II

103D CONGRESS

1ST SESSION S. 1598

To amend title 10, United States Code, to modernize Department of Defense

acquisition procedures, and for other purposes.

IN THE SENATE OF THE UNITED STATES

OCTOBER 28 (legislative day, OCTOBER 13), 1993

Mr. ROTH (for himself, Mr. COHEN, and Mr. GRASSLEY) introduced the following bill; which was read twice and referred to the Committee on

Armed Services

A BILL

To amend title 10, United States Code, to modernize Department of Defense acquisition procedures, and for other

purposes.

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

3 SECTION 1. SHORT TITLE.

4 This Act may be cited as the ‘‘Department of Defense

5 Acquisition Management Reform Act of 1993’’.

6 SEC. 2. TABLE OF CONTENTS.

7 The table of contents for this Act is as follows:

Sec. 1. Short title.

Sec. 2. Table of contents.

TITLE I—REORGANIZATION AND REFORM OF THE

DEFENSE ACQUISITION SYSTEM
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Subtitle A—Streamlining and Improvement of Acquisition

Management

Sec. 101. Reorganization of acquisition authority.

Sec. 102. Phase funding and review of defense acquisition programs.

Sec. 103. Joint foreign products development.

Subtitle B—Transfer of Functions

Sec. 121. Transfers.

Sec. 122. Savings provisions.

TITLE II—ACQUISITION MANAGEMENT POLICIES

Sec. 201. Acquisition performance goals.

Sec. 202. Implementation of defense acquisition workforce amendments.

Sec. 203. Enhanced encouragement of excellence in the defense acquisition

workforce.

Sec. 204. Program management stability.

TITLE III—CONTRACT FORMATION AND ADMINISTRATION

Subtitle A—Performance Based Contracting

Sec. 301. Use of incentive contracts.

Sec. 302. Progress payments.

Sec. 303. Preference for certified contractors.

Sec. 304. Consideration of past performance and eligibility certification.

Subtitle B—Efficient Contracting Process

Sec. 311. Simplified acquisition threshold.

Sec. 312. Procurement notice for certain contracts not in excess of the simplified acquisition threshold.

Sec. 313. Acquisition of commercial items and nondevelopmental items.

Sec. 314. Specifications and standards.

Sec. 315. Innovative procedures, techniques, and strategies.

Sec. 316. Process oriented contract administration.

Subtitle C—Procurement Protests

Sec. 321. Post-award debriefings.

Sec. 322. Comptroller General remedies.

Subtitle D—Other Matters

Sec. 331. Unification of procurement laws.

TITLE IV—CONFORMING AMENDMENTS

Sec. 401. Modification of the responsibility of the Comptroller of the Department of Defense for defense acquisition budgets.

Sec. 402. The defense acquisition work force.

Sec. 403. Procurement procedures generally.

Sec. 404. Research and development.

Sec. 405. Miscellaneous procurement provisions.

Sec. 406. Major defense acquisition programs.

Sec. 407. Service specific acquisition authority.

Sec. 408. Other laws.
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TITLE V—EFFECTIVE DATES

Sec. 501. Effective dates.

1 TITLE I—REORGANIZATION AND

2 REFORM OF THE DEFENSE

3 ACQUISITION SYSTEM

4 Subtitle A—Streamlining and Im5 provement of Acquisition Man6 agement

7 SEC. 101. REORGANIZATION OF ACQUISITION AUTHORITY.

8 (a) UNDER SECRETARY OF DEFENSE FOR ACQUISI9 TION.—Section 133(b) of title 10, United States Code, is

10 amended—

11 (1) by redesignating paragraphs (3) and (4) as

12 paragraphs (4) and (5), respectively; and

13 (2) by striking out paragraphs (1) and (2) and

14 inserting in lieu thereof the following:

15 ‘‘(1) prescribing policies for research, develop16 ment, and acquisition activities of the Department of

17 Defense;

18 ‘‘(2) planning, programming, and overseeing

19 the research, development, and acquisition activities

20 of the Department of Defense;

21 ‘‘(3) assisting in the preparation and integra22 tion of budgets for the research, development, and

23 acquisition activities of the Department of Defense,

24 including assisting in the planning, programming,
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1 and budgeting system with respect to such activi2 ties;’’.

3 (b) DEFENSE RESEARCH, DEVELOPMENT, AND AC4 QUISITION AGENCY.—(1) Part I of subtitle A of title 10,

5 United States Code, is amended by inserting after chapter

6 9 the following new chapter:

7 ‘‘CHAPTER 10—DEFENSE RESEARCH, DE8 VELOPMENT, AND ACQUISITION AGEN9 CY

‘‘Sec.

‘‘231. Establishment.

‘‘232. Use of agency for all research, development, and acquisition activities.

‘‘233. Duties.

‘‘234. Program executive officers.

‘‘235. Program managers.

‘‘236. Functional analytical capability.

10 ‘‘§ 231. Establishment

11 ‘‘(a) AGENCY.—There is established a Defense Re12 search, Development, and Acquisition Agency in the De13 partment of Defense.

14 ‘‘(b) DIRECTOR.—(1) The head of the agency is the

15 Director of Defense Research, Development, and Acquisi16 tion who shall be appointed by the Under Secretary of De17 fense for Acquisition from among persons who are career

18 professional employees in the acquisition workforce of the

19 Department of Defense.

20 ‘‘(2) A member of the armed forces, while serving as

21 the Director, holds the grade of general or, in the case
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1 of an officer of the Navy, admiral. A civilian, while serving

2 as the Director, holds an equivalent civilian grade.

3 ‘‘(c) CHIEF OF ENGINEERING AND ANALYSIS.—(1)

4 In the Defense Research, Development, and Acquisition

5 Agency there is a Chief of Engineering and Analysis who

6 shall be appointed by the Director from among the career

7 professional employees in the acquisition workforce of the

8 Department of Defense.

9 ‘‘(2) The Director shall evaluate the performance of

10 the Chief of Engineering and Analysis. The Director may

11 not delegate the performance of the evaluation responsibil12 ity.

13 ‘‘(3) The Chief of Engineering and Analysis shall be

14 the senior technical adviser for the Defense Research, De15 velopment, and Acquisition Agency.

16 ‘‘§ 232. Use of agency for all research, development,

17 and acquisition activities

18 ‘‘Subject to sections 3013(h), 5013(h), 8013(h) of

19 this title, the Director shall conduct the research, develop20 ment, and acquisition activities of the Department of De21 fense, including the activities of the research, development,

22 and engineering centers of the Department of Defense.

23 ‘‘§ 233. Duties

24 ‘‘The responsibilities of the Under Secretary of De25 fense for Acquisition that are to be performed by the De-
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1 fense Research, Development, and Acquisition Agency in2 clude the following:

3 ‘‘(1) Planning, programming, and carrying out

4 the research, development, and acquisition activities

5 of the Department of Defense.

6 ‘‘(2) Advising the Secretary of Defense and the

7 Secretaries of the military departments regarding

8 the preparation and integration of the budgets for

9 the research, development, and acquisition activities

10 of the Department of Defense.

11 ‘‘(3) Identifying and informing operational com12 manders regarding alternative technology solutions

13 to fulfill emerging requirements.

14 ‘‘(4) Ensuring that the acquisition plan for

15 each acquisition program realistically reflects the

16 budget and related decisions made for that program.

17 ‘‘(5) Conducting research on management tech18 niques as well as on individual systems.

19 ‘‘§ 234. Program executive officers

20 ‘‘(a) SELECTION AND EVALUATION.—The program

21 executive officers of the Defense Research, Development,

22 and Acquisition Agency shall be selected and evaluated by

23 the Director.

24 ‘‘(b) DUTIES.—The duties of a program executive of25 ficer are as follows:
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1 ‘‘(1) To manage acquisition programs assigned

2 to the program executive officer.

3 ‘‘(2) To manage related technical support re4 sources.

5 ‘‘(3) To establish and conduct integrated deci6 sion team meetings.

7 ‘‘(4) To provide technological advice (including

8 advice regarding costs, schedule, and performance

9 data relating to alternative technological approaches

10 for fulfilling emerging requirements) to users of pro11 gram products and to the officials within the De12 partment of Defense who plan, program, and budget

13 for the acquisition programs assigned to the pro14 gram executive officer.

