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[Congressional Bills 114th Congress]
[From the U.S. Government Publishing Office]
[H.R. 3572 Reported in House (RH)]

<DOC>

                                                 Union Calendar No. 226
114th CONGRESS
  1st Session
                                H. R. 3572

                          [Report No. 114-297]

 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.

_______________________________________________________________________

                    IN THE HOUSE OF REPRESENTATIVES

                           September 18, 2015

Mr. McCaul (for himself and Mr. Thompson of Mississippi) introduced the 
    following bill; which was referred to the Committee on Homeland 
                                Security

                            October 20, 2015

                Additional sponsor: Mrs. Watson Coleman

                            October 20, 2015

  Reported with an amendment, committed to the Committee of the Whole 
       House on the State of the Union, and ordered to be printed
 [Strike out all after the enacting clause and insert the part printed 
                               in italic]
    [For text of introduced bill, see copy of bill as introduced on 
                          September 18, 2015]

_______________________________________________________________________

                                 A BILL

 
 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.

 

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

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 repepara.aled.
    (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.
                                                 Union Calendar No. 226

114th CONGRESS

  1st Session

                               H. R. 3572

                          [Report No. 114-297]

_______________________________________________________________________

                                 A BILL

 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.

_______________________________________________________________________

                            October 20, 2015

  Reported with an amendment, committed to the Committee of the Whole 
       House on the State of the Union, and ordered to be printed
```