I 

113TH CONGRESS 

1ST SESSION H. R. 3184 

To provide for auditable financial statements for the Department of Defense, 

and for other purposes. 

IN THE HOUSE OF REPRESENTATIVES 

SEPTEMBER 26, 2013 

Mr. COFFMAN (for himself and Mr. COOPER) introduced the following bill; 

which was referred to the Committee on Armed Services 

A BILL 

To provide for auditable financial statements for the 

Department of Defense, and for other purposes. 

1 Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled, 

3 SECTION 1. SHORT TITLE. 

4 This Act may be cited as the ‘‘Audit the Pentagon 

5 Act of 2013’’. 

6 SEC. 2. FINDINGS. 

7 Congress makes the following findings: 

8 (1) Section 9 of Article I of the Constitution of 

9 the United States requires all agencies of the Fed10 eral Government, including the Department of DeVerDate Mar 15 2010 02:07 Sep 29, 2013 Jkt 029200 PO 00000 Frm 00001 Fmt 6652 Sfmt 6201 E:\BILLS\H3184.IH H3184

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1 fense, to publish ‘‘a regular statement and account 

2 of the receipts and expenditures of all public 

3 money’’. 

4 (2) Section 3515 of title 31, United States 

5 Code, requires the agencies of the Federal Govern6 ment, including the Department of Defense, to 

7 present auditable financial statements beginning not 

8 later than March 1, 1997. The Department has not 

9 complied with this law. 

10 (3) The Federal Financial Management Im11 provement Act of 1996 (31 U.S.C. 3512 note) re12 quires financial systems acquired by the Federal 

13 Government, including the Department of Defense, 

14 to be able to provide information to leaders to man15 age and control the cost of Government. The De16 partment has not complied with this law. 

17 (4) The financial management of the Depart18 ment of Defense has been on the ‘‘High-Risk’’ list 

19 of the Government Accountability Office, which 

20 means that the Department is not consistently able 

21 to ‘‘control costs; ensure basic accountability; antici22 pate future costs and claims on the budget; measure 

23 performance; maintain funds control; [and] prevent 

24 and detect fraud, waste, and abuse’’. 


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1 (5) The National Defense Authorization Act for 

2 Fiscal Year 2002 (Public Law 107–107) requires 

3 the Secretary of Defense to report to Congress an4 nually on the reliability of the financial statements 

5 of the Department of Defense, to minimize resources 

6 spent on producing unreliable financial statements, 

7 and to use resources saved to improve financial man8 agement policies, procedures, and internal controls. 

9 (6) In 2005, the Department of Defense cre10 ated a Financial Improvement and Audit Readiness 

11 (FIAR) Plan, overseen by a directorate within the 

12 office of the Under Secretary of Defense (Comp13 troller), to improve Department business processes 

14 with the goal of producing timely, reliable, and accu15 rate financial information that could generate an 

16 audit-ready annual financial statement. In December 

17 2005, that directorate, known as the FIAR Direc18 torate, issued the first of a series of semiannual re19 ports on the status of the Financial Improvement 

20 and Audit Readiness Plan. 

21 (7) The National Defense Authorization Act for 

22 Fiscal Year 2010 (Public Law 111–84) requires reg23 ular status reports on the Financial Improvement 

24 and Audit Readiness Plan described in paragraph 

25 (6), and codified as a statutory requirement the goal 


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1 of the Plan in ensuring that Department of Defense 

2 financial statements are validated as ready for audit 

3 not later than September 30, 2017. In addition, the 

4 National Defense Authorization Act for Fiscal Year 

5 2013 (Public Law 112–239) requires that the state6 ment of budgetary resources of the Department of 

7 Defense be validated as ready for audit by not later 

8 than September 30, 2014. 

9 (8) At a September 2010 hearing of the Senate, 

10 the Government Accountability Office stated that 

11 past expenditures by the Department of Defense of 

12 $5,800,000,000 to improve financial information, 

13 and billions of dollars more of anticipated expendi14 tures on new information technology systems for 

15 that purpose, may not suffice to achieve full audit 

16 readiness of the financial statements of the Depart17 ment. At that hearing, the Government Account18 ability Office could not predict when the Department 

19 would achieve full audit readiness of such state20 ments. 

21 SEC. 3. CESSATION OF APPLICABILITY OF REPORTING RE22 QUIREMENTS REGARDING THE FINANCIAL 

23 STATEMENTS OF THE DEPARTMENT OF DE24 FENSE. 

25 (a) CESSATION OF APPLICABILITY.— 


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1 (1) MILITARY DEPARTMENTS.—The financial 

2 statements of a military department shall cease to 

3 be covered by the reporting requirements specified in 

4 subsection (b) upon the issuance of an unqualified 

5 audit opinion on such financial statements. 

