of 2010 (Public Law 111-152).CommentsClose CommentsPermalink





(2) MATTERS COVERED- The report required by paragraph (1) shall include--CommentsClose CommentsPermalink





(A) the projected costs of compliance for all health care contracts awarded during the preceding year, as disclosed in a bid or proposal in accordance with subsection (a)(1);CommentsClose CommentsPermalink





(B) for all other health care contracts, the incurred cost of compliance for the preceding year, as disclosed in accordance with subsection (a)(2); andCommentsClose CommentsPermalink





(C) any additional costs to the Department of Defense necessary to comply with such Acts.CommentsClose CommentsPermalink





(c) Health Care Contract Defined- In this section, the term ‘health care contract’ means a contract in an amount greater than the simplified acquisition threshold for the acquisition of any of the following:CommentsClose CommentsPermalink





(1) Medical supplies.CommentsClose CommentsPermalink





(2) Health care services and administration, including the services of medical personnel.CommentsClose CommentsPermalink





(3) Durable medical equipment.CommentsClose CommentsPermalink





(4) Pharmaceuticals.CommentsClose CommentsPermalink





(5) Health care-related information technology.CommentsClose CommentsPermalink

TITLE IV--INDUSTRIAL BASECommentsClose CommentsPermalink

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. The program shall be limited to firms within the national technology and industrial base (as defined in section 2500(1) of title 10, United States Code).CommentsClose CommentsPermalink





(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.CommentsClose CommentsPermalink





(c) Outreach to Local Firms Near Defense Installations- The program established under subsection (a) shall include outreach, using procurement technical assistance centers, to notify firms of all business sizes in the vicinity of Department of Defense installations of opportunities to obtain contracts and subcontracts to perform work at such installations.CommentsClose CommentsPermalink





(d) 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.CommentsClose CommentsPermalink





(e) Definition- In this section:CommentsClose CommentsPermalink





(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.CommentsClose CommentsPermalink





(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.CommentsClose CommentsPermalink





(3) PROCUREMENT TECHNICAL ASSISTANCE CENTER- The term ‘procurement technical assistance center’ means a center operating under a cooperative agreement with the Defense Logistics Agency to provide procurement technical assistance pursuant to the authority provided in chapter 142 of title 10, United States Code.CommentsClose CommentsPermalink

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:CommentsClose CommentsPermalink





‘(c) Commercial Price Trend Analysis-CommentsClose CommentsPermalink





‘(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).CommentsClose CommentsPermalink





‘(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.CommentsClose CommentsPermalink





‘(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.CommentsClose CommentsPermalink





‘(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).CommentsClose CommentsPermalink





‘(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.CommentsClose CommentsPermalink





‘(6) This subsection shall not be in effect on and after April 1, 2013.’.CommentsClose CommentsPermalink

SEC. 403. CONTRACTOR AND GRANTEE DISCLOSURE OF DELINQUENT FEDERAL TAX DEBTS.

(a) Requirement-CommentsClose CommentsPermalink





(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:CommentsClose CommentsPermalink

‘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--CommentsClose CommentsPermalink





‘(1) certifying that the person does not have a seriously delinquent tax debt; andCommentsClose CommentsPermalink





‘(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.CommentsClose CommentsPermalink





‘(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--CommentsClose CommentsPermalink





‘(1) certifying that the person does not have a seriously delinquent tax debt; andCommentsClose CommentsPermalink





‘(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.CommentsClose CommentsPermalink





‘(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).CommentsClose CommentsPermalink





‘(d) Definitions- In this section:CommentsClose CommentsPermalink





‘(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--CommentsClose CommentsPermalink





‘(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; orCommentsClose CommentsPermalink





‘(B) a contract designated by the head of the agency as necessary to the national security of the United States.CommentsClose CommentsPermalink





‘(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)).CommentsClose CommentsPermalink





