59–006 

114TH CONGRESS REPORT " ! HOUSE OF REPRESENTATIVES 2d Session 114–425 

DHS ACQUISITION DOCUMENTATION INTEGRITY ACT OF 

2016 

FEBRUARY 23, 2016.—Committed to the Committee of the Whole House on the State 

of the Union and ordered to be printed 

Mr. MCCAUL, from the Committee on Homeland Security, 

submitted the following 

R E P O R T 

[To accompany H.R. 4398] 

[Including cost estimate of the Congressional Budget Office] 

The Committee on Homeland Security, to whom was referred the 

bill (H.R. 4398) to amend the Homeland Security Act of 2002 to 

provide for requirements relating to documentation for major acquisition programs, and for other purposes, having considered the 

same, report favorably thereon without amendment and recommend that the bill do pass. 

CONTENTS 

Page 

Purpose and Summary ............................................................................................ 2 

Background and Need for Legislation .................................................................... 2 

Hearings ................................................................................................................... 2 

Committee Consideration ........................................................................................ 2 

Committee Votes ...................................................................................................... 3 

Committee Oversight Findings ............................................................................... 3 

New Budget Authority, Entitlement Authority, and Tax Expenditures ............. 3 

Congressional Budget Office Estimate ................................................................... 3 

Statement of General Performance Goals and Objectives .................................... 4 

Duplicative Federal Programs ................................................................................ 4 

Congressional Earmarks, Limited Tax Benefits, and Limited Tariff Benefits ... 4 

Federal Mandates Statement ................................................................................. 4 

Preemption Clarification ......................................................................................... 4 

Disclosure of Directed Rule Makings ..................................................................... 4 

Advisory Committee Statement .............................................................................. 5 

Applicability to Legislative Branch ........................................................................ 5 

Section-by-Section Analysis of the Legislation ...................................................... 5 

Changes in Existing Law Made by the Bill, as Reported ..................................... 6 


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PURPOSE AND SUMMARY

The purpose of H.R. 4398 is to amend the Homeland Security Act 

of 2002 to provide for requirements relating to documentation for 

major acquisition programs, and for other purposes. 

BACKGROUND AND NEED FOR LEGISLATION

Management challenges have plagued the Department of Homeland Security (DHS) since its inception. For example, every two 

years, the Government Accountability Office (GAO) identifies areas 

in the federal government that are ‘‘high risk’’ due to their 

vulnerabilities to fraud, waste, abuse, and mismanagement. For 

years, GAO has identified DHS’s management functions, which includes acquisition responsibilities, as high risk. In GAO’s 2015 high 

risk update, it was noted that challenges remained and progress 

was needed ‘‘to mitigate the risks that management weaknesses 

posed to mission accomplishment.’’ 

Most of DHS’s major acquisition programs continue to cost more 

than expected, take longer to deploy than planned, or deliver less 

capability than promised. In recent years, DHS has issued a Departmental acquisition policy that reflects important commercial 

best practices. However, DHS has not held component heads and 

other senior DHS leaders to account for fully implementing that 

policy. 

This bill is based on text included in bipartisan legislation, the 

DHS Headquarters Reform and Improvement Act (H.R. 3572), introduced by Mr. McCaul and Mr. Thompson that passed the House 

in October 2015. The DHS Acquisition Documentation Integrity Act 

of 2016 (H.R. 4398) requires the DHS Secretary, acting through the 

Under Secretary for Management, to require relevant components 

to maintain specific types of acquisition documentation. This bill 

codifies a narrow set of authorities for the DHS Secretary to waive 

those requirements in limited circumstances, which is similar to an 

approach that exists within the Department of Defense (10 U.S.C. 

2432(b)). 

HEARINGS

The Committee did not hold any hearings on H.R. 4398, however 

the Committee held the following oversight hearing: 

On April 22, 2015, the Subcommittee on Oversight and Management Efficiency held a hearing entitled ‘‘Acquisition Oversight: 

How Effectively Is DHS Safeguarding Taxpayer Dollars?’’ The Subcommittee received testimony from Ms. Michele Mackin, Director, 

Acquisition and Sourcing Management, U.S. Government Accountability Office; Hon. Chip Fulghum, Acting Deputy Undersecretary 

for Management and Chief Financial Officer, U.S. Department of 

Homeland Security; and Dr. Cedric Sims, Partner, Evermay Consulting Group. 

COMMITTEE CONSIDERATION

The Committee met on February 2, 2016, to consider H.R. 4398, 

and ordered the measure to be reported to the House with a favorable recommendation, without amendment, by voice vote. 


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COMMITTEE VOTES

Clause 3(b) of rule XIII of the Rules of the House of Representatives requires the Committee to list the recorded votes on the motion to report legislation and amendments thereto. 

No recorded votes were requested during consideration of 

H.R. 4398. 

COMMITTEE OVERSIGHT FINDINGS

Pursuant to clause 3(c)(1) of rule XIII of the Rules of the House 

of Representatives, the Committee has held oversight hearings and 

made findings that are reflected in this report. 

