```

[House Report 114-297]
[From the U.S. Government Publishing Office]

114th Congress    }                                     {       Report
                        HOUSE OF REPRESENTATIVES
 1st Session      }                                     {       114-297

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

 
          DHS HEADQUARTERS REFORM AND IMPROVEMENT ACT OF 2015

                                _______
                                

October 20, 2015.--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. 3572]

      [Including cost estimate of the Congressional Budget Office]

    The Committee on Homeland Security, to whom was referred 
the bill (H.R. 3572) to amend the Homeland Security Act of 2002 
to reform, streamline, and make improvements to the Department 
of Homeland Security and support the Department's efforts to 
implement better policy, planning, management, and performance, 
and for other purposes, having considered the same, report 
favorably thereon with an amendment and recommend that the bill 
as amended do pass.

                                CONTENTS

                                                                   Page
Purpose and Summary..............................................    34
Background and Need for Legislation..............................    34
Hearings.........................................................    35
Committee Consideration..........................................    38
Committee Votes..................................................    40
Committee Oversight Findings.....................................    40
New Budget Authority, Entitlement Authority, and Tax Expenditures    40
Congressional Budget Office Estimate.............................    40
Statement of General Performance Goals and Objectives............    41
Duplicative Federal Programs.....................................    42
Congressional Earmarks, Limited Tax Benefits, and Limited Tariff 
  Benefits.......................................................    42
Federal Mandates Statement.......................................    42
Preemption Clarification.........................................    42
Disclosure of Directed Rule Makings..............................    42
Advisory Committee Statement.....................................    42
Applicability to Legislative Branch..............................    42
Section-by-Section Analysis of the Legislation...................    43
Changes in Existing Law Made by the Bill, as Reported............    60

    The amendment is as follows:
  Strike all after the enacting clause and insert the 
following:

SECTION 1. SHORT TITLE; TABLE OF CONTENTS.

  (a) Short Title.--This Act may be cited as the ``DHS Headquarters 
Reform and Improvement Act of 2015''.
  (b) Table of Contents.--The table of contents for this Act is the 
following:

Sec. 1. Short title; table of contents.

 TITLE I--DEPARTMENT OF HOMELAND SECURITY HEADQUARTERS REAUTHORIZATION

Sec. 101. Definitions.
Sec. 102. Headquarters components.
Sec. 103. Chief Privacy Officer.
Sec. 104. Office of Policy.
Sec. 105. Quadrennial homeland security review.
Sec. 106. Future years homeland security program.
Sec. 107. Management and execution.
Sec. 108. Chief Financial Officer.
Sec. 109. Chief Procurement Officer.
Sec. 110. Chief Information Officer.
Sec. 111. Chief Human Capital Officer.
Sec. 112. Chief Security Officer.
Sec. 113. Cost savings and efficiency reviews.
Sec. 114. Field efficiencies plan.
Sec. 115. Resources to respond to operational surges.
Sec. 116. Department of Homeland Security rotation program.

        TITLE II--DHS ACQUISITION ACCOUNTABILITY AND EFFICIENCY

Sec. 201. Definitions.
Sec. 202. Prohibition on additional authorization of appropriations.

                  Subtitle A--Acquisition Authorities

Sec. 211. Acquisition authorities for Under Secretary for Management.
Sec. 212. Acquisition authorities for Chief Financial Officer.
Sec. 213. Acquisition authorities for Chief Information Officer.
Sec. 214. Requirements to ensure greater accountability for acquisition 
programs.

         Subtitle B--Acquisition Program Management Discipline

Sec. 221. Acquisition Review Board.
Sec. 222. Requirements to reduce duplication in acquisition programs.
Sec. 223. Government Accountability Office review of Board and of 
requirements to reduce duplication in acquisition programs.
Sec. 224. Excluded Party List System waivers.
Sec. 225. Inspector General oversight of suspension and debarment.

     Subtitle C--Acquisition Program Management Accountability and 
                              Transparency

Sec. 231. Congressional notification and other requirements for major 
acquisition program breach.
Sec. 232. Multiyear acquisition strategy.
Sec. 233. Acquisition reports.
Sec. 234. Government Accountability Office review of multiyear 
acquisition strategy.
Sec. 235. Office of Inspector General report.

 TITLE I--DEPARTMENT OF HOMELAND SECURITY HEADQUARTERS REAUTHORIZATION

SEC. 101. DEFINITIONS.

  Section 2 of the Homeland Security Act of 2002 is amended--
          (1) by redesignating paragraphs (13) through (18) as 
        paragraphs (15) through (20);
          (2) by redesignating paragraphs (9) through (12) as 
        paragraphs (10) through (13);
          (3) by inserting after paragraph (8) the following:
          ``(9) The term `homeland security enterprise' means relevant 
        governmental and nongovernmental entities involved in homeland 
        security, including Federal, State, local, and tribal 
        government officials, private sector representatives, 
        academics, and other policy experts.''; and
          (4) by inserting after paragraph (13), as so redesignated, 
        the following:
          ``(14) The term `management integration and transformation'--
                  ``(A) means the development of consistent and 
                consolidated functions for information technology, 
                financial management, acquisition management, and human 
                capital management; and
                  ``(B) includes governing processes and procedures, 
                management systems, personnel activities, budget and 
                resource planning, training, real estate management, 
                and provision of security, as they relate to functions 
                cited in subparagraph (A).''.

SEC. 102. HEADQUARTERS COMPONENTS.

  (a) In General.--Section 102 of the Homeland Security Act of 2002 (6 
U.S.C. 112) is amended--
          (1) in subsection (c)--
                  (A) in the matter preceding paragraph (1), by 
                striking ``through the Office of State and Local 
                Coordination (established under section 801)'' and 
                inserting ``through the Office of Partnership and 
                Engagement'';
                  (B) in paragraph (2), by striking ``and'' after the 
                semicolon at the end;
                  (C) in paragraph (3), by striking the period and 
                inserting ``; and''; and
                  (D) by adding at the end the following:
          ``(4) entering into agreements with governments of other 
        countries, in consultation with the Secretary of State, and 
        international nongovernmental organizations in order to achieve 
        the missions of the Department.''; and
          (2) by adding at the end the following:
  ``(h) Headquarters.--
          ``(1) Components.--The Department Headquarters shall include 
        the following:
                  ``(A) The Office of the Secretary.
                  ``(B) The Office of the Deputy Secretary.
                  ``(C) The Executive Secretariat.
                  ``(D) The Management Directorate, including the 
                Office of the Chief Financial Officer.
                  ``(E) The Office of Policy.
                  ``(F) The Office of General Counsel.
                  ``(G) The Office of the Chief Privacy Officer.
                  ``(H) The Office of Civil Rights and Civil Liberties.
                  ``(I) The Office of Operations and Coordination and 
                Planning.
                  ``(J) The Office of Intelligence and Analysis.
                  ``(K) The Office of Legislative Affairs.
                  ``(L) The Office of Public Affairs.
          ``(2) Functions.--The Secretary, through the Headquarters, 
        shall--
                  ``(A) establish the Department's overall strategy for 
                successfully completing its mission;
                  ``(B) establish initiatives that improve performance 
                Department-wide;
                  ``(C) establish mechanisms to ensure that components 
                of the Department comply with Headquarters policies and 
                fully implement the Secretary's strategies and 
                initiatives and require the head of each component of 
                the Department and component chief officers to comply 
                with such policies and implement such strategies and 
                initiatives;
                  ``(D) establish annual operational and management 
                objectives to determine the Department's performance;
                  ``(E) ensure that the Department successfully meets 
                operational and management performance objectives 
                through conducting oversight of component agencies;
                  ``(F) ensure that the strategies, priorities, 
                investments, and workforce of Department agencies align 
                with Department objectives;
                  ``(G) establish and implement policies related to 
                Department ethics and compliance standards;
                  ``(H) manage and encourage shared services across 
                Department components;
                  ``(I) lead and coordinate interaction with Congress 
                and other external organizations; and
                  ``(J) carry out other such functions as the Secretary 
                determines are appropriate.''.
  (b) Abolishment of Director of Shared Services.--
          (1) Abolishment.--The position of Director of Shared Services 
        is abolished.
          (2) Conforming amendment.--Section 475 of the Homeland 
        Security Act of 2002 (6 U.S.C. 295), and the item relating to 
        such section in the table of contents in section 1(b) of such 
        Act, are repealed.
  (c) Abolishment of the Office of Counternarcotics Enforcement.--
          (1) Abolishment.--The Office of Counternarcotics Enforcement 
        is abolished.
          (2) Conforming amendments.--The Homeland Security Act of 2002 
        is amended--
                  (A) by repealing section 878 (6 U.S.C. 112), and the 
                item relating to that section in the table of contents 
                in section 1(b) of such Act; and
                  (B) in subparagraph (B) of section 843(b)(1) (6 
                U.S.C. 413(b)(1)), by striking ``by--'' and all that 
                follows through the end of that subparagraph and 
                inserting ``by the Secretary; and''.

SEC. 103. CHIEF PRIVACY OFFICER.

  (a) In General.--Section 222 of the Homeland Security Act of 2002 (6 
U.S.C. 142) is amended--
          (1) in subsection (a)--
                  (A) in the matter preceding paragraph (1)--
                          (i) by inserting ``to be the Chief Privacy 
                        Officer of the Department,'' after ``in the 
                        Department,''; and
                          (ii) by striking ``, to assume'' and 
                        inserting ``and who shall have'';
                  (B) by amending paragraph (6) to read as follows:
          ``(6) preparing a report to Congress on an annual basis on--
                  ``(A) activities of the Department that affect 
                privacy, including complaints of privacy violations, 
                implementation of section 554 of title 5, United States 
                Code (popularly known as the Privacy Act of 1974), 
                internal controls, and other matters; and
                  ``(B) the number of new technology programs 
                implemented in the Department each fiscal year, the 
                number of those programs that the Chief Privacy Officer 
                has evaluated to ensure that privacy protections are 
                considered and implemented, the number of those 
                programs that effectively implemented privacy 
                protections into new technology programs, and an 
                explanation of why any new programs did not effectively 
                implement privacy protections.'';
          (3) by redesignating subsections (b) through (e) as 
        subsections (c) through (f); and
          (4) by inserting after subsection (a) the following:
  ``(b) Additional Responsibilities.--In addition to the 
responsibilities under subsection (a), the Chief Privacy Officer 
shall--
          ``(1) develop guidance to assist components of the Department 
        in developing privacy policies and practices;
          ``(2) establish a mechanism to ensure such components are in 
        compliance with Federal, regulatory, statutory, and the 
        Department's privacy requirements, mandates, directives, and 
        policy;
          ``(3) work with the Chief Information Officer of the 
        Department to identify methods for managing and overseeing the 
        Department's records, management policies, and procedures;
          ``(4) work with components and offices of the Department to 
        ensure that information sharing activities incorporate privacy 
        protections;
          ``(5) serve as the Department's central office for managing 
        and processing requests related to section 552 of title 5, 
        United States Code, popularly known as the Freedom of 
        Information Act;
          ``(6) develop public guidance on procedures to be followed 
        when making requests for information under section 552 of title 
        5, United States Code;
          ``(7) oversee the management and processing of requests for 
        information under section 552 of title 5, United States Code, 
        within Department Headquarters and relevant Department 
        component offices;
          ``(8) identify and eliminate unnecessary and duplicative 
        actions taken by the Department in the course of processing 
        requests for information under section 552 of title 5, United 
        States Code; and
          ``(9) carry out such other responsibilities as the Secretary 
        determines are appropriate, consistent with this section.''; 
        and
          (5) by adding at the end the following:
  ``(g) Reassignment of Functions.--The Secretary may reassign the 
functions related to managing and processing requests for information 
under section 552 of title 5, United States Code, to another officer 
within the Department, consistent with requirements of that section.''.

SEC. 104. OFFICE OF POLICY.

  (a) In General.--The Homeland Security Act of 2002 (6 U.S.C. 101 et 
seq.) is amended by--
          (1) redesignating section 601 as section 890B, and 
        transferring that section to appear immediately after section 
        890A; and
          (2) striking the heading for title VI and inserting the 
        following:

                    ``TITLE VI--POLICY AND PLANNING

``SEC. 601. OFFICE OF POLICY.

  ``(a) Establishment of Office.--There shall be in the Department an 
Office of Policy. The Office of Policy shall be headed by an Under 
Secretary for Policy, who shall be appointed by the President, by and 
with the advice and consent of the Senate.
  ``(b) Mission.--The mission of the Office of Policy is to lead, 
conduct, and coordinate Department-wide policy, strategic planning, and 
relationships with organizations or persons that are not part of the 
Department.
  ``(c) Components of Office.--The Office of Policy shall include the 
following components:
          ``(1) The Office of Partnership and Engagement under section 
        602.
          ``(2) The Office of International Affairs under section 603.
          ``(3) The Office of Policy Implementation under section 604.
          ``(4) The Office of Strategy and Planning under section 605.
  ``(d) Responsibilities of the Under Secretary.--Subject to the 
direction and control of the Secretary, the Under Secretary for Policy 
shall--
          ``(1) serve as the principal policy advisor to the Secretary;
          ``(2) coordinate with the Under Secretary for Management and 
        the General Counsel of the Department to ensure that 
        development of the Department's budget is compatible with the 
        priorities, strategic plans, and policies established by the 
        Secretary, including those priorities identified through the 
        Quadrennial Homeland Security Review required under section 
        707;
          ``(3) incorporate relevant feedback from, and oversee and 
        coordinate relationships with, organizations and other persons 
        that are not part of the Department to ensure effective 
        communication of outside stakeholders' perspectives to 
        components of the Department;
          ``(4) establish a process to ensure that organizations and 
        other persons that are not part of the Department can 
        communicate with Department components without compromising 
        adherence by the officials of such components to the 
        Department's ethics and policies;
          ``(5) manage and coordinate the Department's international 
        engagement activities;
          ``(6) advise, inform, and assist the Secretary on the impact 
        of the Department's policy, processes, and actions on State, 
        local, tribal, and territorial governments;
          ``(7) oversee the Department's engagement and development of 
        partnerships with nonprofit organizations and academic 
        institutions;
          ``(8) administer the Homeland Security Advisory Council and 
        make studies available to the Committee on Homeland Security of 
        the House of Representatives and the Committee on Homeland 
        Security and Governmental Affairs of the Senate on an annual 
        basis; and
          ``(9) carry out such other responsibilities as the Secretary 
        determines are appropriate, consistent with this section.
  ``(e) Coordination by Department Components.--
          ``(1) In general.--To ensure consistency with the Secretary's 
        policy priorities, the head of each component of the Department 
        shall coordinate with the Office of Policy, as appropriate, in 
        establishing new policies or strategic planning guidance.
          ``(2) International activities.--
                  ``(A) Foreign negotiations.--Each component of the 
                Department shall coordinate with the Under Secretary 
                for Policy plans and efforts of the component before 
                pursuing negotiations with foreign governments, to 
                ensure consistency with the Department's policy 
                priorities.
                  ``(B) Notice of international travel by senior 
                officers.--Each component of the Department shall 
                notify the Under Secretary for Policy of the 
                international travel of senior officers of the 
                Department.
  ``(f) Assignment of Personnel.--The Secretary shall assign to the 
Office of Policy permanent staff and, as appropriate and consistent 
with sections 506(c)(2), 821, and 888(d), other appropriate personnel 
detailed from other components of the Department to carry out the 
responsibilities under this section.
  ``(g) Deputy Under Secretary for Policy.--
          ``(1) In general.--The Secretary may--
                  ``(A) establish within the Department of Homeland 
                Security a position, to be called the Deputy Under 
                Secretary for Policy, to support the Under Secretary 
                for Policy in carrying out the Under Secretary's 
                responsibilities; and
                  ``(B) appoint a career employee to such position.
          ``(2) Limitation on establishment of deputy under secretary 
        positions.--A Deputy Under Secretary position (or any 
        substantially similar position) within the Department of 
        Homeland Security may not be established except for the 
        position provided for by paragraph (1) unless the Secretary of 
        Homeland Security receives prior authorization from Congress.
          ``(3) Definitions.--For purposes of paragraph (1)--
                  ``(A) the term `career employee' means any employee 
                (as that term is defined in section 2105 of title 5, 
                United States Code), but does not include a political 
                appointee; and
                  ``(B) the term `political appointee' means any 
                employee who occupies a position which has been 
                excepted from the competitive service by reason of its 
                confidential, policy-determining, policy-making, or 
                policy-advocating character.

``SEC. 602. OFFICE OF PARTNERSHIP AND ENGAGEMENT.

  ``(a) In General.--There shall be in the Office of Policy an Office 
of Partnership and Engagement.
  ``(b) Head of Office.--The Secretary shall appoint an Assistant 
Secretary for Partnership and Engagement to serve as the head of the 
Office.
  ``(c) Responsibilities.--The Assistant Secretary for Partnership and 
Engagement shall--
          ``(1) lead the coordination of Department-wide policies 
        relating to the role of State and local law enforcement in 
        preventing, preparing for, protecting against, and responding 
        to natural disasters, acts of terrorism, and other man-made 
        disasters within the United States;
          ``(2) serve as a liaison between State, local, and tribal law 
        enforcement agencies and the Department, including through 
        consultation with such agencies regarding Department programs 
        that may impact such agencies;
          ``(3) coordinate with the Office of Intelligence and Analysis 
        to certify the intelligence and information sharing 
        requirements of State, local, and tribal law enforcement 
        agencies are being addressed;
          ``(4) work with the Administrator to ensure that law 
        enforcement and terrorism-focused grants to State, local, and 
        tribal government agencies, including grants under sections 
        2003 and 2004, the Commercial Equipment Direct Assistance 
        Program, and other grants administered by the Department to 
        support fusion centers and law enforcement-oriented programs, 
        are appropriately focused on terrorism prevention activities;
          ``(5) coordinate with the Science and Technology Directorate, 
        the Federal Emergency Management Agency, the Department of 
        Justice, the National Institute of Justice, law enforcement 
        organizations, and other appropriate entities to support the 
        development, promulgation, and updating, as necessary, of 
        national voluntary consensus standards for training and 
        personal protective equipment to be used in a tactical 
        environment by law enforcement officers;
          ``(6) create and foster strategic communications with the 
        private sector to enhance the primary mission of the Department 
        to protect the American homeland;
          ``(7) advise the Secretary on the impact of the Department's 
        policies, regulations, processes, and actions on the private 
        sector;
          ``(8) interface with other relevant Federal agencies with 
        homeland security missions to assess the impact of these 
        agencies' actions on the private sector;
          ``(9) create and manage private sector advisory councils 
        composed of representatives of industries and associations 
        designated by the Secretary to--
                  ``(A) advise the Secretary on private sector 
                products, applications, and solutions as they relate to 
                homeland security challenges;
                  ``(B) advise the Secretary on homeland security 
                policies, regulations, processes, and actions that 
                affect the participating industries and associations; 
                and
                  ``(C) advise the Secretary on private sector 
                preparedness issues, including effective methods for--
                          ``(i) promoting voluntary preparedness 
                        standards to the private sector; and
                          ``(ii) assisting the private sector in 
                        adopting voluntary preparedness standards;
          ``(10) promote existing public-private partnerships and 
        developing new public-private partnerships to provide for 
        collaboration and mutual support to address homeland security 
        challenges;
          ``(11) assist in the development and promotion of private 
        sector best practices to secure critical infrastructure;
          ``(12) provide information to the private sector regarding 
        voluntary preparedness standards and the business justification 
        for preparedness and promoting to the private sector the 
        adoption of voluntary preparedness standards;
          ``(13) coordinate industry efforts, with respect to functions 
        of the Department of Homeland Security, to identify private 
        sector resources and capabilities that could be effective in 
        supplementing Federal, State, and local government agency 
        efforts to prevent or respond to a terrorist attack;
          ``(14) coordinate with the Commissioner of Customs and Border 
        Protection and the appropriate senior official of the 
        Department of Commerce on issues related to the travel and 
        tourism industries;
          ``(15) coordinate the activities of the Department relating 
        to State and local government;
          ``(16) assess, and advocate for, the resources needed by 
        State and local governments to implement the national strategy 
        for combating terrorism;
          ``(17) provide State and local governments with regular 
        information, research, and technical support to assist local 
        efforts at securing the homeland;
          ``(18) develop a process for receiving meaningful input from 
        State and local governments to assist the development of the 
        national strategy for combating terrorism and other homeland 
        security activities; and
          ``(19) perform such other functions as are established by law 
        or delegated to such Assistant Secretary by the Under Secretary 
        for Policy.

``SEC. 603. OFFICE OF INTERNATIONAL AFFAIRS.

  ``(a) In General.--There shall be in the Office of Policy an Office 
of International Affairs.
  ``(b) Head of Office.--The Secretary shall appoint an Assistant 
Secretary for International Affairs to serve as the head of the Office 
and as the chief diplomatic officer of the Department.
  ``(c) Functions.--
          ``(1) In general.--The Assistant Secretary for International 
        Affairs shall--
                  ``(A) coordinate international activities within the 
                Department, including activities carried out by the 
                components of the Department, in consultation with 
                other Federal officials with responsibility for 
                counterterrorism and homeland security matters;
                  ``(B) advise, inform, and assist the Secretary with 
                respect to the development and implementation of 
                Departmental policy priorities, including strategic 
                priorities for the deployment of assets, including 
                personnel, outside the United States;
                  ``(C) develop, in consultation with the Under 
                Secretary for Management, guidance for selecting, 
                assigning, training, and monitoring overseas 
                deployments of Department personnel, including minimum 
                standards for predeployment training;
                  ``(D) develop and update, in coordination with all 
                components of the Department engaged in international 
                activities, a strategic plan for the international 
                activities of the Department, establish a process for 
                managing its implementation, and establish mechanisms 
                to monitor the alignment between assets, including 
                personnel, deployed by the Department outside the 
                United States and the plan required by this 
                subparagraph;
                  ``(E) develop and distribute guidance on Department 
                policy priorities for overseas activities to personnel 
                deployed overseas, that, at a minimum, sets forth the 
                regional and national priorities being advanced by 
                their deployment, and establish mechanisms to foster 
                better coordination of Department personnel, programs, 
                and activities deployed outside the United States;
                  ``(F) maintain awareness regarding the international 
                travel of senior officers of the Department and their 
                intent to pursue negotiations with foreign government 
                officials, and review resulting draft agreements;
                  ``(G) develop, in consultation with the components of 
                the Department, including, as appropriate, with the 
                Under Secretary for the Science and Technology 
                Directorate, programs to support the overseas programs 
                conducted by the Department, including training, 
                technical assistance, and equipment to ensure that 
                Department personnel deployed abroad have proper 
                resources and receive adequate and timely support;
                  ``(H) conduct the exchange of homeland security 
                information, in consultation with the Under Secretary 
                of the Office of Intelligence and Analysis, and best 
                practices relating to homeland security with foreign 
                nations that, in the determination of the Secretary, 
                reciprocate the sharing of such information in a 
                substantially similar manner;
                  ``(I) submit information to the Under Secretary for 
                Policy for oversight purposes, including preparation of 
                the quadrennial homeland security review and on the 
                status of overseas activities, including training and 
                technical assistance and information exchange 
                activities and the Department's resources dedicated to 
                these activities;
                  ``(J) promote, when appropriate, and oversee the 
                exchange of education, training, and information with 
                nations friendly to the United States in order to share 
                best practices relating to homeland security; and
                  ``(K) perform such other functions as are established 
                by law or delegated by the Under Secretary for Policy.
          ``(2) Inventory of assets deployed abroad.--For each fiscal 
        year, the Assistant Secretary for International Affairs, in 
        coordination with the Under Secretary for Management, shall 
        provide to the Committee on Homeland Security of the House of 
        Representatives and the Committee on Homeland Security and 
        Governmental Affairs of the Senate with the annual budget 
        request for the Department, an annual accounting of all assets 
        of the Department, including personnel, deployed outside the 
        United States on behalf of the Department.
          ``(3) Standardized framework for cost data.--The Assistant 
        Secretary for International Affairs shall utilize a 
        standardized framework to collect and maintain comparable cost 
        data for all assets of the Department, including personnel, 
        deployed outside the United States to prepare the annual 
        accounting required by paragraph (2).
          ``(4) Exclusions.--This subsection does not apply to 
        international activities related to the protective mission of 
        the United States Secret Service, or to the Coast Guard when 
        operating under the direct authority of the Secretary of 
        Defense or the Secretary of the Navy.

``SEC. 604. OFFICE OF POLICY IMPLEMENTATION.

  ``(a) In General.--There shall be in the Office of Policy an Office 
of Policy Implementation.
  ``(b) Head of Office.--The Secretary shall appoint a Director of the 
Office of Policy Implementation to serve as the head of the Office.
  ``(c) Responsibilities.--The Director of the Office of Policy 
Implementation shall lead, conduct, coordinate, and provide overall 
direction and supervision of Department-wide policy development for the 
programs, offices, and activities of the Department, in consultation 
with relevant officials of the Department, to ensure quality, 
consistency, and integration across the Department, as appropriate.

``SEC. 605. OFFICE OF STRATEGY AND PLANNING.

  ``(a) In General.--There shall be in the Office of Policy of the 
Department an Office of Strategy and Planning.
  ``(b) Head of Office.--The Secretary shall appoint a Director of the 
Office of Strategy and Planning who shall serve as the head of the 
Office.
  ``(c) Responsibilities.--The Director of the Office of Strategy and 
Planning shall--
          ``(1) lead and conduct long-term Department-wide strategic 
        planning, including the Quadrennial Homeland Security Review 
        and planning guidance for the Department, and translate the 
        Department's statutory responsibilities, strategic plans, and 
        long-term goals into risk-based policies and procedures that 
        improve operational effectiveness; and
          ``(2) develop strategies to address unconventional threats to 
        the homeland.''.
  (b) Clerical Amendment.--The table of contents in section 1(b) of 
such Act is amended--
          (1) by striking the items relating to title VI and inserting 
        the following:

                    ``TITLE VI--POLICY AND PLANNING

``Sec. 601. Office of Policy.
``Sec. 602. Office of Partnership and Engagement.
``Sec. 603. Office of International Affairs.
``Sec. 604. Office of Policy Implementation.
``Sec. 605. Office of Strategy and Planning.''.

          (2) by inserting after the item relating to section 890A the 
        following:

``Sec. 890B. Treatment of charitable trusts for members of the Armed 
Forces of the United States and other governmental organizations.''.

  (c) Appointment of Under Secretary for Policy; Continuation of 
Service of Assistant Secretary.--
          (1) Time of appointment.--The President may appoint an Under 
        Secretary for Policy under section 601 of the Homeland Security 
        Act of 2002, as amended by this Act, only on or after January 
        20, 2017.
          (2) Head of office pending appointment.--The individual 
        serving as the Assistant Secretary for Policy of the Department 
        of Homeland Security on the date of the enactment of this Act, 
        or their successor, may continue to serve as an Assistant 
        Secretary and as the head of the Office of Policy established 
        by such section, until the date on which the Under Secretary 
        for Policy is appointed under such section in accordance with 
        paragraph (1).
  (d) Appointment of Assistant Secretary for International Affairs; 
Abolishment of Existing Office.--
          (1) Time of appointment.--The Secretary of Homeland Security 
        may appoint an Assistant Secretary for International Affairs 
        under section 602 of the Homeland Security Act of 2002, as 
        amended by this Act, only on or after January 20, 2017.
          (2) Head of office pending appointment.--The individual 
        serving as the Assistant Secretary for International Affairs of 
        the Department of Homeland Security on the date of the 
        enactment of this Act, or their successor, may continue to 
        serve as a Deputy Assistant Secretary and as the head of the 
        Office of International Affairs established by such section, 
        until the date the Under Secretary for Policy is appointed 
        under such section in accordance with paragraph (1).
          (3) Abolishment of existing office..--
                  (A) In general.--The Office of International Affairs 
                within the Office of the Secretary is abolished.
                  (B) Transfer of assets and personnel.--The assets and 
                personnel associated with such Office are transferred 
                to the head of the Office of International Affairs 
                provided for by section 603 of the Homeland Security 
                Act of 2002, as amended by this Act.
                  (C) Conforming amendment.--Section 879 of the 
                Homeland Security Act of 2002 (6 U.S.C. 459), and the 
                item relating to such section in section 1(b) of such 
                Act, are repealed.
  (e) Abolishment of Office for State and Local Law Enforcement.--
          (1) In general.--The Office for State and Local Law 
        Enforcement of the Department of Homeland Security is 
        abolished.
          (2) Transfer of functions, assets, and personnel.--The 
        functions authorized to be performed by such office immediately 
        before the enactment of this Act, and the assets and personnel 
        associated with such functions, are transferred to the head of 
        the Office of Partnership and Engagement provided for by 
        section 602 of the Homeland Security Act of 2002, as amended by 
        this Act.
          (3) Conforming amendment.--Subsection (b) of section 2006 of 
        the Homeland Security Act of 2002 (6 U.S.C. 607) is repealed.
  (f) Abolishment of Office for State and Local Government 
Coordination.--
          (1) In general.--The Office for State and Local Government 
        Coordination of the Department of Homeland Security is 
        abolished.
          (2) Transfer of functions and assets.--The functions 
        authorized to be performed by such office immediately before 
        the enactment of this Act, and the assets and personnel 
        associated with such functions, are transferred to the head of 
        Office of Partnership and Engagement provided for by section 
        602 of the Homeland Security Act of 2002, as amended by this 
        Act.
          (3) Conforming amendments.--Section 801 of the Homeland 
        Security Act of 2002 (6 U.S.C. 631), and the item relating to 
        that section in the table of contents in section 1(b) of such 
        Act, are repealed.
  (g) Abolishment of Special Assistant to the Secretary.--
          (1) In general.--The Special Assistant to the Secretary 
        authorized by section 102(f) of the Homeland Security Act of 
        2002, as in effect immediately before the enactment of this Act 
        (6 U.S.C. 112(f)), is abolished.
          (2) Transfer of functions and assets.--The functions 
        authorized to be performed by such Special Assistant to the 
        Secretary immediately before the enactment of this Act, and the 
        assets and personnel associated with such functions, are 
        transferred to the head of the Office of Partnership and 
        Engagement provided for by section 602 of the Homeland Security 
        Act of 2002, as amended by this Act.
          (3) Conforming amendment.--Section 102(f) of the Homeland 
        Security Act of 2002 (6 U.S.C. 112(f)) is repealed.
  (h) Conforming Amendments Relating to Assistant Secretaries.--Section 
103(a) of the Homeland Security Act of 2002 (6 U.S.C. 113(a)) is 
amended--
          (1) in paragraph (1), by striking subparagraph (I) and 
        redesignating subparagraph (J) as subparagraph (I); and
          (2) by amending paragraph (2) to read as follows:
          ``(2) Assistant secretaries.--
                  ``(A) Advice and consent appointments.--The 
                Department shall have the following Assistant 
                Secretaries appointed by the President, by and with the 
                advice and consent of the Senate:
                          ``(i) The Assistant Secretary, U.S. 
                        Immigration and Customs Enforcement.
                          ``(ii) The Assistant Secretary, 
                        Transportation Security Administration.
                  ``(B) Other presidential appointments.--The 
                Department shall have the following Assistant 
                Secretaries appointed by the President:
                          ``(i) The Assistant Secretary, Infrastructure 
                        Protection.
                          ``(ii) The Assistant Secretary, Office of 
                        Public Affairs.
                          ``(iii) The Assistant Secretary, Office of 
                        Legislative Affairs.
                  ``(C) Secretarial appointments.--The Department shall 
                have the following Assistant Secretaries appointed by 
                the Secretary:
                          ``(i) The Assistant Secretary, Office of 
                        Cybersecurity and Communications.
                          ``(ii) The Assistant Secretary for 
                        International Affairs under section 602.
                          ``(iii) The Assistant Secretary for 
                        Partnership and Engagement under section 603.
                  ``(D) Limitation on creation of positions.--No 
                Assistant Secretary position may be created in addition 
                to the positions provided for by this section unless 
                such position is authorized by a statute enacted after 
                the date of the enactment of the DHS Headquarters 
                Reform and Improvement Act of 2015.''.
  (i) Homeland Security Advisory Council.--Section 102(b) of the 
Homeland Security Act of 2002 (6 U.S.C. 112(b)) is amended by striking 
``and'' after the semicolon at the end of paragraph (2), striking the 
period at the end of paragraph (3) and inserting ``; and'', and adding 
at the end the following:
          ``(4) shall establish a Homeland Security Advisory Council to 
        provide advice and recommendations on homeland-security-related 
        matters.''.
  (j) Prohibition on New Offices.--No new office may be created to 
perform functions transferred by this section, other than as provided 
in section 601 of the Homeland Security Act of 2002, as amended by this 
Act, unless the Secretary of Homeland Security receives prior 
authorization from Congress permitting such change.
  (k) Definitions.--In this section each of the terms ``functions'', 
``assets'', and ``personnel'' has the meaning that term has under 
section 2 of the Homeland Security Act of 2002 (6 U.S.C. 101).
  (l) Duplication Review.--The Secretary of Homeland Security shall--
          (1) within 1 year after the date of the enactment of this 
        Act, complete a review of the international affairs offices, 
        functions, and responsibilities of the components of the 
        Department of Homeland Security, to identify and eliminate 
        areas of unnecessary duplication; and
          (2) within 30 days after the completion of such review, 
        provide the results of the review to the Committee on Homeland 
        Security of the House of Representatives and the Committee on 
        Homeland Security and Governmental Affairs of the Senate.

SEC. 105. QUADRENNIAL HOMELAND SECURITY REVIEW.

  Section 707 of the Homeland Security Act of 2002 (6 U.S.C. 347) is 
amended--
          (1) in subsection (a)--
                  (A) by amending paragraph (1) to read as follows:
          ``(1) Review required.--In fiscal year 2017, and every 4 
        years thereafter, the Secretary shall conduct a review of the 
        homeland security of the Nation (in this section referred to as 
        a `quadrennial homeland security review'). Such review shall be 
        conducted so that it is completed, and the report under 
        subsection (c) is issued, by no later than December 31, 2017, 
        and by December 31 of every fourth year thereafter.''; and
                  (B) in paragraph (3) by striking ``The Secretary 
                shall conduct each quadrennial homeland security review 
                under this subsection in consultation with'' and 
                inserting ``In order to ensure that each quadrennial 
                homeland security review conducted under this section 
                is coordinated with the quadrennial defense review 
                conducted by the Secretary of Defense under section 118 
                of title 10, United States Code, and any other major 
                strategic review relating to diplomacy, intelligence, 
                or other national security issues, the Secretary shall 
                conduct and obtain information and feedback from 
                entities of the homeland security enterprise through'';
          (2) in subsection (b)--
                  (A) in paragraph (5), by striking ``and'' after the 
                semicolon at the end;
                  (B) in paragraph (6), by striking the period and 
                inserting ``; and''; and
                  (C) by adding after paragraph (6) the following:
          ``(7) leverage analytical tools and resources developed as 
        part of the quadrennial homeland security review to support the 
        Department's ongoing programs and missions.'';
          (3) in subsection (c)(2)--
                  (A) by striking ``and'' after the semicolon at the 
                end of subparagraph (H);
                  (B) by redesignating subparagraph (I) as subparagraph 
                (L); and
                  (C) by inserting after subparagraph (H) the 
                following:
                  ``(I) a description of how the conclusions under the 
                quadrennial homeland security review will inform 
                efforts to develop capabilities and build capacity of 
                States, local governments, Indian tribes, and private 
                entities, and of individuals, families, and 
                communities;
                  ``(J) as appropriate, proposed changes to the 
                authorities, organization, governance structure, or 
                business processes (including acquisition processes) of 
                the Department in order to better fulfill 
                responsibilities of the Department;
                  ``(K) where appropriate, a classified annex, 
                including materials prepared pursuant to section 306 of 
                title 5, relating to the preparation of an agency 
                strategic plan, to satisfy, in whole or in part, the 
                reporting requirements of this paragraph; and''.

SEC. 106. FUTURE YEARS HOMELAND SECURITY PROGRAM.

  Section 874 of the Homeland Security Act of 2002 (6 U.S.C. 454) is 
amended--
          (1) by amending subsection (a) to read as follows:
  ``(a) In General.--Not later than the 30 days following the date of 
each fiscal year on which the budget of the President is submitted to 
Congress under section 1105(a) of title 31, United States Code, the 
Secretary shall submit to the Committee on Homeland Security of the 
House of Representatives and the Committee on Homeland Security and 
Governmental Affairs of the Senate a Future Years Homeland Security 
Program that provides detailed estimates of the projected expenditures 
and corresponding requests for appropriations included in that budget. 
The Future Years Homeland Security Program shall cover the fiscal year 
for which the budget is submitted and the 4 succeeding fiscal years.''; 
and
          (2) by adding at the end the following:
  ``(d) Consistency of Budget Request With Estimates.--For each fiscal 
year, the Secretary shall ensure that the projected amounts specified 
in program and budget information for the Department submitted to 
Congress in support of the President's budget request are consistent 
with the estimated expenditures and proposed appropriations necessary 
to support the programs, projects, and activities of the Department 
included in the budget pursuant to section 1105(a)(5) of title 31, 
United States Code.
  ``(e) Explanation of Alignment With Strategies and Plans.--Together 
with the detailed estimates of the projected expenditures and 
corresponding requests for appropriations submitted for the Future 
Years Homeland Security Program, the Secretary shall provide an 
explanation of how those estimates and requests align with the homeland 
security strategies and plans developed and updated as appropriate by 
the Secretary. Such explanation shall include an evaluation of the 
organization, organizational structure, governance structure, and 
business processes (including acquisition processes) of the Department, 
to ensure that the Department is able to meet its responsibilities.
  ``(f) Projection of Acquisition Estimates.--Each Future Years 
Homeland Security Program shall project--
          ``(1) acquisition estimates for a period of 5 fiscal years, 
        with specified estimates for each fiscal year, for major 
        acquisition programs by the Department and each component 
        therein, including modernization and sustainment expenses; and
          ``(2) estimated annual deployment schedules for major 
        acquisition programs over the 5-fiscal-year period.
  ``(g) Contingency Amounts.--Nothing in this section shall be 
construed as prohibiting the inclusion in the Future Years Homeland 
Security Program of amounts for management contingencies, subject to 
the requirements of subsection (b).
  ``(h) Classified or Sensitive Annex.--The Secretary may include with 
each submission under this section a classified or sensitive annex 
containing any information required to be submitted under this section 
that is restricted from public disclosure in accordance with Federal 
law, including information that is determined to be Sensitive Security 
Information under section 537 of the Department of Homeland Security 
Appropriations Act, 2006 (6 U.S.C. 114) to Congress in a classified or 
sensitive annex.
  ``(i) Availability of Information to the Public.--The Secretary shall 
make available to the public in electronic form the information 
required to be submitted to Congress under this section, other than 
information described in subsection (h).''.

SEC. 107. MANAGEMENT AND EXECUTION.

  Section 701 of the Homeland Security Act of 2002 (6 U.S.C. 341) is 
amended by striking subsections (a) and (b) and inserting the 
following:
  ``(a) In General.--Subject to the direction and control of the 
Secretary, the Under Secretary for Management shall serve as the 
following:
          ``(1) The Chief Management Officer for all matters related to 
        the management and administration of the Department in support 
        of homeland security operations and programs. With regard to 
        the management functions for which the Under Secretary has 
        responsibility by law or by direction of the Secretary, the 
        Under Secretary for Management takes precedence in the 
        Department after the Secretary and the Deputy Secretary of 
        Homeland Security.
          ``(2) The senior official with the authority to administer, 
        implement, and direct management integration and transformation 
        across functional disciplines of the Department, including--
                  ``(A) information technology, financial management, 
                acquisition management, and human capital management of 
                the Department to improve program efficiency and 
                effectiveness;
                  ``(B) ensure compliance with laws, rules, 
                regulations, and the Department's policies;
                  ``(C) conduct regular oversight; and
                  ``(D) prevent unnecessary duplication of programs in 
                the Department.
  ``(b) Responsibilities.--In addition to responsibilities designated 
by the Secretary or otherwise established by law, the Under Secretary 
for Management shall be responsible for performing, or delegating 
responsibility for performing, the following activities of the 
Department:
          ``(1) Development of the budget, management of 
        appropriations, expenditures of funds, accounting, and finance.
          ``(2) Acquisition and procurement activities under section 
        701(d).
          ``(3) Human resources and personnel.
          ``(4) Information technology and communication systems, in 
        consultation with the Under Secretary for Intelligence and 
        Analysis, as appropriate.
          ``(5) Facilities, property, equipment, and other material 
        resources.
          ``(6) Real property and personal property.
          ``(7) Security for personnel, information technology and 
        communications systems, facilities, property, equipment, and 
        other material resources.
          ``(8) Strategic management planning, annual performance 
        planning, and identification and tracking of performance 
        measures relating to the responsibilities of the Department, 
        including such responsibilities under section 306 of title 5, 
        United States Code.
          ``(9) Oversight of grants and other assistance management 
        programs to ensure proper administration.