15 ‘‘(c) ORGANIZATION OF PERSONNEL.—The program

16 executive officers shall be organized on the basis of unique

17 mission areas or, in the case of programs for systems spe18 cifically relating to certain classes of targets, on the basis

19 of target classes. No program executive officer may be or20 ganized with other program executive officers on both

21 bases. The Secretary of Defense shall identify the mission

22 areas or target classes on the basis of which program exec23 utive officers may be organized.

24 ‘‘(d) ACQUISITION LIFE-CYCLE MANAGEMENT.—The

25 responsibilities of a program executive officer for a weapon
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1 acquisition program shall cover the entire life cycle of the

2 program.

3 ‘‘(e) USER AND OPERATOR INTERACTION.—(1) The

4 Chairman of the Joint Chiefs of Staff, in consultation with

5 the Under Secretary of Defense for Acquisition, shall pre6 scribe policies and procedures for the interaction of the

7 commanders of the unified and specified combatant com8 mands with program executive officers regarding the initi9 ation and conduct of weapon acquisition programs. The

10 policies and procedures shall include provisions for ena11 bling such commands to perform operational and accept12 ance testing of weapons acquired pursuant to such pro13 grams.

14 ‘‘(2) The Comptroller of the Department of Defense,

15 in consultation with the Under Secretary of Defense for

16 Acquisition and the Secretaries of the military depart17 ments, shall prescribe policies and procedures for the

18 interaction between the commanders of the unified and

19 specified combatant commands and the program executive

20 officers regarding funding for weapon acquisition pro21 grams.

22 ‘‘§ 235. Program managers

23 ‘‘(a) SELECTION AND EVALUATION.—Each program

24 manager of the Defense Research, Development, and Ac25 quisition Agency shall be selected and evaluated by the
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1 Director and a program executive officer and shall report

2 directly to the program executive officer having primary

3 responsibility for the system being acquired under the pro4 gram.

5 ‘‘(b) DUTIES.—A program manager is responsible for

6 the routine management of a research, development, and

7 acquisition program, including the obtaining of necessary

8 logistical support and support services for that program.

9 ‘‘(c) RELATIONSHIP TO PROGRAM EXECUTIVE OFFI10 CERS.—The management functions of a program manager

11 should not duplicate the management functions of a pro12 gram executive officer.

13 ‘‘§ 236. Functional analytical capability

14 ‘‘(a) RESPONSIBILITY OF CHIEF OF ENGINEERING

15 AND ANALYSIS.—The Chief of Engineering and Analysis

16 shall be responsible for ensuring that each of the func17 tional analytical capabilities provided to the Director, ac18 quisition program executive officers, and acquisition pro19 gram managers in connection with acquisition programs

20 of the Department of Defense is the most advanced capa21 bility of its type.

22 ‘‘(b) FUNCTIONAL ANALYTICAL CAPABILITIES.—The

23 functional analytical capabilities referred to in subsection

24 (a) are as follows:

25 ‘‘(1) Cost and affordability analysis.
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1 ‘‘(2) Logistics and support analysis.

2 ‘‘(3) Reliability and maintainability analysis.

3 ‘‘(4) Producibility analysis.

4 ‘‘(5) Environmental analysis.

5 ‘‘(6) Configuration management.

6 ‘‘(7) Warfighting and battlefield performance

7 and utility analysis.

8 ‘‘(8) System engineering.

9 ‘‘(9) Any other analytical capability that may

10 be necessary for ensuring the timeliness, perform11 ance, and affordability of acquisition programs.’’.

12 (2) The tables of chapters at the beginning of subtitle

13 A of title 10, United States Code, and at the beginning

14 of part I of such subtitle, are amended by inserting after

15 the item relating to chapter 9 the following new item:

‘‘10. Defense Research, Development, and Acquisition Agency ............... 231’’.

16 (c) LIMITATION OF PROCUREMENT AUTHORITY OF

17 MILITARY DEPARTMENTS.—(1) Section 3013 of title 10,

18 United States Code, is amended—

19 (A) in subsection (b)—

20 (i) by striking out ‘‘and subject to the pro21 visions of chapter 6’’ and inserting in lieu

22 thereof ‘‘, subject to the provisions of chapter

23 6, and subject to subsection (h),’’; and

24 (ii) in paragraph (4), by striking out ‘‘(in25 cluding research and development)’’; and
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1 (B) by adding at the end the following new sub2 section:

3 ‘‘(h)(1) The Secretary of the Army shall be respon4 sible for procurements of property and services, and may

5 exercise authority to conduct such procurements, only to

6 the extent that the Secretary of Defense determines nec7 essary for the sustainment of operations of the Army. The

8 Secretary of Defense shall prescribe in regulations the ex9 tent of the responsibility and authority of the Secretary

10 of the Army for procurements of property and services.

11 ‘‘(2) In conducting a procurement in accordance with

12 paragraph (1), the Secretary of the Army shall be subject

13 to the same laws as are applicable to acquisitions con14 ducted by the Secretary of Defense.’’.

15 (2) Section 5013 of title 10, United States Code, is

16 amended—

17 (A) in subsection (b)—

18 (i) by striking out ‘‘and subject to the pro19 visions of chapter 6’’ and inserting in lieu

20 thereof ‘‘, subject to the provisions of chapter

21 6, and subject to subsection (h),’’; and

22 (ii) in paragraph (4), by striking out ‘‘(in23 cluding research and development)’’; and

24 (B) by adding at the end the following new sub25 section:
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1 ‘‘(h)(1) The Secretary of the Navy shall be respon2 sible for procurements of property and services, and may

3 exercise authority to conduct such procurements, only to

4 the extent that the Secretary of Defense determines nec5 essary for the sustainment of operations of the Navy. The

6 Secretary of Defense shall prescribe in regulations the ex7 tent of the responsibility and authority of the Secretary

8 of the Navy for procurements of property and services.

9 ‘‘(2) In conducting a procurement in accordance with

10 paragraph (1), the Secretary of the Navy shall be subject

11 to the same laws as are applicable to acquisitions con12 ducted by the Secretary of Defense.’’.

13 (3) Section 8013 of title 10, United States Code, is

14 amended—

15 (A) in subsection (b)—

16 (i) by striking out ‘‘and subject to the pro17 visions of chapter 6’’ and inserting in lieu

18 thereof ‘‘, subject to the provisions of chapter

19 6, and subject to subsection (h),’’; and

20 (ii) in paragraph (4), by striking out ‘‘(in21 cluding research and development)’’; and

22 (B) by adding at the end the following new sub23 section:

24 ‘‘(h)(1) The Secretary of the Air Force shall be re25 sponsible for procurements of property and services, and
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1 may exercise authority to conduct such procurements, only

2 to the extent that the Secretary of Defense determines

3 necessary for the sustainment of operations of the Air

4 Force. The Secretary of Defense shall prescribe in regula5 tions the extent of the responsibility and authority of the

6 Secretary of the Air Force for procurements of property

7 and services.

8 ‘‘(2) In conducting a procurement in accordance with

9 paragraph (1), the Secretary of the Air Force shall be sub10 ject to the same laws as are applicable to acquisitions con11 ducted by the Secretary of Defense.’’.

12 (4) Section 2302(1) of title 10, United States Code,

13 is amended by striking out ‘‘the Secretary of the Army,

14 the Secretary of the Navy, the Secretary of the Air

15 Force,’’.

16 SEC. 102. PHASE FUNDING AND REVIEW OF DEFENSE AC17 QUISITION PROGRAMS.

18 (a) IN GENERAL.—Chapter 131 of title 10, United

19 States Code, is amended by adding at the end the follow20 ing new section:

21 ‘‘§ 2219. Results oriented acquisition program cycle

22 ‘‘The Secretary of Defense shall define in regulations

23 a simplified acquisition program cycle that is results-ori24 ented and consists of the following phases:
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1 ‘‘(1) The integrated decision team meeting

2 which—

3 ‘‘(A) may be requested by a potential user

4 of the system or component to be acquired, the

5 head of a laboratory, or a program office on

6 such bases as the emergence of a new military

7 requirement, cost savings opportunity, or new

8 technology opportunity;

9 ‘‘(B) shall be conducted by a program ex10 ecutive officer; and

11 ‘‘(C) shall usually be completed within 1 to

12 3 months.

13 ‘‘(2) The prototype development and testing

14 phase which—

15 ‘‘(A) shall include operational tests and

16 concerns relating to manufacturing operations

17 and life cycle support;

18 ‘‘(B) shall usually be completed within 6 to

19 36 months; and

20 ‘‘(C) shall produce sufficient numbers of

21 prototypes to assess operational utility.