NEW BUDGET AUTHORITY, ENTITLEMENT AUTHORITY, AND TAX

EXPENDITURES

In compliance with clause 3(c)(2) of rule XIII of the Rules of the 

House of Representatives, the Committee finds that H.R. 4398, the 

DHS Acquisition Documentation Integrity Act of 2016, would result 

in no new or increased budget authority, entitlement authority, or 

tax expenditures or revenues. 

CONGRESSIONAL BUDGET OFFICE ESTIMATE

The Committee adopts as its own the cost estimate prepared by 

the Director of the Congressional Budget Office pursuant to section 

402 of the Congressional Budget Act of 1974. 

U.S. CONGRESS, CONGRESSIONAL BUDGET OFFICE, 

Washington, DC, February 17, 2016. 

Hon. MICHAEL MCCAUL, Chairman, Committee on Homeland Security, 

House of Representatives, Washington, DC. 

DEAR MR. CHAIRMAN: The Congressional Budget Office has prepared the enclosed cost estimate for H.R. 4398, the DHS Acquisition Documentation Integrity Act of 2016. 

If you wish further details on this estimate, we will be pleased 

to provide them. The CBO staff contact is Mark Grabowicz. 

Sincerely, 

KEITH HALL. 

Enclosure. 

H.R. 4398—DHS Acquisition Documentation Integrity Act of 2016 

H.R. 4398 would direct the Department of Homeland Security 

(DHS) to prepare cost estimates and schedules for its major acquisition programs and to maintain complete and accurate documentation of such projects. The bill’s requirements are largely consistent 

with existing DHS procurement policies. Therefore, CBO estimates 

that implementing H.R. 4398 would cost less than $500,000 annually; such spending would be subject to the availability of appropriated funds. 

Because enacting the legislation would not affect direct spending 

or revenues, pay-as-you-go procedures do not apply. CBO estimates 

that enacting H.R. 4398 would not increase net direct spending or 


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on-budget deficits in any of the four consecutive 10-year periods beginning in 2027. 

H.R. 4398 contains no intergovernmental or private-sector mandates as defined in the Unfunded Mandates Reform Act and would 

impose no costs on state, local, or tribal governments. 

The CBO staff contact for this estimate is Mark Grabowicz. The 

estimate was approved by H. Samuel Papenfuss, Deputy Assistant 

Director for Budget Analysis. 

STATEMENT OF GENERAL PERFORMANCE GOALS AND OBJECTIVES

Pursuant to clause 3(c)(4) of rule XIII of the Rules of the House 

of Representatives, H.R. 4398 contains the following general performance goals and objectives, including outcome related goals and 

objectives authorized. 

This bill requires relevant components to maintain specific types 

of acquisition documentation that is complete, accurate, timely, and 

valid. The heads of DHS components shall submit required information as part of an annual comprehensive report on the status of 

the Department’s acquisitions. 

DUPLICATIVE FEDERAL PROGRAMS

Pursuant to clause 3(c) of rule XIII, the Committee finds that 

H.R. 4398 does not contain any provision that establishes or reauthorizes a program known to be duplicative of another Federal program. 

CONGRESSIONAL EARMARKS, LIMITED TAX BENEFITS, AND LIMITED

TARIFF BENEFITS

In compliance with rule XXI of the Rules of the House of Representatives, this bill, as reported, contains no congressional earmarks, limited tax benefits, or limited tariff benefits as defined in 

clause 9(e), 9(f), or 9(g) of the rule XXI. 

FEDERAL MANDATES STATEMENT

The Committee adopts as its own the estimate of Federal mandates prepared by the Director of the Congressional Budget Office 

pursuant to section 423 of the Unfunded Mandates Reform Act. 

PREEMPTION CLARIFICATION

In compliance with section 423 of the Congressional Budget Act 

of 1974, requiring the report of any Committee on a bill or joint 

resolution to include a statement on the extent to which the bill or 

joint resolution is intended to preempt State, local, or Tribal law, 

the Committee finds that H.R. 4398 does not preempt any State, 

local, or Tribal law. 

DISCLOSURE OF DIRECTED RULE MAKINGS

The Committee estimates that H.R. 4398 would require no directed rule makings. 


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ADVISORY COMMITTEE STATEMENT

No advisory committees within the meaning of section 5(b) of the 

Federal Advisory Committee Act were created by this legislation. 

APPLICABILITY TO LEGISLATIVE BRANCH

The Committee finds that the legislation does not relate to the 

terms and conditions of employment or access to public services or 

accommodations within the meaning of section 102(b)(3) of the Congressional Accountability Act. 

SECTION-BY-SECTION ANALYSIS OF THE LEGISLATION

Section 1. Short title 

This section provides that this bill may be cited as the ‘‘DHS Acquisition Documentation Integrity Act of 2016’’. 

Section 2. Department of Homeland Security Acquisition Documentation 

SUBSECTION (a)—IN GENERAL. 