‘(3) PERSON- The term ‘person’ includes--CommentsClose CommentsPermalink





‘(A) an individual;CommentsClose CommentsPermalink





‘(B) a partnership; andCommentsClose CommentsPermalink





‘(C) a corporation.CommentsClose CommentsPermalink





‘(4) SERIOUSLY DELINQUENT TAX DEBT- The term ‘seriously delinquent tax debt’--CommentsClose CommentsPermalink





‘(A) means any Federal tax liability--CommentsClose CommentsPermalink





‘(i) that exceeds $3,000;CommentsClose CommentsPermalink





‘(ii) that has been assessed by the Secretary of the Treasury and not paid; andCommentsClose CommentsPermalink





‘(iii) for which a notice of lien has been filed in public records; andCommentsClose CommentsPermalink





‘(B) does not include any Federal tax liability--CommentsClose CommentsPermalink





‘(i) being paid in a timely manner under an offer-in-compromise or installment agreement;CommentsClose CommentsPermalink





‘(ii) with respect to which collection due process proceedings are not completed; orCommentsClose CommentsPermalink





‘(iii) with respect to which collection due process proceedings are completed and no further payment is required.CommentsClose CommentsPermalink





‘(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)).CommentsClose CommentsPermalink





‘(e) Regulations- The Administrator for Federal Procurement Policy, in consultation with the Secretary of the Treasury, shall promulgate regulations that--CommentsClose CommentsPermalink





‘(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;CommentsClose CommentsPermalink





‘(2) provide for the proper application of subsections (a)(2) and (b)(2) in the case of corporations and partnerships; andCommentsClose CommentsPermalink





‘(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.’.CommentsClose CommentsPermalink





(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:CommentsClose CommentsPermalink





‘3720F. Contractor and grantee disclosure of delinquent Federal tax debts.’.CommentsClose CommentsPermalink





(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.CommentsClose CommentsPermalink

SEC. 404. INDEPENDENCE OF CONTRACT AUDITS AND BUSINESS SYSTEM REVIEWS.

(a) Defense Contract Audit Agency General Counsel-CommentsClose CommentsPermalink





(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:CommentsClose CommentsPermalink

‘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.CommentsClose CommentsPermalink





‘(b) Duties- (1) The General Counsel shall perform such functions as the Director may prescribe and shall serve at the discretion of the Director.CommentsClose CommentsPermalink





‘(2) Notwithstanding section 140(b) of this title, the General Counsel shall be the chief legal officer of the Defense Contract Audit Agency.CommentsClose CommentsPermalink





‘(3) The Defense Contract Audit Agency shall be the exclusive legal client of the General Counsel.CommentsClose CommentsPermalink





‘(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.’.CommentsClose CommentsPermalink





(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:CommentsClose CommentsPermalink





‘204. Defense Contract Audit Agency general counsel.’.CommentsClose CommentsPermalink





(b) Criteria for Business System Reviews-CommentsClose CommentsPermalink





(1) IN GENERAL- Chapter 131 of title 10, United States Code, is amended by inserting after section 2222 the following new section:CommentsClose CommentsPermalink

‘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--CommentsClose CommentsPermalink





‘(1) complies with generally accepted government auditing standards issued by the Comptroller General;CommentsClose CommentsPermalink





‘(2) is performed by an audit team that does not engage in any other official activity (audit-related or otherwise) involving the contractor concerned;CommentsClose CommentsPermalink





‘(3) is performed in a time and manner consistent with a documented assessment of risk to the Federal Government; andCommentsClose CommentsPermalink





‘(4) involves testing on a representative sample of transactions sufficient to fully examine the integrity of the contractor business system concerned.CommentsClose CommentsPermalink





‘(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.’.CommentsClose CommentsPermalink





(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:CommentsClose CommentsPermalink





‘2222a. Criteria for business system reviews.’.CommentsClose CommentsPermalink





(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--CommentsClose CommentsPermalink





(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;CommentsClose CommentsPermalink





(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;CommentsClose CommentsPermalink





