BoldBites Podcast

The Section 809 Panel produces 

a monthly podcast called 

Bold Bites. Commissioners 

and professional staff speak 

about their latest research, 

recommendations, and meetings. To listen, 

go to section809panel.org/media/bold‐

bites‐podcast/.

Summary of Recommendations Published in Volume 2

continued on next page

I

N MAY 2017, THE SECTION 809 PANEL submitted its Interim Report, which laid out the 

panel’s rationale for streamlining DoD acquisition. The Volume 1 Report, published in 

January 2018, contained recommendations to update the process by which DoD acquires IT 

business systems, streamline DoD’s cumbersome auditing requirements, address challenges 

in how the small business community and DoD interact, update commercial buying 

processes, clarify the definitions of personal and nonpersonal services, remove statutory 

requirements for acquisition-related DoD offices, and repeal acquisition-related statutor

reporting requirements. Many of these recommendations have been included in the House

passed FY 2019 NDAA, H.R. 5515.

Volume 1 also included an introduction to the Dynamic Marketplace framework, a 

model that addresses all of the essential elements of the federally regulated acquisition 

environment, such as competition, business integrity, process efficiency, and transparency. 

This new model will include transactional processes that mirror, as appropriate, those in the 

The Section 809 Panel interacts regularly 

with stakeholders inside and outside 

government. The research teams have 

met with hundreds of representatives 

from industry, think tanks, DoD, and other 

entities in an effort to carefully consider 

all aspects of the system. Outreach 

efforts have generated hundreds of ideas 

for reform that the panel is diligently 

investigating.

Contacting Us...

Website

The Section 809 Panel hosts an abundance 

of information, such as Congressional 

reports, meeting information, 

commissioner and staff biographies, 

and media products, on its website at 

section809panel.org. To conclude the 

panel’s statutory duties in a timely fashion, 

the Section 809 Panel will no longer be 

accepting public comments or suggestions 

after June 30, 2018. Stakeholder feedback 

received before that time will be evaluated 

by the panel, and as appropriate, 

incorporated into the panel’s research. 

Commissioners and staff will continue to 

interact with stakeholders as needed as the 

panel completes its research. 

Daily Media Clips

Each business day, the 

Section 809 Panel

publishes news clips that 

highlight current

articles related to defense acquisition. 

Social Media

For information related specifically 

to the panel, stakeholders can follow 

the Section 809 Panel on Twitter 

(@Section809Panel) and connect on 

LinkedIn (Section 809 Panel).

commercial market, such as the prevalent use of market intelligence and efficient economic 

markets. The Dynamic Marketplace represents a bold shift from the current process-centric

acquisition system. The panel continues to develop this concept in preparation for Volume 3.

This Volume 2 Report builds on the Section 809 Panel’s previous policy recommendations by 

offering an introductory paper on the tenets of a viable defense acquisition system aimed 

at improving the existing over-managed system to more readily meet warfighter needs. This

report represents an overview of the state of the system now and offers a vision for the future. 

It will also guide the panel’s specific recommendations for a new defense acquisition vision 

cemented around portfolio capabilities and tools and resources designed to empower users 

and product owners to manage programs more effectively, which will be published in 

Volume 3. Volume 2 also contains recommendations related to the acquisition workforce, 

commercial source selection, the Cost Accounting Standards Board, and services contracting as 

well as further discussion of the Dynamic Marketplace concept and a section on decluttering 

Title 10 of the U.S Code.

FRAMEWORK

The introductory paper on the defense 

acquisition system identifies five key 

elements that drive the acquisition 

process and provide a framework for 

change:

§ Strategy: the mission and goals of 

defense acquisition. 

§ Structure: how the defense acqui‐

sition enterprise is organized and 

the roles of stakeholders within the 

enterprise.

§ Processes and Procedures: the means 

by which requirements, resources, 

procurement, and processes are used 

to deliver warfighting systems.

§ Resources: the people, funding, data, 

and time that serve as the means for 

defense acquisition to execute against 

its mission and goals.