6 (2) DEPARTMENT OF DEFENSE.—The reporting 

7 requirements specified in subsection (b) shall cease 

8 to be effective when an unqualified audit opinion is 

9 issued on the financial statements of the Depart10 ment of Defense, including each of the military de11 partments and the other reporting entities defined 

12 by the Office of Management and Budget. 

13 (b) REPORTING REQUIREMENTS.—The reporting re14 quirements specified in this subsection are the following: 

15 (1) The requirement for annual reports in sec16 tion 892(b) of the Ike Skelton National Defense Au17 thorization Act for Fiscal Year 2011 (Public Law 

18 111–383; 124 Stat. 4311; 10 U.S.C. 2306a note). 

19 (2) The requirement for semi-annual reports in 

20 section 1003(b) of the National Defense Authoriza21 tion Act for Fiscal Year 2010 (Public Law 111–84; 

22 123 Stat. 2440; 10 U.S.C. 2222 note). 

23 (3) The requirement for annual reports in sec24 tion 817(d) of the Bob Stump National Defense AuVerDate Mar 15 2010 02:07 Sep 29, 2013 Jkt 029200 PO 00000 Frm 00005 Fmt 6652 Sfmt 6201 E:\BILLS\H3184.IH H3184

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1 thorization Act for Fiscal Year 2003 (10 U.S.C. 

2 2306a note). 

3 (4) The requirement for annual reports in sec4 tion 1008(a) of the National Defense Authorization 

5 Act for Fiscal Year 2002 (Public Law 107–107; 115 

6 Stat. 1204; 10 U.S.C. 113 note). 

7 (5) The requirement for periodic reports in sec8 tion 908(b) of the Defense Acquisition Improvement 

9 Act of 1986 (Public Law 99–500; 100 Stat. 1783– 

10 140; 10 U.S.C. 2326 note) and duplicate require11 ments as provided for in section 6 of the Defense 

12 Technical Corrections Act of 1987 (Public Law 100– 

13 26; 101 Stat. 274; 10 U.S.C. 2302 note). 

14 SEC. 4. ENHANCED REPROGRAMMING AUTHORITY FOL15 LOWING ACHIEVEMENT BY DEPARTMENT OF 

16 DEFENSE AND MILITARY DEPARTMENTS OF 

17 AUDIT WITH UNQUALIFIED OPINION OF 

18 STATEMENT OF BUDGETARY RESOURCES 

19 FOR FISCAL YEARS AFTER FISCAL YEAR 2014. 

20 (a) DEPARTMENT OF DEFENSE GENERALLY.—Sub21 ject to section 6(1), if the Department of Defense obtains 

22 an audit with an unqualified opinion on its statement of 

23 budgetary resources for any fiscal year after fiscal year 

24 2014, the limitation on the total amount of authorizations 

25 that the Secretary of Defense may transfer pursuant to 


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1 general transfer authority available to the Secretary in the 

2 national interest in the succeeding fiscal year shall be 

3 $8,000,000,000. 

4 (b) MILITARY DEPARTMENTS, DEFENSE AGENCIES, 

5 AND DEFENSE FIELD ACTIVITIES.—Subject to section 

6 7(a), if a military department, Defense Agency, or defense 

7 field activity obtains an audit with an unqualified opinion 

8 on its statement of budgetary resources for any fiscal year 

9 after fiscal year 2014, the thresholds for reprogramming 

10 of funds of such military department, Defense Agency, or 

11 defense field activity, as the case may be, without prior 

12 notice to Congress for the succeeding fiscal year shall be 

13 deemed to be the thresholds as follows: 

14 (1) In the case of an increase or decrease to the 

15 program base amount for a procurement program, 

16 $60,000,000. 

17 (2) In the case of an increase or decrease to the 

18 program base amount for a research program, 

19 $30,000,000. 

20 (3) In the case of an increase or decrease to the 

21 amount for a budget activity for operation and 

22 maintenance, $45,000,000. 

23 (4) In the case of an increase or decrease to the 

24 amount for a budget activity for military personnel, 

25 $30,000,000. 


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1 (c) CONSTRUCTION.—Nothing in this section shall be 

2 construed to alter or revise any requirement (other than 

3 a threshold amount) for notice to Congress on transfers 

4 covered by subsection (a) or reprogrammings covered by 

5 subsection (b) under any other provision of law. 