This subsection inserts a new section in the Homeland Security 

Act of 2002, entitled ‘‘Sec. 708. Acquisition Documentation’’ containing the following: 

Subsection (a)—In general 

This subsection compels the Secretary of Homeland Security, acting through the Under Secretary for Management, to require relevant components to maintain specific types of acquisition documentation that is complete, accurate, timely, and valid. Specifically, component heads must maintain documentation that, at a 

minimum, includes: (1) information regarding operational requirements; (2) a complete life-cycle cost estimate; (3) a verification of 

the life-cycle cost estimate against independent cost estimates; (4) 

a cost-benefit analysis; and (5) a schedule. The component heads 

are also required to submit certain documentation to the DHS Secretary for inclusion in an annual comprehensive report on the status of the Department’s acquisitions. 

Subsection (b)—Waiver 

This subsection codifies a narrow set of authorities for the DHS 

Secretary to waive the documentation requirement under subsection (a)(3), a similar approach to the acquisition-management 

and reporting activities in the Department of Defense. Specifically, 

the Secretary may waive documentation requirements if a program 

has not: (1) entered full-rate production; (2) established a reasonable cost estimate; or (3) had a fully defined system configuration. 

Additionally, the requirement may be waived if the program is not 

a ‘‘capital asset,’’ as defined by the Office of Management and 

Budget. 

Subsection (c)—Congressional oversight 

This subsection requires the DHS Secretary to submit to the 

House and Senate homeland security committees, as part of the annual budget process, information on the circumstances surrounding 

any waivers issued under subsection (b) in the prior fiscal year. 


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The Secretary must include information on: (1) the grounds for 

issuing a waiver for a program; (2) the projected cost of such program; (3) the proportion of the total annual acquisition budget attributed to such program; and (4) information on the significance 

of such program to support the Department’s mission. 

Subsection (d)—Major acquisition program defined 

This subsection defines ‘‘major acquisition program’’ as an acquisition program that is estimated to require at least $300 million 

over its life cycle. 

SUBSECTION (b)—CLERICAL AMENDMENT. 

This subsection makes clerical corrections to the Homeland Security Act of 2002 by inserting the section header in the table of contents at the appropriate place. 

CHANGES IN EXISTING LAW MADE BY THE BILL, AS REPORTED

In compliance with clause 3(e) of rule XIII of the Rules of the 

House of Representatives, changes in existing law made by the bill, 

as reported, are shown as follows (new matter is printed in italic 

and existing law in which no change is proposed is shown in 

roman): 

HOMELAND SECURITY ACT OF 2002 

SECTION 1. SHORT TITLE; TABLE OF CONTENTS. 

(a) SHORT TITLE.—This Act may be cited as the ‘‘Homeland Security Act of 2002’’. 

(b) TABLE OF CONTENTS.—The table of contents for this Act is as 

follows: 

* * * * * * * 

TITLE VII—MANAGEMENT 

* * * * * * * 

Sec. 708. Acquisition documentation. 

* * * * * * * 

TITLE VII—MANAGEMENT 

* * * * * * * 

SEC. 708. ACQUISITION DOCUMENTATION. 

(a) IN GENERAL.—For each major acquisition program, the Secretary, acting through the Under Secretary for Management, shall 

require the head of a relevant component or office to— 

(1) maintain acquisition documentation that is complete, accurate, timely, and valid and that includes, at a minimum— 

(A) operational requirements that are validated consistent with Departmental policy and changes to those requirements, as appropriate; 

(B) a complete lifecycle cost estimate with supporting documentation; 


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(C) verification of the lifecycle cost estimate against independent cost estimates, and reconciliation of any differences; 

(D) a cost-benefit analysis with supporting documentation; and 

(E) a schedule, including, as appropriate, an integrated 

master schedule; 

(2) prepare cost estimates and schedules for major acquisition 

programs, as required under subparagraphs (B) and (E), in a 

manner consistent with best practices as identified by the 

Comptroller General of the United States; and 

(3) submit certain acquisition documentation to the Secretary 

to produce an annual comprehensive report on the status of departmental acquisitions for submission to Congress. 

(b) WAIVER.—On a case-by-case basis, the Secretary may waive 

the requirement under paragraph (3) of subsection (a) for a fiscal 

year if either— 

(1) the program has not— 

(A) entered the full rate production phase in the acquisition lifecycle; 

(B) had a reasonable cost estimate established; and 

(C) had a system configuration defined fully; or 

(2) the program does not meet the definition of capital asset, 

as such term is defined by the Director of the Office of Management and Budget. 

(c) CONGRESSIONAL OVERSIGHT.—At the same time the President’s 

budget is submitted for a fiscal year under section 1105(a) of title 

31, United States Code, the Secretary shall make information available, as applicable, to the Committee on Homeland Security of the 

House of Representatives and the Committee on Homeland Security 

and Governmental Affairs of the Senate information on the requirement under subsection (a) in the prior fiscal year that includes the 

following specific information regarding each program for which the 

Secretary has issued a waiver under subsection (b): 

(1) The grounds for granting a waiver for that program. 

(2) The projected cost of that program. 

(3) The proportion of a component’s or office’s annual acquisition budget attributed to that program, as available. 

(4) Information on the significance of the program with respect to the component’s operations and execution of its mission. 

(d) MAJOR ACQUISITION PROGRAM DEFINED.—In this section, 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 2016 

constant dollars) over its lifecycle cost. 

* * * * * * * 

Æ 


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