(3) provides for withholding of contract payments when necessary to compel the submission of documentation from the contractor; andCommentsClose CommentsPermalink





(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.CommentsClose CommentsPermalink





(d) Effective Dates-CommentsClose CommentsPermalink





(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.CommentsClose CommentsPermalink





(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.CommentsClose CommentsPermalink

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.CommentsClose CommentsPermalink





(b) Members- The panel shall consist of nine members, of whom--CommentsClose CommentsPermalink





(1) three shall be appointed by the Secretary of the Army;CommentsClose CommentsPermalink





(2) three shall be appointed by the Secretary of the Navy; andCommentsClose CommentsPermalink





(3) three shall be appointed by the Secretary of the Air Force.CommentsClose CommentsPermalink





(c) Appointment Deadline- Members shall be appointed to the panel not later than 180 days after the date of the enactment of this Act.CommentsClose CommentsPermalink





(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.CommentsClose CommentsPermalink





(e) Report- Not later than 1 year after the date of the enactment of this Act, the panel shall submit to Congress a report containing its recommendations.CommentsClose CommentsPermalink

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--CommentsClose CommentsPermalink





(1) in paragraph (1), by striking ‘or maintenance’ and inserting ‘integration, services, or information technology’;CommentsClose CommentsPermalink





(2) in paragraph (4), by striking ‘or production’ and inserting ‘production, integration, services, or information technology’;CommentsClose CommentsPermalink





(3) in paragraph (9)(A), by striking ‘and manufacturing’ and inserting ‘manufacturing, integration, services, and information technology’; andCommentsClose CommentsPermalink





(4) by adding at the end the following new paragraph:CommentsClose CommentsPermalink





‘(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 program requirements.’.CommentsClose CommentsPermalink





(b) Revised Objectives- Section 2501(a) of such title is amended--CommentsClose CommentsPermalink





(1) in paragraph (1), by striking ‘Supplying and equipping’ and inserting ‘Supplying, equipping, and supporting’;CommentsClose CommentsPermalink





(2) in paragraph (2), by striking ‘and logistics for’ and inserting ‘logistics, and other activities in support of’;CommentsClose CommentsPermalink





(3) in paragraph (4), by striking ‘and produce’ and inserting ‘, produce, and support’; andCommentsClose CommentsPermalink





(4) by redesignating paragraph (6) as paragraph (8) and inserting after paragraph (5) the following new paragraphs:CommentsClose CommentsPermalink





‘(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.CommentsClose CommentsPermalink





‘(7) Providing for the development, production, and integration of information technology within the national technology and industrial base.’.CommentsClose CommentsPermalink





(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)’.CommentsClose CommentsPermalink





(d) Revised Policy Guidance- Section 2506(a) of such title is amended by striking ‘budget allocation, weapons’ and inserting ‘strategy, management, budget allocation,’.CommentsClose CommentsPermalink

SEC. 407. CONSTRUCTION OF ACT ON COMPETITION REQUIREMENTS FOR THE ACQUISITION OF SERVICES.

Nothing in this Act or the amendments made by this Act shall be construed to affect the competition requirements of section 2304 of title 10, United States Code, with respect to the acquisition of services.CommentsClose CommentsPermalink

SEC. 408. ACQUISITION SAVINGS PROGRAM.

(a) Program Required-CommentsClose CommentsPermalink





(1) IN GENERAL- The Secretary of Defense, acting through the Under Secretary of Defense for Acquisition, Technology, and Logistics, shall carry out a program to provide opportunities to provide cost-savings on nondevelopmental items.CommentsClose CommentsPermalink





(2) SAVINGS- The program, to be known as the Acquisition Savings Program, shall provide any person or activity within or outside the Department of Defense with the opportunity to offer a proposal to provide savings in excess of 15 percent, to be known as an acquisition savings proposal, for covered contracts.CommentsClose CommentsPermalink