6 (d) DEFINITIONS.—In this section, the terms ‘‘pro7 gram base amount’’, ‘‘procurement program’’, ‘‘research 

8 program’’, and ‘‘budget activity’’ have the meanings given 

9 such terms in chapter 6 of volume 3 of the Financial Man10 agement Regulation of the Department of Defense (DoD 

11 7000.14R), dated March 2011, or any successor docu12 ment. 

13 SEC. 5. FAILURE TO OBTAIN AUDITS WITH UNQUALIFIED 

14 OPINION OF FISCAL YEAR 2015 GENERAL 

15 FUND STATEMENT OF BUDGETARY RE16 SOURCES OF THE DEPARTMENT OF DE17 FENSE. 

18 (a) IN GENERAL.—If the Department of Defense 

19 fails to obtain an audit with an unqualified opinion on its 

20 general fund statement of budgetary resources for fiscal 

21 year 2015 by December 31, 2015, the following shall take 

22 effect on January 1, 2016: 

23 (1) ADDITIONAL QUALIFICATIONS AND DUTIES

24 OF USD (COMPTROLLER).— 


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1 (A) QUALIFICATIONS.—Any individual 

2 nominated for appointment to the position of 

3 Under Secretary of Defense (Comptroller) 

4 under section 135 of title 10, United States 

5 Code, shall be an individual who has served— 

6 (i) as the chief financial officer of a 

7 Federal or State agency that has received 

8 an audit with an unqualified opinion on 

9 such agency’s financial statements during 

10 the time of such individual’s service; or 

11 (ii) as the chief financial officer of a 

12 public company that has received an audit 

13 with an unqualified opinion on such com14 pany’s financial statements during the 

15 time of such individual’s service. 

16 (B) DUTIES AND POWERS.—The duties 

17 and powers of the individual serving as Under 

18 Secretary of Defense (Comptroller) shall in19 clude, in addition to the duties and powers 

20 specified in section 135(c) of title 10, United 

21 States Code, such duties and powers with re22 spect to the financial management of the De23 partment of Defense as the Deputy Secretary of 

24 Defense (acting in the capacity of Chief Man25 agement Officer of the Department of Defense) 


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1 or a successor official in the Department of De2 fense (acting in such capacity) may prescribe. 

3 (2) ADDITIONAL QUALIFICATIONS AND RESPON4 SIBILITIES OF ASA FOR FINANCIAL MANAGEMENT.— 

5 (A) QUALIFICATIONS.—Any individual 

6 nominated for appointment to the position of 

7 Assistant Secretary of the Army for Financial 

8 Management under section 3016 of title 10, 

9 United States Code, shall be an individual who 

10 has served— 

11 (i) as the chief financial officer of a 

12 Federal or State agency that has received 

13 an audit with an unqualified opinion on 

14 such agency’s financial statements during 

15 the time of such individual’s service; or 

16 (ii) as the chief financial officer of a 

17 public company that has received an audit 

18 with an unqualified opinion on such com19 pany’s financial statements during the 

20 time of such individual’s service. 

21 (B) RESPONSIBILITIES.—The responsibil22 ities of the individual serving as Assistant Sec23 retary of the Army for Financial Management 

24 shall include, in addition to the responsibilities 

25 specified in section 3016(b)(4) of title 10, 


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1 United States Code, such responsibilities as the 

2 Deputy Secretary of Defense (acting in the ca3 pacity of Chief Management Officer of the De4 partment of Defense) or a successor official in 

5 the Department of Defense (acting in such ca6 pacity) may prescribe. 

7 (3) ADDITIONAL QUALIFICATIONS AND RESPON8 SIBILITIES OF ASN FOR FINANCIAL MANAGEMENT.— 

9 (A) QUALIFICATIONS.—Any individual 

10 nominated for appointment to the position of 

11 Assistant Secretary of the Navy for Financial 

12 Management under section 5016 of title 10, 

13 United States Code, shall be an individual who 

14 has served— 

15 (i) as the chief financial officer of a 

16 Federal or State agency that has received 

17 an audit with an unqualified opinion on 

18 such agency’s financial statements during 

19 the time of such individual’s service; or 

20 (ii) as the chief financial officer of a 

21 public company that has received an audit 

22 with an unqualified opinion on such com23 pany’s financial statements during the 

24 time of such individual’s service. 