22 ‘‘(3) Product integration, development, and

23 testing which—
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1 ‘‘(A) includes full-scale development, oper2 ational testing, and integration of components;

3 and

4 ‘‘(B) shall usually be completed within 1 to

5 5 years.

6 ‘‘(4) Production, integration into existing sys7 tems, or production and integration into existing

8 systems.

9 ‘‘§ 2220. Funding for results oriented acquisition pro10 gram cycle

11 ‘‘(a) PROGRAM PHASE DETAILS TO BE SUBMITTED

12 TO CONGRESS.—Before initial funding is made available

13 for a phase of the acquisition program cycle of an acquisi14 tion program which requires Congressional Authorization

15 of appropriations, the Secretary of Defense shall submit

16 to Congress information about the objectives and plans for

17 the conduct of that phase and the funding requirements

18 for the entire phase. The Secretary shall include in such

19 information objective, quantifiable criteria for assessing

20 the extent to which the stated objectives and goals are

21 achieved.

22 ‘‘(b) FULL PHASE FUNDING.—(1) In authorizing ap23 propriations for an acquisition program that requires Con24 gressional Authorization, Congress shall provide in an Act

25 authorizing appropriations for the Department of Defense
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1 an authorization of appropriations for a phase of the ac2 quisition program in a single amount that is sufficient for

3 carrying out that phase. Such an authorization of appro4 priations shall be stated in the Act as a specific item.

5 ‘‘(2) In each Act making appropriations for the De6 partment of Defense Congress shall specify the phase of

7 each such acquisition program of the department for

8 which an appropriation is made and the amount of the

9 appropriation for the phase of that program.

10 ‘‘§ 2221. Major program decision

11 ‘‘(a) SINGLE MAJOR DECISION POINT.—The acquisi12 tion program approval process within the Department of

13 Defense shall have one major decision point which shall

14 occur for an acquisition program before that program pro15 ceeds into product integration and development.

16 ‘‘(b) DETERMINATIONS AT DECISION POINT.—At the

17 major decision point for an acquisition program, the

18 Under Secretary of Defense for Acquisition in consultation

19 with the Vice Chairman Joint Chief of Staff shall—

20 ‘‘(1) review the program;

21 ‘‘(2) determine whether the program should

22 continue to be carried out beyond product integra23 tion and development; and

24 ‘‘(3) decide whether—

25 ‘‘(A) to commit to further development;
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1 ‘‘(B) to require further prototyping; or

2 ‘‘(C) to terminate the program.

3 ‘‘(c) CONSIDERATIONS.—In the review of an acquisi4 tion program, the Under Secretary shall consider the po5 tential benefits, affordability, needs, and risks of the pro6 gram.’’.

7 (b) CLERICAL AMENDMENT.—The table of sections

8 at the beginning of chapter 131 of title 10, United States

9 Code, is amended by adding at the end the following new

10 items:

‘‘2219. Results oriented acquisition program cycle.

‘‘2220. Funding for results oriented acquisition program cycle.

‘‘2221. Major program decision.’’.

11 SEC. 103. JOINT FOREIGN PRODUCTS DEVELOPMENT.

12 Section 153 of title 10, United States Code, is

13 amended by adding at the end the following new sub14 section:

15 ‘‘(c) RECOMMENDATIONS FOR JOINT DEVELOPMENT

16 OF FOREIGN PRODUCTS.—The Chairman of the Joint

17 Chiefs of Staff, in consultation with the commanders of

18 the unified and specified combatant commands, shall make

19 recommendations to the Under Secretary of Defense for

20 Acquisition regarding the desirability of joint development

21 by the United States and one or more foreign countries

22 of systems proposed to be developed, or under develop23 ment, by such foreign country or foreign countries.’’.
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1 Subtitle B—Transfer of Functions

2 SEC. 121. TRANSFERS.

3 (a) MILITARY DEPARTMENTS.—Except as provided

4 in subsection (c), all research, development, and acquisi5 tion functions of the Secretaries of the military depart6 ments are transferred to the Secretary of Defense.

7 (b) PROCUREMENT AGENCIES, COMMANDS, AND OF8 FICES.—Except as provided in subsection (c), there is

9 transferred to the Defense Research, Development, and

10 Acquisition Agency referred to in section 231(a) of title

11 10, United States Code (as added by section 101), all

12 functions of the following organizations:

13 (1) The Defense Logistics Agency.

14 (2) The Advanced Research Projects Agency.

15 (3) The following procurement commands of

16 the Army:

17 (A) The Army Materiel Command.

18 (B) The Army Information Systems Com19 mand.

20 (C) The Army Strategic Defense Com21 mand.

22 (4) The following procurement commands of

23 the Navy and Marine Corps:

24 (A) The Navy weapons systems commands.
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1 (B) The Navy Strategic Systems Program

2 Office.

3 (C) The Marine Corps Research, Develop4 ment and Acquisition Command.

5 (5) The Air Force Materiel Command.

6 (6) Any successor organization to any agency,

7 command, or office named in paragraphs (1)

8 through (5).

9 (7) Each agency or command within the De10 partment of Defense not referred to in paragraphs

11 (1) through (6) that, on the day before the effective

12 date of this title, has as a primary mission or func13 tion the performance of a research, development, or

14 acquisition function of the Department of Defense.

15 (c) FUNCTIONS NOT TRANSFERRED.—(1) The fol16 lowing functions of the Secretaries of the military depart17 ments are not transferred to the Secretary of Defense:

18 (A) Functions that relate to planning, program19 ming, and budgeting.

20 (B) Functions to be performed by the Secretary

21 of a military department pursuant to section

22 3013(h), 5013(h), or 8013(h) of title 10, United

23 States Code, as added by section 101(c).

24 (2) To the extent prescribed by the Secretary of De25 fense, functions referred to in paragraph (1)(B) that are
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1 performed by an organization referred to in subsection (b)

2 need not be transferred in accordance with that sub3 section.

4 (d) TERMINATION OF ORGANIZATION.—The Sec5 retary of Defense shall terminate each organization from

6 which all of its functions are transferred under subsection

7 (b).

8 SEC. 122. SAVINGS PROVISIONS.

9 (a) REGULATIONS, INSTRUMENTS, RIGHTS, AND

10 PRIVILEGES.—All rules, regulations, contracts, orders, de11 terminations, permits, certificates, licenses, grants, and

12 privileges—

13 (1) which have been issued, made, granted, or

14 allowed to become effective by the Secretary or other

15 officer or employee of a military department, the

16 head of a Defense Agency of the Department of De17 fense, or by a court of competent jurisdiction, in

18 connection with any research, development, or acqui19 sition activity of a military department or Defense

20 Agency, and

21 (2) which are in effect on the effective date of

22 this title,

23 shall continue in effect according to their terms until

24 modified, terminated, superseded, set aside, or revoked in

25 accordance with law by the Secretary of Defense, the
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1 Under Secretary of Defense for Acquisition, or another

2 authorized official, by a court of competent jurisdiction,

3 or by operation of law.

4 (b) PROCEEDINGS AND APPLICATIONS.—(1)(A) The

5 provisions of this subtitle shall not affect any proceeding,

6 including any proceeding involving a claim or application,

7 in connection with any acquisition activity of a military

8 department or a Defense Agency of the Department of De9 fense that is pending before that military department or

10 Defense Agency on the effective date of this title.

11 (B) Orders may be issued in any such proceeding,

12 appeals may be taken therefrom, and payments may be

13 made pursuant to such orders, as if this Act had not been

14 enacted. An order issued in any such proceeding shall con15 tinue in effect until modified, terminated, superseded, or

16 revoked by the Secretary of Defense or the Under Sec17 retary of Defense for Acquisition, by a court of competent

18 jurisdiction, or by operation of law.

19 (C) Nothing in this paragraph prohibits the dis20 continuance or modification of any such proceeding under

21 the same terms and conditions and to the same extent that

22 such proceeding could have been discontinued or modified

23 if this Act had not been enacted.

24 (2) The Secretary of Defense may prescribe regula25 tions providing for the orderly transfer of proceedings con-
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1 tinued under paragraph (1) to the Secretary of Defense

2 or to the Under Secretary of Defense for Acquisition.