§ Culture: the values and behaviors that 

shape the environment and practices 

of defense acquisition.

The Section 809 Panel’s recommenda‐

tions, including those contained in the 

Interim Report, the Volume 1 Report, 

this Volume 2 Report, and the upcoming 

Volume 3 Report, address issues relat‐

ed to each of these five elements in an 

effort to create a cohesive system that 

optimally serves warfighters.

IMPROVING DEFENSE 

ACQUISITION

The Defense Acquisition System 

requires greater speed and ability to be 

responsive in a dynamic environment. 

Changing from a program-centric man

agement structure to a portfolio man‐

agement structure would enable timely 

delivery of integrated capabilities. Shift‐

ing to an effective portfolio capability 

structure would allow for tighter align‐

ment of acquisition, requirements, and 

budget processes. It would also provide 

flexibility and potentially increased war‐

fighter capability. Introducing Capability 

Portfolio Management would enable 

analysis and integration of cross-cutting

data and create an enterprise view that 

would support better-informed decision

making. 

Realigning the acquisition system to 

place appropriate emphasis on sustain‐

ment would bring renewed focus on the 

state of readiness. The requirements 

system needs to focus on capabilities 

needed to achieve strategic objectives 

instead of predefined materiel solu‐

tions. The Section 809 Panel will pro‐

vide specific recommendations related 

to enterprise capability portfolio man‐

agement, portfolio execution, sustain‐

ment, and requirements in its Volume 3 

Report.

ACQUISITION WORKFORCE

The acquisition workforce (AWF) faces 

challenges that must be overcome to 

ensure it is capable of implementing 

needed acquisition reforms. The exist‐

ing framework of hiring authorities for 

the AWF fails to support DoD’s efforts 

to address critical skill gaps through 

the hiring process. The hiring authori‐

ties must be streamlined and adapted 

to support the acquisition workforce. 

The Acquisition Workforce Personnel 

Demonstration Project (AcqDemo) to 

date has been administered under a 

temporary authority. The program has 

been successful for the DoD AWF mem‐

bers covered by the authority, and the 

program should be made permanent 

and applied to the entire DoD AWF. 

The Defense Acquisition Workforce 

Development Fund (DAWDF) has 

supported DoD’s ability to recruit and 

retain qualified acquisition personnel, 

yet faces three key challenges: (a) de‐

termining the most efficient approach 

to operational funding, (b) determin‐

ing the proper allocation method, and 

(c) addressing ongoing management 

by Human Capital Initiatives. DAWDF 

should be resourced and managed as 

a multiyear fund from expiring-year,

unobligated dollars at no less than $450 

million annually.

§ Rec. 25: Streamline and adapt hiring 

authorities to support the acquisition 

workforce.

§ Rec. 26: Convert the Civilian Acquisition Workforce Personnel Demonstration Project (AcqDemo) from an 

indefinite demonstration project to a 

permanent personnel system.

§ Rec. 27: Improve resourcing, allocation, and management of the Defense Acquisition Workforce Development Fund (DAWDF).

SIMPLIFIED COMMERCIAL 

SOURCE SELECTION

Despite numerous revisions to stat‐

utes and regulations, selecting sources 

for commercial products and services 

continues to take too long and involve 

unnecessarily complex procedures for 

buyers and sellers. Statutory changes 

aimed at expanding the applicability of 

the special streamlined acquisition pro‐
should be exempt from paying FRET. FAR Part 32.805, 

Procedures specifies outdated procedures for the assign‐

ment of claims to contract payment that require a physi‐

cal impress of the corporate seal of the assignor as well as 

original documentation related to corporate authority to 

execute assignment. The FAR should be updated to reflect 

the use of modern technology.

§ Rec. 32: Exempt DoD from paying the Federal Retail 

Excise Tax.

§ Rec. 33: Update the Assignment of Claims procedures 

under FAR Part 32.805.