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1 (B) RESPONSIBILITIES.—The responsibil2 ities of the individual serving as Assistant Sec3 retary of the Navy for Financial Management 

4 shall include, in addition to the responsibilities 

5 specified in section 5016(b)(3) of title 10, 

6 United States Code, such responsibilities as the 

7 Deputy Secretary of Defense (acting in the ca8 pacity of Chief Management Officer of the De9 partment of Defense) or a successor official in 

10 the Department of Defense (acting in such ca11 pacity) may prescribe. 

12 (4) ADDITIONAL QUALIFICATIONS AND RESPON13 SIBILITIES OF ASAF FOR FINANCIAL MANAGE14 MENT.— 

15 (A) QUALIFICATIONS.—Any individual 

16 nominated for appointment to the position of 

17 Assistant Secretary of the Air Force for Finan18 cial Management under section 8016 of title 10, 

19 United States Code, shall be an individual who 

20 has served— 

21 (i) as the chief financial officer of a 

22 Federal or State agency that has received 

23 an audit with an unqualified opinion on 

24 such agency’s financial statements during 

25 the time of such individual’s service; or 


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1 (ii) as the chief financial officer of a 

2 public company that has received an audit 

3 with an unqualified opinion on such com4 pany’s financial statements during the 

5 time of such individual’s service. 

6 (B) RESPONSIBILITIES.—The responsibil7 ities of the individual serving as Assistant Sec8 retary of the Air Force for Financial Manage9 ment shall include, in addition to the respon10 sibilities specified in section 8016(b)(3) of title 

11 10, United States Code, such responsibilities as 

12 the Deputy Secretary of Defense (acting in the 

13 capacity of Chief Management Officer of the 

14 Department of Defense) or a successor official 

15 in the Department of Defense (acting in such 

16 capacity) may prescribe. 

17 (b) PUBLIC COMPANY DEFINED.—In this section, the 

18 term ‘‘public company’’ has the meaning given the term 

19 ‘‘issuer’’ in section 2(a)(7) of the Sarbanes-Oxley Act of 

20 2002 (15 U.S.C. 7201(7)). 


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1 SEC. 6. FAILURE OF THE DEPARTMENT OF DEFENSE TO OB2 TAIN AUDITS WITH UNQUALIFIED OPINION 

3 OF FISCAL YEAR 2018 FINANCIAL STATE4 MENTS. 

5 If the Department of Defense fails to obtain an audit 

6 with an unqualified opinion on its general fund statement 

7 of budgetary resources for fiscal year 2018 by December 

8 31, 2018: 

9 (1) PERMANENT CESSATION OF ENHANCED

10 GENERAL TRANSFER AUTHORITY.—Effective as of 

11 January 1, 2019, the authority in section 4(a) shall 

12 cease to be available to the Department of Defense 

13 for fiscal year 2018 and any fiscal year thereafter. 

14 (2) REORGANIZATION OF RESPONSIBILITIES OF

15 CHIEF MANAGEMENT OFFICER.—Effective as of 

16 April 1, 2019: 

17 (A) POSITION OF CHIEF MANAGEMENT OF18 FICER.—Section 132a of title 10, United States 

19 Code, is amended to read as follows: 

20 ‘‘§ 132a. Chief Management Officer 

21 ‘‘(a) IN GENERAL.—(1) There is a Chief Manage22 ment Officer of the Department of Defense, appointed 

23 from civilian life by the President, by and with the advice 

24 and consent of the Senate. 


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1 ‘‘(2) Any individual nominated for appointment as 

2 Chief Management Officer shall be an individual who 

3 has— 

4 ‘‘(A) extensive executive level leadership and 

5 management experience in the public or private sec6 tor; 

7 ‘‘(B) strong leadership skills; 

8 ‘‘(C) a demonstrated ability to manage large 

9 and complex organizations; and 

10 ‘‘(D) a proven record in achieving positive oper11 ational results. 

12 ‘‘(b) POWERS AND DUTIES.—The Chief Management 

13 Officer shall perform such duties and exercise such powers 

14 as the Secretary of Defense may prescribe. 

15 ‘‘(c) SERVICE AS CHIEF MANAGEMENT OFFICER.— 

16 (1) The Chief Management Officer is the Chief Manage17 ment Officer of the Department of Defense. 

18 ‘‘(2) In serving as the Chief Management Officer of 

19 the Department of Defense, the Chief Management Offi20 cer shall be responsible for the management and adminis21 tration of the Department of Defense with respect to the 

22 following: 

23 ‘‘(A) The expenditure of funds, accounting, and 

24 finance. 