3 TITLE II—ACQUISITION

4 MANAGEMENT POLICIES

5 SEC. 201. ACQUISITION PERFORMANCE GOALS.

6 (a) POLICY GOALS.—It is the policy of Congress that,

7 on and after January 1, 2000—

8 (1) the Department of Defense should achieve,

9 on average, 90 percent of the cost and schedule

10 goals established for the research and development

11 programs and acquisition programs of the Depart12 ment of Defense; and

13 (2) the average period necessary for converting

14 an emerging technology into initial operational capa15 bility for the Department of Defense should not ex16 ceed 8 years.

17 (b) IMPLEMENTATION.—Whenever it is necessary in

18 order to implement the policy set out in subsection (a)(1),

19 the Secretary of Defense should—

20 (1) identify and consider for termination re21 search and development programs and acquisition

22 programs of the Department of Defense that are not

23 achieving the cost, performance, and schedule goals

24 of the programs taking into consideration—
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1 (A) the needs of the Department known as

2 of the time of the consideration of such pro3 grams for termination;

4 (B) the state of the technology or tech5 nologies relevant to the programs and to the

6 needs of the Department;

7 (C) the estimated costs and projected

8 schedules necessary for the completion of such

9 programs; and

10 (D) other pertinent information; and

11 (2) identify existing and potential research and

12 development programs and acquisition programs

13 that are suitable alternatives for programs consid14 ered for termination pursuant to paragraph (1).

15 (c) RESPONSIBILITY FOR DEPARTMENTAL OVER16 SIGHT OF COST, PERFORMANCE, AND SCHEDULE

17 GOALS.—(1) Chapter 131 of title 10, United States Code,

18 as amended by section 102(a), is further amended by add19 ing at the end the following new section:

20 ‘‘§ 2222. Responsibility for departmental oversight of

21 cost, performance, and schedule goals of

22 acquisition programs

23 ‘‘(a) COST GOALS.—The Comptroller of the Depart24 ment of Defense shall evaluate the cost goals proposed for
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1 each phase of an acquisition program of the Department

2 of Defense.

3 ‘‘(b) PERFORMANCE AND SCHEDULE GOALS.—The

4 Joint Chiefs of Staff shall approve or define the perform5 ance and schedule goals for acquisition programs of the

6 Department of Defense. The Joint Chiefs of Staff shall

7 approve the performance goals for acquisition programs

8 on the basis of cost, schedule, performance, and risk.’’.

9 (2) CLERICAL AMENDMENT.—The table of sections

10 at the beginning of chapter 131 of title 10, United States

11 Code, as amended by section 102(b), is further amended

12 by adding at the end the following new item:

‘‘2222. Responsibility for departmental oversight of cost, performance, and

schedule goals of acquisition programs.’’.

13 (d) REPORT REQUIREMENT.—The Secretary of De14 fense shall include in the annual report submitted to Con15 gress pursuant to section 113(c) of title 10, United States

16 Code, an assessment of the progress made in implement17 ing the policies set out in subsection (a) and shall include

18 any actions taken or considered in accordance with sub19 section (b).

20 SEC. 202. IMPLEMENTATION OF DEFENSE ACQUISITION

21 WORKFORCE AMENDMENTS.

22 The Congress—

23 (1) urges the Secretary of Defense to expedite

24 the implementation of the provisions of chapter 87
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1 of title 10, United States Code, relating to the ac2 quisition workforce of the Department of Defense;

3 and

4 (2) reemphasizes the importance of ensuring

5 that the acquisition workforce is educated and

6 trained in accordance with the standards set out in

7 the provisions of such chapter.

8 SEC. 203. ENHANCED ENCOURAGEMENT OF EXCELLENCE

9 IN THE DEFENSE ACQUISITION WORKFORCE.

10 (a) ENHANCED SYSTEM OF INCENTIVES AND AD11 VERSE ACTIONS.—(1) The Secretary shall review the in12 centives and personnel actions available to the Secretary

13 for encouraging excellence in the acquisition workforce of

14 the Department of Defense and, to the maximum extent

15 practicable, provide an enhanced system of incentives for

16 the encouragement of excellence in such workforce.

17 (2) The Secretary shall specifically consider whether

18 action should be taken under section 1736 of title 10,

19 United States Code (as added by subsection (b)), in the

20 case of acquisition program executive officers and acquisi21 tion program managers.

22 (3) The Secretary shall prescribe in regulations a sys23 tem of incentives for encouraging professional excellence

24 among the functional analysts (referred to in section 2286
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1 of title 10, United States Code, as added by section 101)

2 in the acquisition workforce.

3 (b) ENHANCED GRADES OF CERTAIN ACQUISITION

4 MANAGERS.—(1) Subchapter III of chapter 87 of title 10,

5 United States Code, is amended—

6 (A) by redesignating sections 1736 and 1737 as

7 sections 1737 and 1738, respectively; and

8 (B) by inserting after section 1735 the follow9 ing new section 1736:

10 ‘‘§ 1736. Grade of certain acquisition managers

11 ‘‘(a) PROGRAM EXECUTIVE OFFICER.—(1)(A) Sub12 ject to subparagraph (B), the position of acquisition pro13 gram executive officer carries the grade of brigadier gen14 eral, rear admiral (lower half), major general, or rear ad15 miral, as the Secretary of Defense determines appropriate.

16 ‘‘(B) The President may designate a position of ac17 quisition program executive officer as a position of impor18 tance and responsibility to carry the grade of lieutenant

19 general or vice admiral under section 601(a) of this title.

20 ‘‘(C) The President or the Secretary of Defense may

21 designate a position of acquisition program executive offi22 cer to carry a grade above brigadier general or rear admi23 ral (lower half) only when the President or Secretary, as

24 the case may be, determines that the member serving in
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1 that position has performed the duties of the position of

2 an acquisition program executive officer with distinction.

3 ‘‘(2) Notwithstanding any other provision of law

4 (other than a provision of law limiting the number of posi5 tions or personnel in a certain grade), the Secretary of

6 Defense may fix the civilian grade of a position of acquisi7 tion program executive officer at a civilian equivalent of

8 a grade referred to in paragraph (1). The Secretary shall

9 fix the civilian grade for the position of a particular em10 ployee at a grade above the civilian equivalent of brigadier

11 general or rear admiral (lower half) only if the Secretary

12 determines that the employee serving in that position has

13 performed the duties of the position of an acquisition pro14 gram executive officer with distinction.

15 ‘‘(b) ACQUISITION PROGRAM MANAGER.—(1)(A) The

16 position of acquisition program manager carries the grade

17 of colonel, brigadier general, or major general, or, in the

18 case of the Navy, captain, rear admiral (lower half), or

19 rear admiral, as the Secretary of Defense determines ap20 propriate.

21 ‘‘(B) The Secretary of Defense may designate a posi22 tion of acquisition program manager to carry a grade

23 above colonel or (in the case of the Navy) captain only

24 when the Secretary determines that the member serving
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1 in that position has performed the duties of the position

2 of an acquisition program manager with distinction.

3 ‘‘(2) Notwithstanding any other provision of law

4 (other than a provision of law limiting the number of posi5 tions or personnel in a certain grade), the Secretary of

6 Defense may fix the civilian grade of the position of civil7 ian acquisition program manager at a civilian equivalent

8 of a grade referred to in paragraph (1). The Secretary

9 shall fix the civilian grade for the position of a particular

10 employee at a grade above the civilian equivalent of colonel

11 or (in the case of the Navy) captain only if the Secretary

12 determines that the employee serving in that position has

13 performed the duties of the position of an acquisition pro14 gram executive officer with distinction.’’.

15 (2) The table of sections at the beginning of such sub16 chapter is amended by striking out the items relating to

17 sections 1736 and 1737 and inserting in lieu thereof the

18 following:

‘‘1736. Grade of certain acquisition managers.

‘‘1737. Applicability.

‘‘1738. Definitions and general provisions.’’.

19 (c) PAY FOR PERFORMANCE IN ACQUISITION POSI20 TIONS.—(1) Subchapter II of chapter 87 of title 10, Unit21 ed States Code, is amended—

22 (A) by redesignating sections 1725 as 1726;

23 and
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1 (B) by inserting after section 1724 the follow2 ing new section 1725:

3 ‘‘§ 1725. Pay for performance

4 ‘‘(a) PAY RATES.—(1) The Secretary of Defense may

5 provide for the pay rate of an employee in an acquisition

6 position within the Department of Defense to be based,

7 to an appropriate extent, on specific criteria that relates

8 the pay rate of such employee to the employee’s contribu9 tion to the achievement of the policy goals set forth in

10 section 201 of the Department of Defense Acquisition

11 Management Reform Act of 1993.

12 ‘‘(2) A pay rate established pursuant to paragraph

13 (1) for an employee in a position referred to in that sub14 section may not exceed the lesser of—

15 ‘‘(A) the amount equal to 130 percent of the

16 maximum pay rate prescribed under law (other than

17 paragraph (1)) for the grade or other pay level of

18 that position; or

19 ‘‘(B) the rate of basic pay payable for level V

20 of the Executive Schedule.