(3) SUNSET- The program shall cease to be required on September 30, 2013.CommentsClose CommentsPermalink





(b) Qualifying Acquisition Savings Proposals- A proposal shall qualify as an acquisition savings proposal for purposes of this section if it offers to supply a nondevelopmental item that is identical to, or equivalent to (under a performance specification or relevant commercial standard), an item being procured under a covered contract.CommentsClose CommentsPermalink





(c) Review by Contracting Officer- Each acquisition savings proposal shall be reviewed by the contracting officer for the covered contract concerned to determine if such proposal qualifies under this section and to calculate the savings provided by such proposal.CommentsClose CommentsPermalink





(d) Actions Upon Favorable Review- If the contracting officer for a covered contract determines after review of an acquisition savings proposal that the proposal would provide an identical or equivalent nondevelopmental item at a savings in excess of 15 percent, and that a contract award to the offeror of the proposal would not result in the violation of a minimum purchase agreement or otherwise cause a breach of contract for the covered contract, the contracting officer may make an award under the covered contract to the offeror of the acquisition savings proposal or otherwise award a contract for the nondevelopmental item concerned to such offeror.CommentsClose CommentsPermalink





(e) Actions Upon Unfavorable Review- If a contracting officer determines after review of an acquisition savings proposal that the proposal would not satisfy the requirements of this section, the contracting officer shall debrief the person or activity offering such proposal within 30 days after completion of the review.CommentsClose CommentsPermalink





(f) Report- Not later than March 1, 2013, the Secretary of Defense shall submit to the Committees on Armed Services of the Senate and House of Representatives a report regarding the program, including the number of acquisition savings proposals submitted, the number favorably reviewed, the cumulative savings, and any further recommendations for the program.CommentsClose CommentsPermalink





(g) Definitions- In this section:CommentsClose CommentsPermalink





(1) NONDEVELOPMENTAL ITEM- The term ‘nondevelopmental item’ has the meaning provided for such term in section 4 of the Office of Federal Procurement Policy Act (41 U.S.C. 403).CommentsClose CommentsPermalink





(2) COVERED CONTRACT- The term ‘covered contract’--CommentsClose CommentsPermalink





(A) means an indefinite delivery indefinite quantity contract for property as defined in section 2304d(2) of title 10, United States Code; andCommentsClose CommentsPermalink





(B) does not include any contract awarded under an exception to competitive acquisition authorized by the Small Business Act (15 U.S.C. 631 et seq.)CommentsClose CommentsPermalink





(3) PERFORMANCE SPECIFICATION- The term ‘performance specification’ means a specification of required item functional characteristics.CommentsClose CommentsPermalink





(4) COMMERCIAL STANDARD- The term ‘commercial standard’ means a standard used in industry promulgated by an accredited standards organizations that is not a Federal entity.CommentsClose CommentsPermalink

SEC. 409. SENSE OF CONGRESS REGARDING COMPLIANCE WITH THE BERRY AMENDMENT, THE BUY AMERICAN ACT, AND LABOR STANDARDS OF THE UNITED STATES.

In order to create jobs, level the playing field for domestic manufacturers, and strengthen economic recovery, it is the sense of Congress that the Department of Defense should--CommentsClose CommentsPermalink





(1) ensure full contractor and subcontractor compliance with the Berry Amendment (10 U.S.C. 2533a) and the Buy American Act (41 U.S.C. 10a et seq.); andCommentsClose CommentsPermalink





(2) not procure products made by manufacturers in the United States that violate labor standards as defined under the laws of the United States.CommentsClose CommentsPermalink

SEC. 410. INDUSTRIAL BASE COUNCIL AND FUND.