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1 ‘‘(B) Procurement, including procurement of 

2 any enterprise resource planning (ERP) system and 

3 any information technology (IT) system that is a fi4 nancial feeder system, human resources system, or 

5 logistics system. 

6 ‘‘(C) Facilities, property, nonmilitary equip7 ment, and other resources. 

8 ‘‘(D) Strategic planning, annual performance 

9 planning, and identification and tracking of perform10 ance measures. 

11 ‘‘(E) Internal audits and management analyses 

12 of the programs and activities of the Department, 

13 including the Defense Contract Audit Agency. 

14 ‘‘(F) Such other areas or matters as the Sec15 retary of Defense may designate. 

16 ‘‘(3) The head of the Defense Contract Audit Agency 

17 shall be under the supervision of, and shall report directly 

18 to, the Chief Management Officer. 

19 ‘‘(d) PRECEDENCE.—The Chief Management Officer 

20 takes precedence in the Department of Defense after the 

21 Secretary of Defense and the Deputy Secretary of De22 fense.’’. 

23 (B) CONFORMING AMENDMENTS.— 

24 (i) Section 131(b) of title 10, United 

25 States Code, is amended— 


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1 (I) by striking paragraph (3); 

2 (II) by redesignating paragraph 

3 (2) as paragraph (3); and 

4 (III) by inserting after paragraph 

5 (1) the following new paragraph (2): 

6 ‘‘(2) The Chief Management Officer of the De7 partment of Defense.’’. 

8 (ii) Section 132 of such title is 

9 amended— 

10 (I) by striking subsection (c); 

11 and 

12 (II) by redesignating subsections 

13 (d) and (e) as subsections (c) and (d), 

14 respectively. 

15 (iii) Section 133(e)(1) of such title is 

16 amended by striking ‘‘and the Deputy Sec17 retary of Defense’’ and inserting ‘‘, the 

18 Deputy Secretary of Defense, and the 

19 Chief Management Officer of the Depart20 ment of Defense’’. 

21 (iv) Such title is further amended by 

22 inserting ‘‘the Chief Management Officer 

23 of the Department of Defense,’’ after ‘‘the 

24 Deputy Secretary of Defense,’’ each place 

25 it appears in the provisions as follows: 


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1 (I) Section 133(e)(2). 

2 (II) Section 134(c). 

3 (v) Section 137a(d) of such title is 

4 amended by striking ‘‘the Secretaries of 

5 the military departments,’’ and all that fol6 lows and inserting ‘‘the Chief Management 

7 Officer of the Department of Defense, the 

8 Secretaries of the military departments, 

9 and the Under Secretaries of Defense.’’. 

10 (vi) Section 138(d) of such title is 

11 amended by striking ‘‘the Secretaries of 

12 the military departments,’’ and all that fol13 lows through the period and inserting ‘‘the 

14 Chief Management Officer of the Depart15 ment of Defense, the Secretaries of the 

16 military departments, the Under Secre17 taries of Defense, and the Director of De18 fense Research and Engineering.’’. 

19 (C) CLERICAL AMENDMENT.—The table of 

20 sections at the beginning of chapter 4 of such 

21 title is amended by striking the item relating to 

22 section 132a and inserting the following new 

23 item: 

‘‘132a. Chief Management Officer.’’. 


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1 (D) EXECUTIVE SCHEDULE.—Section 

2 5313 of title 5, United States Code, is amended 

3 by adding at the end the following: 

4 ‘‘Chief Management Officer of the Department 

5 of Defense.’’. 

6 (E) REFERENCE IN LAW.—Any reference 

7 in any provision of law to the Chief Manage8 ment Officer of the Department of Defense 

9 shall be deemed to refer to the Chief Manage10 ment Officer of the Department of Defense 

11 under section 132a of title 10, United States 

12 Code (as amended by this paragraph). 

13 (3) JURISDICTION OF DFAS.—Effective as of 

14 April 1, 2019: 

15 (A) TRANSFER TO DEPARTMENT OF THE

16 TREASURY.—Jurisdiction of the Defense Fi17 nance and Accounting Service (DFAS) is trans18 ferred from the Department of Defense to the 

19 Department of the Treasury. 

20 (B) ADMINISTRATION.—The Secretary of 

21 the Treasury shall administer the Defense Fi22 nance and Accounting Service following transfer 

23 under this paragraph through the Financial 

24 Management Service of the Department of the 

25 Treasury. 


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1 (C) MEMORANDUM OF UNDERSTANDING.— 