21 ‘‘(b) RELATIONSHIP OF PERSONNEL BUDGET TO

22 ACHIEVEMENT OF GOALS.—The Secretary of Defense, in

23 approving or formulating the personnel budget of a mili24 tary department or Defense Agency for a fiscal year, shall

25 consider whether increased funding is appropriate on the
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1 basis of the achievement by the military department or

2 Defense Agency of the schedule, performance, and cost

3 goals for acquisition programs of the Department of De4 fense referred to in section 201 of the Department of De5 fense Acquisition Management Reform Act of 1993.’’.

6 (2) The table of sections at the beginning of such sub7 chapter is amended by striking out the item relating to

8 section 1725 and inserting in lieu thereof the following:

‘‘1725. Pay for performance.

‘‘1726. Office of Personnel Management approval.’’.

9 SEC. 204. PROGRAM MANAGEMENT STABILITY.

10 (a) ASSIGNMENT PERIOD FOR PROGRAM MAN11 AGERS.—Section 1734 of title 10, United States Code, is

12 amended—

13 (1) in subsection (b)—

14 (A) in paragraph (1)—

15 (i) by striking out ‘‘the major mile16 stone’’ in subparagraph (A) and all that

17 follows through the semicolon in such sub18 paragraph and inserting in lieu thereof ‘‘a

19 phase in the acquisition program cycle;’’;

20 and

21 (ii) by striking out the second sen22 tence and inserting in lieu thereof the fol23 lowing:
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1 ‘‘Except as provided in subsection (c), a person in the po2 sition of program manager or deputy program manager

3 may not be reassigned from such position before comple4 tion of a phase in the acquisition program cycle.’’; and

5 (B) in paragraph (2)—

6 (i) in the first sentence, by striking

7 out ‘‘the first major milestone’’ and all

8 that follows in the first sentence and in9 serting in lieu thereof ‘‘a phase of the ac10 quisition program cycle.’’; and

11 (ii) in the second sentence, by striking

12 out ‘‘Secretary concerned under subsection

13 (d)’’ and inserting in lieu thereof ‘‘Sec14 retary of Defense under subsection (c)’’;

15 and

16 (2) by striking out subsection (c).

17 (b) WAIVER AUTHORITY.—Such section is further

18 amended by striking out subsection (d) and inserting in

19 lieu thereof the following:

20 ‘‘(c) WAIVER OF ASSIGNMENT PERIOD.—(1) With re21 spect to a person assigned to a critical acquisition position,

22 the Secretary of Defense may waive the prohibition on re23 assignment of that person (in subsection (a)(1) or (b)(1))

24 and the service obligation in an agreement executed by

25 that person (under subsection (a)(2) or (b)(2)), but only
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1 in exceptional circumstances (specified in regulations pre2 scribed by the Secretary) in which a waiver is necessary.

3 ‘‘(2) The Director of Acquisition Education, Train4 ing, and Career Development shall maintain a written

5 record of the rationale for each waiver granted under this

6 subsection.’’.

7 (c) CONFORMING AMENDMENTS AND DEFINITION.—

8 Such section is further amended—

9 (1) by redesignating subsection (e) as sub10 section (d) and—

11 (A) in paragraph (1) of such subsection,

12 by striking out ‘‘a program manager, after com13 pletion of a major program milestone, whichever

14 is longer’’ in the first sentence and inserting in

15 lieu thereof ‘‘a program manager or deputy pro16 gram manager, after completion of a phase of

17 the acquisition program cycle’’; and

18 (B) in paragraph (2) of such subsection,

19 by striking out ‘‘of the department concerned’’

20 in the first sentence;

21 (2) by redesignating subsection (f) as sub22 section (e); and

23 (3) by striking out subsections (g) and (h) and

24 inserting in lieu thereof the following:
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1 ‘‘(f) In this section, the term ‘phase of an acquisition

2 program cycle’ shall have the meaning given such term

3 in the regulations prescribed pursuant to section 2219(b)

4 of this title.’’.

5 TITLE III—CONTRACT FORMA6 TION AND ADMINISTRATION

7 Subtitle A—Performance Based

8 Contracting

9 SEC. 301. USE OF INCENTIVE CONTRACTS.

10 Section 2306(c) of title 10, United States Code, is

11 amended to read as follows:

12 ‘‘(c) The program executive officer of an acquisition

13 program may determine the type of contract to be used

14 when entering into a contract under the program. The

15 program executive officer shall use an incentive type con16 tract unless the program executive officer determines that

17 such a contract would inhibit achievement of acquisition

18 performance goals.’’.

19 SEC. 302. PROGRESS PAYMENTS.

20 Section 2307 of title 10, United States Code, is

21 amended—

22 (1) by redesignating subsections (b), (c), (d),

23 and (e) as subsections (c), (d), (e), and (f), respec24 tively; and
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1 (2) by inserting after subsection (a) the follow2 ing new subsection (b):

3 ‘‘(b) Payments under subsection (a) may be made on

4 any of the following bases:

5 ‘‘(1) Performance measured by statistical proc6 ess controls.

7 ‘‘(2) Event accomplishment.

8 ‘‘(3) Other quantifiable measures of results.’’.

9 SEC. 303. PREFERENCE FOR CERTIFIED CONTRACTORS.

10 (a) PERFORMANCE CERTIFICATION SYSTEM.—Chap11 ter 137 of title 10, United States Code is amended by in12 serting after section 2319 the following new section:

13 ‘‘§ 2319a. Contractor performance certification sys14 tem

15 ‘‘(a) CERTIFICATION AUTHORIZED.—The Secretary

16 of Defense may establish a contractor certification system

17 for the procurement of particular property or services that

18 are procured by the Department of Defense on a repetitive

19 basis. Under the system, the Secretary shall use competi20 tive procedures to certify contractors as eligible for con21 tracts to furnish such property or services. The Secretary

22 shall award certifications on the basis of the relative effi23 ciency and effectiveness of the business practices, level of

24 quality, and demonstrated contract performance of the re-
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1 sponding contractors with regard to the particular prop2 erty or services.

3 ‘‘(b) PROCUREMENT FROM CERTIFIED CONTRAC4 TORS.—The head of an agency within the Department of

5 Defense may enter into a contract for a procurement of

6 property or services referred to in subsection (a) on the

7 basis of a competition among contractors certified with re8 spect to such property or services pursuant to that sub9 section.

10 ‘‘(c) TERMINATION OF CERTIFICATION.—The Sec11 retary—

12 ‘‘(1) may provide for the termination of a cer13 tification awarded a contractor under this section

14 upon the expiration of a period specified by the Sec15 retary; and

16 ‘‘(2) may revoke a certification awarded a con17 tractor under this section upon a determination that

18 the quality of performance of the contractor does not

19 meet standards applied by the Secretary as of the

20 time of the revocation decision.’’.