(a) Industrial Base Council-CommentsClose CommentsPermalink





(1) IN GENERAL- Chapter 7 of title 10, United States Code, is amended by adding at the end the following new section:CommentsClose CommentsPermalink

‘Sec. 188. Industrial Base Council

‘(a) Council Established- There is in the Department of Defense an Industrial Base Council.CommentsClose CommentsPermalink





‘(b) Mission- The mission of the Industrial Base Council is to assist the Secretary in all matters pertaining to the industrial base of the Department of Defense, including matters pertaining to the national defense technology and industrial base included in chapter 148 of this title.CommentsClose CommentsPermalink





‘(c) Membership- The following officials of the Department of Defense shall be members of the Council:CommentsClose CommentsPermalink





‘(1) The Chairman of the Council, who shall be the Under Secretary of Defense for Acquisition, Technology, and Logistics, the functions of which may be delegated by the Under Secretary only to the Principal Deputy Under Secretary of Defense for Acquisition, Technology, and Logistics.CommentsClose CommentsPermalink





‘(2) The Executive Director of the Council, who shall be an official from within the Office of the Under Secretary responsible for industrial base matters and who shall report directly to the Under Secretary or the Principal Deputy Under Secretary.CommentsClose CommentsPermalink





‘(3) Officials from within the Office of the Secretary of Defense, as designated by the Secretary, with direct responsibility for matters pertaining to following areas:CommentsClose CommentsPermalink





‘(A) Manufacturing.CommentsClose CommentsPermalink





‘(B) Research and development.CommentsClose CommentsPermalink





‘(C) Systems engineering and system integration.CommentsClose CommentsPermalink





‘(D) Services.CommentsClose CommentsPermalink





‘(E) Information Technology.CommentsClose CommentsPermalink





‘(F) Sustainment and logistics.CommentsClose CommentsPermalink





‘(4) The Director of the Defense Logistics Agency.CommentsClose CommentsPermalink





‘(5) Officials from the military departments, as designated by the Secretary of each military department, with responsibility for industrial base matters relevant to the military department concerned.CommentsClose CommentsPermalink





‘(d) Duties- The Council shall assist the Secretary in the following:CommentsClose CommentsPermalink





‘(1) Providing input on industrial base matters to strategy reviews, including quadrennial defense reviews performed pursuant to section 118 of this title.CommentsClose CommentsPermalink





‘(2) Managing the industrial base.CommentsClose CommentsPermalink





‘(3) Providing recommendations to the Secretary on budget matters pertaining to the industrial base.CommentsClose CommentsPermalink





‘(4) Providing recommendations to the Secretary on supply chain management and supply chain vulnerability.CommentsClose CommentsPermalink





‘(5) Providing input on industrial base matters to defense acquisition policy guidance.CommentsClose CommentsPermalink





‘(6) Issuing and revising the Department of Defense technology and industrial base guidance required by section 2506 of this title.CommentsClose CommentsPermalink





‘(7) Such other duties as are assigned by the Secretary.CommentsClose CommentsPermalink





‘(e) Reporting of Activities- The Secretary shall include a section describing the activities of the Council in the annual report to Congress required by section 2505 of this title.’.CommentsClose CommentsPermalink





(2) CLERICAL AMENDMENT- The table of sections at the beginning of such chapter is amended by adding at the end the following new item:CommentsClose CommentsPermalink





‘188. Industrial Base Council.’.CommentsClose CommentsPermalink





(b) Industrial Base Fund-CommentsClose CommentsPermalink





(1) IN GENERAL- Chapter 148 of title 10, United States Code, is amended by adding at the end the following new section:CommentsClose CommentsPermalink

‘Sec. 2508. Industrial Base Fund

‘(a) Establishment- The Secretary of Defense shall establish an Industrial Base Fund (in this section referred to as the ‘Fund’).CommentsClose CommentsPermalink





‘(b) Control of Fund- The Fund shall be under the control of the Industrial Base Council established pursuant to section 188 of this title.CommentsClose CommentsPermalink





‘(c) Amounts in Fund- The Fund shall consist of amounts appropriated or otherwise made available to the Fund.CommentsClose CommentsPermalink





‘(d) Use of Fund- Subject to subsection (e), the Fund shall be used--CommentsClose CommentsPermalink