          ``(10) Management integration and transformation within each 
        functional management discipline of the Department, including 
        information technology, financial management, acquisition 
        management, and human capital management, and the transition 
        process, to ensure an efficient and orderly consolidation of 
        functions and personnel in the Department and transition, 
        including the--
                  ``(A) development of coordinated data sources and 
                connectivity of information systems to the greatest 
                extent practical to enhance program visibility and 
                transparency;
                  ``(B) development of standardized, automated, and 
                real-time management information to uniformly manage 
                and oversee programs, and make informed decisions to 
                improve the efficiency of the Department;
                  ``(C) development of effective program management and 
                regular oversight mechanisms, including clear roles and 
                processes for program governance, sharing of best 
                practices, and access to timely, reliable, and analyzed 
                data on all acquisitions and investments;
                  ``(D) implementation of mechanisms to promote 
                accountability for management integration among 
                Department and component chief officers;
                  ``(E) integration of financial management systems 
                within and across the Department to ensure financial 
                transparency, support daily operational and financial 
                decisionmaking, and maintain consecutive unqualified 
                opinions for all financial statements, including the 
                responsibility to review, approve, and oversee the 
                planning, design, acquisition, deployment, operation, 
                maintenance, and modernization of business systems;
                  ``(F) integration of human resource management 
                systems within and across the Department to track and 
                record information (including attrition rates, 
                knowledge, skills, and abilities critical for workforce 
                planning, identifying current and future human capital 
                needs, including recruitment efforts and improving 
                employee morale), including the responsibility to 
                review, approve, and oversee the planning, design, 
                acquisition, deployment, operation, maintenance, and 
                modernization of business systems;
                  ``(G) development of a management integration 
                strategy for the Department and its components to be 
                submitted annually with the President's budget to 
                ensure that management of the Department is 
                strengthened in the areas of human capital, 
                acquisition, information technology, and financial 
                management, which shall include--
                          ``(i) short- and long-term objectives to 
                        effectively guide implementation of 
                        interoperable business systems solutions;
                          ``(ii) issuance of guidance and action plans 
                        with dates, specific actions, and costs for 
                        implementing management integration and 
                        transformation of common functional disciplines 
                        across the Department and its components;
                          ``(iii) specific operational and tactical 
                        goals, activities, and timelines needed to 
                        accomplish the integration effort;
                          ``(iv) performance measures to monitor and 
                        validate corrective measures;
                          ``(v) efforts to identify resources needed to 
                        achieve key actions and outcomes;
                          ``(vi) other issues impeding management 
                        integration;
                          ``(vii) reporting to the Government 
                        Accountability Office twice annually to 
                        demonstrate measurable, sustainable progress 
                        made in implementing the Department's 
                        corrective action plans and achieving key 
                        outcomes, including regarding--
                                  ``(I) leadership commitment;
                                  ``(II) capacity building; and
                                  ``(III) continuous monitoring to 
                                address Government Accountability 
                                Office designations of programs at high 
                                risk for waste, fraud, and abuse, 
                                including with respect to strengthening 
                                management functions;
                          ``(viii) review and approve any major update 
                        to the Department's strategy related to 
                        management integration and transformation 
                        across functional disciplines and lines of 
                        business, including any business systems 
                        modernization plans to maximize benefits and 
                        minimize costs for the Department; and
                          ``(ix) before December 1 of each year in 
                        which a Presidential election is held, the 
                        development of a transition and succession plan 
                        to guide the transition of Department functions 
                        to a new Presidential administration, and 
                        making such plan available to the next 
                        Secretary and Under Secretary for Management 
                        and to the homeland security congressional 
                        committees.
                  ``(H) Oversight, including the conduct of internal 
                audits and management analyses, of the programs and 
                activities of the Department. Such supervision includes 
                establishing oversight procedures to ensure a full and 
                effective review of the efforts by Department 
                components to implement policies and procedures of the 
                Department for management integration and 
                transformation.
                  ``(I) Any other management duties that the Secretary 
                may designate.''.

SEC. 108. CHIEF FINANCIAL OFFICER.

  Section 702 of the Homeland Security Act of 2002 (6 U.S.C. 341) is 
amended by redesignating subsections (b) and (c) as subsections (c) and 
(d), respectively, and by inserting after subsection (a) the following:
  ``(b) Responsibilities.--Notwithstanding sections 901 and 1122 of 
title 31, United States Code, the Chief Financial Officer, in 
consultation with the Under Secretary for Management and the Under 
Secretary for Intelligence and Analysis, as appropriate, shall--
          ``(1) lead cost-estimating practices for the Department, 
        including the development of the Department's policy on cost 
        estimating and approval of life cycle cost estimates;
          ``(2) oversee coordination with the Office of Policy on the 
        Department's long-term strategic planning to ensure that the 
        development of the Department's budget is compatible with the 
        priorities, strategic plans, and policies established by the 
        Secretary;
          ``(3) develop and oversee the Department's financial 
        management policy;
          ``(4) provide guidance for and over financial system 
        modernization efforts throughout the Department;
          ``(5) establish effective internal controls over financial 
        reporting systems and processes throughout the Department;
          ``(6) lead assessments of internal controls related to the 
        Department's financial management systems and review financial 
        processes to ensure that internal controls are designed 
        properly and operate effectively;
          ``(7) lead the Department's efforts related to financial 
        oversight, including identifying ways to streamline and 
        standardize business processes;
          ``(8) lead and provide guidance on performance-based 
        budgeting practices for the Department to ensure that the 
        Department and its components are meeting missions and goals;
          ``(9) ensure that Department components' senior financial 
        officers certify that their major acquisition programs have 
        adequate resources to execute their programs through the 5-year 
        future years homeland security program period, so that the 
        Department's funding requirements for major acquisition 
        programs match expected resources;
          ``(10) ensure that components identify and report all 
        expected costs of acquisition programs to the Chief Financial 
        Officer of the Department;
          ``(11) oversee Department budget formulation and execution;
          ``(12) fully implement a common accounting structure to be 
        used across the entire Department by fiscal year 2019; and
          ``(13) track, approve, oversee, and make public information 
        on expenditures by components of the Department for 
        conferences, as appropriate, including by requiring each 
        component of the Department to--
                  ``(A) report to the Inspector General of the 
                Department the expenditures by the component for each 
                conference hosted or attended by Department employees 
                for which the total expenditures of the Department 
                exceed $20,000, within 15 days after the date of the 
                conference; and
                  ``(B) with respect to such expenditures, provide to 
                the Inspector General--
                          ``(i) the information described in 
                        subsections (a), (b), and (c) of section 739 of 
                        Public Law 113-235; and
                          ``(ii) documentation of such expenditures.''.

SEC. 109. CHIEF PROCUREMENT OFFICER.

  (a) In General.--Title VII of the Homeland Security Act of 2002 (6 
U.S.C. 341 et seq.) is further amended by adding at the end the 
following:

``SEC. 708. CHIEF PROCUREMENT OFFICER.

  ``(a) In General.--There is a Chief Procurement Officer of the 
Department, who shall report directly to the Under Secretary for 
Management. The Chief Procurement Officer is the senior procurement 
executive for purposes of section 1702(c) of title 41 United States 
Code, and shall perform procurement functions as specified in such 
section. The Chief Procurement Officer also shall perform other 
functions and responsibilities set forth in this section and as may be 
assigned by the Under Secretary for Management.
  ``(b) Responsibilities.--The Chief Procurement Officer shall--
          ``(1) exercise leadership and authority to the extent 
        delegated by the Under Secretary for Management over the 
        Department's procurement function;
          ``(2) issue procurement policies, and shall serve as a senior 
        business advisor to agency officials on acquisition-related 
        matters, including policy and workforce matters, as determined 
        by the Under Secretary for Management;
          ``(3) account for the integrity, performance, and oversight 
        of Department procurement and contracting functions and be 
        responsible for ensuring that a procurement's contracting 
        strategy and plans are consistent with the intent and direction 
        of the Acquisition Review Board;
          ``(4) serve as the Department's main liaison to industry on 
        procurement-related issues;
          ``(5) oversee a centralized certification and training 
        program, in consultation with the Under Secretary for 
        Management, for the entire Department acquisition workforce 
        while using, to the greatest extent practicable, best practices 
        and acquisition training opportunities already in existence 
        within the Federal Government, the private sector, or 
        universities and colleges, as appropriate, and including 
        training on how best to identify actions that warrant referrals 
        for suspension or debarment;
          ``(6) delegate or retain contracting authority, as 
        appropriate;
          ``(7) provide input on the periodic performance reviews of 
        each head of contracting activity of the Department;
          ``(8) collect baseline data and use such data to establish 
        performance measures on the impact of strategic sourcing 
        initiatives on the private sector, including, in particular, 
        small businesses;
          ``(9) ensure that a fair proportion (as defined pursuant to 
        the Small Business Act (15 U.S.C. 631 et seq.)) of Federal 
        contract and subcontract dollars are awarded to small 
        businesses, maximize opportunities for small business 
        participation, and ensure, to the extent practicable, small 
        businesses that achieve qualified vendor status for security-
        related technologies are provided an opportunity to compete for 
        contracts for such technology; and
          ``(10) conduct oversight of implementation of administrative 
        agreements to resolve suspension or debarment proceedings and, 
        upon request, provide information to the Committee on Homeland 
        Security of the House of Representatives and the Committee on 
        Homeland Security and Governmental Affairs of the Senate about 
        the effectiveness of such agreements at improving contractor 
        responsibility.
  ``(c) Head of Contracting Activity Defined.--In this section the term 
`head of contracting activity' means each official responsible for the 
creation, management, and oversight of a team of procurement 
professionals properly trained, certified, and warranted to accomplish 
the acquisition of products and services on behalf of the designated 
components, offices, and organizations of the Department, and as 
authorized, other government entities.''.
  (b) Clerical Amendment.--The table of contents in section 1(b) of 
such Act is further amended by adding at the end of the items relating 
to such title the following:

``Sec. 708. Chief Procurement Officer.''.

SEC. 110. CHIEF INFORMATION OFFICER.

  (a) In General.--Section 703 of the Homeland Security Act of 2002 (6 
U.S.C. 343) is amended--
          (1) in subsection (a), by adding at the end the following: 
        ``In addition to the functions under section 3506(a)(2) of 
        title 44, United States Code, the Chief Information Officer 
        shall perform the functions set forth in this section and such 
        other functions as may be assigned by the Secretary.'';
          (2) by redesignating subsection (b) as subsection (e); and
          (3) by inserting after subsection (a) the following:
  ``(b) Responsibilities.--In addition to the functions under section 
3506 of title 44, United States Code, the Chief Information Officer, in 
consultation with the Under Secretary for Management, shall--
          ``(1) advise and assist the Secretary, heads of the 
        components of the Department, and other senior officers in 
        carrying out the responsibilities of the Department for all 
        activities relating to the budgets, programs, and operations of 
        the information technology functions of the Department;
          ``(2) to the extent delegated by the Secretary--
                  ``(A) exercise leadership and authority over 
                Department information technology management; and
                  ``(B) establish the information technology 
                priorities, policies, processes, standards, guidelines, 
                and procedures of the Department to ensure 
                interoperability and standardization of information 
                technology;
          ``(3) serve as the lead technical authority for information 
        technology programs;
          ``(4) maintain a consolidated inventory of the Department's 
        mission critical and mission essential information systems, and 
        develop and maintain contingency plans for responding to a 
        disruption in the operation of any of those information 
        systems;
          ``(5) maintain the security, visibility, reliability, 
        integrity, and availability of data and information technology 
        of the Department including the security of the Homeland 
        Security Data Network;
          ``(6) in coordination with relevant officials of the 
        Department, ensure that the Department is in compliance with 
        subchapter II of chapter 35 of title 44, United States Code;
          ``(7) establish policies and procedures to effectively 
        monitor and manage vulnerabilities in the supply chain for 
        purchases of information technology;
          ``(8) in coordination with relevant officials of the 
        Department, ensure Department compliance with Homeland Security 
        Presidential Directive 12;
          ``(9) in coordination with relevant officials of the 
        Department, ensure that information technology systems of the 
        Department meet the standards established under the information 
        sharing environment, as defined in section 1016 of the 
        Intelligence Reform and Terrorism Prevention Act of 2004 (6 
        U.S.C. 485);
          ``(10) develop measures to monitor the performance of 
        Department components' use and implementation of information 
        technology systems and consistently monitor such performance to 
        ensure that such systems are used effectively;
          ``(11) ensure that Department components report to the Chief 
        Information Officer of the Department a complete inventory of 
        information systems and fully adhere to Department guidance 
        related to information technology;
          ``(12) carry out any other responsibilities delegated by the 
        Secretary consistent with an effective information system 
        management function; and
          ``(13) carry out authorities over Department information 
        technology consistent with section 113419 of title 40, United 
        States Code.
  ``(c) Strategic Plans.--In coordination with the Chief Financial 
Officer, the Chief Information Officer shall develop an information 
technology strategic plan every 5 years and report to the Committee on 
Homeland Security of the House of Representatives and the Committee on 
Homeland Security and Governmental Affairs of the Senate on--
          ``(1) how the information technology strategic plans 
        developed under this subsection are used to help inform the 
        Department's budget process;
          ``(2) how the Department's budget aligns with priorities 
        specified in the information technology strategic plans;
          ``(3) in cases in which it is not possible to fund all 
        information technology strategic plan activities for a given 
        fiscal year, the rationale as to why certain activities are not 
        being funded in lieu of higher priorities;
          ``(4) what decisionmaking process was used to arrive at these 
        priorities and the role of Department components in that 
        process; and
          ``(5) examine the extent to which unnecessary duplicate 
        information technology within and across the components of the 
        Department has been eliminated.
  ``(d) Software Licensing.--
          ``(1) In general.--Not later than 180 days after the date of 
        the enactment of the DHS Headquarters Reform and Improvement 
        Act of 2015, and every 2 years thereafter, the Chief 
        Information Officer, in consultation with Department component 
        chief information officers, shall--
                  ``(A) conduct a Department-wide inventory of all 
                existing software licenses held by the Department, 
                including utilized and unutilized licenses;
                  ``(B) assess the needs of the Department and the 
                components of the Department for software licenses for 
                the subsequent 2 fiscal years;
                  ``(C) examine how the Department can achieve the 
                greatest possible economies of scale and cost savings 
                in the procurement of software licenses;
                  ``(D) determine how the use of shared cloud-computing 
                services will impact the needs for software licenses 
                for the subsequent 2 fiscal years; and
                  ``(E) establish plans and estimated costs for 
                eliminating unutilized software licenses for the 
                subsequent 2 fiscal years.
          ``(2) Excess software licensing.--
                  ``(A) Plan to reduce software licenses.--If the Chief 
                Information Officer determines through the inventory 
                conducted under paragraph (1) that the number of 
                software licenses held by the Department and the 
                components of the Department exceed the needs of the 
                Department as assessed under paragraph (1), the 
                Secretary, not later than 90 days after the date on 
                which the inventory is completed, shall establish a 
                plan for bringing the number of such software licenses 
                into balance with such needs of the Department.
                  ``(B) Prohibition on procurement of new software 
                licenses.--
                          ``(i) In general.--Except as provided in 
                        clause (ii), upon completion of a plan 
                        established under paragraph (1), no additional 
                        resources may be obligated for the procurement 
                        of new software licenses for the Department 
                        until such time as the need of the Department 
                        exceeds the number of used and unused licenses 
                        held by the Department.
                          ``(ii) Exception.--The Chief Information 
                        Officer may authorize the purchase of 
                        additional licenses and amend the number of 
                        needed licenses as necessary.
          ``(3) GAO review.--The Comptroller General of the United 
        States shall review the inventory conducted under paragraph 
        (1)(A) and the plan established under paragraph (2)(A).
          ``(4) Submission to congress.--The Chief Information Officer 
        shall submit a copy of each inventory conducted under paragraph 
        (1)(A) and each plan established under paragraph (2)(A) to the 
        Committee on Homeland Security of the House of Representatives 
        and the Committee on Homeland Security and Governmental Affairs 
        of the Senate.''.
  (b) Completion of First Definition of Capabilities.--The Chief 
Information Officer shall complete the first implementation of section 
701(c) of the Homeland Security Act of 2002, as amended by this 
section, by not later than 1 year after the date of the enactment of 
this Act.

SEC. 111. CHIEF HUMAN CAPITAL OFFICER.

  Section 704 of the Homeland Security Act of 2002 (6 U.S.C. 343) is 
amended to read as follows:

``SEC. 704. CHIEF HUMAN CAPITAL OFFICER.

  ``(a) In General.--There is a Chief Human Capital Officer of the 
Department who shall report directly to the Under Secretary of 
Management.
  ``(b) Responsibilities.--The Chief Human Capital Officer shall--
          ``(1) develop and implement strategic workforce planning 
        efforts that are consistent with Government-wide leading 
        principles, and that are in line with Department strategic 
        human capital goals and priorities;
          ``(2) develop performance measures to provide a basis for 
        monitoring and evaluating Department-wide strategic workforce 
        planning efforts;
          ``(3) develop strategies to recruit, hire, and train the 
        Department workforce;
          ``(4) work with the component heads to identify methods for 
        managing and overseeing human capital programs and initiatives;
          ``(5) develop a career path framework, and create 
        opportunities for leader development;
          ``(6) serve as the Department's central office for managing 
        employee resources, including training and development 
        opportunities;
          ``(7) coordinate the Department's human resource management 
        system;
          ``(8) conduct efficiency reviews to determine if components 
        are implementing human capital programs and initiatives; and
          ``(9) identify and eliminate unnecessary and duplicative 
        human capital policies and guidance.
  ``(c) Component Strategies.--
          ``(1) In general.--Each component of the Department shall 
        coordinate with the Chief Human Capital Officer of the 
        Department to develop or maintain its own 5-year workforce 
        strategy that will support the Department's goals, objectives, 
        performance measures, and determination of the proper balance 
        of Federal employees and private labor resources.
          ``(2) Strategy requirements.--The Chief Human Capital Officer 
        shall ensure that, in the development of the strategy required 
        by subsection (c), the head of the component reports to the 
        Chief Human Capital Officer on the human resources 
        considerations associated with creating additional Federal 
        full-time equivalent positions, converting private contractor 
        positions to Federal employee positions, or relying on the 
        private sector for goods and services, including--
                  ``(A) hiring projections, including occupation and 
                grade level, as well as corresponding salaries, 
                benefits, and hiring or retention bonuses;
                  ``(B) the identification of critical skills 
                requirements over the 5-year period, any current or 
                anticipated need for critical skills required at the 
                Department, and the training or other measures required 
                to address such need;
                  ``(C) recruitment of qualified candidates and 
                retention of qualified employees;
                  ``(D) supervisory and management requirements;
                  ``(E) travel and related personnel support costs;
                  ``(F) the anticipated cost and impact on mission 
                performance associated with replacing Federal personnel 
                due to their retirement or other attrition; and
                  ``(G) other appropriate factors.
  ``(d) Annual Submission.--The Secretary shall provide to the 
appropriate congressional committees, together with submission of the 
annual budget justification, information on the progress within the 
Department of fulfilling the workforce strategies required under 
subsection (c).''.

SEC. 112. CHIEF SECURITY OFFICER.

  (a) In General.--Title VII of the Homeland Security Act of 2002 (6 
U.S.C. 341 et seq.), as amended by section 109(a) of this Act, is 
further amended by adding at the end the following:

``SEC. 709. CHIEF SECURITY OFFICER.

  ``(a) In General.--There is a Chief Security Officer of the 
Department, who shall report directly to the Under Secretary for 
Management.
  ``(b) Responsibilities.--The Chief Security Officer shall--
          ``(1) develop and implement the Department's security 
        policies, programs, and standards;
          ``(2) identify training and provide education to Department 
        personnel on security-related matters; and
          ``(3) provide support to Department components on security-
        related matters.''.
  (b) Clerical Amendment.--The table of contents in section 1(b) of 
such Act is further amended by adding at the end of the items relating 
to such title the following:

``Sec. 709. Chief Security Officer.''.

SEC. 113. COST SAVINGS AND EFFICIENCY REVIEWS.

  Not later than 1 year after the date of the enactment of this Act, 
the Secretary of Homeland Security, acting through the Under Secretary 
for Management of the Department of Homeland Security, shall submit to 
the Committee on Homeland Security of the House of Representatives and 
the Committee on Homeland Security and Governmental Affairs of the 
Senate a report that--
          (1) provides a detailed accounting of the management and 
        administrative expenditures and activities of the components of 
        the Department and identifies potential cost savings and 
        efficiencies for those expenditures and activities of each such 
        component;
          (2) examines the size, experience level, and geographic 
        distribution of the operational personnel of the Department, 
        including Customs and Border Protection officers, Border Patrol 
        agents, Customs and Border Protection Air and Marine agents, 
        Customs and Border Protection agriculture specialists, Federal 
        Protective Service law enforcement security officers, 
        Immigration and Customs Enforcement agents, Transportation 
        Security Administration officers, Federal air marshals, and 
        members of the Coast Guard; and
          (3) makes recommendations for adjustments in the management 
        and administration of the Department that would reduce 
        deficiencies in the Department's capabilities, reduce costs, 
        and enhance efficiencies.

SEC. 114. FIELD EFFICIENCIES PLAN.

          (1) In general.--Not later than 270 days after the date of 
        the enactment of this Act, the Secretary of Homeland Security 
        shall submit to the Committee on Homeland Security of the House 
        of Representatives and Committee on Homeland Security and 
        Governmental Affairs of the Senate a field efficiencies plan 
        that--
                  (A) examines the facilities and administrative and 
                logistics functions of components of the Department of 
                Homeland Security located within designated geographic 
                areas; and
                  (B) provides specific recommendations and an 
                associated cost-benefit analysis for the consolidation 
                of the facilities and administrative and logistics 
                functions of components of the Department within each 
                designated geographic area.
          (2) Contents.--The field efficiencies plan submitted under 
        paragraph (1) shall include the following:
                  (A) An accounting of leases held by the Department or 
                its components that have expired in the current fiscal 
                year or will be expiring in the next fiscal year, that 
                have begun or been renewed in the current fiscal year, 
                or that the Department or its components plan to sign 
                or renew in the next fiscal year.
                  (B)(i) An evaluation for each designated geographic 
                area of specific facilities at which components, or 
                operational entities of components, of the Department 
                may be closed or consolidated, including consideration 
                of when leases expire or facilities owned by the 
                Government become available.
                  (ii) The evaluation shall include consideration of 
                potential consolidation with facilities of other 
                Federal, State, or local entities, including--
                          (I) offices;
                          (II) warehouses;
                          (III) training centers;
                          (IV) housing;
                          (V) ports, shore facilities, and airfields;
                          (VI) laboratories; and
                          (VII) other assets as determined by the 
                        Secretary.
                  (iii) The evaluation shall include the potential for 
                the consolidation of administrative and logistics 
                functions, including--
                          (I) facility maintenance;
                          (II) fleet vehicle services;
                          (III) mail handling and shipping and 
                        receiving;
                          (IV) facility security;
                          (V) procurement of goods and services;
                          (VI) information technology and 
                        telecommunications services and support; and
                          (VII) additional ways to improve unity of 
                        effort and cost savings for field operations 
                        and related support activities as determined by 
                        the Secretary.
                  (C) An implementation plan, including--
                          (i) near-term actions that can co-locate, 
                        consolidate, or dispose of property within 24 
                        months;
                          (ii) identifying long-term occupancy 
                        agreements or leases that cannot be changed 
                        without a significant cost to the Government; 
                        and
                          (iii) how the Department can ensure it has 
                        the capacity, in both personnel and funds, 
                        needed to cover up-front costs to achieve 
                        consolidation and efficiencies.
                  (D) An accounting of any consolidation in the 
                Department or its component's real estate footprint, 
                including the colocation of personnel from different 
                components, offices, and agencies within the 
                Department.

SEC. 115. RESOURCES TO RESPOND TO OPERATIONAL SURGES.

  On an annual basis, the Secretary of Homeland Security shall provide 
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 circumstances in which the Secretary 
exercised the authority during the preceding year to reprogram or 
transfer funds to address unforeseen costs, including the costs 
associated with operational surges, and information on any 
circumstances in which limitations on the transfer or reprogramming of 
funds impacted the Secretary's ability to address such unforeseen 
costs.

SEC. 116. DEPARTMENT OF HOMELAND SECURITY ROTATION PROGRAM.

  (a) Enhancements to the Rotation Program.--Section 844(a) of the 
Homeland Security Act of 2002 (6) U.S.C. 414(a)) is amended as follows:
          (1) In paragraph (1)--
                  (A) by striking ``Not later than 180 days after the 
                date of enactment of this section, the'' and inserting 
                ``The''; and
                  (B) by striking ``for employees of the Department'' 
                and inserting ``for certain personnel within the 
                Department''.
          (2) In paragraph (2)--
                  (A) by redesignating subparagraphs (A) through (G) as 
                subparagraphs (C) through (I), and inserting before 
                subparagraph (C), as so redesignated, the following:
                  ``(A) seek to foster greater Departmental integration 
                and unity of effort;
                  ``(B) seek to help enhance the knowledge, skills, and 
                abilities of participating personnel with respect to 
                the Department's programs, policies, and activities;'';
                  (B) in subparagraph (D), as so redesignated, by 
                striking ``middle and senior level''; and
                  (C) in subparagraph (G), as so redesignated, by 
                inserting before ``invigorate'' the following: ``seek 
                to improve morale and retention throughout the 
                Department and''.
          (3) In paragraph (3)(B), by striking clause (iii) and 
        redesignating clauses (iv) through (viii) as clauses (iii) 
        through (vii).
          (4) By redesignating paragraphs (4) and (5) as paragraphs (5) 
        and (6), and inserting after paragraph (3) the following:
          ``(4) Administrative matters.--In carrying out any program 
        established pursuant to this section, the Secretary shall--
                  ``(A) before selecting employees for participation in 
                such program, disseminate information broadly within 
                the Department about the availability of the program, 
                qualifications for participation in the program, 
                including full-time employment within the employing 
                component or office not less than one year, and the 
                general provisions of the program;
                  ``(B) require each candidate for participation in the 
                program to be nominated by the head of the candidate's 
                employing component or office and that the Secretary, 
                or the Secretary's designee, select each employee for 
                the program solely on the basis of relative ability, 
                knowledge, and skills, after fair and open competition 
                that assures that all candidates receive equal 
                opportunity;
                  ``(C) ensure that each employee participating in the 
                program shall be entitled to return, within a 
                reasonable period of time after the end of the period 
                of participation, to the position held by the employee, 
                or a corresponding or higher position, in the 
                employee's employing component or office;
                  ``(D) require that the rights that would be available 
                to the employee if the employee were detailed from the 
                employing component or office to another Federal agency 
                or office remain available to the employee during the 
                employee participation in the program; and
                  ``(E) require that, during the period of 
                participation by an employee in the program, 
                performance evaluations for the employee--
                          ``(i) shall be conducted by officials in the 
                        employee's office or component with input from 
                        the supervisors of the employee at the 
                        component or office in which the employee is 
                        placed during that period; and
                          ``(ii) shall be provided the same weight with 
                        respect to promotions and other rewards as 
                        performance evaluations for service in the 
                        employee's office or component.''.
  (b) Congressional Notification and Oversight.--Not later than 120 
days after the date of the enactment of this Act, the Secretary of 
Homeland Security shall provide information to the Committee on 
Homeland Security of the House of Representatives and the Committee on 
Homeland Security and Governmental Affairs of the Senate about the 
status of the homeland security rotation program authorized by section 
844 of the Homeland Security Act of 2002, as amended by this section.

        TITLE II--DHS ACQUISITION ACCOUNTABILITY AND EFFICIENCY

SEC. 201. DEFINITIONS.

  (a) In General.--In this title:
          (1) Secretary.--The term ``Secretary'' means the Secretary of 
        Homeland Security.
          (2) Department.--The term ``Department'' means the Department 
        of Homeland Security.
          (3) 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.
  (b) Additional Definitions.--In this title:
          (1) Acquisition.--The term ``acquisition'' has the meaning 
        provided in section 131 of title 41, United States Code.
          (2) Best practices.--The term ``best practices'', with 
        respect to acquisition, means a knowledge-based approach to 
        capability development that includes identifying and validating 
        needs; assessing alternatives to select the most appropriate 
        solution; clearly establishing well-defined requirements; 
        developing realistic cost assessments and schedules; securing 
        stable funding that matches resources to requirements; 
        demonstrating technology, design, and manufacturing maturity; 
        using milestones and exit criteria or specific accomplishments 
        that demonstrate progress; adopting and executing standardized 
        processes with known success across programs; establishing an 
        adequate workforce that is qualified and sufficient to perform 
        necessary functions; and integrating these capabilities into 
        the Department's mission and business operations.
  (c) Amendments to Definitions in Homeland Security Act of 2002.--
Section 2 of the Homeland Security Act of 2002 is amended--
          (1) by striking ``In this Act,'' and inserting ``(a) In 
        General.--In this Act,'';
          (2) in paragraph (2)--
                  (A) by inserting ``(A)'' after ``(2)''; and
                  (B) by adding at the end the following new 
                subparagraph:
          ``(B) The term `congressional homeland security committees' 
        means--
                  ``(i) the Committee on Homeland Security of the House 
                of Representatives and the Committee on Homeland 
                Security and Governmental Affairs of the Senate; and
                  ``(ii) the Committees on Appropriations of the House 
                of Representatives and of the Senate, where 
                appropriate.''; and
          (3) by adding at the end the following new subsection:
  ``(b) Acquisition-Related Definitions.--In this Act, the following 
definitions apply:
          ``(1) Acquisition.--The term `acquisition' has the meaning 
        provided in section 131 of title 41, United States Code.
          ``(2) Acquisition decision authority.--The term `acquisition 
        decision authority' means the authority, held by the Secretary 
        acting through the Deputy Secretary or Under Secretary for 
        Management--
                  ``(A) to ensure compliance with Federal law, the 
                Federal Acquisition Regulation, and Department 
                acquisition management directives;
                  ``(B) to review (including approving, halting, 
                modifying, or cancelling) an acquisition program 
                through the life cycle of the program;
                  ``(C) to ensure that program managers have the 
                resources necessary to successfully execute an approved 
                acquisition program;
                  ``(D) to ensure good program management of cost, 
                schedule, risk, and system performance of the 
                acquisition, including assessing acquisition program 
                baseline breaches and directing any corrective action 
                for such breaches; and
                  ``(E) to ensure that program managers, on an ongoing 
                basis, monitor cost, schedule, and performance against 
                established baselines and use tools to assess risks to 
                a program at all phases of the life cycle of the 
                program to avoid and mitigate acquisition program 
                baseline breaches.
          ``(3) Acquisition decision event.--The term `acquisition 
        decision event', with respect to an investment or acquisition 
        program, means a predetermined point within the acquisition 
        phases of the investment or acquisition program at which the 
        investment or acquisition program will undergo a review prior 
        to commencement of the next phase.
          ``(4) Acquisition decision memorandum.--The term `acquisition 
        decision memorandum', with respect to an acquisition, means the 
        official acquisition decision event record that includes a 
        documented record of decisions, exit criteria, and assigned 
        actions for the acquisition as determined by the person 
        exercising acquisition decision authority for the acquisition.
          ``(5) 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 
        the program.
          ``(6) Capability development plan.--The term `capability 
        development plan', with respect to a proposed acquisition, 
        means the document that the Acquisition Review Board approves 
        for the first acquisition decision event related to validating 
        the need of a proposed acquisition.
          ``(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) Life cycle cost.--The term `life cycle cost', with 
        respect to an acquisition program, means all costs associated 
        with research, development, procurement, operation, integrated 
        logistics support, and disposal under the program, including 
        supporting infrastructure that plans, manages, and executes the 
        program over its full life, and costs of common support items 
        incurred as a result of the program.
          ``(9) 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 2015 
        constant dollars) over its life cycle cost.''.

SEC. 202. PROHIBITION ON ADDITIONAL AUTHORIZATION OF APPROPRIATIONS.

  No additional funds are authorized to be appropriated to carry out 
this title and the amendments made by this title. This title and such 
amendments shall be carried out using amounts otherwise available for 
such purposes.

                  Subtitle A--Acquisition Authorities

SEC. 211. ACQUISITION AUTHORITIES FOR UNDER SECRETARY FOR MANAGEMENT.

  Section 701 of the Homeland Security Act of 2002 (6 U.S.C. 341), as 
amended by section 107 of this Act, is further amended by adding at the 
end the following:
  ``(e) Acquisition and Related Responsibilities.--
          ``(1) In general.--Notwithstanding section 1702(b) of title 
        41, United States Code, the Under Secretary for Management is 
        the Chief Acquisition Officer of the Department. As Chief 
        Acquisition Officer, the Under Secretary shall have the 
        authority and perform the functions as specified in section 
        1702(b) of such title, and perform all other functions and 
        responsibilities delegated by the Secretary or described in 
        this subsection.
          ``(2) Duties and responsibilities.--In addition to the 
        authority and functions specified in section 1702(b) of title 
        41, United States Code, the duties and responsibilities of the 
        Under Secretary for Management related to acquisition include 
        the following:
                  ``(A) Advising the Secretary regarding acquisition 
                management activities, taking into account risks of 
                failure to achieve cost, schedule, or performance 
                parameters, to ensure that the Department achieves its 
                mission through the adoption of widely accepted program 
                management best practices and standards.
                  ``(B) Exercising the acquisition decision authority 
                to approve, halt, modify (including the rescission of 
                approvals of program milestones), or cancel major 
                acquisition programs, unless the Under Secretary 
                delegates the authority to a Component Acquisition 
                Executive pursuant to paragraph (3).
                  ``(C) Establishing policies for acquisition that 
                implement an approach that takes into account risks of 
                failure to achieve cost, schedule, or performance 
                parameters that all components of the Department shall 
                comply with, including outlining relevant authorities 
                for program managers to effectively manage acquisition 
                programs.
                  ``(D) Ensuring that each major acquisition program 
                has a Department-approved acquisition program baseline, 
                pursuant to the Department's acquisition management 
                policy.
                  ``(E) Ensuring that the heads of components and 
                Component Acquisition Executives comply with Federal 
                law, the Federal Acquisition Regulation, and Department 
                acquisition management directives.
                  ``(F) Ensuring that grants and financial assistance 
                are provided only to individuals and organizations that 
                are not suspended or debarred.
                  ``(G) Distributing guidance throughout the Department 
                to ensure that contractors involved in acquisitions, 
                particularly companies that access the Department's 
                information systems and technologies, adhere to 
                internal cybersecurity policies established by the 
                Department of Homeland Security.
          ``(3) Delegation of acquisition decision authority.--
                  ``(A) Level 3 acquisitions.--The Under Secretary for 
                Management may delegate acquisition decision authority 
                in writing to the relevant Component Acquisition 
                Executive for an acquisition program that has a life 
                cycle cost estimate of less than $300,000,000.
                  ``(B) Level 2 acquisitions.--The Under Secretary for 
                Management may delegate acquisition decision authority 
                in writing to the relevant Component Acquisition 
                Executive for a major acquisition program that has a 
                life cycle cost estimate of at least $300,000,000 but 
                not more than $1,000,000,000 if all of the following 
                requirements are met:
                          ``(i) The component concerned possesses 
                        working policies, processes, and procedures 
                        that are consistent with Department-level 
                        acquisition policy.
                          ``(ii) The Component Acquisition Executive 
                        has adequate, experienced, dedicated program 
                        management professional staff commensurate with 
                        the size of the delegated portfolio.
                          ``(iii) Each major acquisition program 
                        concerned has written documentation showing 
                        that it has a Department-approved acquisition 
                        program baseline and it is meeting agreed-upon 
                        cost, schedule, and performance thresholds.
          ``(4) Excluded parties list system consultation.--The Under 
        Secretary for Management shall require that all Department 
        contracting and procurement officials consult the Excluded 
        Parties List System (or successor system) as maintained by the 
        General Services Administration prior to awarding a contract or 
        grant or entering into other transactions to ascertain whether 
        the selected contractor is excluded from receiving Federal 
        contracts, certain subcontracts, and certain types of Federal 
        financial and nonfinancial assistance and benefits.
          ``(5) Relationship to under secretary for science and 
        technology.--
                  ``(A) In general.--Nothing in this subsection shall 
                diminish the authority granted to the Under Secretary 
                for Science and Technology under this Act. The Under 
                Secretary for Management and the Under Secretary for 
                Science and Technology shall cooperate in matters 
                related to the coordination of acquisitions across the 
                Department so that investments of the Directorate of 
                Science and Technology can support current and future 
                requirements of the components.
                  ``(B) Operational testing and evaluation.--The Under 
                Secretary for Science and Technology shall--
                          ``(i) ensure, in coordination with relevant 
                        component heads, that major acquisition 
                        programs--
                                  ``(I) complete operational testing 
                                and evaluation of technologies and 
                                systems;
                                  ``(II) use independent verification 
                                and validation of operational test and 
                                evaluation implementation and results; 
                                and
                                  ``(III) document whether such 
                                programs meet all performance 
                                requirements included in their 
                                acquisition program baselines;
                          ``(ii) ensure that such operational testing 
                        and evaluation includes all system components 
                        and incorporates operators into the testing to 
                        ensure that systems perform as intended in the 
                        appropriate operational setting; and
                          ``(iii) determine if testing conducted by 
                        other Federal agencies and private entities is 
                        relevant and sufficient in determining whether 
                        systems perform as intended in the operational 
                        setting.''.

SEC. 212. ACQUISITION AUTHORITIES FOR CHIEF FINANCIAL OFFICER.

  Section 702 of the Homeland Security Act of 2002 (6 U.S.C. 342), as 
amended by section 108 of this Act, is further amended by adding at the 
end of subsection (c)(2) the following new subparagraph:
                  ``(J) Notwithstanding section 902 of title 31, United 
                States Code, provide leadership over financial 
                management policy and programs for the Department as 
                they relate to the Department's acquisitions programs, 
                in consultation with the Under Secretary for 
                Management.''.

SEC. 213. ACQUISITION AUTHORITIES FOR CHIEF INFORMATION OFFICER.

  Section 703 of the Homeland Security Act of 2002 (6 U.S.C. 343), as 
amended by section 110(a) of this Act, is further amended by adding at 
the end the following new subsection:
  ``(f) Acquisition Responsibilities.--Notwithstanding section 11315 of 
title 40, United States Code, the acquisition responsibilities of the 
Chief Information Officer, in consultation with the Under Secretary for 
Management, shall include the following:
          ``(1) Oversee the management of the Homeland Security 
        Enterprise Architecture and ensure that, before each 
        acquisition decision event, approved information technology 
        acquisitions comply with departmental information technology 
        management processes, technical requirements, and the Homeland 
        Security Enterprise Architecture, and in any case in which 
        information technology acquisitions do not comply with the 
        Department's management directives, make recommendations to the 
        Acquisition Review Board regarding such noncompliance.
          ``(2) Be responsible for providing recommendations to the 
        Acquisition Review Board established in section 836 of this Act 
        on information technology programs, and be responsible for 
        developing information technology acquisition strategic 
        guidance.''.

SEC. 214. REQUIREMENTS TO ENSURE GREATER ACCOUNTABILITY FOR ACQUISITION 
                    PROGRAMS.

  (a) In General.--Title VII of the Homeland Security Act of 2002 (6 
U.S.C. 341 et seq.), as amended by sections 109(a) and 112(a) of this 
Act, is further amended by adding at the end the following:

``SEC. 710. REQUIREMENTS TO ENSURE GREATER ACCOUNTABILITY FOR 
                    ACQUISITION PROGRAMS.

  ``(a) Requirement To Establish Mechanism.--Within the Management 
Directorate, the Under Secretary for Management shall establish a 
mechanism to prioritize improving the accountability, standardization, 
and transparency of major acquisition programs of the Department in 
order to increase opportunities for effectiveness and efficiencies and 
to serve as the central oversight function of all Department 
acquisition programs.
  ``(b) Responsibilities of Executive Director.--The Under Secretary 
for Management shall designate an Executive Director to oversee the 
requirement under subsection (a). The Executive Director shall report 
directly to the Under Secretary and shall carry out the following 
responsibilities:
          ``(1) Monitor the performance of Department acquisition 
        programs regularly between acquisition decision events to 
        identify problems with cost, performance, or schedule that 
        components may need to address to prevent cost overruns, 
        performance issues, or schedule delays.
          ``(2) Assist the Chief Acquisition Officer in managing the 
        Department's acquisition portfolio.
          ``(3) Conduct oversight of individual acquisition programs to 
        implement Department acquisition program policy, procedures, 
        and guidance with a priority on ensuring the data it collects 
        and maintains from its components is accurate and reliable.
          ``(4) Serve as the focal point and coordinator for the 
        acquisition life cycle review process and as the executive 
        secretariat for the Acquisition Review Board established under 
        section 836 of this Act.
          ``(5) Advise the persons having acquisition decision 
        authority in making acquisition decisions consistent with all 
        applicable laws and in establishing clear lines of authority, 
        accountability, and responsibility for acquisition 
        decisionmaking within the Department.
          ``(6) Engage in the strategic planning and performance 
        evaluation process required under section 306 of title 5, 
        United States Code, and sections 1105(a)(28), 1115, 1116, and 
        9703 of title 31, United States Code, by supporting the Chief 
        Procurement Officer in developing strategies and specific plans 
        for hiring, training, and professional development in order to 
        rectify any deficiency within the Department's acquisition 
        workforce.
          ``(7) Oversee the Component Acquisition Executive structure 
        to ensure it has sufficient capabilities and complies with 
        Department policies.
          ``(8) Develop standardized certification standards in 
        consultation with the Component Acquisition Executives for all 
        acquisition program managers.