21 (b) CLERICAL AMENDMENT.—The table of sections

22 at the beginning of such chapter is amended by inserting

23 after the item relating to section 2319 the following:

‘‘2319a. Contractor performance certification system.’’.
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1 SEC. 304. CONSIDERATION OF PAST PERFORMANCE AND

2 ELIGIBILITY CERTIFICATION.

3 Section 2305 of title 10, United States Code, is

4 amended—

5 (1) in subsection (a)(2)(A)(i)—

6 (A) by striking out ‘‘(including price)’’ and

7 inserting in lieu thereof ‘‘(including price, past

8 contract performance of the offeror, and any

9 certification of the offeror under section 2319a

10 of this title)’’; and

11 (B) by striking out ‘‘cost- or price-related

12 factors, and noncost- or nonprice-related fac13 tors’’ and inserting in lieu thereof the following:

14 ‘‘cost-related or price-related factors, past con15 tract performance of the offeror, any certifi16 cation of the offeror under section 2319a of this

17 title, and other noncost-related or price-related

18 factors’’;

19 (2) in subsection (b)—

20 (A) in paragraph (3), by striking out ‘‘and

21 the other price-related factors included in the

22 solicitation’’ in the second sentence and insert23 ing in lieu thereof ‘‘, the other price-related fac24 tors included in the solicitation, the past con25 tract performance (if any) of the offerors, and
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1 any certification of offerors under section

2 2319a of this title’’; and

3 (B) in paragraph (4)(B), by striking out

4 ‘‘and the other factors included in the solicita5 tion’’ in the first sentence and inserting in lieu

6 thereof ‘‘, the past contract performance (if

7 any) of the offerors, any certification of offerors

8 under section 2319a of this title, and the other

9 factors included in the solicitation’’;

10 (3) in subsection (c)(1), by inserting ‘‘past per11 formance of the offerors, any certification of offerors

12 under section 2319a of this title,’’ after ‘‘(consider13 ing quality, price, delivery,’’; and

14 (4) by adding at the end the following new sub15 section:

16 ‘‘(e) The Secretary of Defense shall maintain a con17 tractor performance data base. The Secretary shall include

18 in the data base information on the history of the perform19 ance of each contractor under Department of Defense con20 tracts and, for each such contract performed by the con21 tractor, a technical evaluation of the contractor’s perform22 ance prepared by the acquisition program manager re23 sponsible for the contract. The Secretary shall make infor24 mation in the data base available to acquisition program
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1 executive officers and acquisition program managers of

2 the Department of Defense.’’.

3 Subtitle B—Efficient Contracting

4 Process

5 SEC. 311. SIMPLIFIED ACQUISITION THRESHOLD.

6 (a) SIMPLIFIED CONTRACTING FOR CONTRACTS NOT

7 EXCEEDING $100,000.—Section 2302(7) of title 10, Unit8 ed States Code, is amended to read as follows:

9 ‘‘(7) The term ‘simplified acquisition threshold’

10 means $100,000.’’.

11 (b) SIMPLIFIED ACQUISITION PROCEDURES.—Sec12 tion 2304(g) of title 10, United States Code, is amended—

13 (1) in paragraph (1), by striking out ‘‘small

14 purchases of property and services’’ and inserting in

15 lieu thereof ‘‘purchases of property and services not

16 in excess of the simplified acquisition threshold’’;

17 (2) by striking out paragraph (2);

18 (3) by redesignating paragraphs (3) and (4) as

19 paragraphs (2) and (3), respectively;

20 (4) in paragraph (2), as so redesignated—

21 (A) by striking out ‘‘small purchase

22 threshold’’ and inserting in lieu thereof ‘‘sim23 plified acquisition threshold’’; and
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1 (B) by striking out ‘‘small purchase proce2 dures’’ and inserting in lieu thereof ‘‘simplified

3 procedures’’; and

4 (5) in paragraph (3), as redesignated by para5 graph (3), by striking out ‘‘small purchase proce6 dures’’ and inserting in lieu thereof ‘‘simplified pro7 cedures’’.

8 (c) RESERVATION FOR SMALL BUSINESSES.—Section

9 2304(g) of such title, as amended by subsection (b), is

10 further amended by adding at the end the following new

11 paragraph (4):

12 ‘‘(4) The Secretary of Defense shall reserve for small

13 businesses contracts that are awarded under procedures

14 authorized by paragraph (1) if there are at least two small

15 businesses that compete for such contracts. In using such

16 procedures, for awarding contracts to small businesses or

17 otherwise, the Secretary shall promote competition to the

18 maximum extent practicable.’’.

19 (d) CONFORMING AMENDMENTS.—Title 10, United

20 States Code, is amended as follows:

21 (1) Section 2304(j)(3)(A) is amended by strik22 ing out ‘‘small purchase threshold’’ and inserting in

23 lieu thereof ‘‘simplified acquisition threshold’’.

24 (2) Section 2305(a)(2) is amended by striking

25 out ‘‘small purchases)’’ in the matter above subpara-
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1 graph (A) and inserting in lieu thereof ‘‘purchases

2 not in excess of the simplified acquisition thresh3 old)’’.

4 (3) Section 2306(e)(2)(A) is amended by strik5 ing out ‘‘small purchase threshold’’ and inserting in

6 lieu thereof ‘‘simplified acquisition threshold’’.

7 (4) Subsection (e) of section 2307, as redesig8 nated by section 302(c), is amended by striking out

9 paragraph (3) and inserting in lieu thereof the fol10 lowing:

11 ‘‘(3) This subsection applies to a contract for an

12 amount equal to or greater than the simplified acquisition

13 threshold.’’.

14 (5) Section 2326(g)(1)(B) is amended by strik15 ing out ‘‘small purchase threshold’’ and inserting in

16 lieu thereof ‘‘simplified acquisition threshold’’.

17 (6) Section 2393(d) is amended in the second

18 sentence by striking out ‘‘above the small purchase

19 amount established in section 2304(g) of this title’’

20 and inserting in lieu thereof ‘‘in excess of the sim21 plified acquisition threshold (as defined in section

22 2302(7) of this title)’’.

23 (7) Section 2397(a)(1) is amended by striking

24 out ‘‘small purchase threshold’’ and inserting in lieu

25 thereof ‘‘simplified acquisition threshold’’.
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1 (8) Section 2410i(b)(1) is amended by striking

2 out ‘‘small purchase threshold (as defined in section

3 4(11) of the Office of Federal Procurement Policy

4 Act (41 U.S.C. 403(11)))’’ and inserting in lieu

5 thereof ‘‘simplified acquisition threshold (as defined

6 in section 2302(7) of this title)’’.

7 (e) DAVIS-BACON—(1) IN GENERAL.—The first sec8 tion of the Act of March 3, 1931 (40 U.S.C. 276a), com9 monly referred to as the ‘‘Davis-Bacon Act’’, is amended

10 in subsection (a) by striking out ‘‘$2,000’’ and inserting

11 in lieu thereof ‘‘the simplified acquisition threshold (as de12 fined in section 4(11) of the Office of Federal Procure13 ment Policy Act (41 U.S.C. 403(11)))’’.

14 (2) RELATED REGULATIONS.—Section 2 of the Act

15 of June 13, 1934 (40 U.S.C. 276c) is amended—

16 (A) by inserting after ‘‘engaged’’ the following:

17 ‘‘under contracts in excess of the simplified acquisi18 tion threshold’’; and

19 (B) by adding at the end the following: ‘‘In this

20 section, the term ‘simplified acquisition threshold’

21 has the meaning given such term in section 4(11) of

22 the Office of Federal Procurement Policy Act (41

23 U.S.C. 403(11)).’’.

24 (f) SERVICE CONTRACT ACT.—(1) IN GENERAL.—

25 Section 2(a) of the Service Contract Act of 1965 (41
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1 U.S.C. 351(a)) is amended by striking out ‘‘$2,500’’ and

2 inserting in lieu thereof ‘‘the simplified acquisition thresh3 old’’

4 (2) Section 8 of such Act (41 U.S.C. 357) is amended

5 by adding at the end the following:

6 ‘‘(e) The term ‘simplified acquisition threshold’ has

7 the meaning given such term in section 4(11) of the Office

8 of Federal Procurement Policy Act (41 U.S.C. 403(11)).’’.

9 SEC. 312. PROCUREMENT NOTICE FOR CERTAIN CON10 TRACTS NOT IN EXCESS OF THE SIMPLIFIED

11 ACQUISITION THRESHOLD.

12 (a) DEPARTMENT OF DEFENSE PROCUREMENTS.—

13 (1) Chapter 137 of title 10, United States Code, is amend14 ed by inserting after section 2304 the following new sec15 tion:

16 ‘‘§ 2304a. Procurement Notice

17 ‘‘(a) IN GENERAL.—The Secretary of Defense shall

18 comply with the requirements of section 18 of the Office

19 of Federal Procurement Policy Act (41 U.S.C. 416) in

20 providing notice of procurements of the Department of

21 Defense.

22 ‘‘(b) OTHER NOTICE.—The Secretary of Defense

23 shall establish a system for providing widespread notice

24 of Department of Defense procurements not required to

25 be published in the Commerce Business Daily.’’.
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1 (2) The table of sections at the beginning of such

2 chapter is amended by inserting after the item relating

3 to section 2304 the following:

‘‘2304a. Procurement Notice.’’.

4 (b) AUTOMATED NOTICE AND OFFER SYSTEMS.—(1)

5 The Secretary of Defense may make available solicitations

6 and other notices of procurements by means of an auto7 mated system.