‘(1) to support the monitoring and assessment of the industrial base required by this chapter;CommentsClose CommentsPermalink





‘(2) to address critical issues in the industrial base relating to urgent operation needs;CommentsClose CommentsPermalink





‘(3) to support efforts to expand the industrial base; andCommentsClose CommentsPermalink





‘(4) to address supply chain vulnerabilities.CommentsClose CommentsPermalink





‘(e) Use of Fund Subject to Appropriations- The authority of the Secretary of Defense to use the Fund under this section in any fiscal year is subject to the availability of appropriations for that purpose.CommentsClose CommentsPermalink





‘(f) Expenditures- The Secretary shall establish procedures for expending monies in the Fund in support of the uses identified in subsection (d), including the following:CommentsClose CommentsPermalink





‘(1) Direct obligations from the Fund.CommentsClose CommentsPermalink





‘(2) Transfers of monies from the Fund to relevant appropriations of the Department of Defense.’.CommentsClose CommentsPermalink





(2) CLERICAL AMENDMENT- The table of sections at the beginning of such chapter is amended by adding at the end the following new item:CommentsClose CommentsPermalink





‘2508. Industrial Base Fund.’.CommentsClose CommentsPermalink

TITLE V--OTHER MATTERSCommentsClose CommentsPermalink

SEC. 501. CLOTHING ALLOWANCE REQUIREMENT.

The Comptroller General shall conduct a study of the items purchased under section 418 of title 37, United States Code, to determine if there is sufficient domestic production of such items to adequately supply members of the Armed Forces and shall transmit the results of such study to the Secretary of Defense. Not later than 6 months after receiving the results of such study, the Secretary of Defense shall transmit to the Committees on Armed Services of the Senate and the House of Representatives an evaluation on whether such items under the study should be considered subject to section 2533a of title 10, United States Code (popularly known as the ‘Berry Amendment’).CommentsClose CommentsPermalink

SEC. 502. REQUIREMENT THAT COST OR PRICE TO THE FEDERAL GOVERNMENT BE GIVEN AT LEAST EQUAL IMPORTANCE AS TECHNICAL OR OTHER CRITERIA IN EVALUATING COMPETITIVE PROPOSALS FOR DEFENSE CONTRACTS.

(a) Requirement- Subparagraph (A) of section 2305(a)(3) of title 10, United States Code, is amended by striking ‘proposals; and’ at the end of clause (ii) and all that follows through the end of the subparagraph and inserting the following: ‘proposals and that must be assigned importance at least equal to all evaluation factors other than cost or price when combined.’.CommentsClose CommentsPermalink





(b) Waiver- Section 2305(a)(3) of such title is further amended by striking subparagraph (B) and inserting the following:CommentsClose CommentsPermalink





‘(B) The requirement of subparagraph (A)(ii) relating to assigning at least equal importance to evaluation factors of cost or price may be waived by the head of the agency. The authority to issue a waiver under this subparagraph may not be delegated.’.CommentsClose CommentsPermalink





(c) Report- Section 2305(a)(3) of such title is further amended by adding at the end the following new subparagraph:CommentsClose CommentsPermalink





‘(C) Not later than 180 days after the end of each fiscal year, the Secretary of Defense shall submit to Congress, and post on a publicly available website of the Department of Defense, a report containing a list of eachCommentsClose CommentsPermalink





waiver issued by the head of an agency under subparagraph (B) during the preceding fiscal year.’.CommentsClose CommentsPermalink

Passed the House of Representatives April 28, 2010.CommentsClose CommentsPermalink

Attest:CommentsClose CommentsPermalink

Clerk.

111th CONGRESS

2d Session

H. R. 5013

AN ACT

To amend title 10, United States Code, to provide for performance management of the defense acquisition system, and for other purposes LORRAINE C. MILLER, CommentsClose CommentsPermalink

Clerk.CommentsClose CommentsPermalink