          ``(9) In the event that a program manager's certification or 
        actions need review for purposes of promotion or removal, 
        provide input, in consultation with the relevant Component 
        Acquisition Executive, into the relevant program manager's 
        performance evaluation, and report positive or negative 
        experiences to the relevant certifying authority.
          ``(10) Provide technical support and assistance to Department 
        acquisitions and acquisition personnel in conjunction with the 
        Chief Procurement Officer.
          ``(11) Prepare the Department's Comprehensive Acquisition 
        Status Report, as required by the Department of Homeland 
        Security Appropriations Act, 2013 (division D of Public Law 
        113-6; 127 Stat. 343) and section 840 of this Act, and make 
        such report available to congressional homeland security 
        committees.
          ``(12) Prepare the Department's Quarterly Program 
        Accountability Report as required by section 840 of this Act, 
        and make such report available to the congressional homeland 
        security committees.
  ``(c) Responsibilities of Components.--Each head of a component shall 
comply with Federal law, the Federal Acquisition Regulation, and 
Department acquisition management directives established by the Under 
Secretary for Management. For each major acquisition program, each head 
of a component shall--
          ``(1) define baseline requirements and document changes to 
        those requirements, as appropriate;
          ``(2) establish a complete life cycle cost estimate with 
        supporting documentation, including an acquisition program 
        baseline;
          ``(3) verify each life cycle cost estimate against 
        independent cost estimates, and reconcile any differences;
          ``(4) complete a cost-benefit analysis with supporting 
        documentation;
          ``(5) develop and maintain a schedule that is consistent with 
        scheduling best practices as identified by the Comptroller 
        General of the United States, including, in appropriate cases, 
        an integrated master schedule; and
          ``(6) ensure that all acquisition program information 
        provided by the component is complete, accurate, timely, and 
        valid.

``SEC. 711. ACQUISITION DOCUMENTATION.

  ``(a) In General.--For each major acquisition program, the Executive 
Director responsible for the preparation of the Comprehensive 
Acquisition Status Report, pursuant to paragraph (11) of section 
710(b), shall require certain acquisition documentation to be submitted 
by Department components or offices.
  ``(b) Waiver.--The Secretary may waive the requirement for submission 
under subsection (a) for a program for a fiscal year if either--
          ``(1) the program has not--
                  ``(A) entered the full rate production phase in the 
                acquisition life cycle;
                  ``(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 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 submit to the Committee on 
Homeland Security of the House of Representatives and Committee on 
Homeland Security and Governmental Affairs of the Senate information on 
the exercise of authority under subsection (b) in the prior fiscal year 
that includes the following specific information regarding each program 
for which a waiver is issued 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 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.''.
  (b) Clerical Amendment.--The table of contents in section 1(b) of the 
Homeland Security Act of 2002 (6 U.S.C. 101 et seq.) is further amended 
by adding after the item relating to section 709 the following new 
item:

``Sec. 710. Requirements to ensure greater accountability for 
acquisition programs.
``Sec. 711. Acquisition documentation.''.

         Subtitle B--Acquisition Program Management Discipline

SEC. 221. ACQUISITION REVIEW BOARD.

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

``SEC. 836. ACQUISITION REVIEW BOARD.

  ``(a) In General.--The Secretary shall establish an Acquisition 
Review Board (in this section referred to as the `Board') to strengthen 
accountability and uniformity within the Department acquisition review 
process, review major acquisition programs, and review the use of best 
practices.
  ``(b) Composition.--The Deputy Secretary or Under Secretary for 
Management shall serve as chair of the Board. The Secretary shall also 
ensure participation by other relevant Department officials, including 
at least 2 component heads or their designees, as permanent members of 
the Board.
  ``(c) Meetings.--The Board shall meet every time a major acquisition 
program needs authorization to proceed from acquisition decision events 
through the acquisition life cycle and to consider any major 
acquisition program in breach as necessary. The Board may also be 
convened for non-major acquisitions that are deemed high-risk by the 
Executive Director referred to in section 710(b) of this Act. The Board 
shall also meet regularly for purposes of ensuring all acquisitions 
processes proceed in a timely fashion to achieve mission readiness.
  ``(d) Responsibilities.--The responsibilities of the Board are as 
follows:
          ``(1) Determine whether a proposed acquisition has met the 
        requirements of key phases of the acquisition life cycle 
        framework and is able to proceed to the next phase and eventual 
        full production and deployment.
          ``(2) Oversee executable business strategy, resources, 
        management, accountability, and alignment to strategic 
        initiatives.
          ``(3) Support the person with acquisition decision authority 
        for an acquisition in determining the appropriate direction for 
        the acquisition at key acquisition decision events.
          ``(4) Conduct systematic reviews of acquisitions to ensure 
        that they are progressing in compliance with the approved 
        documents for their current acquisition phase.
          ``(5) Review the acquisition documents of each major 
        acquisition program, including the acquisition program baseline 
        and documentation reflecting consideration of tradeoffs among 
        cost, schedule, and performance objectives, to ensure the 
        reliability of underlying data.
          ``(6) Ensure that practices are adopted and implemented to 
        require consideration of trade-offs among cost, schedule, and 
        performance objectives as part of the process for developing 
        requirements for major acquisition programs prior to the 
        initiation of the second acquisition decision event, including, 
        at a minimum, the following practices:
                  ``(A) Department officials responsible for 
                acquisition, budget, and cost estimating functions are 
                provided with the appropriate opportunity to develop 
                estimates and raise cost and schedule matters before 
                performance objectives are established for capabilities 
                when feasible.
                  ``(B) Full consideration of possible trade-offs among 
                cost, schedule, and performance objectives for each 
                alternative is considered.
  ``(e) Acquisition Program Baseline Report Requirement.--If the person 
exercising acquisition decision authority over a major acquisition 
program approves the program to proceed into the planning phase before 
it has a Department-approved acquisition program baseline, then the 
Under Secretary for Management shall create and approve an acquisition 
program baseline report on the decision, and the Secretary shall--
          ``(1) within 7 days after an acquisition decision memorandum 
        is signed, notify in writing the congressional homeland 
        security committees of such decision; and
          ``(2) within 60 days after the acquisition decision 
        memorandum is signed, submit a report to such committees 
        stating the rationale for the decision and a plan of action to 
        require an acquisition program baseline for the program.
  ``(f) Best Practices Defined.--In this section, the term `best 
practices' has the meaning provided in section 4(b) of the DHS 
Headquarters Reform and Improvement Act of 2015.''.
  (b) Clerical Amendment.--The table of contents in section 1(b) of the 
Homeland Security Act of 2002 (6 U.S.C. 101 et seq.) is further amended 
by adding after the item relating to section 835 the following new 
item:

``Sec. 836. Acquisition Review Board.''.

SEC. 222. REQUIREMENTS TO REDUCE DUPLICATION IN 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. 837. REQUIREMENTS TO REDUCE DUPLICATION IN ACQUISITION PROGRAMS.

  ``(a) Requirement To Establish Policies.--In an effort to reduce 
unnecessary duplication and inefficiency for all Department 
investments, including major acquisition programs, the Deputy 
Secretary, in consultation with the Under Secretary for Management, 
shall establish Department-wide policies to integrate all phases of the 
investment life cycle and help the Department identify, validate, and 
prioritize standards for common component requirements for major 
acquisition program requirements in order to increase opportunities for 
effectiveness and efficiencies. The policies shall also include 
strategic alternatives for developing and facilitating a Department 
component-driven requirements process that includes oversight of a 
development test and evaluation capability; identification of priority 
gaps and overlaps in Department capability needs; and provision of 
feasible technical alternatives, including innovative commercially 
available alternatives, to meet capability needs.
  ``(b) Mechanisms To Carry Out Requirement.--The Under Secretary for 
Management shall coordinate the actions necessary to carry out 
subsection (a), using such mechanisms as considered necessary by the 
Secretary to help the Department reduce unnecessary duplication and 
inefficiency for all Department investments, including major 
acquisition programs.
  ``(c) Coordination.--In coordinating the actions necessary to carry 
out subsection (a), the Deputy Secretary shall consult with the Under 
Secretary for Management, Component Acquisition Executives, and any 
other Department officials, including the Under Secretary for Science 
and Technology or his designee, with specific knowledge of Department 
or component acquisition capabilities to prevent unnecessary 
duplication of requirements.
  ``(d) Advisors.--The Deputy Secretary, in consultation with the Under 
Secretary for Management, shall seek and consider input within legal 
and ethical boundaries from members of Federal, State, local, and 
tribal governments, nonprofit organizations, and the private sector, as 
appropriate, on matters within their authority and expertise in 
carrying out the Department's mission.
  ``(e) Meetings.--The Deputy Secretary, in consultation with the Under 
Secretary for Management, shall meet at least quarterly and communicate 
with components often to ensure that components do not overlap or 
duplicate spending or priorities on major investments and acquisition 
programs within their areas of responsibility.
  ``(f) Responsibilities.--In carrying out this section, the 
responsibilities of the Deputy Secretary, in consultation with the 
Under Secretary for Management, are as follows:
          ``(1) To review and validate the requirements documents of 
        major investments and acquisition programs prior to acquisition 
        decision events of the investments or programs.
          ``(2) To ensure the requirements and scope of a major 
        investment or acquisition program are stable, measurable, 
        achievable, at an acceptable risk level, and match the 
        resources planned to be available.
          ``(3) Before any entity of the Department issues a 
        solicitation for a new contract, coordinate with other 
        Department entities as appropriate to prevent unnecessary 
        duplication and inefficiency and--
                  ``(A) to implement portfolio reviews to identify 
                common mission requirements and crosscutting 
                opportunities among components to harmonize investments 
                and requirements and prevent overlap and unnecessary 
                duplication among components; and
                  ``(B) to the extent practicable, to standardize 
                equipment purchases, streamline the acquisition 
                process, improve efficiencies, and conduct best 
                practices for strategic sourcing.
          ``(4) To ensure program managers of major investments and 
        acquisition programs conduct analyses, giving particular 
        attention to factors such as cost, schedule, risk, performance, 
        and operational efficiency in order to determine that programs 
        work as intended within cost and budget expectations.
          ``(5) To propose schedules for delivery of the operational 
        capability needed to meet each Department investment and major 
        acquisition program.
  ``(g) Best Practices Defined.--In this section, the term `best 
practices' has the meaning provided in section 4(b) of the DHS 
Headquarters Reform and Improvement Act of 2015.''.
  (b) Clerical Amendment.--The table of contents in section 1(b) of the 
Homeland Security Act of 2002 (6 U.S.C. 101 et seq.) is further amended 
by adding after the item relating to section 836 the following new 
item:

``Sec. 837. Requirements to reduce duplication in acquisition 
programs.''.

SEC. 223. GOVERNMENT ACCOUNTABILITY OFFICE REVIEW OF BOARD AND OF 
                    REQUIREMENTS TO REDUCE DUPLICATION IN ACQUISITION 
                    PROGRAMS.

  (a) Review Required.--The Comptroller General of the United States 
shall conduct a review of the effectiveness of the Acquisition Review 
Board established under section 836 of the Homeland Security Act of 
2002 (as added by section 221) and the requirements to reduce 
unnecessary duplication in acquisition programs established under 
section 837 of such Act (as added by section 222) in improving the 
Department's acquisition management process.
  (b) Scope of Report.--The review shall include the following:
          (1) An assessment of the effectiveness of the Board in 
        increasing program management oversight, best practices and 
        standards, and discipline among the components of the 
        Department, including in working together and in preventing 
        overlap and unnecessary duplication.
          (2) An assessment of the effectiveness of the Board in 
        instilling program management discipline.
          (3) A statement of how regularly each major acquisition 
        program is reviewed by the Board, how often the Board stops 
        major acquisition programs from moving forward in the phases of 
        the acquisition life cycle process, and the number of major 
        acquisition programs that have been halted because of problems 
        with operational effectiveness, schedule delays, or cost 
        overruns.
          (4) An assessment of the effectiveness of the Board in 
        impacting acquisition decisionmaking within the Department, 
        including the degree to which the Board impacts decisionmaking 
        within other headquarters mechanisms and bodies involved in the 
        administration of acquisition activities.
  (c) Report Required.--The Comptroller General shall submit to the 
congressional homeland security committees a report on the review 
required by this section not later than 1 year after the date of the 
enactment of this Act. The report shall be submitted in unclassified 
form but may include a classified annex.

SEC. 224. EXCLUDED PARTY LIST SYSTEM WAIVERS.

  The Secretary of Homeland Security shall provide notification to the 
congressional homeland security committees within 5 days after the 
issuance of a waiver by the Secretary of Federal requirements that an 
agency not engage in business with a contractor in the Excluded Party 
List System (or successor system) as maintained by the General Services 
Administration and an explanation for a finding by the Secretary that a 
compelling reason exists for this action.

SEC. 225. INSPECTOR GENERAL OVERSIGHT OF SUSPENSION AND DEBARMENT.

  The Inspector General of the Department of Homeland Security--
          (1) may audit decisions about grant and procurement awards to 
        identify instances where a contract or grant was improperly 
        awarded to a suspended or debarred entity and whether 
        corrective actions were taken to prevent recurrence; and
          (2) shall review the suspension and debarment program 
        throughout the Department of Homeland Security to assess 
        whether suspension and debarment criteria are consistently 
        applied throughout the Department and whether disparities exist 
        in the application of such criteria, particularly with respect 
        to business size and categories.

     Subtitle C--Acquisition Program Management Accountability and 
                              Transparency

SEC. 231. CONGRESSIONAL NOTIFICATION AND OTHER REQUIREMENTS FOR MAJOR 
                    ACQUISITION PROGRAM BREACH.

  (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. 838. CONGRESSIONAL NOTIFICATION AND OTHER REQUIREMENTS FOR MAJOR 
                    ACQUISITION PROGRAM BREACH.

  ``(a) Breach Defined.--The term `breach', with respect to a major 
acquisition program, means a failure to meet any cost, schedule, or 
performance parameter specified in the acquisition program baseline.
  ``(b) Requirements Within Department if Breach Occurs.--
          ``(1) Notifications.--
                  ``(A) Notification of breach.--If a breach occurs in 
                a major acquisition program, the program manager for 
                that program shall notify the head of the component 
                concerned, the Component Acquisition Executive for the 
                program, the Executive Director referred to in section 
                710(b) of this Act, the Under Secretary for Management, 
                and the Deputy Secretary.
                  ``(B) Notification to secretary.--If a major 
                acquisition program has a breach with a cost overrun 
                greater than 15 percent or a schedule delay greater 
                than 180 days from the costs or schedule set forth in 
                the acquisition program baseline for the program, the 
                Secretary and the Inspector General of the Department 
                shall be notified not later than 5 business days after 
                the breach is identified.
          ``(2) Remediation plan and root cause analysis.--
                  ``(A) In general.--In the case of a breach with a 
                cost overrun greater than 15 percent or a schedule 
                delay greater than 180 days from the costs or schedule 
                set forth in the acquisition program baseline, a 
                remediation plan and root cause analysis is required, 
                and the Under Secretary for Management or his designee 
                shall establish a date for submission within the 
                Department of a breach remediation plan and root cause 
                analysis in accordance with this subsection.
                  ``(B) Remediation plan.--The remediation plan 
                required under this subsection shall be submitted in 
                writing to the head of the component concerned, the 
                Executive Director referred to in section 710(b) of 
                this Act, and the Under Secretary for Management. The 
                plan shall--
                          ``(i) explain the circumstances of the 
                        breach;
                          ``(ii) provide prior cost estimating 
                        information;
                          ``(iii) propose corrective action to control 
                        cost growth, schedule delays, or performance 
                        issues;
                          ``(iv) in coordination with Component 
                        Acquisition Executive, discuss all options 
                        considered, including the estimated impact on 
                        cost, schedule, or performance of the program 
                        if no changes are made to current requirements, 
                        the estimated cost of the 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 the 
                        program; and
                          ``(v) explain the rationale for why the 
                        proposed corrective action is recommended.
                  ``(C) Root cause analysis.--The root cause analysis 
                required under this subsection shall determine the 
                underlying cause or causes of shortcomings in cost, 
                schedule, or performance of the program, including the 
                role, if any, of the following:
                          ``(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 in procurement quantities.
                          ``(vi) Inadequate program funding or changes 
                        in planned out-year funding from 1 5-year 
                        funding plan to the next 5-year funding plan as 
                        outlined in the Future Years Homeland Security 
                        Program required under section 874 of this Act.
                          ``(vii) Legislative, legal, or regulatory 
                        changes.
                          ``(viii) Inadequate program management 
                        personnel, including lack of training, 
                        credentials, certifications, or use of best 
                        practices.
          ``(3) Correction of breach.--The Under Secretary for 
        Management or his designee shall establish a date for 
        submission within the Department of a program of corrective 
        action that ensures that 1 of the following actions has 
        occurred:
                  ``(A) The breach has been corrected and the program 
                is again in compliance with the original acquisition 
                program baseline parameters.
                  ``(B) A revised acquisition program baseline has been 
                approved.
                  ``(C) The program has been halted or cancelled.
  ``(c) Requirements Relating to Congressional Notification if Breach 
Occurs.--
          ``(1) Notification to congress.--If a notification is made 
        under subsection (b)(1)(B) for a breach in a major acquisition 
        program with a cost overrun greater than 15 percent or a 
        schedule delay greater than 180 days from the costs or schedule 
        set forth in the acquisition program baseline, or with an 
        anticipated failure for any key performance threshold or 
        parameter specified in the acquisition program baseline, the 
        Under Secretary for Management shall notify the congressional 
        homeland security committees of the breach in the next 
        quarterly Comprehensive Acquisition Status Report after the 
        Under Secretary for Management receives the notification from 
        the program manager under subsection (b)(1)(B).
          ``(2) Substantial 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 set 
        forth in the acquisition program baseline for a major 
        acquisition program, the Under Secretary for Management shall 
        include in the notification required in (c)(1) a written 
        certification, with supporting explanation, that--
                  ``(A) the acquisition is essential to the 
                accomplishment of the Department's mission;
                  ``(B) there are no alternatives to such capability or 
                asset 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 the acquisition 
                program is adequate to manage and control performance, 
                cost, and schedule.
          ``(3) Submissions to congress.--Not later than 30 calendar 
        days after submission to such committees of a breach 
        notification under paragraph (1) of this section for a major 
        acquisition program, the Under Secretary for Management shall 
        submit to such committees the following:
                  ``(A) A copy of the remediation plan and the root 
                cause analysis prepared under subsection (b)(2) for the 
                program.
                  ``(B) A statement describing the corrective action or 
                actions that have occurred pursuant to subsection 
                (b)(3) for the program, with a justification for the 
                action or actions.
  ``(d) Additional Actions if Breach Occurs.--
          ``(1) Prohibition on obligation of funds.--During the 90-day 
        period following submission under subsection (c)(3) of a 
        remediation plan, root cause analysis, and statement of 
        corrective actions with respect to a major acquisition program, 
        the Under Secretary for Management shall submit a certification 
        described in paragraph (2) of this subsection to the 
        congressional homeland security committees. If the Under 
        Secretary for Management does not submit such certification by 
        the end of such 90-day period, then funds appropriated to the 
        major acquisition program shall not be obligated until the 
        Under Secretary for Management submits such certification.
          ``(2) Certification.--For purposes of paragraph (1), the 
        certification described in this paragraph is a certification 
        that--
                  ``(A) the Department has adjusted or restructured the 
                program in a manner that addresses the root cause or 
                causes of the cost growth in the program; and
                  ``(B) the Department has conducted a thorough review 
                of the breached program's acquisition decision event 
                approvals and the current acquisition decision event 
                approval for the breached program has been adjusted as 
                necessary to account for the restructured program.''.
  (b) Clerical Amendment.--The table of contents in section 1(b) of the 
Homeland Security Act of 2002 (6 U.S.C. 101 et seq.) is further amended 
by adding after the item relating to section 837 the following new 
item:

``Sec. 838. Congressional notification and other requirements for major 
acquisition program breach.''.

SEC. 232. MULTIYEAR ACQUISITION STRATEGY.

  (a) In General.--
          (1) Amendment.--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. 839. MULTIYEAR ACQUISITION STRATEGY.

  ``(a) Multiyear Acquisition Strategy Required.--Not later than 1 year 
after the date of the enactment of this section, the Secretary shall 
submit to the appropriate homeland security committees a multiyear 
acquisition strategy to guide the overall direction of the acquisitions 
of the Department while allowing flexibility to deal with ever-changing 
threats and risks and to help industry better understand, plan, and 
align resources to meet the future acquisition needs of the Department. 
The strategy shall be updated and included in each Future Years 
Homeland Security Program required under section 874 of this Act.
  ``(b) Consultation.--In developing the strategy, the Secretary shall 
consult with others as the Secretary deems appropriate, including 
headquarters, components, employees in the field, and when appropriate, 
individuals from industry and the academic community.
  ``(c) Form of Strategy.--The report shall be submitted in 
unclassified form but may include a classified annex for any sensitive 
or classified information if necessary. The Department also shall 
publish the plan in an unclassified format that is publicly available.
  ``(d) Contents of Strategy.--The strategy shall include the 
following:
          ``(1) Prioritized list.--A systematic and integrated 
        prioritized list developed by the Under Secretary for 
        Management or his designee in coordination with all of the 
        Component Acquisition Executives of Department major 
        acquisition programs that Department and component acquisition 
        investments seek to address, that includes the expected 
        security and economic benefit of the program or system and an 
        analysis of how the security and economic benefit derived from 
        the program or system will be measured.
          ``(2) Inventory.--A plan to develop a reliable Department-
        wide inventory of investments and real property assets to help 
        the Department plan, budget, schedule, and acquire upgrades of 
        its systems and equipment and plan for the acquisition and 
        management of future systems and equipment.
          ``(3) Funding gaps.--A plan to address funding gaps between 
        funding requirements for major acquisition programs and known 
        available resources including, to the maximum extent 
        practicable, ways of leveraging best practices to identify and 
        eliminate overpayment for items to prevent wasteful purchasing, 
        achieve the greatest level of efficiency and cost savings by 
        rationalizing purchases, aligning pricing for similar items, 
        and utilizing purchase timing and economies of scale.
          ``(4) Identification of capabilities.--An identification of 
        test, evaluation, modeling, and simulation capabilities that 
        will be required to support the acquisition of the technologies 
        to meet the needs of the plan and ways to leverage to the 
        greatest extent possible the emerging technology trends and 
        research and development trends within the public and private 
        sectors and an identification of ways to ensure that the 
        appropriate technology is acquired and integrated into the 
        Department's operating doctrine and procured in ways that 
        improve mission performance.
          ``(5) Focus on flexible solutions.--An assessment of ways the 
        Department can improve its ability to test and acquire 
        innovative solutions to allow needed incentives and protections 
        for appropriate risk-taking in order to meet its acquisition 
        needs with resiliency, agility, and responsiveness to assure 
        the Nation's homeland security and facilitate trade.
          ``(6) Focus on incentives to save taxpayer dollars.--An 
        assessment of ways the Department can develop incentives for 
        program managers and senior Department acquisition officials to 
        prevent cost overruns, avoid schedule delays, and achieve cost 
        savings in major acquisition programs.
          ``(7) Focus on addressing delays and bid protests.--An 
        assessment of ways the Department can improve the acquisition 
        process to minimize cost overruns in requirements development, 
        procurement announcements, requests for proposals, evaluation 
        of proposals, protests of decisions and awards and through the 
        use of best practices as defined in section 4(b) of the DHS 
        Headquarters Reform and Improvement Act of 2015 and lessons 
        learned by the Department and other Federal agencies.
          ``(8) Focus on improving outreach.--An identification and 
        assessment of ways to increase opportunities for communication 
        and collaboration with industry, small and disadvantaged 
        businesses, intra-government entities, university centers of 
        excellence, accredited certification and standards development 
        organizations, and national laboratories to ensure that the 
        Department understands the market for technologies, products, 
        and innovation that is available to meet its mission needs to 
        inform the requirements-setting process and before engaging in 
        an acquisition, including--
                  ``(A) methods designed especially to engage small and 
                disadvantaged businesses and a cost-benefit analysis of 
                the tradeoffs that small and disadvantaged businesses 
                provide, barriers to entry for small and disadvantaged 
                businesses, and unique requirements for small and 
                disadvantaged businesses; and
                  ``(B) within the Department Vendor Communication Plan 
                and Market Research Guide, instructions for interaction 
                by program managers with such entities to prevent 
                misinterpretation of acquisition regulations and to 
                permit freedom within legal and ethical boundaries for 
                program managers to interact with such businesses with 
                transparency.
          ``(9) Competition.--A plan regarding competition as described 
        in subsection (e).
          ``(10) Acquisition workforce.--A plan regarding the 
        Department acquisition workforce as described in subsection 
        (f).
          ``(11) Feasibility of workforce development fund pilot 
        program.--An assessment of the feasibility of conducting a 
        pilot program to establish an acquisition workforce development 
        fund as described in subsection (g).
  ``(e) Competition Plan.--The strategy shall also include a plan 
(referred to in subsection (d)(9)) that shall address actions to ensure 
competition, or the option of competition, for major acquisition 
programs. The plan may include assessments of the following measures in 
appropriate cases if such measures are cost effective:
          ``(1) Competitive prototyping.
          ``(2) Dual-sourcing.
          ``(3) Unbundling of contracts.
          ``(4) Funding of next-generation prototype systems or 
        subsystems.
          ``(5) Use of modular, open architectures to enable 
        competition for upgrades.
          ``(6) Acquisition of complete technical data packages.
          ``(7) Periodic competitions for subsystem upgrades.
          ``(8) Licensing of additional suppliers, including small 
        businesses.
          ``(9) Periodic system or program reviews to address long-term 
        competitive effects of program decisions.
  ``(f) Acquisition Workforce Plan.--
          ``(1) Acquisition workforce.--The strategy shall also include 
        a plan (referred to in subsection (d)(10)) to address 
        Department acquisition workforce accountability and talent 
        management that identifies the acquisition workforce needs of 
        each component performing acquisition functions and develops 
        options for filling those needs with qualified individuals, 
        including a cost-benefit analysis of contracting for 
        acquisition assistance.
          ``(2) Additional matters covered.--The acquisition workforce 
        plan shall address ways to--
                  ``(A) improve the recruitment, hiring, training, and 
                retention of Department acquisition workforce 
                personnel, including contracting officer's 
                representatives, in order to retain highly qualified 
                individuals that have experience in the acquisition 
                life cycle, complex procurements, and management of 
                large programs;
                  ``(B) empower program managers to have the authority 
                to manage their programs in an accountable and 
                transparent manner as they work with the acquisition 
                workforce;
                  ``(C) prevent duplication within Department 
                acquisition workforce training and certification 
                requirements through leveraging already-existing 
                training within the Federal Government, academic 
                community, or private industry;
                  ``(D) achieve integration and consistency with 
                Government-wide training and accreditation standards, 
                acquisition training tools, and training facilities;
                  ``(E) designate the acquisition positions that will 
                be necessary to support the Department acquisition 
                requirements, including in the fields of--
                          ``(i) program management;
                          ``(ii) systems engineering;
                          ``(iii) procurement, including contracting;
                          ``(iv) test and evaluation;
                          ``(v) life cycle logistics;
                          ``(vi) cost estimating and program financial 
                        management; and
                          ``(vii) additional disciplines appropriate to 
                        Department mission needs;
                  ``(F) strengthen the performance of contracting 
                officer's representatives (as defined in subpart 1.602-
                2 and subpart 2.101 of the Federal Acquisition 
                Regulation), including by--
                          ``(i) assessing the extent to which 
                        contracting officer's representatives are 
                        certified and receive training that is 
                        appropriate;
                          ``(ii) determining what training is most 
                        effective with respect to the type and 
                        complexity of assignment; and
                          ``(iii) implementing actions to improve 
                        training based on such assessment; and
                  ``(G) identify ways to increase training for relevant 
                investigators and auditors to examine fraud in major 
                acquisition programs, including identifying 
                opportunities to leverage existing Government and 
                private sector resources in coordination with the 
                Inspector General of the Department.
  ``(g) Feasibility of Workforce Development Fund Pilot Program.--The 
strategy shall also include an assessment (referred to in subsection 
(d)(11)) of the feasibility of conducting a pilot program to establish 
a Homeland Security Acquisition Workforce Development Fund (in this 
subsection referred to as the `Fund') to ensure the Department 
acquisition workforce has the capacity, in both personnel and skills, 
needed to properly perform its mission and ensure that the Department 
receives the best value for the expenditure of public resources. The 
assessment shall address the following:
          ``(1) Ways to fund the Fund, including the use of direct 
        appropriations, or the credit, transfer, or deposit of 
        unobligated or unused funds from Department components into the 
        Fund to remain available for obligation in the fiscal year for 
        which credited, transferred, or deposited and to remain 
        available for successive fiscal years.
          ``(2) Ways to reward the Department acquisition workforce and 
        program managers for good program management in controlling 
        cost growth, limiting schedule delays, and ensuring operational 
        effectiveness through providing a percentage of the savings or 
        general acquisition bonuses.
          ``(3) Guidance for the administration of the Fund that 
        includes provisions to do the following:
                  ``(A) Describe the costs and benefits associated with 
                the use of direct appropriations or credit, transfer, 
                or deposit of unobligated or unused funds to finance 
                the Fund.
                  ``(B) Describe the manner and timing for applications 
                for amounts in the Fund to be submitted.
                  ``(C) Explain the evaluation criteria to be used for 
                approving or prioritizing applications for amounts in 
                the Fund in any fiscal year.
                  ``(D) Explain the mechanism to report to Congress on 
                the implementation of the Fund on an ongoing basis.
                  ``(E) Detail measurable performance metrics to 
                determine if the Fund is meeting the objective to 
                improve the acquisition workforce and to achieve cost 
                savings in acquisition management.''.
          (2) Clerical amendment.--The table of contents in section 
        1(b) of the Homeland Security Act of 2002 (6 U.S.C. 101 et 
        seq.) is further amended by adding after the item relating to 
        section 838 the following new item:

``Sec. 839. Multiyear acquisition strategy.''.

  (b) Conforming Amendment to Future Years Homeland Security Program.--
Section 874(b) of the Homeland Security Act of 2002 (6 U.S.C. 454(b)) 
is amended--
          (1) by striking ``and'' at the end of paragraph (2);
          (2) by striking the period at the end of paragraph (3) and 
        inserting ``; and''; and
          (3) by adding at the end the following new paragraph:
          ``(4) include the multiyear acquisition strategy required 
        under section 839 of this Act.''.

SEC. 233. ACQUISITION REPORTS.

  (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. 840. ACQUISITION REPORTS.

  ``(a) Comprehensive Acquisition Status Report.--
          ``(1) In general.--The Under Secretary for Management each 
        year shall submit to the congressional homeland security 
        committees, at the same time as the President's budget is 
        submitted for a fiscal year under section 1105(a) of title 31, 
        United States Code, a comprehensive acquisition status report. 
        The report shall include the following:
                  ``(A) The information required under the heading 
                `Office of the Under Secretary for Management' under 
                title I of division D of the Consolidated 
                Appropriations Act, 2012 (Public Law 112-74) (as 
                required under the Department of Homeland Security 
                Appropriations Act, 2013 (Public Law 113-6)).
                  ``(B) A listing of programs that have been cancelled, 
                modified, paused, or referred to the Under Secretary 
                for Management or Deputy Secretary for additional 
                oversight or action by the Board, Department Office of 
                Inspector General, or the Comptroller General.
                  ``(C) A listing of established Executive Steering 
                Committees, which provide governance of a program or 
                related set of programs and lower-tiered oversight, and 
                support between acquisition decision events and 
                component reviews, including the mission and membership 
                for each.
          ``(2) Information for major acquisition programs.--For each 
        major acquisition program, the report shall include the 
        following:
                  ``(A) A narrative description, including current gaps 
                and shortfalls, the capabilities to be fielded, and the 
                number of planned increments or units.
                  ``(B) Acquisition Review Board (or other board 
                designated to review the acquisition) status of each 
                acquisition, including the current acquisition phase, 
                the date of the last review, and a listing of the 
                required documents that have been reviewed with the 
                dates reviewed or approved.
                  ``(C) The most current, approved acquisition program 
                baseline (including project schedules and events).
                  ``(D) A comparison of the original acquisition 
                program baseline, the current acquisition program 
                baseline, and the current estimate.
                  ``(E) Whether or not an independent verification and 
                validation has been implemented, with an explanation 
                for the decision and a summary of any findings.
                  ``(F) A rating of cost risk, schedule risk, and 
                technical risk associated with the program (including 
                narrative descriptions and mitigation actions).
                  ``(G) Contract status (including earned value 
                management data as applicable).
                  ``(H) A lifecycle cost of the acquisition, and time 
                basis for the estimate.
          ``(3) Updates.--The Under Secretary shall submit quarterly 
        updates to such report not later than 45 days after the 
        completion of each quarter.
  ``(b) Quarterly Program Accountability Report.--The Under Secretary 
for Management shall prepare a quarterly program accountability report 
to meet the Department's mandate to perform program health assessments 
and improve program execution and governance. The report shall be 
submitted to the congressional homeland security committees.''.
  (b) Clerical Amendment.--The table of contents in section 1(b) of the 
Homeland Security Act of 2002 (6 U.S.C. 101 et seq.) is further amended 
by adding after the item relating to section 839 the following new 
item:

``Sec. 840. Acquisition reports.''.

SEC. 234. GOVERNMENT ACCOUNTABILITY OFFICE REVIEW OF MULTIYEAR 
                    ACQUISITION STRATEGY.

  (a) Review Required.--After submission to Congress of the first 
multiyear acquisition strategy (pursuant to section 839 of the Homeland 
Security Act of 2002) after the date of the enactment of this Act, the 
Comptroller General of the United States shall conduct a review of the 
plan within 180 days to analyze the viability of the plan's 
effectiveness in the following:
          (1) Complying with the requirements in section 839 of the 
        Homeland Security Act of 2002, as added by section 232 of this 
        Act.
          (2) Establishing clear connections between Department 
        objectives and acquisition priorities.
          (3) Demonstrating that Department acquisition policy reflects 
        program management best practices and standards.
          (4) Ensuring competition or the option of competition for 
        major acquisition programs.
          (5) Considering potential cost savings through using already-
        existing technologies when developing acquisition program 
        requirements.
          (6) Preventing duplication within Department acquisition 
        workforce training requirements through leveraging already-
        existing training within the Federal Government, academic 
        community, or private industry.
          (7) Providing incentives for program managers to reduce 
        acquisition and procurement costs through the use of best 
        practices and disciplined program management.
          (8) Maximizing small business utilization in acquisitions by, 
        to the maximum extent practicable, ensuring strategic sourcing 
        vehicles seek to increase participation by small businesses, 
        including small and disadvantaged business.
          (9) Assessing the feasibility of conducting a pilot program 
        to establish a Homeland Security Acquisition Workforce 
        Development Fund.
  (b) Report Required.--The Comptroller General shall submit to the 
congressional homeland security committees a report on the review 
required by this section. The report shall be submitted in unclassified 
form but may include a classified annex.

SEC. 235. OFFICE OF INSPECTOR GENERAL REPORT.

  (a) Review Required.--No later than 2 years following the submission 
of the report submitted by the Comptroller General of the United States 
as required by section 234, the Department's Inspector General shall 
conduct a review of whether the Department has complied with the 
multiyear acquisition strategy (pursuant to section 839 of the Homeland 
Security Act of 2002) and adhered to the strategies set forth in the 
plan. The review shall also consider whether the Department has 
complied with the requirements to provide the Acquisition Review Board 
with a capability development plan for each major acquisition program.
  (b) Report Required.--The Inspector General shall submit to the 
congressional homeland security committees a report of the review 
required by this section. The report shall be submitted in unclassified 
form but may include a classified annex.

                          Purpose and Summary

    H.R. 3572 seeks to reform and improve key management 
functions in the Department of Homeland Security's (DHS or 
Department) headquarters, streamline DHS's Office of Policy by 
consolidating three existing offices and eliminating five 
Assistant Secretary positions, mandates specific efficiency 
reviews, provides stronger overall Congressional direction, and 
seeks to strengthen the Department's role in effectively 
overseeing major acquisition programs. In addition, this bill 
provides guidance to ensure that DHS's structure and focus are 
directly linked to securing the homeland.

                  Background and Need for Legislation

    It is important for the Department to receive clear 
direction from Congress to ensure that it effectively and 
efficiently carries out its mission of securing the homeland. 
However, DHS has not received robust Congressional 
authorization since the Homeland Security Act of 2002 
established the Department, which has allowed DHS to create, 
organize, reorganize, and expand the scope of several offices 
and programs without Congressional approval for doing so. For 
example, the Homeland Security Act of 2002 originally 
authorized a Special Assistant to the Secretary for the Private 
Sector but the Department used that authorization to create an 
Assistant Secretary for that role and moved the position to the 
Office of Policy without Congressional approval. As such, to 
ensure that DHS does not create future Assistant Secretary 
positions without explicit Congressional approval, the bill 
specifies the Assistant Secretaries authorized for the 
Department.
    Further, DHS headquarters has an array of offices that 
should be streamlined and refocused to avoid a top-heavy 
bureaucracy. Specifically, DHS currently has three offices 
responsible for coordinating outreach with external 
stakeholders, each led by its own Assistant Secretary. This 
bill consolidates these offices into one office responsible for 
external outreach and engagement and places that one office 
within the Office of Policy to more closely align external 
engagement with policymaking. It also eliminates two Assistant 
Secretary positions in order to achieve a leaner and more 
effective department.
    DHS has experienced serious management challenges from its 
inception. Since 2003, GAO has identified DHS's consolidation 
of 22 agencies into one department, and the Department's 
subsequent challenges with its management functions, as an item 
for inclusion in GAO's biennial High-Risk Update, detailing 
areas of federal government operations particularly vulnerable 
to waste, fraud, abuse, or mismanagement. In the latest Update 
(GAO-15-290), GAO noted that DHS's management challenges 
continue and recommends actions needed to mitigate the risks 
posed by management weaknesses to the Department's missions. 
Additionally, the DHS Office of Inspector General (OIG) reports 
annually on major management challenges facing the Department. 
In November 2014, the OIG identified challenges in DHS's 
management of acquisition programs. 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 Despite having an acquisition policy that reflects 
best practices, DHS has routinely approved major acquisition 
programs to move forward without appropriate internal 
oversight. GAO reports issued as H.R. 3572's acquisition-reform 
provisions began to move through the Homeland Security 
Committee (GAO-15-171SP; GAO-15-292) call for enhanced 
management accountability, improved oversight, and better 
reporting to Congress. This bill provides the necessary 
authority for key personnel and mechanisms within the 
Department to effectively manage major acquisition programs, 
and enhances Congressional oversight of this spending.
    Additionally, this legislation enhances the 
responsibilities of key management officials and, in a number 
of instances, requires them to ensure appropriate execution of 
a particular activity. In these instances, the provision 
intends that the official devotes the greatest effort possible 
to ensure an activity's completion to the extent that it is 
within his or her control. This can include, but is not limited 
to, establishing policies, internal controls, and processes to 
ensure that a bill requirement is met. Finally, the bill 
requires the Department to complete various plans outlining 
strategies related to the Department's international 
activities, the Quadrennial Homeland Security Review, 
information technology, human capital, and multiyear 
acquisition strategy. The Committee intends for the Department 
to coordinate between those strategic plans to ensure that they 
inform one another.

                                Hearings

    No hearings were specifically held on H.R. 3572. However, 
the Committee has held several relevant oversight hearings, 
listed below.
    On March 1, 2012, the Subcommittee on Oversight and 
Management Efficiency held a hearing entitled ``Building One 
DHS: Why Can't Management Information Be Integrated?'' The 
Subcommittee received testimony from The Honorable Rafael 
Borras, Under Secretary for Management, U.S. Department of 
Homeland Security; Mr. David Maurer, Director, Homeland 
Security and Justice, U.S. Government Accountability Office; 
and Mr. Charles Edwards, Acting Inspector General, U.S. 
Department of Homeland Security.
    On March 8, 2012, the Subcommittee on Oversight and 
Management Efficiency held a hearing entitled ``Eliminating 
Waste, Fraud, Abuse, and Duplication in the Department of 
Homeland Security.'' The Subcommittee received testimony from 
The Honorable James Gilmore III, Former Governor of Virginia 
and Chairman of the Congressional Advisory Panel to Assess 
Domestic Response Capabilities for Terrorism Involving Weapons 
of Mass Destruction; Ms.Cathleen Berrick, Managing Director, 
Homeland Security and Justice, U.S. Government Accountability 
Office; Mr. Charles Edwards, Acting Inspector General, U.S. 
Department of Homeland Security; and Mr. Scott Lilly, Senior 
Fellow, Center for American Progress.
    On March 22, 2012, the Subcommittee on Oversight and 
Management Efficiency held a hearing entitled ``Building One 
DHS: Why Is Employee Morale Low?'' The Subcommittee received 
testimony from Admiral Thad Allen (Ret.), Senior Vice 
President, Booz Allen Hamilton; Ms. Catherine Emerson, Chief 
Human Capital Officer, U.S. Department of Homeland Security; 
Mr. David Maurer, Director, Homeland Security and Justice, U.S. 