TITLE 10 REORGANIZATION

In the 60 years since Title 10 was enacted, the acquisi‐

tion-related part of the Code has expanded and the once

organized structure now contains myriad note sections, 

making acquisition law challenging to navigate. Repeal‐

ing certain Title 10 sections and note sections, creating a 

new Part V under Subtitle A of Title 10, and redesignating 

sections in Subtitles B-D to make room for Part V will sup

port a more logical organization of Title 10 and facilitate 

greater ease of use.

§ Rec. 34: Repeal certain Title 10 sections and notes, 

create a new Part V under Subtitle A of Title 10, and 

redesignate sections in Subtitles B-D to make room 

for Part V to support a more logical organization and 

greater ease of use.

OPERATIONALIZING THE DYNAMIC 

MARKETPLACE

The Section 809 Panel has continued to examine the Dy‐

namic Marketplace concept as an avenue for bold chang‐

es to the cost-centric and inflexible system used today

that values process perfection over operational output. In 

working to translate this concept into transaction rules, 

it has become apparent that there are three operational 

lanes—rather than four, as described in the Volume 1 

Report. Lane 1 pertains to readily available items that can 

be purchased with no customization or can be purchased 

with customization that is part of the normal course of 

business. Lane 2 pertains to items readily available to the 

private-sector but require customization that is consistent

with existing private-sector practices to meet DoD needs.

Lane 3 pertains to defense-unique items or development

For detailed analysis, see the Section 809 Panel’s Volume 2 

Report at section809panel.org

Report of the Advisory Panel on 

Streamlining and Codifying 

Acquisition Regulations

Volume 2 of 3

Summary of Recommendations

June 2018

Vo

ul m

e

1

—

January 2018

Volume 2

—

June

2

018

Volume 3 — January 2019

cedures and updating the requirement to publish notices 

to reflect current technology would simplify selection of 

sources for commercial products and services. Improving 

guidance in the FAR, emphasizing the use of simplified ac‐

quisition procedures, revising the FAR to make it easier to 

locate procedures for using simplified acquisition proce‐

dures for commercial products and services, and defining 

streamlining-related terms in the FAR would also simplify

commercial selection.

§ Rec. 28: Simplify the selection of sources for commercial products and services.

COST ACCOUNTING STANDARDS

The Cost Accounting Standards Board (CASB) and cost 

accounting standards (CAS) need to be restructured to 

provide necessary guidance and minimize the burden 

for government and contractors. The CASB should be 

reinvigorated by extracting it from the Office of Federal 

Procurement Policy and making it an independent Execu‐

tive branch organization. The CAS program requirements 

should be modified to include raising the thresholds for 

full CAS coverage and the disclosure statement and add‐

ing guidance for CAS applicability to hybrid contracts and 

indefinite delivery contract vehicles.

§ Rec. 29: Revise 41 U.S.C. §§ 101-1506 to designate the 

Cost Accounting Standards Board as an independent 

federal organization within the Executive Branch.

§ Rec. 30: Reshape CAS program requirements to function better in a changed acquisition environment.

SERVICES CONTRACTING

The regulatory and statutory distinctions between per‐

sonal and nonpersonal services are outdated and in‐

consistent with the multisector workforce management 

approaches used by DoD and other federal agencies. 

Eliminating the statutory and regulatory distinctions 

between personal services contracts and nonpersonal 

services contracts will facilitate a multisector workforce 

needed to achieve and maintain national, strategic, and 

operational objectives and provide for managerial flexibil‐

ity in determining how to fulfill service requirements.

§ Rec. 31: Eliminate the statutory and regulatory distinction between personal services contracts (PSC) and 

nonpersonal services (NPS) contracts.

ADDITIONAL STREAMLINING 

RECOMMENDATIONS

The Federal Retail Excise Tax (FRET) distorts DoD vehi‐

cle-buying decisions, increases administrative costs, and

conflicts with current contract-pricing policy and govern

mentwide regulations limiting passthrough charges. DoD