2 The Secretary of Defense and the Secretary of 

3 the Treasury shall jointly enter into a memo4 randum of understanding regarding the trans5 fer of jurisdiction of the Defense Finance and 

6 Accounting Service under this paragraph. The 

7 memorandum of understanding shall provide for 

8 the transfer of the personnel and other re9 sources of the Service to the Department of the 

10 Treasury and for the assumption of responsi11 bility for such personnel and resources by the 

12 Department of the Treasury. 

13 (D) CONSTRUCTION.—Nothing in this 

14 paragraph shall be construed as terminating, al15 tering, or revising any responsibilities or au16 thorities of the Defense Finance and Account17 ing Service (other than responsibilities and au18 thorities in connection with the exercise of ju19 risdiction of the Service following transfer 

20 under this paragraph). 


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1 SEC. 7. FAILURE OF THE MILITARY DEPARTMENTS TO OB2 TAIN AUDITS WITH UNQUALIFIED OPINION 

3 OF FINANCIAL STATEMENTS FOR FISCAL 

4 YEARS AFTER FISCAL YEAR 2017. 

5 (a) PERMANENT CESSATION OF AUTHORITIES ON

6 REPROGRAMMING OF FUNDS.—If a military department 

7 fails to obtain an audit with an unqualified opinion on its 

8 financial statements for fiscal year 2018 by December 31, 

9 2018, effective as of January 1, 2019, the authorities in 

10 section 4(b) shall cease to be available to the military de11 partment for fiscal year 2018 and any fiscal year there12 after. 

13 (b) ANNUAL PROHIBITION ON EXPENDITURE OF

14 FUNDS FOR CERTAIN MDAPS PAST MILESTONE B IN

15 CONNECTION WITH FAILURE.— 

16 (1) PROHIBITION.—Effective for fiscal years 

17 after fiscal year 2017, if a military department fails 

18 to obtain an audit with an unqualified opinion on its 

19 financial statements for any fiscal year, effective as 

20 of the date of the issuance of the opinion on such 

21 audit, amounts available to the military department 

22 for the following fiscal year may not be obligated by 

23 the military department for a weapon or weapon sys24 tem or platform being acquired as a major defense 

25 acquisition program for any activity beyond Mile26 stone B approval unless such program has already 


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1 achieved Milestone B approval as of the date of the 

2 issuance of the opinion on such audit. 

3 (2) DEFINITIONS.—In this subsection: 

4 (A) The term ‘‘major defense acquisition 

5 program’’ has the meaning given that term in 

6 section 2430 of title 10, United States Code. 

7 (B) The term ‘‘Milestone B approval’’ has 

8 the meaning given that term in section 

9 2366(e)(7) of title 10, United States Code. 

10 SEC. 8. ENTERPRISE RESOURCE PLANNING. 

11 The Secretary of Defense shall amend the acquisition 

12 guidance of the Department of Defense to provide for the 

13 following: 

14 (1) The Defense Business System Management 

15 Committee may not approve procurement of any En16 terprise Resource Planning (ERP) business system 

17 that is independently estimated to take longer than 

18 three years to procure from initial obligation of 

19 funds to full deployment and sustainment. 

20 (2) Any contract for the acquisition of an En21 terprise Resource Planning business system shall in22 clude a provision authorizing termination of the con23 tract at no cost to the Government if procurement 

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1 tial obligation of funds to full deployment and 

2 sustainment. 

3 (3) Any implementation of an Enterprise Re4 source Planning system shall comply with each of 

5 the following: 

6 (A) The current Business Enterprise Ar7 chitecture established by the Chief Management 

8 Officer of the Department of Defense. 

9 (B) The provisions of section 2222 of title 

10 10, United States Code. 

11 (4) The Deputy Secretary of Defense (acting in 

12 the capacity of Chief Management Officer of the De13 partment of Defense) or a successor official in the 

14 Department of Defense (acting in such capacity) 

15 shall have the authority to replace any program 

16 manager (whether in a military department or a De17 fense Agency) for the procurement of an Enterprise 

18 Resource Planning business system if procurement 

19 of the system takes longer than three years from ini20 tial obligation of funds to full deployment and 

21 sustainment. 

22 (5) Any integrator contract for the implementa23 tion of an Enterprise Resource Planning business 

24 system shall only be awarded to companies that have 

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1 terprise Resource Planning business systems for the 

2 Federal Government (whether with the Department 

3 of Defense or another department or agency of the 

4 Federal Government), including meeting cost and 

5 schedule goals. 

Æ 


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