Government Accountability Office; Mr. Max Stier, President and 
CEO, The Partnership for Public Service; and Dr. Jeff T.H. Pon, 
Chief Human Resources Officer, Society for Human Resource 
Management.
    On September 20, 2012, the Committee on Homeland Security 
held a hearing entitled ``The Department of Homeland Security: 
An Assessment of the Department and a Roadmap for Its Future.'' 
The Committee received testimony from The Honorable Richard 
Skinner, Former Inspector General, U.S. Department of Homeland 
Security; The Honorable Stewart A. Baker, Former Assistant 
Secretary for Policy, U.S. Department of Homeland Security; 
Mr.Frank J. Cilluffo, Former Principal Advisor to Governor Tom 
Ridge, White House Office of Homeland Security; and Mr. David 
Maurer, Director, Homeland Security and Justice, U.S. 
Government Accountability Office.
    On September 21, 2012, the Subcommittee on Oversight and 
Management Efficiency held a hearing entitled ``DHS Acquisition 
Management Challenges: Solutions for Saving Taxpayer Dollars'' 
The Subcommittee received testimony from Mr. John Hutton, 
Director, Acquisition and Sourcing Management, U.S. Government 
Accountability Office; Dr. Nick Nayak, Chief Procurement 
Office, U.S. Department of Homeland Security; Mr. Mark 
Borkowski, Assistant Commissioner, Office of Technology 
Innovation and Acquisition, Customs and Border Protection, U.S. 
Department of Homeland Security; and Ms. Karen Shelton Waters, 
Assistant Administrator, Office of Acquisition, Transportation 
Security Administration, U.S. Department of Homeland Security.
    On February 15, 2013, the Subcommittee on Oversight and 
Management Efficiency held a hearing entitled ``Assessing DHS 
10 Years Later: How Wisely is DHS Spending Taxpayer Dollars?'' 
The Subcommittee received testimony from The Honorable James 
Gilmore III, President, Free Congress Foundation; Mr. Rick 
``Ozzie'' Nelson, Vice President for Business Development, 
Cross Match Technologies; Mr. Shawn Reese, Analyst, Emergency 
Management and Homeland Security Policy, Congressional Research 
Service; and Ms. Cathleen Berrick, Managing Director, Homeland 
Security and Justice, U.S. Government Accountability Office.
    On April 26, 2013, the Subcommittee on Oversight and 
Management Efficiency held a hearing entitled ``Cutting DHS 
Duplication and Wasteful Spending: Implementing Private Sector 
Best Practices and Watchdog Recommendations.'' The Subcommittee 
received testimony from Ms. Cathleen Berrick, Managing 
Director, Homeland Security and Justice, U.S. Government 
Accountability Office; Ms. Anne Richards, Assistant Inspector 
General for Audits, Office of Inspector General, U.S. 
Department of Homeland Security; Mr.Paul G. Stern, Ph.D., Board 
Director, Business Executives for National Security; Mr. Craig 
Killough, Vice President, Organization Markets, Project 
Management Institute; and Dr. Henry H. Willis, Director, RAND 
Homeland Security and Defense Center, The RAND Corporation.
    On September 19, 2013, the Subcommittee on Oversight and 
Management Efficiency held a hearing entitled ``DHS Acquisition 
Practices: Improving Outcomes for Taxpayers Using Defense and 
Private Sector Lessons Learned.'' The Subcommittee received 
testimony from The Honorable Rafael Borras, Under Secretary for 
Management, U.S. Department of Homeland Security; Ms. Michele 
Mackin, Director, Acquisition and Sourcing Management, U.S. 
Government Accountability Office; and Ms. Anne Richards, 
Assistant Inspector General for Audits, Office of Inspector 
General, U.S. Department of Homeland Security.
    On November 15, 2013, the Subcommittee on Oversight and 
Management Efficiency held a hearing entitled ``DHS Financial 
Management: Investigating DHS's Stewardship of Taxpayer 
Dollars.'' The Subcommittee received testimony from Mr. Chip 
Fulghum, Acting Chief Financial Officer, U.S. Department of 
Homeland Security; Mr. Asif Khan, Director, Financial 
Management and Assurance, U.S. Government Accountability 
Office; and Ms. Anne Richards, Assistant Inspector General for 
Audits, Office of Inspector General, U.S. Department of 
Homeland Security.
    On February 26, 2014, the Committee on Homeland Security 
held a hearing entitled ``The Secretary's Vision for the 
Future-Challenges and Priorities.'' The Committee received 
testimony from The Honorable Jeh Johnson, Secretary, U.S. 
Department of Homeland Security.
    On May 7, 2014, the Committee on Homeland Security held a 
hearing entitled ``Preventing Waste, Fraud, Abuse and 
Mismanagement in Homeland Security- A GAO High-Risk List 
Review.'' The Committee received testimony from The Honorable 
Alejandro Mayorkas, Deputy Secretary, U.S. Department of 
Homeland Security; The Honorable Gene L. Dodaro, Comptroller 
General of the United States, U.S. Government Accountability 
Office; and The Honorable John Roth, Inspector General, U.S. 
Department of Homeland Security.
    On June 20, 2014, the Subcommittee on Oversight and 
Management Efficiency held a hearing entitled ``Stakeholder 
Perspectives on Priorities for the Quadrennial Homeland 
Security Review.'' The Subcommittee received testimony from Mr. 
Stewart A. Baker, Former Assistant Secretary for Policy, U.S. 
Department of Homeland Security; Mr. Frank J. Cilluffo, 
Associate Vice President and Director, Homeland Security Policy 
Institute, The George Washington University; Dr. Henry H. 
Willis, Director, RAND Homeland Security and Defense Center, 
The RAND Corporation; and The Honorable Elaine Duke, Former 
Under Secretary for Management, U.S. Department of Homeland 
Security.
    On February 26, 2015, the Subcommittee on Oversight and 
Management Efficiency held a hearing entitled ``Assessing DHS's 
Performance: Watchdog Recommendations to Improve Homeland 
Security.'' The Subcommittee received testimony from The 
Honorable John Roth, Inspector General, U.S. Department of 
Homeland Security; Ms. Rebecca Gambler, Director, Homeland 
Security and Justice, U.S. Government Accountability Office; 
and Dr. Daniel M. Gerstein, Senior Policy Researcher, The RAND 
Corporation.
    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; The Honorable 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.
    On September 18, 2015, the Subcommittee on Oversight and 
Management Efficiency held a hearing entitled ``Making DHS More 
Efficient: Industry Recommendations to Improve Homeland 
Security.'' The Subcommittee received testimony from Mr. Marc 
A. Pearl, President and Chief Executive Officer, Homeland 
Security and Defense Business Counsel; Mr. Harry Totonis, Board 
Director, Business Executives for National Security; and Ms. 
Elaine Duke, Principal, Elaine Duke & Associates, LLC.

                        Committee Consideration

    The Committee met on September 30, 2015, to consider 
H.R.3572, and ordered the measure to be reported to the House 
with a favorable recommendation, as amended, by voice vote. The 
Committee took the following actions:
    The following amendments were offered:

 An en bloc amendment offered by Mr. Thompson of Mississippi 
(#1); was AGREED TO by voice vote.
     Consisting of the following amendments:
     At the end of title I (page 65, after line 13) insert a new 
section entitled ``Sec. 115. Resources to Respond to Operational 
Surges.'';

     Page 49, strike ``and'' at line 7, strike the period at line 16 
and insert ``; and'', and after line 16 insert the following: (10) 
conduct oversight of implementation of administrative agreements to 
resolve suspension or debarment proceedings and, upon request, provide 
information to the Committee on Homeland Security of the House of 
Representatives and the Committee on Homeland Security and Governmental 
Affairs of the Senate about the effectiveness of such agreements at 
improving contractor responsibility.

 An en bloc amendment offered by Mr. Perry (#2); was AGREED TO 
by voice vote.
     Consisting of the following amendments:
     Page 46, line 24, strike ``and'' the second place it appears.
     Page 47, line 3, strike the periods and the closing quotation 
marks and insert ``; and''.
     Page 47, after line 3, insert a new paragraph 13 relating to the 
track, approve, oversee, and make public information on expenditures by 
components of the Department for conferences, as appropriate, including 
by requiring each component of the Department.;

     Page 75, line 21, before ``Nothing'' insert the following: ``(A) 
In General.-''.
     Page 76, line 5, before the closing quotation marks insert a new 
subparagraph entitled ``(B) Operational Testing and Evaluation.''

 An amendment offered by Mr. Hurd (#3); was AGREED TO by voice 
vote.
     Page 14, after line 21, insert a new subsection entitled ``(g) 
Deputy Under Secretary for Policy.''

 An en bloc amendment offered by Mr. Payne (#4); was AGREED TO 
by voice vote.
     Consisting of the following amendments:
     Page 49, line 4, before ``establish'' insert ``use such data to''.

     Page 117, after line 6, insert the following (and make appropriate 
conforming changes): ``(8) Maximizing small business utilization in 
acquisitions by, to the maximum extent practicable, ensuring strategic 
sourcing vehicles seek to increase participation by small businesses, 
including small and disadvantaged business.

 An en bloc amendment Mrs. Watson Coleman (#5); was AGREED TO 
by voice vote.
     Consisting of the following amendments:
     Page 6, line 12, before the semicolon insert ``and require the 
head of each component of the Department and component chief officers 
to comply with such policies and implement such strategies and 
initiatives''.

     Page 65, after line 13, insert a new section entitled ``Sec. 113. 
Department of Homeland Security Rotation Program.''; was AGREED TO, by 
voice vote.

 An amendment offered by Mr. Loudermilk (#6); was AGREED TO by 
voice vote.
     Page 7, after line 17, insert a new subsection entitled ``(c) 
Abolishment of the Office of Counternarcotics Enforcement.''

 An en bloc amendment offered by Mrs. Watson Coleman (#7); was 
AGREED TO by voice vote.
     Consisting of the following amendments:
     Page 68, strike ``and'' after the semicolon at line 17, strike the 
period at line 22 and insert ``; and'', and after line 22 insert the 
following: ``(E) to ensure that program managers, on an ongoing basis, 
monitor cost, schedule, and performance against established baselines 
and use tools to assess risks to a program at all phases of the life 
cycle of the program to avoid and mitigate acquisition program baseline 
breaches.

     Page 77, line 25, strike ``new section''.
     Page 82, strike the closing quotation marks and following period 
at line 3, and after line 3 insert a new section entitled ``Sec. 711. 
Acquisition Documentation.''

     Page 81, after line 10, insert the following (and redesignate the 
subsequent quoted paragraphs accordingly): ``(1) define baseline 
requirements and document changes to those requirements, as 
appropriate;

     Page 84, line 9, before the coma insert ``and documentation 
reflecting consideration of tradeoffs among cost, schedule, and 
performance objectives''.

     Page 90, line 21, strike ``Department'' and insert ``Board''.
     Page 91, line 2, strike ``Department'' and insert ``Board''.
     Page 91, after line 11, insert the following: (4) An assessment of 
the effectiveness of Board in impacting acquisition decision-making 
within the Department, including the degree to which the Board impacts 
decision-making within other headquarters mechanisms and bodies 
involved in the administration of acquisition activities.

 An en bloc amendment offered by Mr. Thompson of Mississippi 
(#8); was AGREED TO by voice vote.
     Consisting of the following amendments:
     An amendment listed on the roster by Ms. Jackson Lee;
     Page 19, line 17, strike ``functions'' and insert ``activities''.
     Page 19, line 18, strike ``functions'' and insert ``activities''.
     Beginning at page 19, strike line 23 and all that follows through 
page 20, line 2, and insert the following: ``(B) advise, inform, and 
assist the Secretary with respect to the development and implementation 
of Departmental policy priorities, including strategic priorities for 
the deployment of assets, including personnel, outside the United 
States;
     Page 20, beginning at line 14, strike ``monitor the ability of the 
Department's components to comply with such a process'' and insert 
``establish mechanisms to monitor the alignment between assets, 
including personnel, deployed by the Department outside the United 
States and the plan required by this subparagraph''.
     Page 20, beginning at line 18, strike ``functions'' and insert 
``activities''.
     Page 20, line 21, before the semicolon insert ``, and establish 
mechanisms to foster better coordination of Department personnel, 
programs, and activities deployed outside the United States''.
     Page 22, after line 22, insert a new subsection entitled ``(3) 
Standardized Framework For Cost Data.''

     An amendment listed on the roster by Ms. Jackson Lee;
     Page 31, line 11, before the period insert ``, unless the 
Secretary of Homeland Security receives prior authorization from 
Congress permitting such change''.
     Page 59, line 4, strike ``contractors to Federal employees'' and 
insert ``contractor positions to Federal employee positions''.

                            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.3572.

                      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. 
3572, the DHS Headquarters Reform and Improvement Act of 2015, 
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, October 19, 2015.
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. 3572, the DHS 
Headquarters Reform and Improvement Act of 2015.
    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. 3572--DHS Headquarters Reform and Improvement Act of 2015

    H.R. 3572 would reorganize certain offices in the 
headquarters of the Department of Homeland Security (DHS). The 
bill would direct the department to improve the accountability, 
transparency, and efficiency of its major acquisition programs 
and would specify procedures for DHS to follow if it fails to 
meet timelines or other performance parameters for those 
programs. In addition, H.R. 3572 would require DHS to prepare a 
comprehensive report each year on the status of its acquisition 
program and would direct the Government Accountability Office 
(GAO) and the DHS Inspector General to review and report on 
certain issues related to departmental acquisition policies.
    Based on information from DHS and the cost of similar 
activities, CBO estimates that the reorganization and new 
administrative procedures as well as additional reviews and 
reports by GAO and DHS required by H.R. 3572 would cost about 
$2 million in 2016 and less than $500,000 annually thereafter; 
such spending would be subject to the availability of 
appropriated funds. CBO expects that DHS will continue to seek 
to improve its efficiency in acquiring goods and services under 
current law; we have no basis for estimating any savings in 
procurement costs that might occur as a result of the bill's 
directives to the department.
    Enacting the legislation would not affect direct spending 
or revenues; therefore, pay-as-you-go procedures do not apply. 
CBO estimates that enacting H.R. 3572 would not increase net 
direct spending or on-budget deficits in any of the four 
consecutive 10-year periods beginning in 2026.
    H.R. 3572 contains no intergovernmental or private-sector 
mandates as defined in the Unfunded Mandates Reform Act and 
would not affect the budgets of 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. 3572 contains the following 
general performance goals and objectives, including outcome 
related goals and objectives authorized.
    The purpose of H.R. 3572, Department of Homeland Security 
Headquarters Reform and Improvement Act of 2015 is to provide 
guidance to the Department of Homeland Security regarding its 
headquarters functions and authorities.

                      Duplicative Federal Programs

    Pursuant to clause 3(c) of rule XIII, the Committee finds 
that H.R. 3572 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. 3572 does 
not preempt any State, local, or Tribal law.

                  Disclosure of Directed Rule Makings

    The Committee estimates that H.R. 3572 would require no 
directed rule makings.

                      Advisory Committee Statement

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

                  Applicability to Legislative Branch

    The Committee finds that the legislation does not relate to 
the terms and conditions of employment or access to public 
services or accommodations within the meaning of section 
102(b)(3) of the Congressional Accountability Act.

             Section-by-Section Analysis of the Legislation

Section 1.   Short Title; Table of Contents.

    This section provides that bill may be cited as the ``DHS 
Headquarters Reform and Improvement Act of 2015'', and provides 
a table of contents for the remainder of the bill.

  TITLE I-Department of Homeland Security Headquarters Reauthorization

    Title I authorizes DHS headquarters, streamlines the Office 
of Policy, and outlines specific responsibilities for the 
management chiefs in the Department, among other things.

Sec. 101.   Definitions.

    Section 101 amends section 2 of the Homeland Security Act 
of 2002 to include definitions on ``homeland security 
enterprise'' and ``management integration and transformation.''

Sec. 102.   Headquarters Components.

    Section 102 amends section 102 of the Homeland Security Act 
of 2002 (6 U.S.C. 112) to allow the Secretary to enter into 
agreements with the governments of foreign nations, in 
consultation with the Secretary of State, and international 
nongovernmental organizations. Section 102 also clarifies and 
streamlines the offices that constitute ``DHS Headquarters'' 
and better outlines their respective responsibilities. In 
particular, this section codifies the Management Directorate 
and the Office of Policy, among other offices. This section 
also outlines the Secretary's functions as they are executed 
through the Department's headquarters, which include 
establishing DHS's overall strategy, setting and overseeing 
performance at the Department, and holding component and agency 
leaders accountable for implementing Department-wide policies 
and initiatives, among other things. Section 102 also abolishes 
the position of the Director of Shared Services and the Office 
of Counternarcotics Enforcement.

Sec. 103.   Chief Privacy Officer.

    Section 103(a) amends section 222 of the Homeland Security 
Act of 2002 (6 U.S.C. 142) by requiring the Chief Privacy 
Officer to prepare an annual report to Congress on the 
Department's activities related to privacy, including privacy 
violation complaints. This section requires that the annual 
report include the number of new technology programs 
implemented in the Department each fiscal year. Of these 
programs, the report must also include the number of programs 
for which the Chief Privacy Officer has ensured that privacy 
protections were considered. Section 103(a) also requires the 
report to include the number of those programs that effectively 
implemented privacy protections into new technology programs 
and, if they were not implemented, an explanation for why not. 
Such report is already produced annually and the Committee does 
not intend for this to be an additional report but rather adds 
to the existing report requirements.
    Section 103(b) establishes additional responsibilities for 
the Chief Privacy Officer to include, among other things, 
developing guidance to assist components in developing privacy-
related policies, establishing a mechanism to ensure components 
are in compliance with privacy policies and laws, and serving 
as the Department's central office for managing and processing 
Freedom of Information Act (FOIA) requests. Section 103(b) also 
allows the Secretary to reassign the functions related to FOIA 
to another official within the Department, if necessary.

Sec. 104.   Office of Policy.

  Sec. 104(a).   Office of Policy Establishment, Roles, and 
        Responsibilities.

    Sec. 104(a) amends the Homeland Security Act of 2002 (6. 
U.S.C. 101 et seq.) by inserting: ``Title VI--Policy and 
Planning'' and including the following requirements for the 
Office of Policy:

``Sec.   601. office of policy.''

  ``Sec. 601(a).   establishment of office.''

    Section 601(a) establishes an Office of Policy within DHS 
that will be led by an Under Secretary for Policy. The Under 
Secretary will be appointed by the President and confirmed by 
the Senate. This elevates the head of the office from an 
Assistant Secretary to an Under Secretary.

  ``Sec. 601(b).   mission.''

    Section 601(b) states that the mission of the Office of 
Policy is to lead, conduct, and coordinate DHS's policy, 
strategic planning efforts, and relationships with external 
parties.

  ``Sec. 601(c).   components of office.''

    Section 601(c) establishes four offices within the Office 
of Policy. In effect, this section and the related subsequent 
sections reorganize the Office of Policy in order to 
consolidate small offices and eliminate unnecessary Assistant 
Secretary positions. Section 601(c) outlines the following 
offices within the Office of Policy: the Office of Partnership 
and Engagement, the Office of International Affairs, the Office 
of Policy Implementation, and the Office of Strategy and 
Planning.

  ``Sec. 601(d).   responsibilities of the under secretary.''

    Section 601(d) establishes nine responsibilities of the 
Under Secretary for Policy, which include, serving as the 
principal policy advisor to the Secretary, overseeing and 
coordinating relationships with outside stakeholders, and 
managing and coordinating DHS's international activities, among 
other things.

  ``Sec. 601(e).   coordination by department components.''

    Section 601(e) mandates that the head of each component 
coordinate with the Office of Policy when establishing new 
policies or strategic planning guidance. Each component is 
required to inform the Under Secretary for Policy of any plans 
to negotiate with foreign governments. Section 601(e) also 
requires that each component notify the Under Secretary for 
Policy of international travel by senior officers.

  ``Sec. 601(f).   assignment of personnel.''

    Section 601(f) authorizes the Secretary to assign permanent 
staff and other appropriate personnel to the Office of Policy 
to carry out the functions identified in section 601. This 
office currently exists, even though it is not statutorily 
authorized.

  ``Sec. 601(g).   deputy under secretary for policy.''

    Section 601(g) authorizes the Secretary to establish a 
Deputy Under Secretary for Policy that will be filled by a 
career employee. This section also places a limitation on the 
establishment of additional Deputy Under Secretary positions, 
unless the Secretary receives prior authorization from 
Congress.

``Sec. 602.   office of partnership and engagement.''

  ``Sec. 602(a)   in general.''

    Section 602(a) establishes the Office of Partnership and 
Engagement within the Office of Policy.

  ``Sec. 602(b).   head of office.''

    Section 602(b) establishes that the Office of Partnership 
and Engagement will be led by an Assistant Secretary who will 
be appointed by the Secretary. This section prohibits the 
Secretary from appointing numerous Assistant Secretaries to 
conduct outreach with different stakeholder groups. As such, it 
eliminates three Assistant Secretary positions.

  ``Sec. 602(c).   responsibilities.''

    Section 602(c) establishes 19 responsibilities for the 
Assistant Secretary for Partnership and Engagement related to 
coordination with three types of the Department's external 
stakeholders: (1) state, local, and tribal law enforcement 
agencies; (2) private sector organizations; and (3) state and 
local governments. In effect, this section consolidates three 
currently existing offices-the Office of Intergovernmental 
Affairs, the Private Sector Office, and the Office of State and 
Local Law Enforcement. Among other things, section 602(c) 
requires that the Assistant Secretary for Partnership and 
Engagement serve as a liaison between State, local, and tribal 
law enforcement agencies and DHS, advise the Secretary on the 
impact of the Department's policies on the private sector, and 
coordinate the activities of the Department with State and 
local governments.

``Sec. 603.   office of international affairs.''

  ``Sec. 603(a).   in general.''

    Section 603(a) establishes the Office of International 
Affairs within the Office of Policy.

  ``Sec. 603(b).   head of office''

    Section 603(b) establishes that the Office of International 
Affairs will be led by an Assistant Secretary, appointed by the 
Secretary. The Assistant Secretary for International Affairs 
shall serve as the Department's Chief Diplomatic Officer.

``Sec. 603(c).   functions.''

    Section 603(c) establishes 11 responsibilities for the 
Assistant Secretary for International Affairs, which includes, 
among other things, coordinating international activities 
within the Department, advising the Secretary on the 
Department's international strategic priorities for overseas 
deployment, and developing guidance on the Department's policy 
priorities for overseas activities. This section also requires 
the Assistant Secretary for International Affairs to develop 
and update a strategic plan for DHS's international activities 
and establish mechanisms to monitor the alignment between 
assets deployed outside the United States. Section 603(c) also 
requires the Assistant Secretary to use a standardized 
framework to collect and maintain cost data for all assets 
deployed and to provide an inventory of assets deployed abroad 
each fiscal year to the House and Senate homeland security 
committees as part of DHS's annual budget request. Section 
603(c) excludes the U.S. Secret Service and the Coast Guard 
from the requirements under this section when they are 
operating under the direct authority of the Secretary of 
Defense or the Secretary of the Navy.

``Sec. 604.   office of policy implementation.''

  ``Sec. 604(a)   in general.''

    Section 604(a) establishes the Office of Policy 
Implementation within the Office of Policy.

  ``Sec. 604(b)   head of office.''

    Section 604(b) establishes that the Office of Policy 
Implementation will be led by a Director who will be appointed 
by the Secretary.

  ``Sec. 604(c)   responsibilities.''

    Section 604(c) requires the Director of the Office of 
Policy Implementation to lead, conduct, coordinate, and provide 
overall direction of policy development in the Department.

``Sec. 605.   office of strategy and planning.''

  ``Sec. 605(a)   in general.''

    Section 605(a) establishes the Office of Strategy and 
Planning in the Office of Policy.

  ``Sec. 605(b)   head of office.''

    Section 605(b) establishes that the Office of Strategy and 
Planning will be led by a Director who will be appointed by the 
Secretary.

  ``Sec. 605(c)   responsibilities.''

    Section 605(c) requires the Director of the Office of 
Strategy and Planning to lead and conduct long-term strategic 
planning for the Department and develop strategies to address 
unconventional threats to the homeland.

  Sec. 104(b).   Clerical Amendment.

    Section 104(b) amends the table of contents by including 
Sections 601-605 described above and modifying Section 890.

  Sec. 104(c).   Appointment of Under Secretary for Policy; 
        Continuation of Service of Assistant Secretary.

    Section 104(c) allows the next President to appoint an 
Under Secretary for Policy on or after January 20, 2017. 
Section 104(c) allows for the individual serving as the 
Assistant Secretary for Policy at DHS, on the date of the 
enactment of this Act, to serve in that capacity until a new 
Under Secretary for Policy is appointed and confirmed.

  Sec. 104(d).   Appointment of Assistant Secretary for International 
        Affairs; Abolishment of Existing Office.

    Section 104(d) allows the Secretary to appoint an Assistant 
Secretary for International Affairs on or after January 20, 
2017. Section 104(d) also allows for the individual serving as 
the Assistant Secretary for International Affairs at DHS, on 
the date of the enactment of this Act, to serve as the Deputy 
Assistant Secretary and head of the Office of International 
Affairs. In effect, this demotes the current head of the office 
until the appointment of the next Assistant Secretary. Section 
104(d) also abolishes the Office of International Affairs 
within the Office of the Secretary and transfers those assets 
and personnel to the Office of International Affairs within the 
Office of Policy.

  Secs. 104(e)--104(g).   Abolishment of Office for State and Local Law 
        Enforcement. 
        Abolishment of Office for State and Local Government 
        Coordination. 
        Abolishment of Special Assistant to the Secretary.

    Sections 104(e) through 104(g) abolish three offices: (1) 
the Office of State and Local Law Enforcement, (2) the Office 
of State and Local Government Coordination, and (3) the Special 
Assistant to the Secretary, or the Private Sector Office, as it 
is currently called. The functions these offices are authorized 
to perform, along with the associated assets and personnel, are 
transferred to the Office of Policy's Office of Partnership and 
Engagement.

  Sec. 104(h).   Conforming Amendments Related to Assistant 
        Secretaries.

    Section 104(h) amends section 103(a) of the Homeland 
Security Act of 2002 (6 U.S.C. 113(a)) to list, by appointment 
type, the total number of Assistant Secretaries that the 
Department is authorized to have. Specifically, Section 104(h) 
allows for the following Assistant Secretaries, by appointment 
type:
      Presidentially appointed and Senate confirmed:
        Assistant Secretary for U.S. Immigration and 
        Customs Enforcement (ICE)
        Assistant Secretary for the Transportation 
        Security Administration (TSA)
      Presidentially appointed:
        Assistant Secretary for Infrastructure 
        Protection
        Assistant Secretary for Office of Public 
        Affairs
        Assistant Secretary for Legislative Affairs
      Secretarially appointed:
        Assistant Secretary for the Office of 
        Cybersecurity and Communications
        Assistant Secretary for International Affairs
        Assistant Secretary for Partnership and 
        Engagement
    Section 104(h) prohibits the creation of any other 
Assistant Secretaries unless authorized by a statute enacted 
after this Act is enacted. As a result, this section removes 
the Secretary's authority to appoint Assistant Secretaries 
without Congressional authorization.

  Sec. 104(i).   Homeland Security Advisory Council.

    Section 104(i) amends section 102(b) of the Homeland 
Security Act of 2002 (6 U.S.C. 112(b)) to authorize a Homeland 
Security Advisory Council within the Department to provide 
advice and recommendations to the Secretary on homeland 
security-related matters. The Homeland Security Advisory 
Council is already in existence.

  Sec. 104(j).   Prohibition on New Offices.

    Section 104(j) prohibits the creation of any additional 
office(s) to carry out the functions that have been transferred 
from offices abolished in Section 104, unless the Secretary 
receives prior authorization from Congress.

  Sec. 104(k).   Definitions.

    Section 104(k) defines ``functions'', ``assets'', and 
``personnel'' based on section 2 of the Homeland Security Act 
of 2002 (6 U.S.C. 101).

  Sec. 104(l).   Duplication Review.

    Section 104(l) requires the Secretary of Homeland Security 
to complete a review of the Department's international affairs 
offices, functions, and responsibilities of DHS components to 
identify and eliminate areas of unnecessary duplication within 
1 year after the enactment of this Act. Section 104(l) also 
requires that DHS provide the results of that review to the 
House and Senate homeland security committees within 30 days of 
the report's completion.

Sec. 105.   Quadrennial Homeland Security Review.

    Section 105 amends section 707 of the Homeland Security Act 
of 2002 (6 U.S.C. 347) to require the Secretary to conduct a 
Quadrennial Homeland Security Review (QHSR), every 4 years, 
beginning in fiscal year 2017. DHS is required to consult the 
wider homeland security enterprise, as defined in section 101, 
to ensure that the QHSR is coordinated with other relevant 
major strategic reviews, such as the Quadrennial Defense 
Review, within the Federal government. Section 105 also 
requires the QHSR to include an examination of how the tools 
and resources developed during the QHSR review can be used to 
support DHS missions and programs; a description of how the 
conclusions will inform efforts to develop capabilities and 
capacity of the homeland security enterprise; and proposed 
changes, as appropriate, to the authorities, organization, 
governance structure, and/or business practices, of the 
Department.

Sec. 106.   Future Years Homeland Security Program.

    Section 106 amends section 874 of the Homeland Security Act 
of 2002 (6 U.S.C. 454) to require the Secretary to submit an 
annual Future Years Homeland Security Program (FYHSP) to the 
House and Senate homeland security committees that covers the 
current fiscal year and the 4 succeeding fiscal years. This 
submission must provide detailed estimates for the projected 
expenditures and the corresponding requests for appropriations 
included in that budget. The Secretary must ensure that the 
projected amounts in the FYHSP are consistent with the 
estimated expenditures and proposed appropriations necessary to 
support the Department's activities, and is required to explain 
how the FYHSP aligns with DHS's strategies and plans. This 
explanation must include an evaluation of DHS, its 
organizational and governance structure, and its business 
processes, including those related to acquisitions.
    Section 106 also requires that the FYHSP include specific 
acquisition estimates, including modernization and sustainment 
expenses, for each of the next 5 fiscal years for major 
acquisition programs by DHS and each component. The FYHSP must 
also include estimated annual deployment schedules for major 
acquisition programs over the 5 fiscal year period.
    Nothing in section 106 prohibits the inclusion of amounts 
for management contingencies in the FYHSP. While DHS is 
permitted to submit a classified or sensitive annex, if 
necessary, section 106 requires that the FYHSP, minus any 
information in such annex, be made available online to the 
public.

Sec. 107.   Management and Execution.

    Section 107 amends section 701 of the Homeland Security Act 
of 2002 (6 U.S.C. 341) by requiring the Under Secretary for 
Management (USM) to serve as DHS's Chief Management Officer, 
who will be responsible for the management and administration 
of DHS operations and programs. Section 107 outlines 10 
responsibilities for the USM, which include responsibility for 
acquisition and financial management, the budget, human 
resources, information technology, and real property, among 
other things.

Sec. 108.   Chief Financial Officer.

    Section 108 amends section 702 of the Homeland Security Act 
of 2002 (6 U.S.C. 341) by including 13 responsibilities for the 
Chief Financial Officer. This section authorizes the Chief 
Financial Officer to be responsible for developing and 
overseeing the Department's financial management policy and 
leading and providing guidance on performance-based budgeting 
practices. Other responsibilities include, but are not limited 
to, providing guidance for and over system modernization 
efforts, overseeing budget formulation and execution, and long-
term strategic planning. Section 108 also requires the Chief 
Financial Officer to track, approve, oversee, and make 
available to the public information on conference expenditures 
by component and report to the DHS OIG expenditures that exceed 
a certain amount. This requirement codifies the recommendations 
from an OIG report issued on August 10, 2015 (OIG-15-121-MA). 
DHS agreed with the OIG's recommendations and, in July 2015, 
stated that the Chief Financial Officer was taking steps to 
improve the Department's overall compliance with conference 
expense reporting requirements.

Sec. 109.   Chief Procurement Officer.

    Section 109 amends title VII of the Homeland Security Act 
of 2002 (6 U.S.C. 341 et seq.) by authorizing the position of 
the Chief Procurement Officer for the Department. This section 
includes 10 responsibilities for the Chief Procurement Officer. 
The Chief Procurement Officer shall exercise leadership and 
authority of the procurement functions of the Department. 
Section 109 requires the Chief Procurement Officer to issue 
procurement policies, serve as the main liaison to industry on 
procurement-related issues, oversee a centralized certification 
and training program for the Department's acquisition 
workforce, collect baseline data, and use that data to 
establish specific performance measures for the Department's 
strategic-sourcing efforts, specifically the inclusion of small 
businesses. This provision reflects December 2012 guidance 
issued by the Office of Management and Budget, directing 
Federal agencies, to the maximum extent practicable, to 
increase participation by small businesses in strategic 
sourcing opportunities and a key recommendation from a January 
2014 GAO report (GAO-14-126). The Chief Procurement Officer is 
also required to conduct oversight of the Department's 
implementation of administrative agreements to resolve 
suspension and debarment proceedings. The Chief Procurement 
Officer is required to provide, upon request, information on 
the effectiveness of administrative agreements at improving 
contractor responsibility to the House and Senate homeland 
security committees. This provision will allow the committees 
to increase its knowledge with regard the effectiveness of such 
agreements. Section 109 also defines the term, ``Head of 
Contracting Activity.''

Sec. 110.   Chief Information Officer.

    Section 110 amends section 703 of the Homeland Security Act 
of 2002 (6 U.S.C. 343) by outlining additional functions of the 
Chief Information Officer in addition to the duties already 
outlined in the Homeland Security Act of 2002. Specifically, 
this section adds 13 responsibilities for the Chief Information 
Officer, including the responsibility for establishing and 
managing information technology standards, policies, and 
processes of the Department; maintaining a consolidated 
inventory of mission critical information systems; establishing 
policies and procedures to effectively monitor and manage 
information technology supply chain vulnerabilities; and 
developing measures to monitor the performance, use, and 
implementation of information technology systems, among others.
    Section 110 also requires the Chief Information Officer to 
develop an information technology strategic plan every 5 years 
to be reported to the House and Senate homeland security 
committees. Among other items, this plan should include budget 
alignment priorities. Further, the Committee intends for the 
Department to coordinate among its various strategic plans-
specifically those related to human resources and the multiyear 
acquisition strategy-to ensure that they inform one another. 
This will help ensure that the Secretary has a cohesive 
strategy for addressing specific elements of the Department's 
management and operations.
    This section requires the Chief Information Officer to 
conduct a Department-wide inventory of all existing software 
licenses while assessing the Department's software license 
needs and establishing plans to streamline efforts and 
eliminate underutilized software licenses. Section 110 
additionally requires the GAO to review such software license 
inventory and plans. Section 110 also limits the procurement of 
new software licenses for the Department, with exception. The 
Chief Information Officer is required to submit a copy of the 
conducted inventory and established plans to the House and 
Senate homeland security committees. This is intended to 
provide more accurate and complete information to relevant 
congressional committees for the purposes of enhanced 
oversight. This section also reinforces the Chief Information 
Officer's responsibility to improve information technology 
management by implementing recent legislation known as the 
Federal Information Technology Acquisition Reform Act (FITARA).

Sec. 111.   Chief Human Capital Officer.

    Section 111 amends section 704 of the Homeland Security Act 
of 2002 (6 U.S.C. 343) by requiring the Chief Human Capital 
Officer to report directly to the USM. This section also lays 
out nine responsibilities of the Chief Human Capital Officer, 
including, but not limited to: Developing and implementing 
strategic workforce planning efforts and performance measures; 
developing strategies for recruitment and training efforts and 
a career path framework; and serving as the Department's 
central office for managing employee resources.
    Section 111 also requires Department components, in 
coordination with the Chief Human Capital Officer, to develop 
and maintain their own workforce strategy to support the 
Department's goals. The Human Capital Officer is required to 
ensure that component strategies include reporting on the human 
resource considerations associated with creating additional 
federal full-time positions, converting private contractor 
positions to Federal employee positions, and relying on the 
private sector. This section requires that the strategy 
include: hiring projections, identification of critical skills 
requirements, and supervisory and management requirements, 
among others. Section 111 also requires the Secretary to 
include information on the progress of workforce strategies 
described above with the annual budget justification to the 
appropriate congressional committees. As mentioned earlier, the 
Committee intends for the Department to coordinate among its 
various strategic plans to ensure that they inform one another.

Sec. 112.   Chief Security Officer.

    Section 112 amends title VII of the Homeland Security Act 
of 2002 (6 U.S.C. 341 et seq.) to authorize the position of the 
Chief Security Officer, who shall report directly to the USM. 
This section outlines three responsibilities of the Chief 
Security Officer, which include developing and implementing 
security policies, programs, and standards; identifying 
training and providing education on security-related matters; 
and providing support to Department components on security-
related matters.
    In addition, section 112 of the bill refers to the Chief 
Information Officer's responsibilities for ensuring Department 
compliance, in coordination with relevant officials, with 
Homeland Security Presidential Directive 12. The Committee 
recognizes that the Chief Information Officer has 
responsibility for the local access and information technology 
issues related to compliance with the directive, but not for 
the HSPD 12 compliant identification cards themselves.

Sec. 113.   Cost Savings and Efficiency Reviews.

    Section 113 requires the Secretary, through the USM, to 
submit to the House and Senate homeland security committees a 
report that provides: (1) an accounting of the management and 
administrative expenditures and activities of the components; 
(2) an examination of the size, experience level, and footprint 
of operational personnel; and (3) recommendations to reduce 
deficiencies and enhance efficiencies in the management and 
administration of the Department. In particular, this section 
is intended to determine how DHS could more efficiently and 
effectively manage its activities and workforce. The Committee 
expects the Secretary to use the information identified in such 
review to make the Department more efficient and reduce waste 
and unnecessary duplication.

Sec. 114.   Field Efficiencies Plan.

    Section 114 requires the Secretary to submit to the House 
and Senate homeland security committees a field efficiencies 
plan that examines the facilities and administrative functions 
of components within specified geographic regions and provides 
recommendations and a cost-benefit analysis for consolidation 
efforts. This section requires that the field efficiencies plan 
include: (1) an accounting of leases held by the Department or 
components; (2) an evaluation of consolidation efforts of 
facilities and services in specified geographic regions; (3) an 
implementation plan; and (4) an accounting of any completed 
consolidation in the Department, including in regards to 
components, among other things. The Committee expects the 
Secretary to use the information in such plan to better 
consolidate the real property footprint of the Department and 
eliminate unnecessary property. If such plan is implemented 
effectively, the Department could realize significant cost 
savings and improved operational efficiencies.

Sec. 115.   Resources to Respond to Operational Surges.

    Section 115 requires the Secretary to submit to the House 
and Senate homeland security committees information on 
circumstances in which the Secretary transferred or 
reprogrammed funds to respond to operational surges. The 
Secretary is also required to provide information on the costs 
associated with those operational surges and any circumstances 
where the Secretary's ability to address unforeseen costs was 
affected due to limitations on the transfer or reprogramming of 
those funds. In addition, the Secretary will provide budget 
data for component agencies responding to operational surges 
that indicates how such activities are funded.

Sec. 116.   Department of Homeland Security Rotation Program.

    Section 116 amends Section 844(a) of the Homeland Security 
Act of 2002 to provide enhancements to and reinvigorate the DHS 
rotation program. Section 116(a) calls for a greater 
integration of unity of effort and makes adjustments to the 
program to help foster better morale and address retention 
challenges. This section requires the Secretary to broadly 
disseminate information regarding the program throughout the 
Department, ensure that employees participating in the program 
can return to their former positions, and ensure that 
participating employees will retain the rights provided by 
their home component or agency throughout the duration of their 
rotation. Additionally, the requirements included in section 
116 regarding the Department's Homeland Security Rotation 
Program should not be interpreted to cause a gap in employment 
for the detailed employee. Rather, that section is intended to 
provide protections for detailed employees. Further, the term 
``full-time employment'' used in section 113 is in reference to 
permanent, full-time employees and should not be interpreted to 
include temporary, term-appointed employees. Section 116(b) 
requires the Secretary to provide to the House and Senate 
homeland security committees information regarding the status 
of the program. The Committee believes that establishing this 
program could advance DHS Secretary Johnson's ``Unity of 
Effort'' initiative, insofar as personnel with a commitment to 
the DHS mission would gain a better understanding about the 
activities of other components within the Department.

         TITLE II-DHS Acquisition Accountability and Efficiency

    Title II authorizes DHS's acquisition authorities, codifies 
its existing policy and relevant offices, and improves the 
transparency and accountability of the Department's management 
of major acquisition programs.

Sec. 201.   Definitions.

    Section 201 provides definitions for this title as they 
relate to the Department's management of acquisition programs 
and also amends Section 2 of the Homeland Security Act by 
including a definition of ``congressional homeland security 
committees'' and nine specific acquisition definitions, such as 
``acquisition review board,'' ``acquisition decision 
authority,'' and ``major acquisition program.'' Additionally, 
this section defines the responsibilities of the acquisition 
decision authority as having the authority to, among other 
things, review an acquisition program throughout its life cycle 
and ensure that program managers consistently monitor cost, 
schedule, and performance against established baselines to 
manage risk, in keeping with the findings of a substantial body 
of reports by GAO and DHS OIG on DHS acquisition management.