8 (2) The Secretary shall implement a system for auto9 mated submission of offers and quotes for acquisitions of

10 the Department of Defense. The system shall be accessible

11 to commercial offerors, regardless of size, at minimal cost

12 to the offerors and with minimal effort from the offerors.

13 SEC. 313. ACQUISITION OF COMMERCIAL ITEMS AND

14 NONDEVELOPMENTAL ITEMS.

15 (a) PREFERENCE.—Section 2325 of title 10, United

16 States Code, is amended to read as follows:

17 ‘‘§ 2325. Acquisition of commercial items and

18 nondevelopmental items

19 ‘‘(a) LIMITATION ON ACQUISITION OF UNIQUE

20 ITEMS.—The Secretary of Defense may develop and ac21 quire equipment or supplies other than commercial items

22 or nondevelopmental items to meet requirements of the

23 Department of Defense only if no such items are available

24 to meet such requirements.
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1 ‘‘(b) FLEXIBLE ACQUISITION PROCEDURES.—(1)

2 Notwithstanding any other provision of this chapter or of

3 any other law, the Secretary may use flexible acquisition

4 procedures for the acquisition of commercial items and

5 nondevelopmental items.

6 ‘‘(2) The Secretary shall prescribe the flexible proce7 dures authorized for use in acquisitions referred to in

8 paragraph (1). Such procedures shall include—

9 ‘‘(A) procedures identical to the simplified pro10 cedures prescribed pursuant to section 2304(g) of

11 this title for acquisitions not in excess of the sim12 plified acquisition threshold;

13 ‘‘(B) procedures involving a request for

14 quotations and a brief evaluation period; and

15 ‘‘(C) any other procedures that the Secretary

16 considers appropriate.

17 ‘‘(c) DEFINING DEPARTMENTAL NEEDS.—The Sec18 retary of Defense shall ensure that, to the maximum ex19 tent practicable, requirements of the Department of De20 fense with respect to a procurement of equipment or sup21 plies—

22 ‘‘(1) are stated in terms of—

23 ‘‘(A) functions to be performed;

24 ‘‘(B) performance required; or

25 ‘‘(C) essential physical characteristics;
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1 ‘‘(2) are defined so that commercial items or

2 other nondevelopmental items fulfill such require3 ments; and

4 ‘‘(3) are fulfilled through the procurement of

5 commercial items or other nondevelopmental items.

6 ‘‘(d) IMPLEMENTATION.—The Secretary shall ensure

7 that procurement officials in the Department of Defense,

8 to the maximum extent practicable—

9 ‘‘(1) acquire commercial items or other

10 nondevelopmental items to meet the needs of the de11 partment;

12 ‘‘(2) require prime contractors and subcontrac13 tors at all levels under the department contracts to

14 incorporate commercial items or other

15 nondevelopmental items as components of items sup16 plied to the Department of Defense;

17 ‘‘(3) modify requirements in appropriate cases

18 to ensure that the requirements can be met by com19 mercial items or other nondevelopmental items;

20 ‘‘(4) state specifications in terms that enable

21 and encourage bidders and offerors to supply com22 mercial items or other nondevelopmental items in re23 sponse to Department of Defense solicitations;

24 ‘‘(5) revise the department’s procurement poli25 cies, practices, and procedures not required by law
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1 to reduce any impediments in those policies, prac2 tices, and procedures to the acquisition of commer3 cial items and other nondevelopmental items; and

4 ‘‘(6) require training of appropriate personnel

5 in the acquisition of commercial items and other

6 nondevelopmental items.

7 ‘‘(e) INAPPLICABILITY OF COST ACCOUNTING

8 STANDARDS.—Subsections (f) and (h) of section 26 of the

9 Office of Federal Procurement Policy Act (41 U.S.C. 422)

10 do not apply to—

11 ‘‘(1) acquisitions of commercial items; and

12 ‘‘(2) acquisitions of nondevelopmental items de13 scribed in subsection (f)(2)(C) of this section.

14 ‘‘(f) DEFINITIONS.—In this section:

15 ‘‘(1) The term ‘commercial item’ means—

16 ‘‘(A) property, other than real property,

17 that is regularly used by the general public or

18 by nongovernmental entities in the course of

19 normal business operations for purposes other

20 than governmental purposes and—

21 ‘‘(i) has been sold or licensed to the

22 general public;

23 ‘‘(ii) has not been sold or licensed to

24 the general public but has been offered for

25 sale or license to the general public; or
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1 ‘‘(iii) is not yet available in the com2 mercial marketplace but will be made

3 available for commercial delivery within a

4 reasonable period;

5 ‘‘(B) any property that, before undergoing

6 minor modifications to meet Government re7 quirements or modifications customary for that

8 type of property in the commercial marketplace,

9 is a commercial item within the meaning of

10 subparagraph (A);

11 ‘‘(C) any combination of items meeting the

12 requirements of subparagraph (A) or (B) that

13 are of a type customarily combined and sold in

14 combination to the general public; and

15 ‘‘(D) installation services, maintenance

16 services, repair services, training services, and

17 other services if such services are procured for

18 support of an item referred to in subparagraph

19 (A), (B), or (C) and if the source of such serv20 ices—

21 ‘‘(i) offers such services to the general

22 public and the Federal Government con23 temporaneously under similar terms and

24 conditions; and
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1 ‘‘(ii) offers to use the same work force

2 for providing the Federal Government with

3 such services as the source uses for provid4 ing such services to the general public.

5 ‘‘(2) The term ‘nondevelopmental item’

6 means—

7 ‘‘(A) any commercial item;

8 ‘‘(B) any previously developed item of sup9 ply that is in use by a department or agency of

10 the United States, a State or local government,

11 or a foreign government with which the United

12 States has a mutual defense cooperation agree13 ment;

14 ‘‘(C) any item of supply described in sub15 paragraph (A) or (B) that requires only minor

16 modification of the type normally available in

17 the commercial marketplace in order to meet

18 the requirements of the Department of Defense;

19 or

20 ‘‘(D) any item of supply currently being

21 produced that does not meet the requirements

22 of subparagraph (A), (B), or (C) solely because

23 the item—

24 ‘‘(i) is not yet in use; or
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1 ‘‘(ii) is not yet available in the com2 mercial marketplace.’’.

3 (b) CLERICAL AMENDMENT.—The item relating to

4 such section in the table of sections at the beginning of

5 chapter 137 of such title is amended to read as follows:

‘‘2325. Acquisition of commercial items and nondevelopmental items.’’.

6 SEC. 314. SPECIFICATIONS AND STANDARDS.

7 Section 2305(a)(1)(C) of title 10, United States

8 Code, is amended in the second sentence by striking out

9 ‘‘Subject to such needs, specification may’’ and inserting

10 in lieu thereof the following: ‘‘Normally, the specifications

11 shall be the specifications of commercial items or other

12 nondevelopmental items (as defined in section 2325 of this

13 title). When such items cannot meet bona fide needs of

14 the Department of Defense, specifications shall’’.

15 SEC. 315. INNOVATIVE PROCEDURES, TECHNIQUES, AND

16 STRATEGIES.

17 The Secretary of Defense shall provide for use of in18 novative procedures, techniques, and strategies in acquisi19 tion programs of the Department of Defense in order to

20 reduce the time necessary for defining requests for propos21 als and quotes and for selection of sources under such ac22 quisition programs.
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1 SEC. 316. PROCESS ORIENTED CONTRACT ADMINISTRA2 TION.

3 (a) SENSE OF CONGRESS.—It is the sense of Con4 gress that the Defense Logistics Agency should be com5 mended for testing of process-oriented contract adminis6 tration services and that the continued testing of total

7 quality management techniques by such agency should be

8 encouraged.

9 (b) REPORTING REQUIREMENT.—The Secretary of

10 Defense shall include in the annual report submitted to

11 Congress under section 113(c) of title 10, United States

12 Code, an assessment of the testing of process-oriented con13 tract administration services by the Defense Logistics

14 Agency. The assessment shall include, among other mat15 ters considered appropriate by the Secretary, a discussion

16 of the use of measures of performance and a discussion

17 of the overall effectiveness of the program.

