Reducing DHS Acquisition Cost Growth Act

Summary: .  Reducing DHS Acquisition Cost Growth Act (Sec. 2) This bill amends the Homeland Security Act of 2002 to require the program manager of a major acquisition program (a Department of Homeland Security [DHS] acquisition program that is estimated by the Secretary to require an eventual total expenditure of at least $300 million over its life cycle cost) to notify the program's Component Acquisition Executive (CAE) (the senior acquisition official within a DHS component who is designated to lead a process and staff to provide acquisition and program management oversight, policy, and guidance to ensure that statutory, regulatory, and higher level policy requirements are fulfilled), the head of the component concerned, the Executive Director of the Program Accountability and Risk Management division, the Under Secretary for Management, and the Deputy Secretary of DHS within 30 days after any breach in such program is identified. If such a breach results in a cost overrun greater than 15%, a schedule delay greater than 180 days, or a failure to meet any of the performance thresholds from the cost, schedule, or performance parameters specified in the most recently approved acquisition program baseline for such program, the CAE must notify the DHS Secretary and Inspector General within five business days after such other officials are notified of the breach. If such a breach occurs, the program manager shall submit to the component head, the Executive Director, and the Under Secretary in writing a remediation plan and root cause analysis relating to such breach and program. The remediation plan shall:   explain the circumstances of the breach;   provide prior cost estimating information;   include a root cause analysis that determines the underlying causes of shortcomings in cost, schedule, or performance of the program; propose corrective action to address such shortcomings;   explain the rationale for a proposed corrective action; and   in coordination with the CAE, discuss all options considered, including the estimated impact on cost, schedule, or performance of such program if no changes are made to current requirements, the estimated cost of such program if requirements are modified, and the extent to which funding from other programs will need to be reduced to cover the cost growth of such program.   The Under Secretary for Management shall review the remediation plan and may approve it or provide an alternative proposed corrective action within 30 days of its submission. The Under Secretary shall notify the congressional homeland security committees of such a breach. If a likely cost overrun is greater than 20% or a likely delay is greater than 12 months from the costs and schedule specified in the acquisition program baseline, the Under Secretary for Management shall include in such notification a written certification that:   such program is essential to the accomplishment of DHS's mission;   there are no alternatives to the capability or asset provided by such program that will provide equal or greater capability in both a more cost-effective and timely manner;   the new acquisition schedule and estimates for total acquisition cost are reasonable; and   the management structure for such program is adequate to manage and control cost, schedule, and performance. 

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Reducing DHS Acquisition Cost Growth 
Act''.

SEC. 2. CONGRESSIONAL NOTIFICATION FOR MAJOR ACQUISITION PROGRAMS.

    (a) In General.--Subtitle D of title VIII of the Homeland Security 
Act of 2002 (6 U.S.C. 391 et seq.) is further amended by adding at the 
end the following new section:

``SEC. 836. CONGRESSIONAL NOTIFICATION AND OTHER REQUIREMENTS FOR MAJOR 
              ACQUISITION PROGRAM BREACH.