Sec. 202.   Prohibition on Additional Authorization of Appropriations.

    Section 202 prohibits any additional funds to be 
appropriated to carry out the requirements in this title.

                  Subtitle A--Acquisition Authorities

Sec. 211.   Acquisition Authorities for Under Secretary for Management.

    Section 211 amends Section 701 of the Homeland Security Act 
of 2002 (6 U.S.C. 341) by including acquisition 
responsibilities for the USM. Section 211 authorizes the USM to 
be the Chief Acquisition Officer of the Department and exercise 
the authority to approve, halt, modify, or cancel major 
acquisition programs. It also requires each major acquisition 
program to have a Department-approved acquisition program 
baseline to document that it is meeting agreed-upon cost, 
schedule, and performance thresholds.
    Section 211 also authorizes the USM to delegate acquisition 
decision authority, or the authority to review (including 
approve, halt, modify, or cancel) an acquisition program, to 
relevant Component Acquisition Executives for acquisition 
programs that have estimated total life cycle costs of less 
than $300 million. This section also allows the USM to delegate 
that authority to relevant Component Acquisition Executives for 
acquisition programs with estimated total life cycle costs of 
between $300 million to $1 billion so long as the program has 
the necessary processes, staff, and documentation that are 
consistent with the Department's acquisition policy. Although 
such delegation is permitted for programs that meet these 
criteria, the Committee expects the USM to conduct rigorous 
oversight of major acquisition programs. If programs do not 
meet all of the criteria, the USM shall not delegate 
acquisition decision authority to the Component Acquisition 
Executive.
    Section 211 also requires that the Under Secretary for 
Science and Technology (S&T) ensure that major acquisition 
programs complete operational testing and evaluation and that 
such testing includes all system components and operators in 
testing. Section 211 also requires that the USM ensure 
component heads comply with federal law, Federal Acquisition 
Regulation, and the Department's acquisition directives.

Sec. 212.   Acquisition authorities for Chief Financial Officer.

    Section 212 amends section 702 of the Homeland Security Act 
of 2002 (6 U.S.C. 342) to authorize the Chief Financial Officer 
to provide leadership over financial management policy and 
programs for DHS as they relate to DHS acquisition programs in 
consultation with the USM.

Sec. 213.   Acquisition Authorities for Chief Information Officer.

    Section 213 amends section 703 of the Homeland Security Act 
of 2002 (6 U.S.C. 343) by authorizing the Chief Information 
Officer to oversee the management of the Homeland Security 
Enterprise Architecture, provide recommendations to the 
Acquisition Review Board (ARB) on information technology 
programs, and develop information technology acquisition 
strategic guidance.

Sec. 214.   Requirements to Ensure Greater Accountability for 
        Acquisition Programs.

    Section 214 amends title VII of the Homeland Security Act 
of 2002 (6 U.S.C. 341 et seq.) by authorizing the USM to 
establish a mechanism to prioritize improving the 
accountability, standardization, and transparency of major 
acquisition programs in order to increase effectiveness and 
efficiency. This section codifies the responsibilities of an 
existing office within DHS called the Program Accountability 
and Risk Management Office (PARM) and, as such, does not create 
a new office within DHS. Section 214 provides specific guidance 
of objectives that DHS must meet while allowing DHS the 
flexibility to make adjustments to the structure as necessary.
    Section 214 authorizes the USM to appoint an Executive 
Director to oversee PARM's role in monitoring the performance 
of DHS acquisition programs, overseeing the Component 
Acquisition Executive structure, and developing certification 
standards in consultation with Component Acquisition Executives 
for all acquisition program managers. Section 214 also 
authorizes PARM to prepare and make available to Congress the 
DHS Comprehensive Acquisition Status Report and Quarterly 
Program Accountability Report. This section requires components 
to follow federal law, the Federal Acquisition Regulation, and 
DHS acquisition management directives, and, among other things 
ensure that each major acquisition program defines baseline 
requirements and document changes to those requirements, as 
appropriate.
    Section 214 also allows the Secretary, in limited 
circumstances, to waive certain requirements of acquisition 
documents that components are required to submit to the 
Executive Director. Specifically, the Secretary may waive 
acquisition documentation requirements if the program has not 
yet: (1) Entered full rate production, (2) established a 
reasonable cost estimate, or (3) defined the system 
configuration. Additionally, the requirement may be waived if 
the program is not a capital asset. Section 214 requires the 
Secretary to submit to the House and Senate homeland security 
committees information in cases when the Secretary has 
exercised the authority to waive these acquisition 
documentation requirements. GAO analysis conducted as a follow-
up to a March 2015 report (GAO-15-292) showed that the 
Department's Master Acquisition Oversight List prepared after 
the report included 97 DHS acquisition programs with life-cycle 
costs each initially estimated at $300 million or more. Among 
these major acquisitions, GAO found that since May 2013, the 
Department's Chief Acquisition Officer has waived 25 of these 
97 programs from requirements to produce or update acquisition-
related documentation, in some cases apparently contravening 
program guidance from the Office of Management and Budget. The 
Committee notes that, on April 20, 2015, the Department's 
Acting Chief Acquisition Officer terminated these waivers and 
provided needed clarity on the reporting requirements for DHS 
acquisition programs. To ensure effective program management 
and transparency at DHS, H.R. 3572 codifies a narrow set of 
authorities to waive program-reporting requirements that are 
parallel to those at the Department of Defense.
    Further, section 214 authorizes the USM to establish a 
mechanism to prioritize the accountability, standardization, 
and transparency of major acquisition programs at DHS. This 
section also authorizes that mechanism, which, in practice, is 
known as the PARM division, to oversee the Component 
Acquisition Executive structure to ensure it has sufficient 
capabilities and complies with Department policies. This 
provision does not require the Component Acquisition Executives 
to report to PARM, but requires PARM to conduct oversight of 
their acquisition activities.

         Subtitle B--Acquisition Program Management Discipline

Sec. 221.   Acquisition Review Board.

    Section 221 amends title VIII of the Homeland Security Act 
of 2002 (6 U.S.C. 391 et seq.) to codify the ARB, which 
currently exists within DHS. Overall, Section 221 includes 
provisions to strengthen accountability and uniformity within 
the DHS acquisition review process. Specifically, this section 
authorizes the Deputy Secretary or the USM to serve as the ARB 
chair and, to ensure component buy-in, requires that at least 
two Component heads or their designees permanently serve on the 
ARB. Section 221 also requires the ARB to meet each time a 
major acquisition program needs approval to move from one 
acquisition phase to another, which ensures that programs do 
not move forward without appropriate oversight. Section 221 
seeks to prevent delays in the acquisition process by requiring 
the ARB to meet regularly. The requirements in this section are 
also consistent with the Department's Deputies Management 
Action Group, which was created to better unify decision making 
at DHS.
    Section 221 also outlines six responsibilities for the ARB. 
These responsibilities include, among other things, conducting 
systematic reviews of acquisitions; reviewing the acquisition 
documents of each major acquisition program, including the 
acquisition program baseline and documentation reflecting 
tradeoffs among cost, schedule, and performance; and reviewing 
the cost, schedule, and performance objectives of major 
acquisitions. This section also requires the Secretary to 
notify Congressional homeland security committees within 7 days 
of any decisions to allow a major acquisition program to move 
to the next acquisition phase before the program has an 
approved acquisition program baseline and provide a report to 
Congress within 60 days justifying such decisions including a 
plan to require an acquisition program baseline for the 
program.

Sec. 222.   Requirements to Reduce Duplication in Acquisition Programs.

    Section 222 amends subtitle D of title VIII of the Homeland 
Security Act of 2002 (6 U.S.C. 391 et seq.) to require the 
Deputy Secretary, along with the USM, to establish policies to 
reduce unnecessary duplication and inefficiency of the 
Department's investments and major acquisition programs. In 
particular, section 222 authorizes the USM to develop policies 
that integrate all the phases of the investment life cycle, 
from concept to deployment through disposal or decommissioning. 
Further, section 222 seeks to ensure DHS components do not 
create unnecessary duplicative acquisition programs.
    Section 222 codifies the current mechanism used to carry 
out these requirements-the Joint Requirements Council-but does 
not specifically codify the name. As a result, this section 
does not create a new office in DHS, since the Joint 
Requirements Council is the current entity within DHS with 
these responsibilities. Section 222 requires the Deputy 
Secretary and the USM to meet at least quarterly with 
components to ensure that they are not overlapping or 
duplicating activities or investments. It also specifies five 
responsibilities for the Deputy Secretary, which include among 
other things, ensuring that the requirements and scope of major 
investments or acquisition programs are achievable and that 
investments are coordinated to avoid unnecessary duplication 
and inefficiency. These requirements are consistent with the 
Department's efforts to unify acquisition priorities across 
components, including the Deputies Management Action Group.

Sec. 223.   Government Accountability Office Review of Board and of 
        Requirements to Reduce Duplication in Acquisition Programs.

    Section 223 requires that, within 1 year of the Act's 
enactment, GAO shall provide a report to the House and Senate 
homeland security committees on the ARB's effectiveness and 
efforts to reduce unnecessary duplication in acquisition 
programs. This section requires that GAO review the ARB's 
effectiveness of: (1) oversight of major acquisition programs; 
(2) instilling program management discipline; (3) regularly 
reviewing each major acquisition program; and (4) impacting 
acquisition decision making.

Sec. 224.   Excluded Party List System Waivers.

    Section 224 requires that the Secretary notify the House 
and Senate homeland security committees within 5 days when it 
waives requirements for engaging in business with contractors 
listed in the Excluded Party List System and an explanation for 
waiving those requirements. This additional layer of 
congressional scrutiny should bring greater accountability to 
DHS's contracting process.

Sec. 225.   Inspector General Oversight of Suspension and Debarment.

    Section 225 allows the DHS Inspector General to audit grant 
and procurement award decisions to ensure entities that are 
suspended or debarred from receiving Federal funds are not 
improperly receiving those awards. This section also requires 
that the Inspector General review the Department's suspension 
and debarment program to assess whether criteria are being 
consistently applied throughout the Department.

     Subtitle C--Acquisition Program Management Accountability and 
                              Transparency

Sec. 231.   Congressional Notification and Other Requirements for Major 
        Acquisition Program Breach.

    Section 231 amends title VIII of the Homeland Security Act 
of 2002 to require two forms of reporting for major acquisition 
programs that experience a breach, defined as a failure to meet 
any cost, schedule, or performance parameter specified in the 
acquisition program baseline (APB). The Committee does not 
intend for breach notifications to become a paperwork exercise 
or for program managers to contort their program to prevent 
their supervisors from reporting a breach to the Congress. The 
breach notification's rationale is to increase the transparency 
of programs that are not meeting their APBs and require more 
discipline in managing a program's cost, schedule, and 
performance objectives.
    First, section 231 requires in the case of a breach in a 
major acquisition program, the program manager for that program 
must notify the head of the Component concerned, the Component 
Acquisition Executive for the program, Executive Director, the 
USM, and the Deputy Secretary. In the case of a breach with a 
cost overrun greater than 20 percent or a schedule delay 
greater than 12 months from the costs or schedule set forth in 
the APB, the Secretary and the Inspector General must be 
notified no later than five business days after the actual 
breach is identified.
    Furthermore, in the case of a breach with a cost overrun 
greater than 15 percent or a schedule delay greater than 180 
days from the costs or schedule set forth in the APB, section 
231 requires DHS to develop a remediation plan and root cause 
analysis. The Committee encourages DHS to conduct such analysis 
for all major acquisition programs in breach if appropriate and 
if resources are available. The USM has the responsibility to 
establish a date for submission within DHS of the breach 
remediation plan and root cause analysis. The USM also has the 
responsibility to establish a date for submission within DHS of 
a program of corrective action that ensures that one of the 
following has occurred: (1) The breach has been corrected and 
the program is again in compliance with the original APB; (2) a 
revised APB has been approved; or (3) the program has been 
halted or canceled. The Committee believes that DHS should keep 
the original program baseline parameters on file in order to 
help assess the development of each program and ensure 
knowledge transfer in the case of personnel attrition or 
changes.
    Section 231 requires notification to the congressional 
homeland security committees for major acquisition programs 
that experience a breach with a cost overrun greater than 15 
percent or a schedule delay greater than 180 days from the 
costs or schedule set forth in the APB. The USM will submit 
this notification in the next quarterly Comprehensive 
Acquisition Status Report. In the event that a major 
acquisition program is likely to experience a cost overrun 
greater than 20 percent or a likely delay greater than 12 
months from the costs and schedule set forth in the APB, the 
USM shall include in the notification to such committees a 
written certification that the acquisition is essential to the 
accomplishment of the Department's mission; there are no 
alternatives to such capability or asset 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 costs are reasonable; and the management 
structure for the acquisition program is adequate to manage and 
control performance, cost and schedule.
    Additionally, no later than 30 calendar days after the USM 
submits the breach notification within the Comprehensive 
Acquisition Status Report, the USM shall submit to such 
committees a copy of the remediation plan and root cause 
analysis prepared for the major acquisition program and a 
statement describing the corrective action with a justification 
for the action.

Sec. 232.   Multiyear acquisition strategy.

    Section 232 amends title VIII of the Homeland Security Act 
of 2002 (6 U.S.C. 391 et seq.) by requiring DHS to develop a 
Multiyear Acquisition Strategy within 1 year of the Act's 
enactment. The strategy is to guide the direction of the 
Department's acquisitions while allowing flexibility to deal 
with ever-changing threats and risks and to help industry 
better understand, plan, and align resources to meet the future 
acquisition needs of DHS. The Secretary is required to update 
the Multiyear Acquisition Strategy each fiscal year and include 
it in an unclassified format in each Future Years Homeland 
Security Program. Section 232 requires the strategy to include, 
among other things, a prioritized list of acquisition 
investments and a plan to address known funding gaps between 
acquisition requirements and resources. The strategy should 
also include a plan to assess the feasibility of a pilot 
program to establish a department acquisition workforce 
development fund to identify ways to incentivize program 
managers to control cost growth, limit schedule delays, and 
ensure operational effectiveness. As mentioned earlier, the 
Committee intends for the Department to coordinate among its 
various strategic plans to ensure that they inform one another.

Sec. 233.   Acquisition Reports.

    Section 233 amends subtitle D of title VIII of the Homeland 
Security Act of 2002 (6 U.S.C. 391 et seq.) to require the USM 
to submit to the House and Senate homeland security committees 
the Comprehensive Acquisition Status Report that includes 
information on major acquisition programs. This should include 
an acquisition plan, the status of ARB meetings on the program, 
and the most current acquisition program baseline, among other 
things. Section 233 also requires the USM to prepare the 
Quarterly Program Accountability Report. Both the Comprehensive 
Acquisition Status Report and the Quarterly Program 
Accountability Report are currently provided only to the 
appropriations committees.

Sec. 234.   Government Accountability Office Review of Multiyear 
        Acquisition Strategy.

    Section 234 requires the GAO to assess the effectiveness of 
the Department's first Multiyear Acquisition Strategy within 
180 days of its submission to Congress. Specifically, GAO is to 
review the plan's effectiveness in complying with, among other 
things, establishing clear connections between Department 
objectives and acquisition priorities; considering potential 
cost savings through using existing technologies; and 
maximizing opportunities for small business in acquisitions.

Sec. 235.   Office of Inspector General Report.

    Section 235 requires that DHS's Inspector General conduct a 
review no later than 2 years following the submission of the 
Multiyear Acquisition Strategy report to Congress to determine 
whether DHS has complied with the strategy and with the 
requirement to provide the ARB with a capability development 
plan, for each major acquisition.

         Changes in Existing Law Made by the Bill, as Reported

  In compliance with clause 3(e) of rule XIII of the Rules of 
the House of Representatives, changes in existing law made by 
the bill, as reported, are shown as follows (existing law 
proposed to be omitted is enclosed in black brackets, new 
matter is printed in italics, 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 IV--DIRECTORATE OF BORDER AND TRANSPORTATION SECURITY

     * * * * * * *

               Subtitle F--General Immigration Provisions

     * * * * * * *
[Sec. 475. Director of Shared Services.]
     * * * * * * *

   [TITLE VI--TREATMENT OF CHARITABLE TRUSTS FOR MEMBERS OF THE ARMED 
    FORCES OF THE UNITED STATES AND OTHER GOVERNMENTAL ORGANIZATIONS]

[Sec. 601. Treatment of charitable trusts for members of the Armed 
          Forces of the United States and other governmental 
          organizations.]

                      TITLE VI--POLICY AND PLANNING

Sec. 601. Office of Policy.
Sec. 602. Office of Partnership and Engagement.
Sec. 603. Office of International Affairs.
Sec. 604. Office of Policy Implementation.
Sec. 605. Office of Strategy and Planning.
     * * * * * * *

                          TITLE VII--MANAGEMENT

     * * * * * * *
Sec. 708. Chief Procurement Officer.
Sec. 709. Chief Security Officer.
Sec. 710. Requirements to ensure greater accountability for acquisition 
          programs.
Sec. 711. Acquisition documentation.

 TITLE VIII--COORDINATION WITH NON-FEDERAL ENTITIES; INSPECTOR GENERAL; 
      UNITED STATES SECRET SERVICE; COAST GUARD; GENERAL PROVISIONS

           Subtitle A--Coordination with Non-Federal Entities

[Sec. 801. Office for State and Local Government Coordination.]
     * * * * * * *

                        Subtitle D--Acquisitions

     * * * * * * *
Sec. 836. Acquisition Review Board.
Sec. 837. Requirements to reduce duplication in acquisition programs.
Sec. 838. Congressional notification and other requirements for major 
          acquisition program breach.
Sec. 839. Multiyear acquisition strategy.
Sec. 840. Acquisition reports.
     * * * * * * *

                  Subtitle H--Miscellaneous Provisions

     * * * * * * *
[Sec. 878. Counternarcotics officer.]
[Sec. 879. Office of International Affairs.]
     * * * * * * *
Sec. 890B. Treatment of charitable trusts for members of the Armed 
          Forces of the United States and other governmental 
          organizations.

           *       *       *       *       *       *       *

SEC. 2. DEFINITIONS.

    [In this Act,] (a) In General._In this Act, the following 
definitions apply:
          (1) Each of the terms ``American homeland'' and 
        ``homeland'' means the United States.
          (2)(A) The term ``appropriate congressional 
        committee'' means any committee of the House of 
        Representatives or the Senate having legislative or 
        oversight jurisdiction under the Rules of the House of 
        Representatives or the Senate, respectively, over the 
        matter concerned.
          (B) The term ``congressional homeland security 
        committees'' means--
                  (i) the Committee on Homeland Security of the 
                House of Representatives and the Committee on 
                Homeland Security and Governmental Affairs of 
                the Senate; and
                  (ii) the Committees on Appropriations of the 
                House of Representatives and of the Senate, 
                where appropriate.
          (3) The term ``assets'' includes contracts, 
        facilities, property, records, unobligated or 
        unexpended balances of appropriations, and other funds 
        or resources (other than personnel).
          (4) The term ``critical infrastructure'' has the 
        meaning given that term in section 1016(e) of Public 
        Law 107-56 (42 U.S.C. 5195c(e)).
          (5) The term ``Department'' means the Department of 
        Homeland Security.
          (6) The term ``emergency response providers'' 
        includes Federal, State, and local governmental and 
        nongovernmental emergency public safety, fire, law 
        enforcement, emergency response, emergency medical 
        (including hospital emergency facilities), and related 
        personnel, agencies, and authorities.
          (7) The term ``executive agency'' means an executive 
        agency and a military department, as defined, 
        respectively, in sections 105 and 102 of title 5, 
        United States Code.
          (8) The term ``functions'' includes authorities, 
        powers, rights, privileges, immunities, programs, 
        projects, activities, duties, and responsibilities.
          (9) The term ``homeland security enterprise'' means 
        relevant governmental and nongovernmental entities 
        involved in homeland security, including Federal, 
        State, local, and tribal government officials, private 
        sector representatives, academics, and other policy 
        experts.
          [(9)] (10) The term ``intelligence component of the 
        Department'' means any element or entity of the 
        Department that collects, gathers, processes, analyzes, 
        produces, or disseminates intelligence information 
        within the scope of the information sharing 
        environment, including homeland security information, 
        terrorism information, and weapons of mass destruction 
        information, or national intelligence, as defined under 
        section 3(5) of the National Security Act of 1947 (50 
        U.S.C. 401a(5)), except--
                  (A) the United States Secret Service; and
                  (B) the Coast Guard, when operating under the 
                direct authority of the Secretary of Defense or 
                Secretary of the Navy pursuant to section 3 of 
                title 14, United States Code, except that 
                nothing in this paragraph shall affect or 
                diminish the authority and responsibilities of 
                the Commandant of the Coast Guard to command or 
                control the Coast Guard as an armed force or 
                the authority of the Director of National 
                Intelligence with respect to the Coast Guard as 
                an element of the intelligence community (as 
                defined under section 3(4) of the National 
                Security Act of 1947 (50 U.S.C. 401a(4)).
          [(10)] (11) The term ``key resources'' means publicly 
        or privately controlled resources essential to the 
        minimal operations of the economy and government.
          [(11)] (12) The term ``local government'' means--
                  (A) a county, municipality, city, town, 
                township, local public authority, school 
                district, special district, intrastate 
                district, council of governments (regardless of 
                whether the council of governments is 
                incorporated as a nonprofit corporation under 
                State law), regional or interstate government 
                entity, or agency or instrumentality of a local 
                government;
                  (B) an Indian tribe or authorized tribal 
                organization, or in Alaska a Native village or 
                Alaska Regional Native Corporation; and
                  (C) a rural community, unincorporated town or 
                village, or other public entity.
          [(12)] (13) The term ``major disaster'' has the 
        meaning given in section 102(2) of the Robert T. 
        Stafford Disaster Relief and Emergency Assistance Act 
        (42 U.S.C. 5122).
          (14) The term ``management integration and 
        transformation''--
                  (A) means the development of consistent and 
                consolidated functions for information 
                technology, financial management, acquisition 
                management, and human capital management; and
                  (B) includes governing processes and 
                procedures, management systems, personnel 
                activities, budget and resource planning, 
                training, real estate management, and provision 
                of security, as they relate to functions cited 
                in subparagraph (A).
          [(13)] (15) The term ``personnel'' means officers and 
        employees.
          [(14)] (16) The term ``Secretary'' means the 
        Secretary of Homeland Security.
          [(15)] (17) The term ``State'' means any State of the 
        United States, the District of Columbia, the 
        Commonwealth of Puerto Rico, the Virgin Islands, Guam, 
        American Samoa, the Commonwealth of the Northern 
        Mariana Islands, and any possession of the United 
        States.
          [(16)] (18) The term ``terrorism'' means any activity 
        that--
                  (A) involves an act that--
                          (i) is dangerous to human life or 
                        potentially destructive of critical 
                        infrastructure or key resources; and
                          (ii) is a violation of the criminal 
                        laws of the United States or of any 
                        State or other subdivision of the 
                        United States; and
                  (B) appears to be intended--
                          (i) to intimidate or coerce a 
                        civilian population;
                          (ii) to influence the policy of a 
                        government by intimidation or coercion; 
                        or
                          (iii) to affect the conduct of a 
                        government by mass destruction, 
                        assassination, or kidnapping.
          [(17)] (19)(A) The term ``United States'', when used 
        in a geographic sense, means any State of the United 
        States, the District of Columbia, the Commonwealth of 
        Puerto Rico, the Virgin Islands, Guam, American Samoa, 
        the Commonwealth of the Northern Mariana Islands, any 
        possession of the United States, and any waters within 
        the jurisdiction of the United States.
          (B) Nothing in this paragraph or any other provision 
        of this Act shall be construed to modify the definition 
        of ``United States'' for the purposes of the 
        Immigration and Nationality Act or any other 
        immigration or nationality law.
          [(18)] (20) The term ``voluntary preparedness 
        standards'' means a common set of criteria for 
        preparedness, disaster management, emergency 
        management, and business continuity programs, such as 
        the American National Standards Institute's National 
        Fire Protection Association Standard on Disaster/
        Emergency Management and Business Continuity Programs 
        (ANSI/NFPA 1600).
  (b) Acquisition-Related Definitions.--In this Act, the 
following definitions apply:
          (1) Acquisition.--The term ``acquisition'' has the 
        meaning provided in section 131 of title 41, United 
        States Code.
          (2) Acquisition decision authority.--The term 
        ``acquisition decision authority'' means the authority, 
        held by the Secretary acting through the Deputy 
        Secretary or Under Secretary for Management--
                  (A) to ensure compliance with Federal law, 
                the Federal Acquisition Regulation, and 
                Department acquisition management directives;
                  (B) to review (including approving, halting, 
                modifying, or cancelling) an acquisition 
                program through the life cycle of the program;
                  (C) to ensure that program managers have the 
                resources necessary to successfully execute an 
                approved acquisition program;
                  (D) to ensure good program management of 
                cost, schedule, risk, and system performance of 
                the acquisition, including assessing 
                acquisition program baseline breaches and 
                directing any corrective action for such 
                breaches; and
                  (E) to ensure that program managers, on an 
                ongoing basis, monitor cost, schedule, and 
                performance against established baselines and 
                use tools to assess risks to a program at all 
                phases of the life cycle of the program to 
                avoid and mitigate acquisition program baseline 
                breaches.
          (3) Acquisition decision event.--The term 
        ``acquisition decision event'', with respect to an 
        investment or acquisition program, means a 
        predetermined point within the acquisition phases of 
        the investment or acquisition program at which the 
        investment or acquisition program will undergo a review 
        prior to commencement of the next phase.
          (4) Acquisition decision memorandum.--The term 
        ``acquisition decision memorandum'', with respect to an 
        acquisition, means the official acquisition decision 
        event record that includes a documented record of 
        decisions, exit criteria, and assigned actions for the 
        acquisition as determined by the person exercising 
        acquisition decision authority for the acquisition.
          (5) 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 the program.
          (6) Capability development plan.--The term 
        ``capability development plan'', with respect to a 
        proposed acquisition, means the document that the 
        Acquisition Review Board approves for the first 
        acquisition decision event related to validating the 
        need of a proposed acquisition.
          (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) Life cycle cost.--The term ``life cycle cost'', 
        with respect to an acquisition program, means all costs 
        associated with research, development, procurement, 
        operation, integrated logistics support, and disposal 
        under the program, including supporting infrastructure 
        that plans, manages, and executes the program over its 
        full life, and costs of common support items incurred 
        as a result of the program.
          (9) 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 2015 constant dollars) over its 
        life cycle cost.

           *       *       *       *       *       *       *

TITLE I--DEPARTMENT OF HOMELAND SECURITY

           *       *       *       *       *       *       *

SEC. 102. SECRETARY; FUNCTIONS.

  (a) Secretary.--
          (1) In general.--There is a Secretary of Homeland 
        Security, appointed by the President, by and with the 
        advice and consent of the Senate.
          (2) Head of department.--The Secretary is the head of 
        the Department and shall have direction, authority, and 
        control over it.
          (3) Functions vested in secretary.--All functions of 
        all officers, employees, and organizational units of 
        the Department are vested in the Secretary.
  (b) Functions.--The Secretary--
          (1) except as otherwise provided by this Act, may 
        delegate any of the Secretary's functions to any 
        officer, employee, or organizational unit of the 
        Department;
          (2) shall have the authority to make contracts, 
        grants, and cooperative agreements, and to enter into 
        agreements with other executive agencies, as may be 
        necessary and proper to carry out the Secretary's 
        responsibilities under this Act or otherwise provided 
        by law; [and]
          (3) shall take reasonable steps to ensure that 
        information systems and databases of the Department are 
        compatible with each other and with appropriate 
        databases of other Departments[.]; and
          (4) shall establish a Homeland Security Advisory 
        Council to provide advice and recommendations on 
        homeland-security-related matters.
  (c) Coordination With Non-Federal Entities.--With respect to 
homeland security, the Secretary shall coordinate [through the 
Office of State and Local Coordination (established under 
section 801)] through the Office of Partnership and Engagement 
(including the provision of training and equipment) with State 
and local government personnel, agencies, and authorities, with 
the private sector, and with other entities, including by--
          (1) coordinating with State and local government 
        personnel, agencies, and authorities, and with the 
        private sector, to ensure adequate planning, equipment, 
        training, and exercise activities;
          (2) coordinating and, as appropriate, consolidating, 
        the Federal Government's communications and systems of 
        communications relating to homeland security with State 
        and local government personnel, agencies, and 
        authorities, the private sector, other entities, and 
        the public; [and]
          (3) distributing or, as appropriate, coordinating the 
        distribution of, warnings and information to State and 
        local government personnel, agencies, and authorities 
        and to the public[.]; and
          (4) entering into agreements with governments of 
        other countries, in consultation with the Secretary of 
        State, and international nongovernmental organizations 
        in order to achieve the missions of the Department.
  (d) Meetings of National Security Council.--The Secretary 
may, subject to the direction of the President, attend and 
participate in meetings of the National Security Council.
  (e) Issuance of Regulations.--The issuance of regulations by 
the Secretary shall be governed by the provisions of chapter 5 
of title 5, United States Code, except as specifically provided 
in this Act, in laws granting regulatory authorities that are 
transferred by this Act, and in laws enacted after the date of 
enactment of this Act.
  [(f) Special Assistant to the Secretary.--The Secretary shall 
appoint a Special Assistant to the Secretary who shall be 
responsible for--
          [(1) creating and fostering strategic communications 
        with the private sector to enhance the primary mission 
        of the Department to protect the American homeland;
          [(2) advising the Secretary on the impact of the 
        Department's policies, regulations, processes, and 
        actions on the private sector;
          [(3) interfacing with other relevant Federal agencies 
        with homeland security missions to assess the impact of 
        these agencies' actions on the private sector;
          [(4) creating and managing private sector advisory 
        councils composed of representatives of industries and 
        associations designated by the Secretary to--
                  [(A) advise the Secretary on private sector 
                products, applications, and solutions as they 
                relate to homeland security challenges;
                  [(B) advise the Secretary on homeland 
                security policies, regulations, processes, and 
                actions that affect the participating 
                industries and associations; and
                  [(C) advise the Secretary on private sector 
                preparedness issues, including effective 
                methods for--
                          [(i) promoting voluntary preparedness 
                        standards to the private sector; and
                          [(ii) assisting the private sector in 
                        adopting voluntary preparedness 
                        standards;
          [(5) working with Federal laboratories, federally 
        funded research and development centers, other 
        federally funded organizations, academia, and the 
        private sector to develop innovative approaches to 
        address homeland security challenges to produce and 
        deploy the best available technologies for homeland 
        security missions;
          [(6) promoting existing public-private partnerships 
        and developing new public-private partnerships to 
        provide for collaboration and mutual support to address 
        homeland security challenges;
          [(7) assisting in the development and promotion of 
        private sector best practices to secure critical 
        infrastructure;
          [(8) providing information to the private sector 
        regarding voluntary preparedness standards and the 
        business justification for preparedness and promoting 
        to the private sector the adoption of voluntary 
        preparedness standards;
          [(9) coordinating industry efforts, with respect to 
        functions of the Department of Homeland Security, to 
        identify private sector resources and capabilities that 
        could be effective in supplementing Federal, State, and 
        local government agency efforts to prevent or respond 
        to a terrorist attack;
          [(10) coordinating with the Directorate of Border and 
        Transportation Security and the Assistant Secretary for 
        Trade Development of the Department of Commerce on 
        issues related to the travel and tourism industries; 
        and
          [(11) consulting with the Office of State and Local 
        Government Coordination and Preparedness on all matters 
        of concern to the private sector, including the tourism 
        industry.]
  (g) Standards Policy.--All standards activities of the 
Department shall be conducted in accordance with section 12(d) 
of the National Technology Transfer Advancement Act of 1995 (15 
U.S.C. 272 note) and Office of Management and Budget Circular 
A-119.
  (h) Headquarters.--
          (1) Components.--The Department Headquarters shall 
        include the following:
                  (A) The Office of the Secretary.
                  (B) The Office of the Deputy Secretary.
                  (C) The Executive Secretariat.
                  (D) The Management Directorate, including the 
                Office of the Chief Financial Officer.
                  (E) The Office of Policy.
                  (F) The Office of General Counsel.
                  (G) The Office of the Chief Privacy Officer.
                  (H) The Office of Civil Rights and Civil 
                Liberties.
                  (I) The Office of Operations and Coordination 
                and Planning.
                  (J) The Office of Intelligence and Analysis.
                  (K) The Office of Legislative Affairs.
                  (L) The Office of Public Affairs.
          (2) Functions.--The Secretary, through the 
        Headquarters, shall--
                  (A) establish the Department's overall 
                strategy for successfully completing its 
                mission;
                  (B) establish initiatives that improve 
                performance Department-wide;
                  (C) establish mechanisms to ensure that 
                components of the Department comply with 
                Headquarters policies and fully implement the 
                Secretary's strategies and initiatives and 
                require the head of each component of the 
                Department and component chief officers to 
                comply with such policies and implement such 
                strategies and initiatives;
                  (D) establish annual operational and 
                management objectives to determine the 
                Department's performance;
                  (E) ensure that the Department successfully 
                meets operational and management performance 
                objectives through conducting oversight of 
                component agencies;
                  (F) ensure that the strategies, priorities, 
                investments, and workforce of Department 
                agencies align with Department objectives;
                  (G) establish and implement policies related 
                to Department ethics and compliance standards;
                  (H) manage and encourage shared services 
                across Department components;
                  (I) lead and coordinate interaction with 
                Congress and other external organizations; and
                  (J) carry out other such functions as the 
                Secretary determines are appropriate.

SEC. 103. OTHER OFFICERS.

  (a) Deputy Secretary; Under Secretaries.--(1) In general.--
Except as provided under paragraph (2), there are the following 
officers, appointed by the President, by and with the advice 
and consent of the Senate:
          (A) A Deputy Secretary of Homeland Security, who 
        shall be the Secretary's first assistant for purposes 
        of subchapter III of chapter 33 of title 5, United 
        States Code.
          (B) An Under Secretary for Science and Technology.
          (C) An Under Secretary for Border and Transportation 
        Security.
          (D) An Administrator of the Federal Emergency 
        Management Agency.
          (E) A Director of the Bureau of Citizenship and 
        Immigration Services.
          (F) An Under Secretary for Management.
          (G) A Director of the Office of Counternarcotics 
        Enforcement.
          (H) An Under Secretary responsible for overseeing 
        critical infrastructure protection, cybersecurity, and 
        other related programs of the Department.
          [(I) Not more than 12 Assistant Secretaries.]
          [(J)] (I) A General Counsel, who shall be the chief 
        legal officer of the Department.
          [(2) Assistant secretaries.--If any of the Assistant 
        Secretaries referred to under paragraph (1)(I) is 
        designated to be the Assistant Secretary for Health 
        Affairs, the Assistant Secretary for Legislative 
        Affairs, or the Assistant Secretary for Public Affairs, 
        that Assistant Secretary shall be appointed by the 
        President without the advice and consent of the 
        Senate.]
          (2) Assistant secretaries.--
                  (A) Advice and consent appointments.--The 
                Department shall have the following Assistant 
                Secretaries appointed by the President, by and 
                with the advice and consent of the Senate:
                          (i) The Assistant Secretary, U.S. 
                        Immigration and Customs Enforcement.
                          (ii) The Assistant Secretary, 
                        Transportation Security Administration.
                  (B) Other presidential appointments.--The 
                Department shall have the following Assistant 
                Secretaries appointed by the President:
                          (i) The Assistant Secretary, 
                        Infrastructure Protection.
                          (ii) The Assistant Secretary, Office 
                        of Public Affairs.
                          (iii) The Assistant Secretary, Office 
                        of Legislative Affairs.
                  (C) Secretarial appointments.--The Department 
                shall have the following Assistant Secretaries 
                appointed by the Secretary:
                          (i) The Assistant Secretary, Office 
                        of Cybersecurity and Communications.
                          (ii) The Assistant Secretary for 
                        International Affairs under section 
                        602.
                          (iii) The Assistant Secretary for 
                        Partnership and Engagement under 
                        section 603.
                  (D) Limitation on creation of positions.--No 
                Assistant Secretary position may be created in 
                addition to the positions provided for by this 
                section unless such position is authorized by a 
                statute enacted after the date of the enactment 
                of the DHS Headquarters Reform and Improvement 
                Act of 2015.
  (b) Inspector General.--There shall be in the Department an 
Office of Inspector General and an Inspector General at the 
head of such office, as provided in the Inspector General Act 
of 1978 (5 U.S.C. App.).
  (c) Commandant of the Coast Guard.--To assist the Secretary 
in the performance of the Secretary's functions, there is a 
Commandant of the Coast Guard, who shall be appointed as 
provided in section 44 of title 14, United States Code, and who 
shall report directly to the Secretary. In addition to such 
duties as may be provided in this Act and as assigned to the 
Commandant by the Secretary, the duties of the Commandant shall 
include those required by section 2 of title 14, United States 
Code.
  (d) Other Officers.--To assist the Secretary in the 
performance of the Secretary's functions, there are the 
following officers, appointed by the President:
          (1) A Director of the Secret Service.
          (2) A Chief Information Officer.
          (3) An Officer for Civil Rights and Civil Liberties.
          (4) A Director for Domestic Nuclear Detection.
  (f) Performance of Specific Functions.--Subject to the 
provisions of this Act, every officer of the Department shall 
perform the functions specified by law for the official's 
office or prescribed by the Secretary.
  (e) Chief Financial Officer.--There shall be in the 
Department a Chief Financial Officer, as provided in chapter 9 
of title 31, United States Code.

TITLE II--INFORMATION ANALYSIS AND INFRASTRUCTURE PROTECTION

           *       *       *       *       *       *       *

Subtitle C--Information Security

           *       *       *       *       *       *       *

SEC. 222. PRIVACY OFFICER.

  (a) Appointment and Responsibilities.--The Secretary shall 
appoint a senior official in the Department, to be the Chief 
Privacy Officer of the Department, who shall report directly to 
the Secretary[, to assume] and who shall have primary 
responsibility for privacy policy, including--
          (1) assuring that the use of technologies sustain, 
        and do not erode, privacy protections relating to the 
        use, collection, and disclosure of personal 
        information;
          (2) assuring that personal information contained in 
        Privacy Act systems of records is handled in full 
        compliance with fair information practices as set out 
        in the Privacy Act of 1974;
          (3) evaluating legislative and regulatory proposals 
        involving collection, use, and disclosure of personal 
        information by the Federal Government;
          (4) conducting a privacy impact assessment of 
        proposed rules of the Department or that of the 
        Department on the privacy of personal information, 
        including the type of personal information collected 
        and the number of people affected;
          (5) coordinating with the Officer for Civil Rights 
        and Civil Liberties to ensure that--
                  (A) programs, policies, and procedures 
                involving civil rights, civil liberties, and 
                privacy considerations are addressed in an 
                integrated and comprehensive manner; and
                  (B) Congress receives appropriate reports on 
                such programs, policies, and procedures; and
          [(6) preparing a report to Congress on an annual 
        basis on activities of the Department that affect 
        privacy, including complaints of privacy violations, 
        implementation of the Privacy Act of 1974, internal 
        controls, and other matters.]
          (6) preparing a report to Congress on an annual basis 
        on--
                  (A) activities of the Department that affect 
                privacy, including complaints of privacy 
                violations, implementation of section 554 of 
                title 5, United States Code (popularly known as 
                the Privacy Act of 1974), internal controls, 
                and other matters; and
                  (B) the number of new technology programs 
                implemented in the Department each fiscal year, 
                the number of those programs that the Chief 
                Privacy Officer has evaluated to ensure that 
                privacy protections are considered and 
                implemented, the number of those programs that 
                effectively implemented privacy protections 
                into new technology programs, and an 
                explanation of why any new programs did not 
                effectively implement privacy protections.
  (b) Additional Responsibilities.--In addition to the 
responsibilities under subsection (a), the Chief Privacy 
Officer shall--
          (1) develop guidance to assist components of the 
        Department in developing privacy policies and 
        practices;
          (2) establish a mechanism to ensure such components 
        are in compliance with Federal, regulatory, statutory, 
        and the Department's privacy requirements, mandates, 
        directives, and policy;
          (3) work with the Chief Information Officer of the 
        Department to identify methods for managing and 
        overseeing the Department's records, management 
        policies, and procedures;
          (4) work with components and offices of the 
        Department to ensure that information sharing 
        activities incorporate privacy protections;
          (5) serve as the Department's central office for 
        managing and processing requests related to section 552 
        of title 5, United States Code, popularly known as the 
        Freedom of Information Act;
          (6) develop public guidance on procedures to be 
        followed when making requests for information under 
        section 552 of title 5, United States Code;
          (7) oversee the management and processing of requests 
        for information under section 552 of title 5, United 
        States Code, within Department Headquarters and 
        relevant Department component offices;
          (8) identify and eliminate unnecessary and 
        duplicative actions taken by the Department in the 
        course of processing requests for information under 
        section 552 of title 5, United States Code; and
          (9) carry out such other responsibilities as the 
        Secretary determines are appropriate, consistent with 
        this section.
  [(b)] (c) Authority To Investigate.--
          (1) In general.--The senior official appointed under 
        subsection (a) may--
                  (A) have access to all records, reports, 
                audits, reviews, documents, papers, 
                recommendations, and other materials available 
                to the Department that relate to programs and 
                operations with respect to the responsibilities 
                of the senior official under this section;
                  (B) make such investigations and reports 
                relating to the administration of the programs 
                and operations of the Department as are, in the 
                senior official's judgment, necessary or 
                desirable;
                  (C) subject to the approval of the Secretary, 
                require by subpoena the production, by any 
                person other than a Federal agency, of all 
                information, documents, reports, answers, 
                records, accounts, papers, and other data and 
                documentary evidence necessary to performance 
                of the responsibilities of the senior official 
                under this section; and
                  (D) administer to or take from any person an 
                oath, affirmation, or affidavit, whenever 
                necessary to performance of the 
                responsibilities of the senior official under 
                this section.
          (2) Enforcement of subpoenas.--Any subpoena issued 
        under paragraph (1)(C) shall, in the case of contumacy 
        or refusal to obey, be enforceable by order of any 
        appropriate United States district court.
          (3) Effect of oaths.--Any oath, affirmation, or 
        affidavit administered or taken under paragraph (1)(D) 
        by or before an employee of the Privacy Office 
        designated for that purpose by the senior official 
        appointed under subsection (a) shall have the same 
        force and effect as if administered or taken by or 
        before an officer having a seal of office.
  [(c)] (d) Supervision and Coordination.--
          (1) In general.--The senior official appointed under 
        subsection (a) shall--
                  (A) report to, and be under the general 
                supervision of, the Secretary; and
                  (B) coordinate activities with the Inspector 
                General of the Department in order to avoid 
                duplication of effort.
          (2) Coordination with the inspector general.--
                  (A) In general.--Except as provided in 
                subparagraph (B), the senior official appointed 
                under subsection (a) may investigate any matter 
                relating to possible violations or abuse 
                concerning the administration of any program or 
                operation of the Department relevant to the 
                purposes under this section.
                  (B) Coordination.--
                          (i) Referral.--Before initiating any 
                        investigation described under 
                        subparagraph (A), the senior official 
                        shall refer the matter and all related 
                        complaints, allegations, and 
                        information to the Inspector General of 
                        the Department.
                          (ii) Determinations and notifications 
                        by the inspector general.--
                                  (I) In general.--Not later 
                                than 30 days after the receipt 
                                of a matter referred under 
                                clause (i), the Inspector 
                                General shall--
                                          (aa) make a 
                                        determination regarding 
                                        whether the Inspector 
                                        General intends to 
                                        initiate an audit or 
                                        investigation of the 
                                        matter referred under 
                                        clause (i); and
                                          (bb) notify the 
                                        senior official of that 
                                        determination.
                                  (II) Investigation not 
                                initiated.--If the Inspector 
                                General notifies the senior 
                                official under subclause 
                                (I)(bb) that the Inspector 
                                General intended to initiate an 
                                audit or investigation, but 
                                does not initiate that audit or 
                                investigation within 90 days 
                                after providing that 
                                notification, the Inspector 
                                General shall further notify 
                                the senior official that an 
                                audit or investigation was not 
                                initiated. The further 
                                notification under this 
                                subclause shall be made not 
                                later than 3 days after the end 
                                of that 90-day period.
                          (iii) Investigation by senior 
                        official.--The senior official may 
                        investigate a matter referred under 
                        clause (i) if--
                                  (I) the Inspector General 
                                notifies the senior official 
                                under clause (ii)(I)(bb) that 
                                the Inspector General does not 
                                intend to initiate an audit or 
                                investigation relating to that 
                                matter; or
                                  (II) the Inspector General 
                                provides a further notification 
                                under clause (ii)(II) relating 
                                to that matter.
                          (iv) Privacy training.--Any employee 
                        of the Office of Inspector General who 
                        audits or investigates any matter 
                        referred under clause (i) shall be 
                        required to receive adequate training 
                        on privacy laws, rules, and 
                        regulations, to be provided by an 
                        entity approved by the Inspector 
                        General in consultation with the senior 
                        official appointed under subsection 
                        (a).
  [(d)] (e) Notification to Congress on Removal.--If the 
Secretary removes the senior official appointed under 
subsection (a) or transfers that senior official to another 
position or location within the Department, the Secretary 
shall--
          (1) promptly submit a written notification of the 
        removal or transfer to Houses of Congress; and
          (2) include in any such notification the reasons for 
        the removal or transfer.
  [(e)] (f) Reports by Senior Official to Congress.--The senior 
official appointed under subsection (a) shall--
          (1) submit reports directly to the Congress regarding 
        performance of the responsibilities of the senior 
        official under this section, without any prior comment 
        or amendment by the Secretary, Deputy Secretary, or any 
        other officer or employee of the Department or the 
        Office of Management and Budget; and
          (2) inform the Committee on Homeland Security and 
        Governmental Affairs of the Senate and the Committee on 
        Homeland Security of the House of Representatives not 
        later than--
                  (A) 30 days after the Secretary disapproves 
                the senior official's request for a subpoena 
                under subsection (b)(1)(C) or the Secretary 
                substantively modifies the requested subpoena; 
                or
                  (B) 45 days after the senior official's 
                request for a subpoena under subsection 
                (b)(1)(C), if that subpoena has not either been 
                approved or disapproved by the Secretary.
  (g) Reassignment of Functions.--The Secretary may reassign 
the functions related to managing and processing requests for 
information under section 552 of title 5, United States Code, 
to another officer within the Department, consistent with 
requirements of that section.

           *       *       *       *       *       *       *

TITLE IV--DIRECTORATE OF BORDER AND TRANSPORTATION SECURITY

           *       *       *       *       *       *       *

Subtitle F--General Immigration Provisions

           *       *       *       *       *       *       *

[SEC. 475. DIRECTOR OF SHARED SERVICES.

  [(a) In General.--Within the Office of Deputy Secretary, 
there shall be a Director of Shared Services.
  [(b) Functions.--The Director of Shared Services shall be 
responsible for the coordination of resources for the Bureau of 
Border Security and the Bureau of Citizenship and Immigration 
Services, including--
          [(1) information resources management, including 
        computer databases and information technology;
          [(2) records and file management; and
          [(3) forms management.]

           *       *       *       *       *       *       *

  [TITLE VI--TREATMENT OF CHARITABLE TRUSTS FOR MEMBERS OF THE ARMED 
   FORCES OF THE UNITED STATES AND OTHER GOVERNMENTAL ORGANIZATIONS]

                     TITLE VI--POLICY AND PLANNING

SEC. 601. OFFICE OF POLICY.

  (a) Establishment of office.--There shall be in the 
Department an Office of Policy. The Office of Policy shall be 
headed by an Under Secretary for Policy, who shall be appointed 
by the President, by and with the advice and consent of the 
Senate.
  (b) Mission.--The mission of the Office of Policy is to lead, 
conduct, and coordinate Department-wide policy, strategic 
planning, and relationships with organizations or persons that 
are not part of the Department.
  (c) Components of Office.--The Office of Policy shall include 
the following components:
          (1) The Office of Partnership and Engagement under 
        section 602.
          (2) The Office of International Affairs under section 
        603.
          (3) The Office of Policy Implementation under section 
        604.
          (4) The Office of Strategy and Planning under section 
        605.
  (d) Responsibilities of the Under Secretary.--Subject to the 
direction and control of the Secretary, the Under Secretary for 
Policy shall--
          (1) serve as the principal policy advisor to the 
        Secretary;
          (2) coordinate with the Under Secretary for 
        Management and the General Counsel of the Department to 
        ensure that development of the Department's budget is 
        compatible with the priorities, strategic plans, and 
        policies established by the Secretary, including those 
        priorities identified through the Quadrennial Homeland 
        Security Review required under section 707;
          (3) incorporate relevant feedback from, and oversee 
        and coordinate relationships with, organizations and 
        other persons that are not part of the Department to 
        ensure effective communication of outside stakeholders' 
        perspectives to components of the Department;
          (4) establish a process to ensure that organizations 
        and other persons that are not part of the Department 
        can communicate with Department components without 
        compromising adherence by the officials of such 
        components to the Department's ethics and policies;
          (5) manage and coordinate the Department's 
        international engagement activities;
          (6) advise, inform, and assist the Secretary on the 
        impact of the Department's policy, processes, and 
        actions on State, local, tribal, and territorial 
        governments;
          (7) oversee the Department's engagement and 
        development of partnerships with nonprofit 
        organizations and academic institutions;
          (8) administer the Homeland Security Advisory Council 
        and make studies available to the Committee on Homeland 
        Security of the House of Representatives and the 
        Committee on Homeland Security and Governmental Affairs 
        of the Senate on an annual basis; and
          (9) carry out such other responsibilities as the 
        Secretary determines are appropriate, consistent with 
        this section.
  (e) Coordination by Department components.--
          (1) In general.--To ensure consistency with the 
        Secretary's policy priorities, the head of each 
        component of the Department shall coordinate with the 
        Office of Policy, as appropriate, in establishing new 
        policies or strategic planning guidance.
          (2) International activities.--
                  (A) Foreign negotiations.--Each component of 
                the Department shall coordinate with the Under 
                Secretary for Policy plans and efforts of the 
                component before pursuing negotiations with 
                foreign governments, to ensure consistency with 
                the Department's policy priorities.
                  (B) Notice of international travel by senior 
                officers.--Each component of the Department 
                shall notify the Under Secretary for Policy of 
                the international travel of senior officers of 
                the Department.
  (f) Assignment of personnel.--The Secretary shall assign to 
the Office of Policy permanent staff and, as appropriate and 
consistent with sections 506(c)(2), 821, and 888(d), other 
appropriate personnel detailed from other components of the 
Department to carry out the responsibilities under this 
section.
  (g) Deputy Under Secretary for Policy.--
          (1) In general.--The Secretary may--
                  (A) establish within the Department of 
                Homeland Security a position, to be called the 
                Deputy Under Secretary for Policy, to support 
                the Under Secretary for Policy in carrying out 
                the Under Secretary's responsibilities; and
                  (B) appoint a career employee to such 
                position.
          (2) Limitation on establishment of Deputy Under 
        Secretary positions.--A Deputy Under Secretary position 
        (or any substantially similar position) within the 
        Department of Homeland Security may not be established 
        except for the position provided for by paragraph (1) 
        unless the Secretary of Homeland Security receives 
        prior authorization from Congress.
          (3) Definitions.--For purposes of paragraph (1)--
                  (A) the term ``career employee'' means any 
                employee (as that term is defined in section 
                2105 of title 5, United States Code), but does 
                not include a political appointee; and
                  (B) the term ``political appointee'' means 
                any employee who occupies a position which has 
                been excepted from the competitive service by 
                reason of its confidential, policy-determining, 
                policy-making, or policy-advocating character.

SEC. 602. OFFICE OF PARTNERSHIP AND ENGAGEMENT.

  (a) In general.--There shall be in the Office of Policy an 
Office of Partnership and Engagement.
  (b) Head of Office.--The Secretary shall appoint an Assistant 
Secretary for Partnership and Engagement to serve as the head 
of the Office.
  (c) Responsibilities.--The Assistant Secretary for 
Partnership and Engagement shall--
          (1) lead the coordination of Department-wide policies 
        relating to the role of State and local law enforcement 
        in preventing, preparing for, protecting against, and 
        responding to natural disasters, acts of terrorism, and 
        other man-made disasters within the United States;
          (2) serve as a liaison between State, local, and 
        tribal law enforcement agencies and the Department, 
        including through consultation with such agencies 
        regarding Department programs that may impact such 
        agencies;
          (3) coordinate with the Office of Intelligence and 
        Analysis to certify the intelligence and information 
        sharing requirements of State, local, and tribal law 
        enforcement agencies are being addressed;
          (4) work with the Administrator to ensure that law 
        enforcement and terrorism-focused grants to State, 
        local, and tribal government agencies, including grants 
        under sections 2003 and 2004, the Commercial Equipment 
        Direct Assistance Program, and other grants 
        administered by the Department to support fusion 
        centers and law enforcement-oriented programs, are 
        appropriately focused on terrorism prevention 
        activities;
          (5) coordinate with the Science and Technology 
        Directorate, the Federal Emergency Management Agency, 
        the Department of Justice, the National Institute of 
        Justice, law enforcement organizations, and other 
        appropriate entities to support the development, 
        promulgation, and updating, as necessary, of national 
        voluntary consensus standards for training and personal 
        protective equipment to be used in a tactical 
        environment by law enforcement officers;
          (6) create and foster strategic communications with 
        the private sector to enhance the primary mission of 
        the Department to protect the American homeland;
          (7) advise the Secretary on the impact of the 
        Department's policies, regulations, processes, and 
        actions on the private sector;
          (8) interface with other relevant Federal agencies 
        with homeland security missions to assess the impact of 
        these agencies' actions on the private sector;
          (9) create and manage private sector advisory 
        councils composed of representatives of industries and 
        associations designated by the Secretary to--
                  (A) advise the Secretary on private sector 
                products, applications, and solutions as they 
                relate to homeland security challenges;
                  (B) advise the Secretary on homeland security 
                policies, regulations, processes, and actions 
                that affect the participating industries and 
                associations; and
                  (C) advise the Secretary on private sector 
                preparedness issues, including effective 
                methods for--
                          (i) promoting voluntary preparedness 
                        standards to the private sector; and
                          (ii) assisting the private sector in 
                        adopting voluntary preparedness 
                        standards;
          (10) promote existing public-private partnerships and 
        developing new public-private partnerships to provide 
        for collaboration and mutual support to address 
        homeland security challenges;
          (11) assist in the development and promotion of 
        private sector best practices to secure critical 
        infrastructure;
          (12) provide information to the private sector 
        regarding voluntary preparedness standards and the 
        business justification for preparedness and promoting 
        to the private sector the adoption of voluntary 
        preparedness standards;
          (13) coordinate industry efforts, with respect to 
        functions of the Department of Homeland Security, to 
        identify private sector resources and capabilities that 
        could be effective in supplementing Federal, State, and 
        local government agency efforts to prevent or respond 
        to a terrorist attack;
          (14) coordinate with the Commissioner of Customs and 
        Border Protection and the appropriate senior official 
        of the Department of Commerce on issues related to the 
        travel and tourism industries;
          (15) coordinate the activities of the Department 
        relating to State and local government;
          (16) assess, and advocate for, the resources needed 
        by State and local governments to implement the 
        national strategy for combating terrorism;
          (17) provide State and local governments with regular 
        information, research, and technical support to assist 
        local efforts at securing the homeland;
          (18) develop a process for receiving meaningful input 
        from State and local governments to assist the 
        development of the national strategy for combating 
        terrorism and other homeland security activities; and
          (19) perform such other functions as are established 
        by law or delegated to such Assistant Secretary by the 
        Under Secretary for Policy.

SEC. 603. OFFICE OF INTERNATIONAL AFFAIRS.

  (a) In general.--There shall be in the Office of Policy an 
Office of International Affairs.
  (b) Head of Office.--The Secretary shall appoint an Assistant 
Secretary for International Affairs to serve as the head of the 
Office and as the chief diplomatic officer of the Department.
  (c) Functions.--
          (1) In general.--The Assistant Secretary for 
        International Affairs shall--
                  (A) coordinate international activities 
                within the Department, including activities 
                carried out by the components of the 
                Department, in consultation with other Federal 
                officials with responsibility for 
                counterterrorism and homeland security matters;
                  (B) advise, inform, and assist the Secretary 
                with respect to the development and 
                implementation of Departmental policy 
                priorities, including strategic priorities for 
                the deployment of assets, including personnel, 
                outside the United States;
                  (C) develop, in consultation with the Under 
                Secretary for Management, guidance for 
                selecting, assigning, training, and monitoring 
                overseas deployments of Department personnel, 
                including minimum standards for predeployment 
                training;
                  (D) develop and update, in coordination with 
                all components of the Department engaged in 
                international activities, a strategic plan for 
                the international activities of the Department, 
                establish a process for managing its 
                implementation, and establish mechanisms to 
                monitor the alignment between assets, including 
                personnel, deployed by the Department outside 
                the United States and the plan required by this 
                subparagraph;
                  (E) develop and distribute guidance on 
                Department policy priorities for overseas 
                activities to personnel deployed overseas, 
                that, at a minimum, sets forth the regional and 
                national priorities being advanced by their 
                deployment, and establish mechanisms to foster 
                better coordination of Department personnel, 
                programs, and activities deployed outside the 
                United States;
                  (F) maintain awareness regarding the 
                international travel of senior officers of the 
                Department and their intent to pursue 
                negotiations with foreign government officials, 
                and review resulting draft agreements;
                  (G) develop, in consultation with the 
                components of the Department, including, as 
                appropriate, with the Under Secretary for the 
                Science and Technology Directorate, programs to 
                support the overseas programs conducted by the 
                Department, including training, technical 
                assistance, and equipment to ensure that 
                Department personnel deployed abroad have 
                proper resources and receive adequate and 
                timely support;
                  (H) conduct the exchange of homeland security 
                information, in consultation with the Under 
                Secretary of the Office of Intelligence and 
                Analysis, and best practices relating to 
                homeland security with foreign nations that, in 
                the determination of the Secretary, reciprocate 
                the sharing of such information in a 
                substantially similar manner;
                  (I) submit information to the Under Secretary 
                for Policy for oversight purposes, including 
                preparation of the quadrennial homeland 
                security review and on the status of overseas 
                activities, including training and technical 
                assistance and information exchange activities 
                and the Department's resources dedicated to 
                these activities;
                  (J) promote, when appropriate, and oversee 
                the exchange of education, training, and 
                information with nations friendly to the United 
                States in order to share best practices 
                relating to homeland security; and
                  (K) perform such other functions as are 
                established by law or delegated by the Under 
                Secretary for Policy.
          (2) Inventory of assets deployed abroad.--For each 
        fiscal year, the Assistant Secretary for International 
        Affairs, in coordination with the Under Secretary for 
        Management, shall provide to the Committee on Homeland 
        Security of the House of Representatives and the 
        Committee on Homeland Security and Governmental Affairs 
        of the Senate with the annual budget request for the 
        Department, an annual accounting of all assets of the 
        Department, including personnel, deployed outside the 
        United States on behalf of the Department.
          (3) Standardized framework for cost data.--The 
        Assistant Secretary for International Affairs shall 
        utilize a standardized framework to collect and 
        maintain comparable cost data for all assets of the 
        Department, including personnel, deployed outside the 
        United States to prepare the annual accounting required 
        by paragraph (2).
          (4) Exclusions This subsection does not apply to 
        international activities related to the protective 
        mission of the United States Secret Service, or to the 
        Coast Guard when operating under the direct authority 
        of the Secretary of Defense or the Secretary of the 
        Navy.

SEC. 604. OFFICE OF POLICY IMPLEMENTATION.

  (a) In general.--There shall be in the Office of Policy an 
Office of Policy Implementation.
  (b) Head of Office.--The Secretary shall appoint a Director 
of the Office of Policy Implementation to serve as the head of 
the Office.
  (c) Responsibilities.--The Director of the Office of Policy 
Implementation shall lead, conduct, coordinate, and provide 
overall direction and supervision of Department-wide policy 
development for the programs, offices, and activities of the 
Department, in consultation with relevant officials of the 
Department, to ensure quality, consistency, and integration 
across the Department, as appropriate.

SEC. 605. OFFICE OF STRATEGY AND PLANNING.

  (a) In general.--There shall be in the Office of Policy of 
the Department an Office of Strategy and Planning.
  (b) Head of Office.--The Secretary shall appoint a Director 
of the Office of Strategy and Planning who shall serve as the 
head of the Office.
  (c) Responsibilities.--The Director of the Office of Strategy 
and Planning shall--
          (1) lead and conduct long-term Department-wide 
        strategic planning, including the Quadrennial Homeland 
        Security Review and planning guidance for the 
        Department, and translate the Department's statutory 
        responsibilities, strategic plans, and long-term goals 
        into risk-based policies and procedures that improve 
        operational effectiveness; and
          (2) develop strategies to address unconventional 
        threats to the homeland.

                         TITLE VII--MANAGEMENT

SEC. 701. UNDER SECRETARY FOR MANAGEMENT.

  [(a) In General.--The Under Secretary for Management shall 
serve as the Chief Management Officer and principal advisor to 
the Secretary on matters related to the management of the 
Department, including management integration and transformation 
in support of homeland security operations and programs. The 
Secretary, acting through the Under Secretary for Management, 
shall be responsible for the management and administration of 
the Department, including the following:
          [(1) The budget, appropriations, expenditures of 
        funds, accounting, and finance.
          [(2) Procurement.
          [(3) Human resources and personnel.
          [(4) Information technology and communications 
        systems, including policies and directives to achieve 
        and maintain interoperable communications among the 
        components of the Department.
          [(5) Facilities, property, equipment, and other 
        material resources.
          [(6) Security for personnel, information technology 
        and communications systems, facilities, property, 
        equipment, and other material resources.
          [(7) Strategic management planning and annual 
        performance planning and identification and tracking of 
        performance measures relating to the responsibilities 
        of the Department.
          [(8) Grants and other assistance management programs.
          [(9) The management integration and transformation 
        process, as well as the transition process, to ensure 
        an efficient and orderly consolidation of functions and 
        personnel in the Department and transition, including--
                  [(A) the development of a management 
                integration strategy for the Department, and
                  [(B) before December 1 of any year in which a 
                Presidential election is held, the development 
                of a transition and succession plan, to be made 
                available to the incoming Secretary and Under 
                Secretary for Management, to guide the 
                transition of management functions to a new 
                Administration.
          [(10) The conduct of internal audits and management 
        analyses of the programs and activities of the 
        Department.
          [(11) Any other management duties that the Secretary 
        may designate.
  [(b) Immigration.--
          [(1) In general.--In addition to the responsibilities 
        described in subsection (a), the Under Secretary for 
        Management shall be responsible for the following:
                  [(A) Maintenance of all immigration 
                statistical information of the Bureau of Border 
                Security and the Bureau of Citizenship and 
                Immigration Services. Such statistical 
                information shall include information and 
                statistics of the type contained in the 
                publication entitled ``Statistical Yearbook of 
                the Immigration and Naturalization Service'' 
                prepared by the Immigration and Naturalization 
                Service (as in effect immediately before the 
                date on which the transfer of functions 
                specified under section 441 takes effect), 
                including region-by-region statistics on the 
                aggregate number of applications and petitions 
                filed by an alien (or filed on behalf of an 
                alien) and denied by such bureau, and the 
                reasons for such denials, disaggregated by 
                category of denial and application or petition 
                type.
                  [(B) Establishment of standards of 
                reliability and validity for immigration 
                statistics collected by such bureaus.
          [(2) Transfer of functions.--In accordance with title 
        XV, there shall be transferred to the Under Secretary 
        for Management all functions performed immediately 
        before such transfer occurs by the Statistics Branch of 
        the Office of Policy and Planning of the Immigration 
        and Naturalization Service with respect to the 
        following programs:
                  [(A) The Border Patrol program.
                  [(B) The detention and removal program.
                  [(C) The intelligence program.
                  [(D) The investigations program.
                  [(E) The inspections program.
                  [(F) Adjudication of immigrant visa 
                petitions.
                  [(G) Adjudication of naturalization 
                petitions.
                  [(H) Adjudication of asylum and refugee 
                applications.
                  [(I) Adjudications performed at service 
                centers.
                  [(J) All other adjudications performed by the 
                Immigration and Naturalization Service.]
  (a) In General.--Subject to the direction and control of the 
Secretary, the Under Secretary for Management shall serve as 
the following:
          (1) The Chief Management Officer for all matters 
        related to the management and administration of the 
        Department in support of homeland security operations 
        and programs. With regard to the management functions 
        for which the Under Secretary has responsibility by law 
        or by direction of the Secretary, the Under Secretary 
        for Management takes precedence in the Department after 
        the Secretary and the Deputy Secretary of Homeland 
        Security.
          (2) The senior official with the authority to 
        administer, implement, and direct management 
        integration and transformation across functional 
        disciplines of the Department, including--
                  (A) information technology, financial 
                management, acquisition management, and human 
                capital management of the Department to improve 
                program efficiency and effectiveness;
                  (B) ensure compliance with laws, rules, 
                regulations, and the Department's policies;
                  (C) conduct regular oversight; and
                  (D) prevent unnecessary duplication of 
                programs in the Department.
  (b) Responsibilities.--In addition to responsibilities 
designated by the Secretary or otherwise established by law, 
the Under Secretary for Management shall be responsible for 
performing, or delegating responsibility for performing, the 
following activities of the Department:
          (1) Development of the budget, management of 
        appropriations, expenditures of funds, accounting, and 
        finance.
          (2) Acquisition and procurement activities under 
        section 701(d).
          (3) Human resources and personnel.
          (4) Information technology and communication systems, 
        in consultation with the Under Secretary for 
        Intelligence and Analysis, as appropriate.
          (5) Facilities, property, equipment, and other 
        material resources.
          (6) Real property and personal property.
          (7) Security for personnel, information technology 
        and communications systems, facilities, property, 
        equipment, and other material resources.
          (8) Strategic management planning, annual performance 
        planning, and identification and tracking of 
        performance measures relating to the responsibilities 
        of the Department, including such responsibilities 
        under section 306 of title 5, United States Code.
          (9) Oversight of grants and other assistance 
        management programs to ensure proper administration.
          (10) Management integration and transformation within 
        each functional management discipline of the 
        Department, including information technology, financial 
        management, acquisition management, and human capital 
        management, and the transition process, to ensure an 
        efficient and orderly consolidation of functions and 
        personnel in the Department and transition, including 
        the--
                  (A) development of coordinated data sources 
                and connectivity of information systems to the 
                greatest extent practical to enhance program 
                visibility and transparency;
                  (B) development of standardized, automated, 
                and real-time management information to 
                uniformly manage and oversee programs, and make 
                informed decisions to improve the efficiency of 
                the Department;
                  (C) development of effective program 
                management and regular oversight mechanisms, 
                including clear roles and processes for program 
                governance, sharing of best practices, and 
                access to timely, reliable, and analyzed data 
                on all acquisitions and investments;
                  (D) implementation of mechanisms to promote 
                accountability for management integration among 
                Department and component chief officers;
                  (E) integration of financial management 
                systems within and across the Department to 
                ensure financial transparency, support daily 
                operational and financial decisionmaking, and 
                maintain consecutive unqualified opinions for 
                all financial statements, including the 
                responsibility to review, approve, and oversee 
                the planning, design, acquisition, deployment, 
                operation, maintenance, and modernization of 
                business systems;
                  (F) integration of human resource management 
                systems within and across the Department to 
                track and record information (including 
                attrition rates, knowledge, skills, and 
                abilities critical for workforce planning, 
                identifying current and future human capital 
                needs, including recruitment efforts and 
                improving employee morale), including the 
                responsibility to review, approve, and oversee 
                the planning, design, acquisition, deployment, 
                operation, maintenance, and modernization of 
                business systems;
                  (G) development of a management integration 
                strategy for the Department and its components 
                to be submitted annually with the President's 
                budget to ensure that management of the 
                Department is strengthened in the areas of 
                human capital, acquisition, information 
                technology, and financial management, which 
                shall include--
                          (i) short- and long-term objectives 
                        to effectively guide implementation of 
                        interoperable business systems 
                        solutions;
                          (ii) issuance of guidance and action 
                        plans with dates, specific actions, and 
                        costs for implementing management 
                        integration and transformation of 
                        common functional disciplines across 
                        the Department and its components;
                          (iii) specific operational and 
                        tactical goals, activities, and 
                        timelines needed to accomplish the 
                        integration effort;
                          (iv) performance measures to monitor 
                        and validate corrective measures;
                          (v) efforts to identify resources 
                        needed to achieve key actions and 
                        outcomes;
                          (vi) other issues impeding management 
                        integration;
                          (vii) reporting to the Government 
                        Accountability Office twice annually to 
                        demonstrate measurable, sustainable 
                        progress made in implementing the 
                        Department's corrective action plans 
                        and achieving key outcomes, including 
                        regarding--
                                  (I) leadership commitment;
                                  (II) capacity building; and
                                  (III) continuous monitoring 
                                to address Government 
                                Accountability Office 
                                designations of programs at 
                                high risk for waste, fraud, and 
                                abuse, including with respect 
                                to strengthening management 
                                functions;
                          (viii) review and approve any major 
                        update to the Department's strategy 
                        related to management integration and 
                        transformation across functional 
                        disciplines and lines of business, 
                        including any business systems 
                        modernization plans to maximize 
                        benefits and minimize costs for the 
                        Department; and
                          (ix) before December 1 of each year 
                        in which a Presidential election is 
                        held, the development of a transition 
                        and succession plan to guide the 
                        transition of Department functions to a 
                        new Presidential administration, and 
                        making such plan available to the next 
                        Secretary and Under Secretary for 
                        Management and to the homeland security 
                        congressional committees.
                  (H) Oversight, including the conduct of 
                internal audits and management analyses, of the 
                programs and activities of the Department. Such 
                supervision includes establishing oversight 
                procedures to ensure a full and effective 
                review of the efforts by Department components 
                to implement policies and procedures of the 
                Department for management integration and 
                transformation.
                  (I) Any other management duties that the 
                Secretary may designate.
  (c) Appointment and Evaluation.--The Under Secretary for 
Management shall--
          (1) be appointed by the President, by and with the 
        advice and consent of the Senate, from among persons 
        who have--
                  (A) extensive executive level leadership and 
                management experience in the public or private 
                sector;
                  (B) strong leadership skills;
                  (C) a demonstrated ability to manage large 
                and complex organizations; and
                  (D) a proven record in achieving positive 
                operational results;
          (2) enter into an annual performance agreement with 
        the Secretary that shall set forth measurable 
        individual and organizational goals; and
          (3) be subject to an annual performance evaluation by 
        the Secretary, who shall determine as part of each such 
        evaluation whether the Under Secretary for Management 
        has made satisfactory progress toward achieving the 
        goals set out in the performance agreement required 
        under paragraph (2).
  (d) Interoperable Communications Defined.--In this section, 
the term ``interoperable communications'' has the meaning given 
that term in section 7303(g) of the Intelligence Reform and 
Terrorism Prevention Act of 2004 (6 U.S.C. 194(g)).
  (e) Acquisition and Related Responsibilities.--
          (1) In general.--Notwithstanding section 1702(b) of 
        title 41, United States Code, the Under Secretary for 
        Management is the Chief Acquisition Officer of the 
        Department. As Chief Acquisition Officer, the Under 
        Secretary shall have the authority and perform the 
        functions as specified in section 1702(b) of such 
        title, and perform all other functions and 
        responsibilities delegated by the Secretary or 
        described in this subsection.
          (2) Duties and responsibilities.--In addition to the 
        authority and functions specified in section 1702(b) of 
        title 41, United States Code, the duties and 
        responsibilities of the Under Secretary for Management 
        related to acquisition include the following:
                  (A) Advising the Secretary regarding 
                acquisition management activities, taking into 
                account risks of failure to achieve cost, 
                schedule, or performance parameters, to ensure 
                that the Department achieves its mission 
                through the adoption of widely accepted program 
                management best practices and standards.
                  (B) Exercising the acquisition decision 
                authority to approve, halt, modify (including 
                the rescission of approvals of program 
                milestones), or cancel major acquisition 
                programs, unless the Under Secretary delegates 
                the authority to a Component Acquisition 
                Executive pursuant to paragraph (3).
                  (C) Establishing policies for acquisition 
                that implement an approach that takes into 
                account risks of failure to achieve cost, 
                schedule, or performance parameters that all 
                components of the Department shall comply with, 
                including outlining relevant authorities for 
                program managers to effectively manage 
                acquisition programs.
                  (D) Ensuring that each major acquisition 
                program has a Department-approved acquisition 
                program baseline, pursuant to the Department's 
                acquisition management policy.
                  (E) Ensuring that the heads of components and 
                Component Acquisition Executives comply with 
                Federal law, the Federal Acquisition 
                Regulation, and Department acquisition 
                management directives.
                  (F) Ensuring that grants and financial 
                assistance are provided only to individuals and 
                organizations that are not suspended or 
                debarred.
                  (G) Distributing guidance throughout the 
                Department to ensure that contractors involved 
                in acquisitions, particularly companies that 
                access the Department's information systems and 
                technologies, adhere to internal cybersecurity 
                policies established by the Department of 
                Homeland Security.
          (3) Delegation of acquisition decision authority.--
                  (A) Level 3 acquisitions.--The Under 
                Secretary for Management may delegate 
                acquisition decision authority in writing to 
                the relevant Component Acquisition Executive 
                for an acquisition program that has a life 
                cycle cost estimate of less than $300,000,000.
                  (B) Level 2 acquisitions.--The Under 
                Secretary for Management may delegate 
                acquisition decision authority in writing to 
                the relevant Component Acquisition Executive 
                for a major acquisition program that has a life 
                cycle cost estimate of at least $300,000,000 
                but not more than $1,000,000,000 if all of the 
                following requirements are met:
                          (i) The component concerned possesses 
                        working policies, processes, and 
                        procedures that are consistent with 
                        Department-level acquisition policy.
                          (ii) The Component Acquisition 
                        Executive has adequate, experienced, 
                        dedicated program management 
                        professional staff commensurate with 
                        the size of the delegated portfolio.
                          (iii) Each major acquisition program 
                        concerned has written documentation 
                        showing that it has a Department-
                        approved acquisition program baseline 
                        and it is meeting agreed-upon cost, 
                        schedule, and performance thresholds.
          (4) Excluded parties list system consultation.--The 
        Under Secretary for Management shall require that all 
        Department contracting and procurement officials 
        consult the Excluded Parties List System (or successor 
        system) as maintained by the General Services 
        Administration prior to awarding a contract or grant or 
        entering into other transactions to ascertain whether 
        the selected contractor is excluded from receiving 
        Federal contracts, certain subcontracts, and certain 
        types of Federal financial and nonfinancial assistance 
        and benefits.
          (5) Relationship to under secretary for science and 
        technology.--
                  (A) In general.--Nothing in this subsection 
                shall diminish the authority granted to the 
                Under Secretary for Science and Technology 
                under this Act. The Under Secretary for 
                Management and the Under Secretary for Science 
                and Technology shall cooperate in matters 
                related to the coordination of acquisitions 
                across the Department so that investments of 
                the Directorate of Science and Technology can 
                support current and future requirements of the 
                components.
                  (B) Operational testing and evaluation.--The 
                Under Secretary for Science and Technology 
                shall--
                          (i) ensure, in coordination with 
                        relevant component heads, that major 
                        acquisition programs--
                                  (I) complete operational 
                                testing and evaluation of 
                                technologies and systems;
                                  (II) use independent 
                                verification and validation of 
                                operational test and evaluation 
                                implementation and results; and
                                  (III) document whether such 
                                programs meet all performance 
                                requirements included in their 
                                acquisition program baselines;
                          (ii) ensure that such operational 
                        testing and evaluation includes all 
                        system components and incorporates 
                        operators into the testing to ensure 
                        that systems perform as intended in the 
                        appropriate operational setting; and
                          (iii) determine if testing conducted 
                        by other Federal agencies and private 
                        entities is relevant and sufficient in 
                        determining whether systems perform as 
                        intended in the operational setting.

SEC. 702. CHIEF FINANCIAL OFFICER.

  (a) In General.--The Chief Financial Officer shall perform 
functions as specified in chapter 9 of title 31, United States 
Code, and, with respect to all such functions and other 
responsibilities that may be assigned to the Chief Financial 
Officer from time to time, shall also report to the Under 
Secretary for Management.
  (b) Responsibilities.--Notwithstanding sections 901 and 1122 
of title 31, United States Code, the Chief Financial Officer, 
in consultation with the Under Secretary for Management and the 
Under Secretary for Intelligence and Analysis, as appropriate, 
shall--
          (1) lead cost-estimating practices for the 
        Department, including the development of the 
        Department's policy on cost estimating and approval of 
        life cycle cost estimates;
          (2) oversee coordination with the Office of Policy on 
        the Department's long-term strategic planning to ensure 
        that the development of the Department's budget is 
        compatible with the priorities, strategic plans, and 
        policies established by the Secretary;
          (3) develop and oversee the Department's financial 
        management policy;
          (4) provide guidance for and over financial system 
        modernization efforts throughout the Department;
          (5) establish effective internal controls over 
        financial reporting systems and processes throughout 
        the Department;
          (6) lead assessments of internal controls related to 
        the Department's financial management systems and 
        review financial processes to ensure that internal 
        controls are designed properly and operate effectively;
          (7) lead the Department's efforts related to 
        financial oversight, including identifying ways to 
        streamline and standardize business processes;
          (8) lead and provide guidance on performance-based 
        budgeting practices for the Department to ensure that 
        the Department and its components are meeting missions 
        and goals;
          (9) ensure that Department components' senior 
        financial officers certify that their major acquisition 
        programs have adequate resources to execute their 
        programs through the 5-year future years homeland 
        security program period, so that the Department's 
        funding requirements for major acquisition programs 
        match expected resources;
          (10) ensure that components identify and report all 
        expected costs of acquisition programs to the Chief 
        Financial Officer of the Department;
          (11) oversee Department budget formulation and 
        execution;
          (12) fully implement a common accounting structure to 
        be used across the entire Department by fiscal year 
        2019; and
          (13) track, approve, oversee, and make public 
        information on expenditures by components of the 
        Department for conferences, as appropriate, including 
        by requiring each component of the Department to--
                  (A) report to the Inspector General of the 
                Department the expenditures by the component 
                for each conference hosted or attended by 
                Department employees for which the total 
                expenditures of the Department exceed $20,000, 
                within 15 days after the date of the 
                conference; and
                  (B) with respect to such expenditures, 
                provide to the Inspector General--
                          (i) the information described in 
                        subsections (a), (b), and (c) of 
                        section 739 of Public Law 113-235; and
                          (ii) documentation of such 
                        expenditures.
  [(b)] (c) Program Analysis and Evaluation Function.--
          (1) Establishment of office of program analysis and 
        evaluation.--Not later than 90 days after the date of 
        enactment of this subsection, the Secretary shall 
        establish an Office of Program Analysis and Evaluation 
        within the Department (in this section referred to as 
        the ``Office'').
          (2) Responsibilities.--The Office shall perform the 
        following functions:
                  (A) Analyze and evaluate plans, programs, and 
                budgets of the Department in relation to United 
                States homeland security objectives, projected 
                threats, vulnerability assessments, estimated 
                costs, resource constraints, and the most 
                recent homeland security strategy developed 
                pursuant to section 874(b)(2).
                  (B) Develop and perform analyses and 
                evaluations of alternative plans, programs, 
                personnel levels, and budget submissions for 
                the Department in relation to United States 
                homeland security objectives, projected 
                threats, vulnerability assessments, estimated 
                costs, resource constraints, and the most 
                recent homeland security strategy developed 
                pursuant to section 874(b)(2).
                  (C) Establish policies for, and oversee the 
                integration of, the planning, programming, and 
                budgeting system of the Department.
                  (D) Review and ensure that the Department 
                meets performance-based budget requirements 
                established by the Office of Management and 
                Budget.
                  (E) Provide guidance for, and oversee the 
                development of, the Future Years Homeland 
                Security Program of the Department, as 
                specified under section 874.
                  (F) Ensure that the costs of Department 
                programs, including classified programs, are 
                presented accurately and completely.
                  (G) Oversee the preparation of the annual 
                performance plan for the Department and the 
                program and performance section of the annual 
                report on program performance for the 
                Department, consistent with sections 1115 and 
                1116, respectively, of title 31, United States 
                Code.
                  (H) Provide leadership in developing and 
                promoting improved analytical tools and methods 
                for analyzing homeland security planning and 
                the allocation of resources.
                  (I) Any other responsibilities delegated by 
                the Secretary consistent with an effective 
                program analysis and evaluation function.
                  (J) Notwithstanding section 902 of title 31, 
                United States Code, provide leadership over 
                financial management policy and programs for 
                the Department as they relate to the 
                Department's acquisitions programs, in 
                consultation with the Under Secretary for 
                Management.
          (3) Director of program analysis and evaluation.--
        There shall be a Director of Program Analysis and 
        Evaluation, who--
                  (A) shall be a principal staff assistant to 
                the Chief Financial Officer of the Department 
                for program analysis and evaluation; and
                  (B) shall report to an official no lower than 
                the Chief Financial Officer.
          (4) Reorganization.--
                  (A) In general.--The Secretary may allocate 
                or reallocate the functions of the Office, or 
                discontinue the Office, in accordance with 
                section 872(a).
                  (B) Exemption from limitations.--Section 
                872(b) shall not apply to any action by the 
                Secretary under this paragraph.
  [(c)] (d) Notification Regarding Transfer or Reprogramming of 
Funds.--In any case in which appropriations available to the 
Department or any officer of the Department are transferred or 
reprogrammed and notice of such transfer or reprogramming is 
submitted to the Congress (including any officer, office, or 
Committee of the Congress), the Chief Financial Officer of the 
Department shall simultaneously submit such notice to the 
Select Committee on Homeland Security (or any successor to the 
jurisdiction of that committee) and the Committee on Government 
Reform of the House of Representatives, and to the Committee on 
Governmental Affairs of the Senate.

SEC. 703. CHIEF INFORMATION OFFICER.