    ``(a) Requirements Within Department in Event of Breach.--
            ``(1) Notifications.--
                    ``(A) Notification of breach.--If a breach occurs 
                in a major acquisition program, the program manager for 
                such program shall notify the Component Acquisition 
                Executive for such program, the head of the component 
                concerned, the Executive Director of the Program 
                Accountability and Risk Management division, the Under 
                Secretary for Management, and the Deputy Secretary not 
                later than 30 calendar days after such breach is 
                identified.
                    ``(B) Notification to secretary.--If a breach 
                occurs in a major acquisition program and such breach 
                results in a cost overrun greater than 15 percent, a 
                schedule delay greater than 180 days, or a failure to 
                meet any of the performance thresholds from the cost, 
                schedule, or performance parameters specified in the 
                most recently approved acquisition program baseline for 
                such program, the Component Acquisition Executive for 
                such program shall notify the Secretary and the 
                Inspector General of the Department not later than five 
                business days after the Component Acquisition Executive 
                for such program, the head of the component concerned, 
                the Executive Director of the Program Accountability 
                and Risk Management Division, the Under Secretary for 
                Management, and the Deputy Secretary are notified of 
                the breach pursuant to subparagraph (A).
            ``(2) Remediation plan and root cause analysis.--
                    ``(A) In general.--If a breach occurs in a major 
                acquisition program, the program manager for such 
                program shall submit to the head of the component 
                concerned, the Executive Director of the Program 
                Accountability and Risk Management division, and the 
                Under Secretary for Management in writing a remediation 
                plan and root cause analysis relating to such breach 
                and program. Such plan and analysis shall be submitted 
                at a date established at the discretion of the Under 
                Secretary for Management.
                    ``(B) Remediation plan.--The remediation plan 
                required under this subparagraph (A) shall--
                            ``(i) explain the circumstances of the 
                        breach at issue;
                            ``(ii) provide prior cost estimating 
                        information;
                            ``(iii) include a root cause analysis that 
                        determines the underlying cause or causes of 
                        shortcomings in cost, schedule, or performance 
                        of the major acquisition program with respect 
                        to which such breach has occurred, including 
                        the role, if any, of--
                                    ``(I) unrealistic performance 
                                expectations;
                                    ``(II) unrealistic baseline 
                                estimates for cost or schedule or 
                                changes in program requirements;
                                    ``(III) immature technologies or 
                                excessive manufacturing or integration 
                                risk;
                                    ``(IV) unanticipated design, 
                                engineering, manufacturing, or 
                                technology integration issues arising 
                                during program performance;
                                    ``(V) changes to the scope of such 
                                program;
                                    ``(VI) inadequate program funding 
                                or changes in planned out-year funding 
                                from one 5-year funding plan to the 
                                next 5-year funding plan as outlined in 
                                the Future Years Homeland Security 
                                Program required under section 874;
                                    ``(VII) legislative, legal, or 
                                regulatory changes; or
                                    ``(VIII) inadequate program 
                                management personnel, including lack of 
                                sufficient number of staff, training, 
                                credentials, certifications, or use of 
                                best practices;
                            ``(iv) propose corrective action to address 
                        cost growth, schedule delays, or performance 
                        issues;
                            ``(v) explain the rationale for why a 
                        proposed corrective action is recommended; and
                            ``(vi) in coordination with the Component 
                        Acquisition Executive for such program, discuss 
                        all options considered, including the estimated 
                        impact on cost, schedule, or performance of 
                        such program if no changes are made to current 
                        requirements, the estimated cost of such 
                        program if requirements are modified, and the 
                        extent to which funding from other programs 
                        will need to be reduced to cover the cost 
                        growth of such program.
            ``(3) Review of corrective actions.--
                    ``(A) In general.--The Under Secretary for 
                Management shall review the remediation plan required 
                under paragraph (2). The Under Secretary may approve 
                such plan or provide an alternative proposed corrective 
                action within 30 days of the submission of such plan 
                under such paragraph.
                    ``(B) Submission to congress.--Not later than 30 
                days after the review required under subparagraph (A) 
                is completed, the Under Secretary for Management shall 
                submit to the congressional homeland security 
                committees the following:
                            ``(i) A copy of the remediation plan and 