  (a) In General.--The Chief Information Officer shall report 
to the Secretary, or to another official of the Department, as 
the Secretary may direct. In addition to the functions under 
section 3506(a)(2) of title 44, United States Code, the Chief 
Information Officer shall perform the functions set forth in 
this section and such other functions as may be assigned by the 
Secretary.
  (b) Responsibilities.--In addition to the functions under 
section 3506 of title 44, United States Code, the Chief 
Information Officer, in consultation with the Under Secretary 
for Management, shall--
          (1) advise and assist the Secretary, heads of the 
        components of the Department, and other senior officers 
        in carrying out the responsibilities of the Department 
        for all activities relating to the budgets, programs, 
        and operations of the information technology functions 
        of the Department;
          (2) to the extent delegated by the Secretary--
                  (A) exercise leadership and authority over 
                Department information technology management; 
                and
                  (B) establish the information technology 
                priorities, policies, processes, standards, 
                guidelines, and procedures of the Department to 
                ensure interoperability and standardization of 
                information technology;
          (3) serve as the lead technical authority for 
        information technology programs;
          (4) maintain a consolidated inventory of the 
        Department's mission critical and mission essential 
        information systems, and develop and maintain 
        contingency plans for responding to a disruption in the 
        operation of any of those information systems;
          (5) maintain the security, visibility, reliability, 
        integrity, and availability of data and information 
        technology of the Department including the security of 
        the Homeland Security Data Network;
          (6) in coordination with relevant officials of the 
        Department, ensure that the Department is in compliance 
        with subchapter II of chapter 35 of title 44, United 
        States Code;
          (7) establish policies and procedures to effectively 
        monitor and manage vulnerabilities in the supply chain 
        for purchases of information technology;
          (8) in coordination with relevant officials of the 
        Department, ensure Department compliance with Homeland 
        Security Presidential Directive 12;
          (9) in coordination with relevant officials of the 
        Department, ensure that information technology systems 
        of the Department meet the standards established under 
        the information sharing environment, as defined in 
        section 1016 of the Intelligence Reform and Terrorism 
        Prevention Act of 2004 (6 U.S.C. 485);
          (10) develop measures to monitor the performance of 
        Department components' use and implementation of 
        information technology systems and consistently monitor 
        such performance to ensure that such systems are used 
        effectively;
          (11) ensure that Department components report to the 
        Chief Information Officer of the Department a complete 
        inventory of information systems and fully adhere to 
        Department guidance related to information technology;
          (12) carry out any other responsibilities delegated 
        by the Secretary consistent with an effective 
        information system management function; and
          (13) carry out authorities over Department 
        information technology consistent with section 113419 
        of title 40, United States Code.
  (c) Strategic Plans.--In coordination with the Chief 
Financial Officer, the Chief Information Officer shall develop 
an information technology strategic plan every 5 years and 
report to the Committee on Homeland Security of the House of 
Representatives and the Committee on Homeland Security and 
Governmental Affairs of the Senate on--
          (1) how the information technology strategic plans 
        developed under this subsection are used to help inform 
        the Department's budget process;
          (2) how the Department's budget aligns with 
        priorities specified in the information technology 
        strategic plans;
          (3) in cases in which it is not possible to fund all 
        information technology strategic plan activities for a 
        given fiscal year, the rationale as to why certain 
        activities are not being funded in lieu of higher 
        priorities;
          (4) what decisionmaking process was used to arrive at 
        these priorities and the role of Department components 
        in that process; and
          (5) examine the extent to which unnecessary duplicate 
        information technology within and across the components 
        of the Department has been eliminated.
  (d) Software Licensing.--
          (1) In general.--Not later than 180 days after the 
        date of the enactment of the DHS Headquarters Reform 
        and Improvement Act of 2015, and every 2 years 
        thereafter, the Chief Information Officer, in 
        consultation with Department component chief 
        information officers, shall--
                  (A) conduct a Department-wide inventory of 
                all existing software licenses held by the 
                Department, including utilized and unutilized 
                licenses;
                  (B) assess the needs of the Department and 
                the components of the Department for software 
                licenses for the subsequent 2 fiscal years;
                  (C) examine how the Department can achieve 
                the greatest possible economies of scale and 
                cost savings in the procurement of software 
                licenses;
                  (D) determine how the use of shared cloud-
                computing services will impact the needs for 
                software licenses for the subsequent 2 fiscal 
                years; and
                  (E) establish plans and estimated costs for 
                eliminating unutilized software licenses for 
                the subsequent 2 fiscal years.
          (2) Excess software licensing.--
                  (A) Plan to reduce software licenses.--If the 
                Chief Information Officer determines through 
                the inventory conducted under paragraph (1) 
                that the number of software licenses held by 
                the Department and the components of the 
                Department exceed the needs of the Department 
                as assessed under paragraph (1), the Secretary, 
                not later than 90 days after the date on which 
                the inventory is completed, shall establish a 
                plan for bringing the number of such software 
                licenses into balance with such needs of the 
                Department.
                  (B) Prohibition on procurement of new 
                software licenses.--
                          (i) In general.--Except as provided 
                        in clause (ii), upon completion of a 
                        plan established under paragraph (1), 
                        no additional resources may be 
                        obligated for the procurement of new 
                        software licenses for the Department 
                        until such time as the need of the 
                        Department exceeds the number of used 
                        and unused licenses held by the 
                        Department.
                          (ii) Exception.--The Chief 
                        Information Officer may authorize the 
                        purchase of additional licenses and 
                        amend the number of needed licenses as 
                        necessary.
          (3) GAO review.--The Comptroller General of the 
        United States shall review the inventory conducted 
        under paragraph (1)(A) and the plan established under 
        paragraph (2)(A).
          (4) Submission to congress.--The Chief Information 
        Officer shall submit a copy of each inventory conducted 
        under paragraph (1)(A) and each plan established under 
        paragraph (2)(A) to the Committee on Homeland Security 
        of the House of Representatives and the Committee on 
        Homeland Security and Governmental Affairs of the 
        Senate.
  [(b)] (e) Geospatial Information Functions.--
          (1) Definitions.--As used in this subsection:
                  (A) Geospatial information.--The term 
                ``geospatial information'' means graphical or 
                digital data depicting natural or manmade 
                physical features, phenomena, or boundaries of 
                the earth and any information related thereto, 
                including surveys, maps, charts, remote sensing 
                data, and images.
                  (B) Geospatial technology.--The term 
                ``geospatial technology'' means any technology 
                utilized by analysts, specialists, surveyors, 
                photogrammetrists, hydrographers, geodesists, 
                cartographers, architects, or engineers for the 
                collection, storage, retrieval, or 
                dissemination of geospatial information, 
                including--
                          (i) global satellite surveillance 
                        systems;
                          (ii) global position systems;
                          (iii) geographic information systems;
                          (iv) mapping equipment;
                          (v) geocoding technology; and
                          (vi) remote sensing devices.
          (2) Office of geospatial management.--
                  (A) Establishment.--The Office of Geospatial 
                Management is established within the Office of 
                the Chief Information Officer.
                  (B) Geospatial information officer.--
                          (i) Appointment.--The Office of 
                        Geospatial Management shall be 
                        administered by the Geospatial 
                        Information Officer, who shall be 
                        appointed by the Secretary and serve 
                        under the direction of the Chief 
                        Information Officer.
                          (ii) Functions.--The Geospatial 
                        Information Officer shall assist the 
                        Chief Information Officer in carrying 
                        out all functions under this section 
                        and in coordinating the geospatial 
                        information needs of the Department.
                  (C) Coordination of geospatial information.--
                The Chief Information Officer shall establish 
                and carry out a program to provide for the 
                efficient use of geospatial information, which 
                shall include--
                          (i) providing such geospatial 
                        information as may be necessary to 
                        implement the critical infrastructure 
                        protection programs;
                          (ii) providing leadership and 
                        coordination in meeting the geospatial 
                        information requirements of those 
                        responsible for planning, prevention, 
                        mitigation, assessment and response to 
                        emergencies, critical infrastructure 
                        protection, and other functions of the 
                        Department; and
                          (iii) coordinating with users of 
                        geospatial information within the 
                        Department to assure interoperability 
                        and prevent unnecessary duplication.
                  (D) Responsibilities.--In carrying out this 
                subsection, the responsibilities of the Chief 
                Information Officer shall include--
                          (i) coordinating the geospatial 
                        information needs and activities of the 
                        Department;
                          (ii) implementing standards, as 
                        adopted by the Director of the Office 
                        of Management and Budget under the 
                        processes established under section 216 
                        of the E-Government Act of 2002 (44 
                        U.S.C. 3501 note), to facilitate the 
                        interoperability of geospatial 
                        information pertaining to homeland 
                        security among all users of such 
                        information within--
                                  (I) the Department;
                                  (II) State and local 
                                government; and
                                  (III) the private sector;
                          (iii) coordinating with the Federal 
                        Geographic Data Committee and carrying 
                        out the responsibilities of the 
                        Department pursuant to Office of 
                        Management and Budget Circular A-16 and 
                        Executive Order 12906; and
                          (iv) making recommendations to the 
                        Secretary and the Executive Director of 
                        the Office for State and Local 
                        Government Coordination and 
                        Preparedness on awarding grants to--
                                  (I) fund the creation of 
                                geospatial data; and
                                  (II) execute information 
                                sharing agreements regarding 
                                geospatial data with State, 
                                local, and tribal governments.
          (3) Authorization of appropriations.--There are 
        authorized to be appropriated such sums as may be 
        necessary to carry out this subsection for each fiscal 
        year.
  (f) Acquisition Responsibilities.--Notwithstanding section 
11315 of title 40, United States Code, the acquisition 
responsibilities of the Chief Information Officer, in 
consultation with the Under Secretary for Management, shall 
include the following:
          (1) Oversee the management of the Homeland Security 
        Enterprise Architecture and ensure that, before each 
        acquisition decision event, approved information 
        technology acquisitions comply with departmental 
        information technology management processes, technical 
        requirements, and the Homeland Security Enterprise 
        Architecture, and in any case in which information 
        technology acquisitions do not comply with the 
        Department's management directives, make 
        recommendations to the Acquisition Review Board 
        regarding such noncompliance.
          (2) Be responsible for providing recommendations to 
        the Acquisition Review Board established in section 836 
        of this Act on information technology programs, and be 
        responsible for developing information technology 
        acquisition strategic guidance.

[SEC. 704. CHIEF HUMAN CAPITAL OFFICER.

   [The Chief Human Capital Officer shall report to the 
Secretary, or to another official of the Department, as the 
Secretary may direct and shall ensure that all employees of the 
Department are informed of their rights and remedies under 
chapters 12 and 23 of title 5, United States Code, by--
          [(1) participating in the 2302(c) Certification 
        Program of the Office of Special Counsel;
          [(2) achieving certification from the Office of 
        Special Counsel of the Department's compliance with 
        section 2302(c) of title 5, United States Code; and
          [(3) informing Congress of such certification not 
        later than 24 months after the date of enactment of 
        this Act.]

SEC. 704. CHIEF HUMAN CAPITAL OFFICER.

  (a) In General.--There is a Chief Human Capital Officer of 
the Department who shall report directly to the Under Secretary 
of Management.
  (b) Responsibilities.--The Chief Human Capital Officer 
shall--
          (1) develop and implement strategic workforce 
        planning efforts that are consistent with Government-
        wide leading principles, and that are in line with 
        Department strategic human capital goals and 
        priorities;
          (2) develop performance measures to provide a basis 
        for monitoring and evaluating Department-wide strategic 
        workforce planning efforts;
          (3) develop strategies to recruit, hire, and train 
        the Department workforce;
          (4) work with the component heads to identify methods 
        for managing and overseeing human capital programs and 
        initiatives;
          (5) develop a career path framework, and create 
        opportunities for leader development;
          (6) serve as the Department's central office for 
        managing employee resources, including training and 
        development opportunities;
          (7) coordinate the Department's human resource 
        management system;
          (8) conduct efficiency reviews to determine if 
        components are implementing human capital programs and 
        initiatives; and
          (9) identify and eliminate unnecessary and 
        duplicative human capital policies and guidance.
  (c) Component Strategies.--
          (1) In general.--Each component of the Department 
        shall coordinate with the Chief Human Capital Officer 
        of the Department to develop or maintain its own 5-year 
        workforce strategy that will support the Department's 
        goals, objectives, performance measures, and 
        determination of the proper balance of Federal 
        employees and private labor resources.
          (2) Strategy requirements.--The Chief Human Capital 
        Officer shall ensure that, in the development of the 
        strategy required by subsection (c), the head of the 
        component reports to the Chief Human Capital Officer on 
        the human resources considerations associated with 
        creating additional Federal full-time equivalent 
        positions, converting private contractor positions to 
        Federal employee positions, or relying on the private 
        sector for goods and services, including--
                  (A) hiring projections, including occupation 
                and grade level, as well as corresponding 
                salaries, benefits, and hiring or retention 
                bonuses;
                  (B) the identification of critical skills 
                requirements over the 5-year period, any 
                current or anticipated need for critical skills 
                required at the Department, and the training or 
                other measures required to address such need;
                  (C) recruitment of qualified candidates and 
                retention of qualified employees;
                  (D) supervisory and management requirements;
                  (E) travel and related personnel support 
                costs;
                  (F) the anticipated cost and impact on 
                mission performance associated with replacing 
                Federal personnel due to their retirement or 
                other attrition; and
                  (G) other appropriate factors.
  (d) Annual Submission.--The Secretary shall provide to the 
appropriate congressional committees, together with submission 
of the annual budget justification, information on the progress 
within the Department of fulfilling the workforce strategies 
required under subsection (c).

           *       *       *       *       *       *       *

SEC. 707. QUADRENNIAL HOMELAND SECURITY REVIEW.

  (a) Requirement.--
          [(1) Quadrennial reviews required.--In fiscal year 
        2009, and every 4 years thereafter, the Secretary shall 
        conduct a review of the homeland security of the Nation 
        (in this section referred to as a ``quadrennial 
        homeland security review'').]
          (1) Review required.--In fiscal year 2017, and every 
        4 years thereafter, the Secretary shall conduct a 
        review of the homeland security of the Nation (in this 
        section referred to as a ``quadrennial homeland 
        security review''). Such review shall be conducted so 
        that it is completed, and the report under subsection 
        (c) is issued, by no later than December 31, 2017, and 
        by December 31 of every fourth year thereafter.
          (2) Scope of reviews.--Each quadrennial homeland 
        security review shall be a comprehensive examination of 
        the homeland security strategy of the Nation, including 
        recommendations regarding the long-term strategy and 
        priorities of the Nation for homeland security and 
        guidance on the programs, assets, capabilities, budget, 
        policies, and authorities of the Department.
          (3) Consultation.--[The Secretary shall conduct each 
        quadrennial homeland security review under this 
        subsection in consultation with] In order to ensure 
        that each quadrennial homeland security review 
        conducted under this section is coordinated with the 
        quadrennial defense review conducted by the Secretary 
        of Defense under section 118 of title 10, United States 
        Code, and any other major strategic review relating to 
        diplomacy, intelligence, or other national security 
        issues, the Secretary shall conduct and obtain 
        information and feedback from entities of the homeland 
        security enterprise through--
                  (A) the heads of other Federal agencies, 
                including the Attorney General, the Secretary 
                of State, the Secretary of Defense, the 
                Secretary of Health and Human Services, the 
                Secretary of the Treasury, the Secretary of 
                Agriculture, and the Director of National 
                Intelligence;
                  (B) key officials of the Department; and
                  (C) other relevant governmental and 
                nongovernmental entities, including State, 
                local, and tribal government officials, members 
                of Congress, private sector representatives, 
                academics, and other policy experts.
          (4) Relationship with future years homeland security 
        program.--The Secretary shall ensure that each review 
        conducted under this section is coordinated with the 
        Future Years Homeland Security Program required under 
        section 874.
  (b) Contents of Review.--In each quadrennial homeland 
security review, the Secretary shall--
          (1) delineate and update, as appropriate, the 
        national homeland security strategy, consistent with 
        appropriate national and Department strategies, 
        strategic plans, and Homeland Security Presidential 
        Directives, including the National Strategy for 
        Homeland Security, the National Response Plan, and the 
        Department Security Strategic Plan;
          (2) outline and prioritize the full range of the 
        critical homeland security mission areas of the Nation;
          (3) describe the interagency cooperation, 
        preparedness of Federal response assets, 
        infrastructure, budget plan, and other elements of the 
        homeland security program and policies of the Nation 
        associated with the national homeland security 
        strategy, required to execute successfully the full 
        range of missions called for in the national homeland 
        security strategy described in paragraph (1) and the 
        homeland security mission areas outlined under 
        paragraph (2);
          (4) identify the budget plan required to provide 
        sufficient resources to successfully execute the full 
        range of missions called for in the national homeland 
        security strategy described in paragraph (1) and the 
        homeland security mission areas outlined under 
        paragraph (2);
          (5) include an assessment of the organizational 
        alignment of the Department with the national homeland 
        security strategy referred to in paragraph (1) and the 
        homeland security mission areas outlined under 
        paragraph (2); [and]
          (6) review and assess the effectiveness of the 
        mechanisms of the Department for executing the process 
        of turning the requirements developed in the 
        quadrennial homeland security review into an 
        acquisition strategy and expenditure plan within the 
        Department[.]; and
          (7) leverage analytical tools and resources developed 
        as part of the quadrennial homeland security review to 
        support the Department's ongoing programs and missions.
  (c) Reporting.--
          (1) In general.--Not later than December 31 of the 
        year in which a quadrennial homeland security review is 
        conducted, the Secretary shall submit to Congress a 
        report regarding that quadrennial homeland security 
        review.
          (2) Contents of report.--Each report submitted under 
        paragraph (1) shall include--
                  (A) the results of the quadrennial homeland 
                security review;
                  (B) a description of the threats to the 
                assumed or defined national homeland security 
                interests of the Nation that were examined for 
                the purposes of that review;
                  (C) the national homeland security strategy, 
                including a prioritized list of the critical 
                homeland security missions of the Nation;
                  (D) a description of the interagency 
                cooperation, preparedness of Federal response 
                assets, infrastructure, budget plan, and other 
                elements of the homeland security program and 
                policies of the Nation associated with the 
                national homeland security strategy, required 
                to execute successfully the full range of 
                missions called for in the applicable national 
                homeland security strategy referred to in 
                subsection (b)(1) and the homeland security 
                mission areas outlined under subsection (b)(2);
                  (E) an assessment of the organizational 
                alignment of the Department with the applicable 
                national homeland security strategy referred to 
                in subsection (b)(1) and the homeland security 
                mission areas outlined under subsection (b)(2), 
                including the Department's organizational 
                structure, management systems, budget and 
                accounting systems, human resources systems, 
                procurement systems, and physical and technical 
                infrastructure;
                  (F) a discussion of the status of cooperation 
                among Federal agencies in the effort to promote 
                national homeland security;
                  (G) a discussion of the status of cooperation 
                between the Federal Government and State, 
                local, and tribal governments in preventing 
                terrorist attacks and preparing for emergency 
                response to threats to national homeland 
                security;
                  (H) an explanation of any underlying 
                assumptions used in conducting the review; 
                [and]
                  (I) a description of how the conclusions 
                under the quadrennial homeland security review 
                will inform efforts to develop capabilities and 
                build capacity of States, local governments, 
                Indian tribes, and private entities, and of 
                individuals, families, and communities;
                  (J) as appropriate, proposed changes to the 
                authorities, organization, governance 
                structure, or business processes (including 
                acquisition processes) of the Department in 
                order to better fulfill responsibilities of the 
                Department;
                  (K) where appropriate, a classified annex, 
                including materials prepared pursuant to 
                section 306 of title 5, relating to the 
                preparation of an agency strategic plan, to 
                satisfy, in whole or in part, the reporting 
                requirements of this paragraph; and
                  [(I)] (L) any other matter the Secretary 
                considers appropriate.
          (3) Public availability.--The Secretary shall, 
        consistent with the protection of national security and 
        other sensitive matters, make each report submitted 
        under paragraph (1) publicly available on the Internet 
        website of the Department.
  (d) Authorization of Appropriations.--There are authorized to 
be appropriated such sums as may be necessary to carry out this 
section.

SEC. 708. CHIEF PROCUREMENT OFFICER.

  (a) In General.--There is a Chief Procurement Officer of the 
Department, who shall report directly to the Under Secretary 
for Management. The Chief Procurement Officer is the senior 
procurement executive for purposes of section 1702(c) of title 
41 United States Code, and shall perform procurement functions 
as specified in such section. The Chief Procurement Officer 
also shall perform other functions and responsibilities set 
forth in this section and as may be assigned by the Under 
Secretary for Management.
  (b) Responsibilities.--The Chief Procurement Officer shall--
          (1) exercise leadership and authority to the extent 
        delegated by the Under Secretary for Management over 
        the Department's procurement function;
          (2) issue procurement policies, and shall serve as a 
        senior business advisor to agency officials on 
        acquisition-related matters, including policy and 
        workforce matters, as determined by the Under Secretary 
        for Management;
          (3) account for the integrity, performance, and 
        oversight of Department procurement and contracting 
        functions and be responsible for ensuring that a 
        procurement's contracting strategy and plans are 
        consistent with the intent and direction of the 
        Acquisition Review Board;
          (4) serve as the Department's main liaison to 
        industry on procurement-related issues;
          (5) oversee a centralized certification and training 
        program, in consultation with the Under Secretary for 
        Management, for the entire Department acquisition 
        workforce while using, to the greatest extent 
        practicable, best practices and acquisition training 
        opportunities already in existence within the Federal 
        Government, the private sector, or universities and 
        colleges, as appropriate, and including training on how 
        best to identify actions that warrant referrals for 
        suspension or debarment;
          (6) delegate or retain contracting authority, as 
        appropriate;
          (7) provide input on the periodic performance reviews 
        of each head of contracting activity of the Department;
          (8) collect baseline data and use such data to 
        establish performance measures on the impact of 
        strategic sourcing initiatives on the private sector, 
        including, in particular, small businesses;
          (9) ensure that a fair proportion (as defined 
        pursuant to the Small Business Act (15 U.S.C. 631 et 
        seq.)) of Federal contract and subcontract dollars are 
        awarded to small businesses, maximize opportunities for 
        small business participation, and ensure, to the extent 
        practicable, small businesses that achieve qualified 
        vendor status for security-related technologies are 
        provided an opportunity to compete for contracts for 
        such technology; and
          (10) conduct oversight of implementation of 
        administrative agreements to resolve suspension or 
        debarment proceedings and, upon request, provide 
        information to the Committee on Homeland Security of 
        the House of Representatives and the Committee on 
        Homeland Security and Governmental Affairs of the 
        Senate about the effectiveness of such agreements at 
        improving contractor responsibility.
  (c) Head of Contracting Activity Defined.--In this section 
the term ``head of contracting activity'' means each official 
responsible for the creation, management, and oversight of a 
team of procurement professionals properly trained, certified, 
and warranted to accomplish the acquisition of products and 
services on behalf of the designated components, offices, and 
organizations of the Department, and as authorized, other 
government entities.

SEC. 709. CHIEF SECURITY OFFICER.

  (a) In General.--There is a Chief Security Officer of the 
Department, who shall report directly to the Under Secretary 
for Management.
  (b) Responsibilities.--The Chief Security Officer shall--
          (1) develop and implement the Department's security 
        policies, programs, and standards;
          (2) identify training and provide education to 
        Department personnel on security-related matters; and
          (3) provide support to Department components on 
        security-related matters.

SEC. 710. REQUIREMENTS TO ENSURE GREATER ACCOUNTABILITY FOR ACQUISITION 
                    PROGRAMS.

  (a) Requirement to Establish Mechanism.--Within the 
Management Directorate, the Under Secretary for Management 
shall establish a mechanism to prioritize improving the 
accountability, standardization, and transparency of major 
acquisition programs of the Department in order to increase 
opportunities for effectiveness and efficiencies and to serve 
as the central oversight function of all Department acquisition 
programs.
  (b) Responsibilities of Executive Director.--The Under 
Secretary for Management shall designate an Executive Director 
to oversee the requirement under subsection (a). The Executive 
Director shall report directly to the Under Secretary and shall 
carry out the following responsibilities:
          (1) Monitor the performance of Department acquisition 
        programs regularly between acquisition decision events 
        to identify problems with cost, performance, or 
        schedule that components may need to address to prevent 
        cost overruns, performance issues, or schedule delays.
          (2) Assist the Chief Acquisition Officer in managing 
        the Department's acquisition portfolio.
          (3) Conduct oversight of individual acquisition 
        programs to implement Department acquisition program 
        policy, procedures, and guidance with a priority on 
        ensuring the data it collects and maintains from its 
        components is accurate and reliable.
          (4) Serve as the focal point and coordinator for the 
        acquisition life cycle review process and as the 
        executive secretariat for the Acquisition Review Board 
        established under section 836 of this Act.
          (5) Advise the persons having acquisition decision 
        authority in making acquisition decisions consistent 
        with all applicable laws and in establishing clear 
        lines of authority, accountability, and responsibility 
        for acquisition decisionmaking within the Department.
          (6) Engage in the strategic planning and performance 
        evaluation process required under section 306 of title 
        5, United States Code, and sections 1105(a)(28), 1115, 
        1116, and 9703 of title 31, United States Code, by 
        supporting the Chief Procurement Officer in developing 
        strategies and specific plans for hiring, training, and 
        professional development in order to rectify any 
        deficiency within the Department's acquisition 
        workforce.
          (7) Oversee the Component Acquisition Executive 
        structure to ensure it has sufficient capabilities and 
        complies with Department policies.
          (8) Develop standardized certification standards in 
        consultation with the Component Acquisition Executives 
        for all acquisition program managers.
          (9) In the event that a program manager's 
        certification or actions need review for purposes of 
        promotion or removal, provide input, in consultation 
        with the relevant Component Acquisition Executive, into 
        the relevant program manager's performance evaluation, 
        and report positive or negative experiences to the 
        relevant certifying authority.
          (10) Provide technical support and assistance to 
        Department acquisitions and acquisition personnel in 
        conjunction with the Chief Procurement Officer.
          (11) Prepare the Department's Comprehensive 
        Acquisition Status Report, as required by the 
        Department of Homeland Security Appropriations Act, 
        2013 (division D of Public Law 113-6; 127 Stat. 343) 
        and section 840 of this Act, and make such report 
        available to congressional homeland security 
        committees.
          (12) Prepare the Department's Quarterly Program 
        Accountability Report as required by section 840 of 
        this Act, and make such report available to the 
        congressional homeland security committees.
  (c) Responsibilities of Components.--Each head of a component 
shall comply with Federal law, the Federal Acquisition 
Regulation, and Department acquisition management directives 
established by the Under Secretary for Management. For each 
major acquisition program, each head of a component shall--
          (1) define baseline requirements and document changes 
        to those requirements, as appropriate;
          (2) establish a complete life cycle cost estimate 
        with supporting documentation, including an acquisition 
        program baseline;
          (3) verify each life cycle cost estimate against 
        independent cost estimates, and reconcile any 
        differences;
          (4) complete a cost-benefit analysis with supporting 
        documentation;
          (5) develop and maintain a schedule that is 
        consistent with scheduling best practices as identified 
        by the Comptroller General of the United States, 
        including, in appropriate cases, an integrated master 
        schedule; and
          (6) ensure that all acquisition program information 
        provided by the component is complete, accurate, 
        timely, and valid.

SEC. 711. ACQUISITION DOCUMENTATION.

  (a) In General.--For each major acquisition program, the 
Executive Director responsible for the preparation of the 
Comprehensive Acquisition Status Report, pursuant to paragraph 
(11) of section 710(b) shall require certain acquisition 
documentation to be submitted by Department components or 
offices.
  (b) Waiver.--The Secretary may waive the requirement for 
submission under subsection (a) for a program for a fiscal year 
if either--
          (1) the program has not--
                  (A) entered the full rate production phase in 
                the acquisition life cycle;
                  (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 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 
submit to the Committee on Homeland Security of the House of 
Representatives and Committee on Homeland Security and 
Governmental Affairs of the Senate information on the exercise 
of authority under subsection (b) in the prior fiscal year that 
includes the following specific information regarding each 
program for which a waiver is issued 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 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.

TITLE VIII--COORDINATION WITH NON-FEDERAL ENTITIES; INSPECTOR GENERAL; 
     UNITED STATES SECRET SERVICE; COAST GUARD; GENERAL PROVISIONS

           Subtitle A--Coordination with Non-Federal Entities

[SEC. 801. OFFICE FOR STATE AND LOCAL GOVERNMENT COORDINATION.

  [(a) Establishment.--There is established within the Office 
of the Secretary the Office for State and Local Government 
Coordination, to oversee and coordinate departmental programs 
for and relationships with State and local governments.
  [(b) Responsibilities.--The Office established under 
subsection (a) shall--
          [(1) coordinate the activities of the Department 
        relating to State and local government;
          [(2) assess, and advocate for, the resources needed 
        by State and local government to implement the national 
        strategy for combating terrorism;
          [(3) provide State and local government with regular 
        information, research, and technical support to assist 
        local efforts at securing the homeland; and
          [(4) develop a process for receiving meaningful input 
        from State and local government to assist the 
        development of the national strategy for combating 
        terrorism and other homeland security activities.]

           *       *       *       *       *       *       *

Subtitle D--Acquisitions

           *       *       *       *       *       *       *

SEC. 836. ACQUISITION REVIEW BOARD.

  (a) In General.--The Secretary shall establish an Acquisition 
Review Board (in this section referred to as the ``Board'') to 
strengthen accountability and uniformity within the Department 
acquisition review process, review major acquisition programs, 
and review the use of best practices.
  (b) Composition.--The Deputy Secretary or Under Secretary for 
Management shall serve as chair of the Board. The Secretary 
shall also ensure participation by other relevant Department 
officials, including at least 2 component heads or their 
designees, as permanent members of the Board.
  (c) Meetings.--The Board shall meet every time a major 
acquisition program needs authorization to proceed from 
acquisition decision events through the acquisition life cycle 
and to consider any major acquisition program in breach as 
necessary. The Board may also be convened for non-major 
acquisitions that are deemed high-risk by the Executive 
Director referred to in section 710(b) of this Act. The Board 
shall also meet regularly for purposes of ensuring all 
acquisitions processes proceed in a timely fashion to achieve 
mission readiness.
  (d) Responsibilities.--The responsibilities of the Board are 
as follows:
          (1) Determine whether a proposed acquisition has met 
        the requirements of key phases of the acquisition life 
        cycle framework and is able to proceed to the next 
        phase and eventual full production and deployment.
          (2) Oversee executable business strategy, resources, 
        management, accountability, and alignment to strategic 
        initiatives.
          (3) Support the person with acquisition decision 
        authority for an acquisition in determining the 
        appropriate direction for the acquisition at key 
        acquisition decision events.
          (4) Conduct systematic reviews of acquisitions to 
        ensure that they are progressing in compliance with the 
        approved documents for their current acquisition phase.
          (5) Review the acquisition documents of each major 
        acquisition program, including the acquisition program 
        baseline and documentation reflecting consideration of 
        tradeoffs among cost, schedule, and performance 
        objectives, to ensure the reliability of underlying 
        data.
          (6) Ensure that practices are adopted and implemented 
        to require consideration of trade-offs among cost, 
        schedule, and performance objectives as part of the 
        process for developing requirements for major 
        acquisition programs prior to the initiation of the 
        second acquisition decision event, including, at a 
        minimum, the following practices:
                  (A) Department officials responsible for 
                acquisition, budget, and cost estimating 
                functions are provided with the appropriate 
                opportunity to develop estimates and raise cost 
                and schedule matters before performance 
                objectives are established for capabilities 
                when feasible.
                  (B) Full consideration of possible trade-offs 
                among cost, schedule, and performance 
                objectives for each alternative is considered.
  (e) Acquisition Program Baseline Report Requirement.--If the 
person exercising acquisition decision authority over a major 
acquisition program approves the program to proceed into the 
planning phase before it has a Department-approved acquisition 
program baseline, then the Under Secretary for Management shall 
create and approve an acquisition program baseline report on 
the decision, and the Secretary shall--
          (1) within 7 days after an acquisition decision 
        memorandum is signed, notify in writing the 
        congressional homeland security committees of such 
        decision; and
          (2) within 60 days after the acquisition decision 
        memorandum is signed, submit a report to such 
        committees stating the rationale for the decision and a 
        plan of action to require an acquisition program 
        baseline for the program.
  (f) Best Practices Defined.--In this section, the term ``best 
practices'' has the meaning provided in section 4(b) of the DHS 
Headquarters Reform and Improvement Act of 2015.

SEC. 837. REQUIREMENTS TO REDUCE DUPLICATION IN ACQUISITION PROGRAMS.

  (a) Requirement To Establish Policies.--In an effort to 
reduce unnecessary duplication and inefficiency for all 
Department investments, including major acquisition programs, 
the Deputy Secretary, in consultation with the Under Secretary 
for Management, shall establish Department-wide policies to 
integrate all phases of the investment life cycle and help the 
Department identify, validate, and prioritize standards for 
common component requirements for major acquisition program 
requirements in order to increase opportunities for 
effectiveness and efficiencies. The policies shall also include 
strategic alternatives for developing and facilitating a 
Department component-driven requirements process that includes 
oversight of a development test and evaluation capability; 
identification of priority gaps and overlaps in Department 
capability needs; and provision of feasible technical 
alternatives, including innovative commercially available 
alternatives, to meet capability needs.
  (b) Mechanisms To Carry Out Requirement.--The Under Secretary 
for Management shall coordinate the actions necessary to carry 
out subsection (a), using such mechanisms as considered 
necessary by the Secretary to help the Department reduce 
unnecessary duplication and inefficiency for all Department 
investments, including major acquisition programs.
  (c) Coordination.--In coordinating the actions necessary to 
carry out subsection (a), the Deputy Secretary shall consult 
with the Under Secretary for Management, Component Acquisition 
Executives, and any other Department officials, including the 
Under Secretary for Science and Technology or his designee, 
with specific knowledge of Department or component acquisition 
capabilities to prevent unnecessary duplication of 
requirements.
  (d) Advisors.--The Deputy Secretary, in consultation with the 
Under Secretary for Management, shall seek and consider input 
within legal and ethical boundaries from members of Federal, 
State, local, and tribal governments, nonprofit organizations, 
and the private sector, as appropriate, on matters within their 
authority and expertise in carrying out the Department's 
mission.
  (e) Meetings.--The Deputy Secretary, in consultation with the 
Under Secretary for Management, shall meet at least quarterly 
and communicate with components often to ensure that components 
do not overlap or duplicate spending or priorities on major 
investments and acquisition programs within their areas of 
responsibility.
  (f) Responsibilities.--In carrying out this section, the 
responsibilities of the Deputy Secretary, in consultation with 
the Under Secretary for Management, are as follows:
          (1) To review and validate the requirements documents 
        of major investments and acquisition programs prior to 
        acquisition decision events of the investments or 
        programs.
          (2) To ensure the requirements and scope of a major 
        investment or acquisition program are stable, 
        measurable, achievable, at an acceptable risk level, 
        and match the resources planned to be available.
          (3) Before any entity of the Department issues a 
        solicitation for a new contract, coordinate with other 
        Department entities as appropriate to prevent 
        unnecessary duplication and inefficiency and--
                  (A) to implement portfolio reviews to 
                identify common mission requirements and 
                crosscutting opportunities among components to 
                harmonize investments and requirements and 
                prevent overlap and unnecessary duplication 
                among components; and
                  (B) to the extent practicable, to standardize 
                equipment purchases, streamline the acquisition 
                process, improve efficiencies, and conduct best 
                practices for strategic sourcing.
          (4) To ensure program managers of major investments 
        and acquisition programs conduct analyses, giving 
        particular attention to factors such as cost, schedule, 
        risk, performance, and operational efficiency in order 
        to determine that programs work as intended within cost 
        and budget expectations.
          (5) To propose schedules for delivery of the 
        operational capability needed to meet each Department 
        investment and major acquisition program.
  (g) Best Practices Defined.--In this section, the term ``best 
practices'' has the meaning provided in section 4(b) of the DHS 
Headquarters Reform and Improvement Act of 2015.

SEC. 838. CONGRESSIONAL NOTIFICATION AND OTHER REQUIREMENTS FOR MAJOR 
                    ACQUISITION PROGRAM BREACH.

  (a) Breach Defined.--The term ``breach'', with respect to a 
major acquisition program, means a failure to meet any cost, 
schedule, or performance parameter specified in the acquisition 
program baseline.
  (b) Requirements Within Department If Breach Occurs.--
          (1) Notifications.--
                  (A) Notification of breach.--If a breach 
                occurs in a major acquisition program, the 
                program manager for that program shall notify 
                the head of the component concerned, the 
                Component Acquisition Executive for the 
                program, the Executive Director referred to in 
                section 710(b) of this Act, the Under Secretary 
                for Management, and the Deputy Secretary.
                  (B) Notification to secretary.--If a major 
                acquisition program has a breach with a cost 
                overrun greater than 15 percent or a schedule 
                delay greater than 180 days from the costs or 
                schedule set forth in the acquisition program 
                baseline for the program, the Secretary and the 
                Inspector General of the Department shall be 
                notified not later than 5 business days after 
                the breach is identified.
          (2) Remediation plan and root cause analysis.--
                  (A) In general.--In the case of a breach with 
                a cost overrun greater than 15 percent or a 
                schedule delay greater than 180 days from the 
                costs or schedule set forth in the acquisition 
                program baseline, a remediation plan and root 
                cause analysis is required, and the Under 
                Secretary for Management or his designee shall 
                establish a date for submission within the 
                Department of a breach remediation plan and 
                root cause analysis in accordance with this 
                subsection.
                  (B) Remediation plan.--The remediation plan 
                required under this subsection shall be 
                submitted in writing to the head of the 
                component concerned, the Executive Director 
                referred to in section 710(b) of this Act, and 
                the Under Secretary for Management. The plan 
                shall--
                          (i) explain the circumstances of the 
                        breach;
                          (ii) provide prior cost estimating 
                        information;
                          (iii) propose corrective action to 
                        control cost growth, schedule delays, 
                        or performance issues;
                          (iv) in coordination with Component 
                        Acquisition Executive, discuss all 
                        options considered, including the 
                        estimated impact on cost, schedule, or 
                        performance of the program if no 
                        changes are made to current 
                        requirements, the estimated cost of the 
                        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 the 
                        program; and
                          (v) explain the rationale for why the 
                        proposed corrective action is 
                        recommended.
                  (C) Root cause analysis.--The root cause 
                analysis required under this subsection shall 
                determine the underlying cause or causes of 
                shortcomings in cost, schedule, or performance 
                of the program, including the role, if any, of 
                the following:
                          (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 in procurement 
                        quantities.
                          (vi) Inadequate program funding or 
                        changes in planned out-year funding 
                        from 1 5-year funding plan to the next 
                        5-year funding plan as outlined in the 
                        Future Years Homeland Security Program 
                        required under section 874 of this Act.
                          (vii) Legislative, legal, or 
                        regulatory changes.
                          (viii) Inadequate program management 
                        personnel, including lack of training, 
                        credentials, certifications, or use of 
                        best practices.
          (3) Correction of breach.--The Under Secretary for 
        Management or his designee shall establish a date for 
        submission within the Department of a program of 
        corrective action that ensures that 1 of the following 
        actions has occurred:
                  (A) The breach has been corrected and the 
                program is again in compliance with the 
                original acquisition program baseline 
                parameters.
                  (B) A revised acquisition program baseline 
                has been approved.
                  (C) The program has been halted or cancelled.
  (c) Requirements Relating to Congressional Notification If 
Breach Occurs.--
          (1) Notification to congress.--If a notification is 
        made under subsection (b)(1)(B) for a breach in a major 
        acquisition program with a cost overrun greater than 15 
        percent or a schedule delay greater than 180 days from 
        the costs or schedule set forth in the acquisition 
        program baseline, or with an anticipated failure for 
        any key performance threshold or parameter specified in 
        the acquisition program baseline, the Under Secretary 
        for Management shall notify the congressional homeland 
        security committees of the breach in the next quarterly 
        Comprehensive Acquisition Status Report after the Under 
        Secretary for Management receives the notification from 
        the program manager under subsection (b)(1)(B).
          (2) Substantial 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 set forth in the acquisition program 
        baseline for a major acquisition program, the Under 
        Secretary for Management shall include in the 
        notification required in (c)(1) a written 
        certification, with supporting explanation, that--
                  (A) the acquisition is essential to the 
                accomplishment of the Department's mission;
                  (B) there are no alternatives to such 
                capability or asset 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 the 
                acquisition program is adequate to manage and 
                control performance, cost, and schedule.
          (3) Submissions to congress.--Not later than 30 
        calendar days after submission to such committees of a 
        breach notification under paragraph (1) of this section 
        for a major acquisition program, the Under Secretary 
        for Management shall submit to such committees the 
        following:
                  (A) A copy of the remediation plan and the 
                root cause analysis prepared under subsection 
                (b)(2) for the program.
                  (B) A statement describing the corrective 
                action or actions that have occurred pursuant 
                to subsection (b)(3) for the program, with a 
                justification for the action or actions.
  (d) Additional Actions If Breach Occurs.--
          (1) Prohibition on obligation of funds.--During the 
        90-day period following submission under subsection 
        (c)(3) of a remediation plan, root cause analysis, and 
        statement of corrective actions with respect to a major 
        acquisition program, the Under Secretary for Management 
        shall submit a certification described in paragraph (2) 
        of this subsection to the congressional homeland 
        security committees. If the Under Secretary for 
        Management does not submit such certification by the 
        end of such 90-day period, then funds appropriated to 
        the major acquisition program shall not be obligated 
        until the Under Secretary for Management submits such 
        certification.
          (2) Certification.--For purposes of paragraph (1), 
        the certification described in this paragraph is a 
        certification that--
                  (A) the Department has adjusted or 
                restructured the program in a manner that 
                addresses the root cause or causes of the cost 
                growth in the program; and
                  (B) the Department has conducted a thorough 
                review of the breached program's acquisition 
                decision event approvals and the current 
                acquisition decision event approval for the 
                breached program has been adjusted as necessary 
                to account for the restructured program.

SEC. 839. MULTIYEAR ACQUISITION STRATEGY.

  (a) Multiyear Acquisition Strategy Required.--Not later than 
1 year after the date of the enactment of this section, the 
Secretary shall submit to the appropriate homeland security 
committees a multiyear acquisition strategy to guide the 
overall direction of the acquisitions of the Department while 
allowing flexibility to deal with ever-changing threats and 
risks and to help industry better understand, plan, and align 
resources to meet the future acquisition needs of the 
Department. The strategy shall be updated and included in each 
Future Years Homeland Security Program required under section 
874 of this Act.
  (b) Consultation.--In developing the strategy, the Secretary 
shall consult with others as the Secretary deems appropriate, 
including headquarters, components, employees in the field, and 
when appropriate, individuals from industry and the academic 
community.
  (c) Form of Strategy.--The report shall be submitted in 
unclassified form but may include a classified annex for any 
sensitive or classified information if necessary. The 
Department also shall publish the plan in an unclassified 
format that is publicly available.
  (d) Contents of Strategy.--The strategy shall include the 
following:
          (1) Prioritized list.--A systematic and integrated 
        prioritized list developed by the Under Secretary for 
        Management or his designee in coordination with all of 
        the Component Acquisition Executives of Department 
        major acquisition programs that Department and 
        component acquisition investments seek to address, that 
        includes the expected security and economic benefit of 
        the program or system and an analysis of how the 
        security and economic benefit derived from the program 
        or system will be measured.
          (2) Inventory.--A plan to develop a reliable 
        Department-wide inventory of investments and real 
        property assets to help the Department plan, budget, 
        schedule, and acquire upgrades of its systems and 
        equipment and plan for the acquisition and management 
        of future systems and equipment.
          (3) Funding gaps.--A plan to address funding gaps 
        between funding requirements for major acquisition 
        programs and known available resources including, to 
        the maximum extent practicable, ways of leveraging best 
        practices to identify and eliminate overpayment for 
        items to prevent wasteful purchasing, achieve the 
        greatest level of efficiency and cost savings by 
        rationalizing purchases, aligning pricing for similar 
        items, and utilizing purchase timing and economies of 
        scale.
          (4) Identification of capabilities.--An 
        identification of test, evaluation, modeling, and 
        simulation capabilities that will be required to 
        support the acquisition of the technologies to meet the 
        needs of the plan and ways to leverage to the greatest 
        extent possible the emerging technology trends and 
        research and development trends within the public and 
        private sectors and an identification of ways to ensure 
        that the appropriate technology is acquired and 
        integrated into the Department's operating doctrine and 
        procured in ways that improve mission performance.
          (5) Focus on flexible solutions.--An assessment of 
        ways the Department can improve its ability to test and 
        acquire innovative solutions to allow needed incentives 
        and protections for appropriate risk-taking in order to 
        meet its acquisition needs with resiliency, agility, 
        and responsiveness to assure the Nation's homeland 
        security and facilitate trade.
          (6) Focus on incentives to save taxpayer dollars.--An 
        assessment of ways the Department can develop 
        incentives for program managers and senior Department 
        acquisition officials to prevent cost overruns, avoid 
        schedule delays, and achieve cost savings in major 
        acquisition programs.
          (7) Focus on addressing delays and bid protests.--An 
        assessment of ways the Department can improve the 
        acquisition process to minimize cost overruns in 
        requirements development, procurement announcements, 
        requests for proposals, evaluation of proposals, 
        protests of decisions and awards and through the use of 
        best practices as defined in section 4(b) of the DHS 
        Headquarters Reform and Improvement Act of 2015 and 
        lessons learned by the Department and other Federal 
        agencies.
          (8) Focus on improving outreach.--An identification 
        and assessment of ways to increase opportunities for 
        communication and collaboration with industry, small 
        and disadvantaged businesses, intra-government 
        entities, university centers of excellence, accredited 
        certification and standards development organizations, 
        and national laboratories to ensure that the Department 
        understands the market for technologies, products, and 
        innovation that is available to meet its mission needs 
        to inform the requirements-setting process and before 
        engaging in an acquisition, including--
                  (A) methods designed especially to engage 
                small and disadvantaged businesses and a cost-
                benefit analysis of the tradeoffs that small 
                and disadvantaged businesses provide, barriers 
                to entry for small and disadvantaged 
                businesses, and unique requirements for small 
                and disadvantaged businesses; and
                  (B) within the Department Vendor 
                Communication Plan and Market Research Guide, 
                instructions for interaction by program 
                managers with such entities to prevent 
                misinterpretation of acquisition regulations 
                and to permit freedom within legal and ethical 
                boundaries for program managers to interact 
                with such businesses with transparency.
          (9) Competition.--A plan regarding competition as 
        described in subsection (e).
          (10) Acquisition workforce.--A plan regarding the 
        Department acquisition workforce as described in 
        subsection (f).
          (11) Feasibility of workforce development fund pilot 
        program.--An assessment of the feasibility of 
        conducting a pilot program to establish an acquisition 
        workforce development fund as described in subsection 
        (g).
  (e) Competition Plan.--The strategy shall also include a plan 
(referred to in subsection (d)(9)) that shall address actions 
to ensure competition, or the option of competition, for major 
acquisition programs. The plan may include assessments of the 
following measures in appropriate cases if such measures are 
cost effective:
          (1) Competitive prototyping.
          (2) Dual-sourcing.
          (3) Unbundling of contracts.
          (4) Funding of next-generation prototype systems or 
        subsystems.
          (5) Use of modular, open architectures to enable 
        competition for upgrades.
          (6) Acquisition of complete technical data packages.
          (7) Periodic competitions for subsystem upgrades.
          (8) Licensing of additional suppliers, including 
        small businesses.
          (9) Periodic system or program reviews to address 
        long-term competitive effects of program decisions.
  (f) Acquisition Workforce Plan.--
          (1) Acquisition workforce.--The strategy shall also 
        include a plan (referred to in subsection (d)(10)) to 
        address Department acquisition workforce accountability 
        and talent management that identifies the acquisition 
        workforce needs of each component performing 
        acquisition functions and develops options for filling 
        those needs with qualified individuals, including a 
        cost-benefit analysis of contracting for acquisition 
        assistance.
          (2) Additional matters covered.--The acquisition 
        workforce plan shall address ways to--
                  (A) improve the recruitment, hiring, 
                training, and retention of Department 
                acquisition workforce personnel, including 
                contracting officer's representatives, in order 
                to retain highly qualified individuals that 
                have experience in the acquisition life cycle, 
                complex procurements, and management of large 
                programs;
                  (B) empower program managers to have the 
                authority to manage their programs in an 
                accountable and transparent manner as they work 
                with the acquisition workforce;
                  (C) prevent duplication within Department 
                acquisition workforce training and 
                certification requirements through leveraging 
                already-existing training within the Federal 
                Government, academic community, or private 
                industry;
                  (D) achieve integration and consistency with 
                Government-wide training and accreditation 
                standards, acquisition training tools, and 
                training facilities;
                  (E) designate the acquisition positions that 
                will be necessary to support the Department 
                acquisition requirements, including in the 
                fields of--
                          (i) program management;
                          (ii) systems engineering;
                          (iii) procurement, including 
                        contracting;
                          (iv) test and evaluation;
                          (v) life cycle logistics;
                          (vi) cost estimating and program 
                        financial management; and
                          (vii) additional disciplines 
                        appropriate to Department mission 
                        needs;
                  (F) strengthen the performance of contracting 
                officer's representatives (as defined in 
                subpart 1.602-2 and subpart 2.101 of the 
                Federal Acquisition Regulation), including by--
                          (i) assessing the extent to which 
                        contracting officer's representatives 
                        are certified and receive training that 
                        is appropriate;
                          (ii) determining what training is 
                        most effective with respect to the type 
                        and complexity of assignment; and
                          (iii) implementing actions to improve 
                        training based on such assessment; and
                  (G) identify ways to increase training for 
                relevant investigators and auditors to examine 
                fraud in major acquisition programs, including 
                identifying opportunities to leverage existing 
                Government and private sector resources in 
                coordination with the Inspector General of the 
                Department.
  (g) Feasibility of Workforce Development Fund Pilot 
Program.--The strategy shall also include an assessment 
(referred to in subsection (d)(11)) of the feasibility of 
conducting a pilot program to establish a Homeland Security 
Acquisition Workforce Development Fund (in this subsection 
referred to as the ``Fund'') to ensure the Department 
acquisition workforce has the capacity, in both personnel and 
skills, needed to properly perform its mission and ensure that 
the Department receives the best value for the expenditure of 
public resources. The assessment shall address the following:
          (1) Ways to fund the Fund, including the use of 
        direct appropriations, or the credit, transfer, or 
        deposit of unobligated or unused funds from Department 
        components into the Fund to remain available for 
        obligation in the fiscal year for which credited, 
        transferred, or deposited and to remain available for 
        successive fiscal years.
          (2) Ways to reward the Department acquisition 
        workforce and program managers for good program 
        management in controlling cost growth, limiting 
        schedule delays, and ensuring operational effectiveness 
        through providing a percentage of the savings or 
        general acquisition bonuses.
          (3) Guidance for the administration of the Fund that 
        includes provisions to do the following:
                  (A) Describe the costs and benefits 
                associated with the use of direct 
                appropriations or credit, transfer, or deposit 
                of unobligated or unused funds to finance the 
                Fund.
                  (B) Describe the manner and timing for 
                applications for amounts in the Fund to be 
                submitted.
                  (C) Explain the evaluation criteria to be 
                used for approving or prioritizing applications 
                for amounts in the Fund in any fiscal year.
                  (D) Explain the mechanism to report to 
                Congress on the implementation of the Fund on 
                an ongoing basis.
                  (E) Detail measurable performance metrics to 
                determine if the Fund is meeting the objective 
                to improve the acquisition workforce and to 
                achieve cost savings in acquisition management.

SEC. 840. ACQUISITION REPORTS.

  (a) Comprehensive Acquisition Status Report.--
          (1) In general.--The Under Secretary for Management 
        each year shall submit to the congressional homeland 
        security committees, at the same time as the 
        President's budget is submitted for a fiscal year under 
        section 1105(a) of title 31, United States Code, a 
        comprehensive acquisition status report. The report 
        shall include the following:
                  (A) The information required under the 
                heading ``Office of the Under Secretary for 
                Management'' under title I of division D of the 
                Consolidated Appropriations Act, 2012 (Public 
                Law 112-74) (as required under the Department 
                of Homeland Security Appropriations Act, 2013 
                (Public Law 113-6)).
                  (B) A listing of programs that have been 
                cancelled, modified, paused, or referred to the 
                Under Secretary for Management or Deputy 
                Secretary for additional oversight or action by 
                the Board, Department Office of Inspector 
                General, or the Comptroller General.
                  (C) A listing of established Executive 
                Steering Committees, which provide governance 
                of a program or related set of programs and 
                lower-tiered oversight, and support between 
                acquisition decision events and component 
                reviews, including the mission and membership 
                for each.
          (2) Information for major acquisition programs.--For 
        each major acquisition program, the report shall 
        include the following:
                  (A) A narrative description, including 
                current gaps and shortfalls, the capabilities 
                to be fielded, and the number of planned 
                increments or units.
                  (B) Acquisition Review Board (or other board 
                designated to review the acquisition) status of 
                each acquisition, including the current 
                acquisition phase, the date of the last review, 
                and a listing of the required documents that 
                have been reviewed with the dates reviewed or 
                approved.
                  (C) The most current, approved acquisition 
                program baseline (including project schedules 
                and events).
                  (D) A comparison of the original acquisition 
                program baseline, the current acquisition 
                program baseline, and the current estimate.
                  (E) Whether or not an independent 
                verification and validation has been 
                implemented, with an explanation for the 
                decision and a summary of any findings.
                  (F) A rating of cost risk, schedule risk, and 
                technical risk associated with the program 
                (including narrative descriptions and 
                mitigation actions).
                  (G) Contract status (including earned value 
                management data as applicable).
                  (H) A lifecycle cost of the acquisition, and 
                time basis for the estimate.
          (3) Updates.--The Under Secretary shall submit 
        quarterly updates to such report not later than 45 days 
        after the completion of each quarter.
  (b) Quarterly Program Accountability Report.--The Under 
Secretary for Management shall prepare a quarterly program 
accountability report to meet the Department's mandate to 
perform program health assessments and improve program 
execution and governance. The report shall be submitted to the 
congressional homeland security committees.

Subtitle E--Human Resources Management

           *       *       *       *       *       *       *

SEC. 843. USE OF COUNTERNARCOTICS ENFORCEMENT ACTIVITIES IN CERTAIN 
                    EMPLOYEE PERFORMANCE APPRAISALS.

  (a) In General.--Each subdivision of the Department that is a 
National Drug Control Program Agency shall include as one of 
the criteria in its performance appraisal system, for each 
employee directly or indirectly involved in the enforcement of 
Federal, State, or local narcotics laws, the performance of 
that employee with respect to the enforcement of Federal, 
State, or local narcotics laws, relying to the greatest extent 
practicable on objective performance measures, including--
          (1) the contribution of that employee to seizures of 
        narcotics and arrests of violators of Federal, State, 
        or local narcotics laws; and
          (2) the degree to which that employee cooperated with 
        or contributed to the efforts of other employees, 
        either within the Department or other Federal, State, 
        or local agencies, in counternarcotics enforcement.
  (b) Definitions.--For purposes of this section--
          (1) the term ``National Drug Control Program Agency'' 
        means--
                  (A) a National Drug Control Program Agency, 
                as defined in section 702(7) of the Office of 
                National Drug Control Policy Reauthorization 
                Act of 1998 (as last in effect); and
                  (B) any subdivision of the Department that 
                has a significant counternarcotics 
                responsibility, as determined [by--]
                          [(i) the counternarcotics officer, 
                        appointed under section 878; or
                          [(ii) if applicable, the 
                        counternarcotics officer's successor in 
                        function (as determined by the 
                        Secretary); and] by the Secretary; and
          (2) the term ``performance appraisal system'' means a 
        system under which periodic appraisals of job 
        performance of employees are made, whether under 
        chapter 43 of title 5, United States Code, or 
        otherwise.

SEC. 844. HOMELAND SECURITY ROTATION PROGRAM.

  (a) Establishment.--
          (1) In general.--[Not later than 180 days after the 
        date of enactment of this section, the] The Secretary 
        shall establish the Homeland Security Rotation Program 
        (in this section referred to as the ``Rotation 
        Program'') [for employees of the Department] for 
        certain personnel within the Department. The Rotation 
        Program shall use applicable best practices, including 
        those from the Chief Human Capital Officers Council.
          (2) Goals.--The Rotation Program established by the 
        Secretary shall--
                  (A) seek to foster greater Departmental 
                integration and unity of effort;
                  (B) seek to help enhance the knowledge, 
                skills, and abilities of participating 
                personnel with respect to the Department's 
                programs, policies, and activities;
                  [(A)] (C) be established in accordance with 
                the Human Capital Strategic Plan of the 
                Department;
                  [(B)] (D) provide [middle and senior level] 
                employees in the Department the opportunity to 
                broaden their knowledge through exposure to 
                other components of the Department;
                  [(C)] (E) expand the knowledge base of the 
                Department by providing for rotational 
                assignments of employees to other components;
                  [(D)] (F) build professional relationships 
                and contacts among the employees in the 
                Department;
                  [(E)] (G) seek to improve morale and 
                retention throughout the Department and 
                invigorate the workforce with exciting and 
                professionally rewarding opportunities;
                  [(F)] (H) incorporate Department human 
                capital strategic plans and activities, and 
                address critical human capital deficiencies, 
                recruitment and retention efforts, and 
                succession planning within the Federal 
                workforce of the Department; and
                  [(G)] (I) complement and incorporate (but not 
                replace) rotational programs within the 
                Department in effect on the date of enactment 
                of this section.
          (3) Administration.--
                  (A) In general.--The Chief Human Capital 
                Officer shall administer the Rotation Program.
                  (B) Responsibilities.--The Chief Human 
                Capital Officer shall--
                          (i) provide oversight of the 
                        establishment and implementation of the 
                        Rotation Program;
                          (ii) establish a framework that 
                        supports the goals of the Rotation 
                        Program and promotes cross-disciplinary 
                        rotational opportunities;
                          [(iii) establish eligibility for 
                        employees to participate in the 
                        Rotation Program and select 
                        participants from employees who apply;]
                          [(iv)] (iii) establish incentives for 
                        employees to participate in the 
                        Rotation Program, including promotions 
                        and employment preferences;
                          [(v)] (iv) ensure that the Rotation 
                        Program provides professional education 
                        and training;
                          [(vi)] (v) ensure that the Rotation 
                        Program develops qualified employees 
                        and future leaders with broad-based 
                        experience throughout the Department;
                          [(vii)] (vi) provide for greater 
                        interaction among employees in 
                        components of the Department; and
                          [(viii)] (vii) coordinate with 
                        rotational programs within the 
                        Department in effect on the date of 
                        enactment of this section.
          (4) Administrative matters.--In carrying out any 
        program established pursuant to this section, the 
        Secretary shall--
                  (A) before selecting employees for 
                participation in such program, disseminate 
                information broadly within the Department about 
                the availability of the program, qualifications 
                for participation in the program, including 
                full-time employment within the employing 
                component or office not less than one year, and 
                the general provisions of the program;
                  (B) require each candidate for participation 
                in the program to be nominated by the head of 
                the candidate's employing component or office 
                and that the Secretary, or the Secretary's 
                designee, select each employee for the program 
                solely on the basis of relative ability, 
                knowledge, and skills, after fair and open 
                competition that assures that all candidates 
                receive equal opportunity;
                  (C) ensure that each employee participating 
                in the program shall be entitled to return, 
                within a reasonable period of time after the 
                end of the period of participation, to the 
                position held by the employee, or a 
                corresponding or higher position, in the 
                employee's employing component or office;
                  (D) require that the rights that would be 
                available to the employee if the employee were 
                detailed from the employing component or office 
                to another Federal agency or office remain 
                available to the employee during the employee 
                participation in the program; and
                  (E) require that, during the period of 
                participation by an employee in the program, 
                performance evaluations for the employee--
                          (i) shall be conducted by officials 
                        in the employee's office or component 
                        with input from the supervisors of the 
                        employee at the component or office in 
                        which the employee is placed during 
                        that period; and
                          (ii) shall be provided the same 
                        weight with respect to promotions and 
                        other rewards as performance 
                        evaluations for service in the 
                        employee's office or component.
          [(4)] (5) Allowances, privileges, and benefits.--All 
        allowances, privileges, rights, seniority, and other 
        benefits of employees participating in the Rotation 
        Program shall be preserved.
          [(5)] (6) Reporting.--Not later than 180 days after 
        the date of the establishment of the Rotation Program, 
        the Secretary shall submit a report on the status of 
        the Rotation Program, including a description of the 
        Rotation Program, the number of employees 
        participating, and how the Rotation Program is used in 
        succession planning and leadership development to the 
        appropriate committees of Congress.

           *       *       *       *       *       *       *

Subtitle H--Miscellaneous Provisions

           *       *       *       *       *       *       *

SEC. 874. FUTURE YEAR HOMELAND SECURITY PROGRAM.

  [(a) In General.--Each budget request submitted to Congress 
for the Department under section 1105 of title 31, United 
States Code, shall, at or about the same time, be accompanied 
by a Future Years Homeland Security Program.]
  (a) In General.--Not later than the 30 days following the 
date of each fiscal year on which the budget of the President 
is submitted to Congress under section 1105(a) of title 31, 
United States Code, the Secretary shall submit to the Committee 
on Homeland Security of the House of Representatives and the 
Committee on Homeland Security and Governmental Affairs of the 
Senate a Future Years Homeland Security Program that provides 
detailed estimates of the projected expenditures and 
corresponding requests for appropriations included in that 
budget. The Future Years Homeland Security Program shall cover 
the fiscal year for which the budget is submitted and the 4 
succeeding fiscal years.
  (b) Contents.--The Future Years Homeland Security Program 
under subsection (a) shall--
          (1) include the same type of information, 
        organizational structure, and level of detail as the 
        future years defense program submitted to Congress by 
        the Secretary of Defense under section 221 of title 10, 
        United States Code;
          (2) set forth the homeland security strategy of the 
        Department, which shall be developed and updated as 
        appropriate annually by the Secretary, that was used to 
        develop program planning guidance for the Future Years 
        Homeland Security Program; [and]
          (3) include an explanation of how the resource 
        allocations included in the Future Years Homeland 
        Security Program correlate to the homeland security 
        strategy set forth under paragraph (2)[.]; and
          (4) include the multiyear acquisition strategy 
        required under section 839 of this Act.
  (c) Effective Date.--This section shall take effect with 
respect to the preparation and submission of the fiscal year 
2005 budget request for the Department and for any subsequent 
fiscal year, except that the first Future Years Homeland 
Security Program shall be submitted not later than 90 days 
after the Department's fiscal year 2005 budget request is 
submitted to Congress.
  (d) Consistency of Budget Request With Estimates.--For each 
fiscal year, the Secretary shall ensure that the projected 
amounts specified in program and budget information for the 
Department submitted to Congress in support of the President's 
budget request are consistent with the estimated expenditures 
and proposed appropriations necessary to support the programs, 
projects, and activities of the Department included in the 
budget pursuant to section 1105(a)(5) of title 31, United 
States Code.
  (e) Explanation of Alignment With Strategies and Plans.--
Together with the detailed estimates of the projected 
expenditures and corresponding requests for appropriations 
submitted for the Future Years Homeland Security Program, the 
Secretary shall provide an explanation of how those estimates 
and requests align with the homeland security strategies and 
plans developed and updated as appropriate by the Secretary. 
Such explanation shall include an evaluation of the 
organization, organizational structure, governance structure, 
and business processes (including acquisition processes) of the 
Department, to ensure that the Department is able to meet its 
responsibilities.
  (f) Projection of Acquisition Estimates.--Each Future Years 
Homeland Security Program shall project--
          (1) acquisition estimates for a period of 5 fiscal 
        years, with specified estimates for each fiscal year, 
        for major acquisition programs by the Department and 
        each component therein, including modernization and 
        sustainment expenses; and
          (2) estimated annual deployment schedules for major 
        acquisition programs over the 5-fiscal-year period.
  (g) Contingency Amounts.--Nothing in this section shall be 
construed as prohibiting the inclusion in the Future Years 
Homeland Security Program of amounts for management 
contingencies, subject to the requirements of subsection (b).
  (h) Classified or Sensitive Annex.--The Secretary may include 
with each submission under this section a classified or 
sensitive annex containing any information required to be 
submitted under this section that is restricted from public 
disclosure in accordance with Federal law, including 
information that is determined to be Sensitive Security 
Information under section 537 of the Department of Homeland 
Security Appropriations Act, 2006 (6 U.S.C. 114) to Congress in 
a classified or sensitive annex.
  (i) Availability of Information to the Public.--The Secretary 
shall make available to the public in electronic form the 
information required to be submitted to Congress under this 
section, other than information described in subsection (h).

           *       *       *       *       *       *       *

[SEC. 878. OFFICE OF COUNTERNARCOTICS ENFORCEMENT.

  [(a) Office.--There is established in the Department an 
Office of Counternarcotics Enforcement, which shall be headed 
by a Director appointed by the President.
  [(b) Assignment of Personnel.--
          [(1) In general.--The Secretary shall assign 
        permanent staff to the Office, consistent with 
        effective management of Department resources.
          [(2) Liaisons.--The Secretary shall designate senior 
        employees from each appropriate subdivision of the 
        Department that has significant counternarcotics 
        responsibilities to act as a liaison between that 
        subdivision and the Office of Counternarcotics 
        Enforcement.
  [(c) Limitation on Concurrent Employment.--The Director of 
the Office of Counternarcotics Enforcement shall not be 
employed by, assigned to, or serve as the head of, any other 
branch of the Federal Government, any State or local 
government, or any subdivision of the Department other than the 
Office of Counternarcotics Enforcement.
  [(d) Responsibilities.--The Secretary shall direct the 
Director of the Office of Counternarcotics Enforcement--
          [(1) to coordinate policy and operations within the 
        Department, between the Department and other Federal 
        departments and agencies, and between the Department 
        and State and local agencies with respect to stopping 
        the entry of illegal drugs into the United States;
          [(2) to ensure the adequacy of resources within the 
        Department for stopping the entry of illegal drugs into 
        the United States;
          [(3) to recommend the appropriate financial and 
        personnel resources necessary to help the Department 
        better fulfill its responsibility to stop the entry of 
        illegal drugs into the United States;
          [(4) within the Joint Terrorism Task Force construct 
        to track and sever connections between illegal drug 
        trafficking and terrorism; and
          [(5) to be a representative of the Department on all 
        task forces, committees, or other entities whose 
        purpose is to coordinate the counternarcotics 
        enforcement activities of the Department and other 
        Federal, State or local agencies.
  [(e) Savings Clause.--Nothing in this section shall be 
construed to authorize direct control of the operations 
conducted by the Directorate of Border and Transportation 
Security, the Coast Guard, or joint terrorism task forces.
  [(f) Reports to Congress.--
          [(1) Annual budget review.--The Director of the 
        Office of Counternarcotics Enforcement shall, not later 
        than 30 days after the submission by the President to 
        Congress of any request for expenditures for the 
        Department, submit to the Committees on Appropriations 
        and the authorizing committees of jurisdiction of the 
        House of Representatives and the Senate a review and 
        evaluation of such request. The review and evaluation 
        shall--
                  [(A) identify any request or subpart of any 
                request that affects or may affect the 
                counternarcotics activities of the Department 
                or any of its subdivisions, or that affects the 
                ability of the Department or any subdivision of 
                the Department to meet its responsibility to 
                stop the entry of illegal drugs into the United 
                States;
                  [(B) describe with particularity how such 
                requested funds would be or could be expended 
                in furtherance of counternarcotics activities; 
                and
                  [(C) compare such requests with requests for 
                expenditures and amounts appropriated by 
                Congress in the previous fiscal year.
          [(2) Evaluation of counternarcotics activities.--The 
        Director of the Office of Counternarcotics Enforcement 
        shall, not later than February 1 of each year, submit 
        to the Committees on Appropriations and the authorizing 
        committees of jurisdiction of the House of 
        Representatives and the Senate a review and evaluation 
        of the counternarcotics activities of the Department 
        for the previous fiscal year. The review and evaluation 
        shall--
                  [(A) describe the counternarcotics activities 
                of the Department and each subdivision of the 
                Department (whether individually or in 
                cooperation with other subdivisions of the 
                Department, or in cooperation with other 
                branches of the Federal Government or with 
                State or local agencies), including the 
                methods, procedures, and systems (including 
                computer systems) for collecting, analyzing, 
                sharing, and disseminating information 
                concerning narcotics activity within the 
                Department and between the Department and other 
                Federal, State, and local agencies;
                  [(B) describe the results of those 
                activities, using quantifiable data whenever 
                possible;
                  [(C) state whether those activities were 
                sufficient to meet the responsibility of the 
                Department to stop the entry of illegal drugs 
                into the United States, including a description 
                of the performance measures of effectiveness 
                that were used in making that determination; 
                and
                  [(D) recommend, where appropriate, changes to 
                those activities to improve the performance of 
                the Department in meeting its responsibility to 
                stop the entry of illegal drugs into the United 
                States.
          [(3) Classified or law enforcement sensitive 
        information.--Any content of a review and evaluation 
        described in the reports required in this subsection 
        that involves information classified under criteria 
        established by an Executive order, or whose public 
        disclosure, as determined by the Secretary, would be 
        detrimental to the law enforcement or national security 
        activities of the Department or any other Federal, 
        State, or local agency, shall be presented to Congress 
        separately from the rest of the review and evaluation.

[SEC. 879. OFFICE OF INTERNATIONAL AFFAIRS.

  [(a) Establishment.--There is established within the Office 
of the Secretary an Office of International Affairs. The Office 
shall be headed by a Director, who shall be a senior official 
appointed by the Secretary.
  [(b) Duties of the Director.--The Director shall have the 
following duties:
          [(1) To promote information and education exchange 
        with nations friendly to the United States in order to 
        promote sharing of best practices and technologies 
        relating to homeland security. Such exchange shall 
        include the following:
                  [(A) Exchange of information on research and 
                development on homeland security technologies.
                  [(B) Joint training exercises of first 
                responders.
                  [(C) Exchange of expertise on terrorism 
                prevention, response, and crisis management.
          [(2) To identify areas for homeland security 
        information and training exchange where the United 
        States has a demonstrated weakness and another friendly 
        nation or nations have a demonstrated expertise.
          [(3) To plan and undertake international conferences, 
        exchange programs, and training activities.
          [(4) To manage international activities within the 
        Department in coordination with other Federal officials 
        with responsibility for counter-terrorism matters.]

           *       *       *       *       *       *       *

SEC. [601.]  890B. TREATMENT OF CHARITABLE TRUSTS FOR MEMBERS OF THE 
                    ARMED FORCES OF THE UNITED STATES AND OTHER 
                    GOVERNMENTAL ORGANIZATIONS.

  (a) Findings.--Congress finds the following:
          (1) Members of the Armed Forces of the United States 
        defend the freedom and security of our Nation.
          (2) Members of the Armed Forces of the United States 
        have lost their lives while battling the evils of 
        terrorism around the world.
          (3) Personnel of the Central Intelligence Agency 
        (CIA) charged with the responsibility of covert 
        observation of terrorists around the world are often 
        put in harm's way during their service to the United 
        States.
          (4) Personnel of the Central Intelligence Agency have 
        also lost their lives while battling the evils of 
        terrorism around the world.
          (5) Employees of the Federal Bureau of Investigation 
        (FBI) and other Federal agencies charged with domestic 
        protection of the United States put their lives at risk 
        on a daily basis for the freedom and security of our 
        Nation.
          (6) United States military personnel, CIA personnel, 
        FBI personnel, and other Federal agents in the service 
        of the United States are patriots of the highest order.
          (7) CIA officer Johnny Micheal Spann became the first 
        American to give his life for his country in the War on 
        Terrorism declared by President George W. Bush 
        following the terrorist attacks of September 11, 2001.
          (8) Johnny Micheal Spann left behind a wife and 
        children who are very proud of the heroic actions of 
        their patriot father.
          (9) Surviving dependents of members of the Armed 
        Forces of the United States who lose their lives as a 
        result of terrorist attacks or military operations 
        abroad receive a $6,000 death benefit, plus a small 
        monthly benefit.
          (10) The current system of compensating spouses and 
        children of American patriots is inequitable and needs 
        improvement.
  (b) Designation of Johnny Micheal Spann Patriot Trusts.--Any 
charitable corporation, fund, foundation, or trust (or separate 
fund or account thereof) which otherwise meets all applicable 
requirements under law with respect to charitable entities and 
meets the requirements described in subsection (c) shall be 
eligible to characterize itself as a ``Johnny Micheal Spann 
Patriot Trust''.
  (c) Requirements for the Designation of Johnny Micheal Spann 
Patriot Trusts.--The requirements described in this subsection 
are as follows:
          (1) Not taking into account funds or donations 
        reasonably necessary to establish a trust, at least 85 
        percent of all funds or donations (including any 
        earnings on the investment of such funds or donations) 
        received or collected by any Johnny Micheal Spann 
        Patriot Trust must be distributed to (or, if placed in 
        a private foundation, held in trust for) surviving 
        spouses, children, or dependent parents, grandparents, 
        or siblings of 1 or more of the following:
                  (A) members of the Armed Forces of the United 
                States;
                  (B) personnel, including contractors, of 
                elements of the intelligence community, as 
                defined in section 3(4) of the National 
                Security Act of 1947;
                  (C) employees of the Federal Bureau of 
                Investigation; and
                  (D) officers, employees, or contract 
                employees of the United States Government,
        whose deaths occur in the line of duty and arise out of 
        terrorist attacks, military operations, intelligence 
        operations, or law enforcement operations or accidents 
        connected with activities occurring after September 11, 
        2001, and related to domestic or foreign efforts to 
        curb international terrorism, including the 
        Authorization for Use of Military Force (Public Law 
        107-40; 115 Stat. 224).
          (2) Other than funds or donations reasonably 
        necessary to establish a trust, not more than 15 
        percent of all funds or donations (or 15 percent of 
        annual earnings on funds invested in a private 
        foundation) may be used for administrative purposes.
          (3) No part of the net earnings of any Johnny Micheal 
        Spann Patriot Trust may inure to the benefit of any 
        individual based solely on the position of such 
        individual as a shareholder, an officer or employee of 
        such Trust.
          (4) None of the activities of any Johnny Micheal 
        Spann Patriot Trust shall be conducted in a manner 
        inconsistent with any law that prohibits attempting to 
        influence legislation.
          (5) No Johnny Micheal Spann Patriot Trust may 
        participate in or intervene in any political campaign 
        on behalf of (or in opposition to) any candidate for 
        public office, including by publication or distribution 
        of statements.
          (6) Each Johnny Micheal Spann Patriot Trust shall 
        comply with the instructions and directions of the 
        Director of Central Intelligence, the Attorney General, 
        or the Secretary of Defense relating to the protection 
        of intelligence sources and methods, sensitive law 
        enforcement information, or other sensitive national 
        security information, including methods for 
        confidentially disbursing funds.
          (7) Each Johnny Micheal Spann Patriot Trust that 
        receives annual contributions totaling more than 
        $1,000,000 must be audited annually by an independent 
        certified public accounting firm. Such audits shall be 
        filed with the Internal Revenue Service, and shall be 
        open to public inspection, except that the conduct, 
        filing, and availability of the audit shall be 
        consistent with the protection of intelligence sources 
        and methods, of sensitive law enforcement information, 
        and of other sensitive national security information.
          (8) Each Johnny Micheal Spann Patriot Trust shall 
        make distributions to beneficiaries described in 
        paragraph (1) at least once every calendar year, 
        beginning not later than 12 months after the formation 
        of such Trust, and all funds and donations received and 
        earnings not placed in a private foundation dedicated 
        to such beneficiaries must be distributed within 36 
        months after the end of the fiscal year in which such 
        funds, donations, and earnings are received.
          (9)(A) When determining the amount of a distribution 
        to any beneficiary described in paragraph (1), a Johnny 
        Micheal Spann Patriot Trust should take into account 
        the amount of any collateral source compensation that 
        the beneficiary has received or is entitled to receive 
        as a result of the death of an individual described in 
        paragraph (1).
          (B) Collateral source compensation includes all 
        compensation from collateral sources, including life 
        insurance, pension funds, death benefit programs, and 
        payments by Federal, State, or local governments 
        related to the death of an individual described in 
        paragraph (1).
  (d) Treatment of Johnny Micheal Spann Patriot Trusts.--Each 
Johnny Micheal Spann Patriot Trust shall refrain from 
conducting the activities described in clauses (i) and (ii) of 
section 301(20)(A) of the Federal Election Campaign Act of 1971 
so that a general solicitation of funds by an individual 
described in paragraph (1) of section 323(e) of such Act will 
be permissible if such solicitation meets the requirements of 
paragraph (4)(A) of such section.
  (e) Notification of Trust Beneficiaries.--Notwithstanding any 
other provision of law, and in a manner consistent with the 
protection of intelligence sources and methods and sensitive 
law enforcement information, and other sensitive national 
security information, the Secretary of Defense, the Director of 
the Federal Bureau of Investigation, or the Director of Central 
Intelligence, or their designees, as applicable, may forward 
information received from an executor, administrator, or other 
legal representative of the estate of a decedent described in 
subparagraph (A), (B), (C), or (D) of subsection (c)(1), to a 
Johnny Micheal Spann Patriot Trust on how to contact 
individuals eligible for a distribution under subsection (c)(1) 
for the purpose of providing assistance from such Trust: 
Provided, That, neither forwarding nor failing to forward any 
information under this subsection shall create any cause of 
action against any Federal department, agency, officer, agent, 
or employee.
  (f) Regulations.--Not later than 90 days after the date of 
enactment of this Act, the Secretary of Defense, in 
coordination with the Attorney General, the Director of the 
Federal Bureau of Investigation, and the Director of Central 
Intelligence, shall prescribe regulations to carry out this 
section.

           *       *       *       *       *       *       *

TITLE XX--HOMELAND SECURITY GRANTS

           *       *       *       *       *       *       *

Subtitle A--Grants to States and High-Risk Urban Areas

           *       *       *       *       *       *       *

SEC. 2006. TERRORISM PREVENTION.

  (a) Law Enforcement Terrorism Prevention Program.--
          (1) In general.--The Administrator shall ensure that 
        not less than 25 percent of the total combined funds 
        appropriated for grants under sections 2003 and 2004 is 
        used for law enforcement terrorism prevention 
        activities.
          (2) Law enforcement terrorism prevention 
        activities.--Law enforcement terrorism prevention 
        activities include--
                  (A) information sharing and analysis;
                  (B) target hardening;
                  (C) threat recognition;
                  (D) terrorist interdiction;
                  (E) overtime expenses consistent with a State 
                homeland security plan, including for the 
                provision of enhanced law enforcement 
                operations in support of Federal agencies, 
                including for increased border security and 
                border crossing enforcement;
                  (F) establishing, enhancing, and staffing 
                with appropriately qualified personnel State, 
                local, and regional fusion centers that comply 
                with the guidelines established under section 
                210A(i);
                  (G) paying salaries and benefits for 
                personnel, including individuals employed by 
                the grant recipient on the date of the relevant 
                grant application, to serve as qualified 
                intelligence analysts;
                  (H) any other activity permitted under the 
                Fiscal Year 2007 Program Guidance of the 
                Department for the Law Enforcement Terrorism 
                Prevention Program; and
                  (I) any other terrorism prevention activity 
                authorized by the Administrator.
          (3) Participation of underrepresented communities in 
        fusion centers.--The Administrator shall ensure that 
        grant funds described in paragraph (1) are used to 
        support the participation, as appropriate, of law 
        enforcement and other emergency response providers from 
        rural and other underrepresented communities at risk 
        from acts of terrorism in fusion centers.
  [(b) Office for State and Local Law Enforcement.--
          [(1) Establishment.--There is established in the 
        Policy Directorate of the Department an Office for 
        State and Local Law Enforcement, which shall be headed 
        by an Assistant Secretary for State and Local Law 
        Enforcement.
          [(2) Qualifications.--The Assistant Secretary for 
        State and Local Law Enforcement shall have an 
        appropriate background with experience in law 
        enforcement, intelligence, and other counterterrorism 
        functions.
          [(3) Assignment of personnel.--The Secretary shall 
        assign to the Office for State and Local Law 
        Enforcement permanent staff and, as appropriate and 
        consistent with sections 506(c)(2), 821, and 888(d), 
        other appropriate personnel detailed from other 
        components of the Department to carry out the 
        responsibilities under this subsection.
          [(4) Responsibilities.--The Assistant Secretary for 
        State and Local Law Enforcement shall--
                  [(A) lead the coordination of Department-wide 
                policies relating to the role of State and 
                local law enforcement in preventing, preparing 
                for, protecting against, and responding to 
                natural disasters, acts of terrorism, and other 
                man-made disasters within the United States;
                  [(B) serve as a liaison between State, local, 
                and tribal law enforcement agencies and the 
                Department;
                  [(C) coordinate with the Office of 
                Intelligence and Analysis to ensure the 
                intelligence and information sharing 
                requirements of State, local, and tribal law 
                enforcement agencies are being addressed;
                  [(D) work with the Administrator to ensure 
                that law enforcement and terrorism-focused 
                grants to State, local, and tribal government 
                agencies, including grants under sections 2003 
                and 2004, the Commercial Equipment Direct 
                Assistance Program, and other grants 
                administered by the Department to support 
                fusion centers and law enforcement-oriented 
                programs, are appropriately focused on 
                terrorism prevention activities;
                  [(E) coordinate with the Science and 
                Technology Directorate, the Federal Emergency 
                Management Agency, the Department of Justice, 
                the National Institute of Justice, law 
                enforcement organizations, and other 
                appropriate entities to support the 
                development, promulgation, and updating, as 
                necessary, of national voluntary consensus 
                standards for training and personal protective 
                equipment to be used in a tactical environment 
                by law enforcement officers; and
                  [(F) conduct, jointly with the Administrator, 
                a study to determine the efficacy and 
                feasibility of establishing specialized law 
                enforcement deployment teams to assist State, 
                local, and tribal governments in responding to 
                natural disasters, acts of terrorism, or other 
                man-made disasters and report on the results of 
                that study to the appropriate committees of 
                Congress.
          [(5) Rule of construction.--Nothing in this 
        subsection shall be construed to diminish, supercede, 
        or replace the responsibilities, authorities, or role 
        of the Administrator.]

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