                        the root cause analysis required under 
                        paragraph (2).
                            ``(ii) A statement describing the 
                        corrective action or actions that have occurred 
                        pursuant to paragraph (2)(b)(iv) for the major 
                        acquisition program at issue, with a 
                        justification for such action or actions.
    ``(b) Requirements Relating to Congressional Notification if Breach 
Occurs.--
            ``(1) Notification to congress.--If a notification to the 
        Secretary is made under subsection (a)(1)(B) relating to a 
        breach in a major acquisition program, the Under Secretary for 
        Management shall notify the congressional homeland security 
        committees of such breach in the next quarterly Comprehensive 
        Acquisition Status Report, as required by title I of division D 
        of the Consolidated Appropriations Act, 2016, (Public Law 114-
        113) following receipt by the Under Secretary of notification 
        under such subsection.
            ``(2) Significant variances in costs or schedule.--If a 
        likely cost overrun is greater than 20 percent or a likely 
        delay is greater than 12 months from the costs and schedule 
        specified in the acquisition program baseline for a major 
        acquisition program, the Under Secretary for Management shall 
        include in the notification required in paragraph (1) a written 
        certification, with supporting explanation, that--
                    ``(A) such program is essential to the 
                accomplishment of the Department's mission;
                    ``(B) there are no alternatives to the capability 
                or asset provided by such program that will provide 
                equal or greater capability in both a more cost-
                effective and timely manner;
                    ``(C) the new acquisition schedule and estimates 
                for total acquisition cost are reasonable; and
                    ``(D) the management structure for such program is 
                adequate to manage and control cost, schedule, and 
                performance.
    ``(c) Definitions.--In this section:
            ``(1) Acquisition.--The term `acquisition' has the meaning 
        given such term in section 131 of title 41, United States Code.
            ``(2) Acquisition program.--The term `acquisition program' 
        means the process by which the Department acquires, with any 
        appropriated amounts, by contract for purchase or lease, 
        property or services (including construction) that support the 
        missions and goals of the Department.
            ``(3) Acquisition program baseline.--The term `acquisition 
        program baseline', with respect to an acquisition program, 
        means a summary of the cost, schedule, and performance 
        parameters, expressed in standard, measurable, quantitative 
        terms, which must be met in order to accomplish the goals of 
        such program.
            ``(4) Best practices.--The term `best practices', with 
        respect to acquisition, means a knowledge-based approach to 
        capability development that includes--
                    ``(A) identifying and validating needs;
                    ``(B) assessing alternatives to select the most 
                appropriate solution;
                    ``(C) clearly establishing well-defined 
                requirements;
                    ``(D) developing realistic cost assessments and 
                schedules;
                    ``(E) securing stable funding that matches 
                resources to requirements;
                    ``(F) demonstrating technology, design, and 
                manufacturing maturity;
                    ``(G) using milestones and exit criteria or 
                specific accomplishments that demonstrate progress;
                    ``(H) adopting and executing standardized processes 
                with known success across programs;
                    ``(I) establishing an adequate workforce that is 
                qualified and sufficient to perform necessary 
                functions; and
                    ``(J) integrating the capabilities described in 
                subparagraphs (A) through (I) into the Department's 
                mission and business operations.
            ``(5) Breach.--The term `breach', with respect to a major 
        acquisition program, means a failure to meet any cost, 
        schedule, or performance threshold specified in the most 
        recently approved acquisition program baseline.
            ``(6) Congressional homeland security committees.--The term 
        `congressional homeland security committees' means--
                    ``(A) the Committee on Homeland Security of the 
                House of Representatives and the Committee on Homeland 
                Security and Governmental Affairs of the Senate; and
                    ``(B) the Committee on Appropriations of the House 
                of Representatives and of the Senate.
            ``(7) Component acquisition executive.--The term `Component 
        Acquisition Executive' means the senior acquisition official 
        within a component who is designated in writing by the Under 
        Secretary for Management, in consultation with the component 
        head, with authority and responsibility for leading a process 
        and staff to provide acquisition and program management 
        oversight, policy, and guidance to ensure that statutory, 
        regulatory, and higher level policy requirements are fulfilled, 
        including compliance with Federal law, the Federal Acquisition 
        Regulation, and Department acquisition management directives 
        established by the Under Secretary for Management.
            ``(8) Major acquisition program.--The term `major 
        acquisition program' means a Department acquisition program 
        that is estimated by the Secretary to require an eventual total 
        expenditure of at least $300,000,000 (based on fiscal year 2017 
        constant dollars) over its life cycle cost.''.
    (b) Clerical Amendment.--The table of contents in section 1(b) of 
the Homeland Security Act of 2002 is amended by inserting after the 
item relating to section 835 the following new item:

``Sec. 836. Congressional notification and other requirements for major 
                            acquisition program breach.''.

            Passed the House of Representatives March 20, 2017.

            Attest:

                                                 KAREN L. HAAS,

                                                                 Clerk.