18 Subtitle C—Procurement Protests

19 SEC. 321. POST-AWARD DEBRIEFINGS.

20 Section 2305(b) of title 10, United States Code, is

21 amended—

22 (1) by redesignating paragraph (5) as para23 graph (6); and

24 (2) by inserting after paragraph (4) the follow25 ing new paragraph (5):
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1 ‘‘(5)(A) When a contract is awarded by an agency

2 on the basis of competitive proposals, an unsuccessful

3 offeror, upon written request received by the agency within

4 7 days after the date of contract award, shall be debriefed

5 and furnished the basis for the selection decision and con6 tract award. An employee of the agency shall debrief the

7 offeror within 7 days after receipt of the request by the

8 agency.

9 ‘‘(B) The debriefing shall provide the offeror with—

10 ‘‘(i) the agency’s evaluation of the significant

11 weak or deficient factors in the offeror’s offer;

12 ‘‘(ii) the overall evaluated cost of the offer of

13 the contractor awarded the contract and the overall

14 evaluated cost of the offer of the debriefed offeror;

15 ‘‘(iii) the overall ranking of all offers and the

16 total technical and cost scores of all offers;

17 ‘‘(iv) a summary of the rationale for the award;

18 ‘‘(v) in the case of a proposal that incorporates

19 equipment that is a commercial item, the make and

20 model of the item incorporated in the offer of the

21 contractor awarded the contract; and

22 ‘‘(vi) reasonable responses to questions posed by

23 the debriefed offeror as to whether source selection

24 procedures set forth in the solicitation, applicable
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1 regulations, and other applicable authorities were

2 followed by the agency.

3 ‘‘(C) The debriefing may not include point-by-point

4 comparisons of the debriefed offeror’s offer with other of5 fers and may not disclose any information that is exempt

6 from disclosure under section 552 of title 5, including in7 formation relating to—

8 ‘‘(i) trade secrets;

9 ‘‘(ii) privileged or confidential manufacturing

10 processes and techniques; and

11 ‘‘(iii) commercial and financial information that

12 is privileged or confidential, including cost break13 downs, profit, indirect cost rates, and similar infor14 mation.

15 ‘‘(D) Each solicitation for competitive proposals shall

16 include a statement that information described in subpara17 graph (B) may be disclosed in post-award debriefings.

18 ‘‘(E) If, within one year after the date of the contract

19 award and as a result of a successful procurement protest

20 or otherwise, the agency seeks to fulfill the requirement

21 under the contract either on the basis of a new solicitation

22 of offers or on the basis of the best and final offers consid23 ered in the awarding of that contract, the agency shall

24 provide each such offeror with—
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1 ‘‘(i) all information provided in debriefings

2 under this paragraph regarding the offer of the con3 tractor awarded the contract; and

4 ‘‘(ii) all comparable information with respect to

5 the original offerors.

6 ‘‘(F) The contracting officer shall include a summary

7 of the debriefing in the contract file.’’.

8 SEC. 322. COMPTROLLER GENERAL REMEDIES.

9 (a) PERIODS FOR CERTAIN ACTIONS.—Section 3554

10 of title 31, United States Code, is amended—

11 (1) by adding at the end of subsection (b) the

12 following new paragraph:

13 ‘‘(3) If, pursuant to paragraph (1)(B), the Comptrol14 ler General recommends that a Federal agency recompete

15 a contract immediately, the Federal agency shall carry out

16 that recommendation.’’; and

17 (2) in subsection (c), striking out paragraph (1)

18 and inserting in lieu thereof the following:

19 ‘‘(1) If the Comptroller General determines that a so20 licitation for a contract or a proposed award of a contract

21 does not comply with a statute or regulation, the Comp22 troller General may declare an appropriate interested

23 party to be entitled to any of the following:

24 ‘‘(A) Damages.
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1 ‘‘(B) The costs of filing and pursuing the pro2 test, including reasonable attorneys’ fees.

3 ‘‘(C) The costs of bid and proposal prepara4 tion.’’.

5 Subtitle D—Other Matters

6 SEC. 331. UNIFICATION OF PROCUREMENT LAWS.

7 The Administrator for Federal Procurement Policy

8 shall submit to Congress proposed legislation that—

9 (1) unifies the procurement laws applicable to

10 the Department of Defense, the Coast Guard, and

11 the National Aeronautics and Space Administration

12 with the procurement laws applicable to the other

13 departments and agencies of the Federal Govern14 ment; and

15 (2) applies to all departments and agencies of

16 the Federal Government the policies, authorities,

17 procedures, requirements, limitations, and restric18 tions set forth in the provisions of titles I through

19 III of this Act and in the amendments made by such

20 provisions.
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1 TITLE IV—CONFORMING

2 AMENDMENTS

3 SEC. 401. MODIFICATION OF THE RESPONSIBILITY OF THE

4 COMPTROLLER OF THE DEPARTMENT OF DE5 FENSE FOR DEFENSE ACQUISITION BUDG6 ETS.

7 Section 137(c) of title 10, United States Code, is

8 amended in each of paragraphs (2), (3), and (4), by insert9 ing after the paragraph designation the following: ‘‘subject

10 to section 133(b) of this title,’’.

11 SEC. 402. THE DEFENSE ACQUISITION WORK FORCE.

12 (a) GENERAL AUTHORITIES AND RESPONSIBIL13 ITIES.—(1)(A) Sections 1704, 1705, and 1707 of title 10,

14 United States Code, are repealed.

15 (B) The table of sections at the beginning of sub16 chapter I of chapter 87 of such title is amended by strik17 ing out the items relating to sections 1704 through 1707

18 and inserting in lieu thereof the following:

‘‘1704. Acquisition career program boards.’’.

19 (2) Section 1706 of title 10, United States Code, is

20 amended—

21 (A) in the section heading by striking out

22 ‘‘§ 1706’’ and inserting in lieu thereof ‘‘§ 1704’’;

23 (B) by striking out subsection (a) and inserting

24 in lieu thereof the following:
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1 ‘‘(a) ESTABLISHMENT.—The Under Secretary of De2 fense for Acquisition shall establish an acquisition career

3 program board to advise the Under Secretary in managing

4 the accession, training, education, and career development

5 of military and civilian personnel in the acquisition

6 workforce and in selecting individuals for the Acquisition

7 Corps under section 1731 of this title.’’;

8 (C) in subsection (b)—

9 (i) in the first sentence, by striking out

10 ‘‘Each’’ and inserting in lieu thereof ‘‘The’’;

11 and

12 (ii) in the second sentence, by striking out

13 ‘‘service acquisition executive’’ and inserting in

14 lieu thereof ‘‘Under Secretary’’; and

15 (D) in subsection (c)—

16 (i) by striking out ‘‘Secretary of a military

17 department’’ and inserting in lieu thereof

18 ‘‘Under Secretary’’; and

19 (ii) by striking out ‘‘in the department’’.

20 (b) DEFENSE ACQUISITION POSITIONS.—(1) Section

21 1722 of title 10, United States Code, is amended—

22 (A) in subsection (g), by striking out ‘‘Sec23 retary of each military department, acting through

24 the service acquisition executive for that depart-
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1 ment,’’ and inserting in lieu thereof ‘‘Secretary of

2 Defense’’; and

3 (B) in subsection (h), by striking out ‘‘or the

4 Secretary of a military department (as applicable)’’.

5 (2) Section 1724(d) of such title is amended in the

6 first sentence—

7 (A) by striking out ‘‘a military department’’

8 and inserting in lieu thereof ‘‘the Department of De9 fense’’; and

10 (B) by striking out ‘‘of that military depart11 ment’’.

12 (c) ACQUISITION CORPS.—(1) Section 1731 of title

13 10, United States Code, is amended—

14 (A) by striking out subsection (a) and inserting

15 in lieu thereof the following:

16 ‘‘(a) ACQUISITION CORPS.—The Secretary of Defense

17 shall establish a Department of Defense Acquisition

18 Corps.’’; and

19 (B) in subsection (b), by striking out ‘‘an Ac20 quisition Corps’’ and inserting in lieu thereof ‘‘the

21 Acquisition Corps’’.

22 (2) Section 1732 of such title is amended—

23 (A) in subsection (b)—

24 (i) in paragraph (2)(A)(ii), by striking out

25 ‘‘of the employing military department’’; and
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1 (ii) in paragraph (4), by striking out ‘‘or

2 the Secretary of the military department con3 cerned’’; and

4 (B) in subsection (d)—

5 (i) by striking out ‘‘of a military depart6 ment’’ in the first sentence of paragraph (1)

7 and in paragraph (2); and

8 (ii) by striking out ‘‘of that military de9 partment’’ in the first sentence of paragraph

10 (1).

11 (3) Section 1733(a) of such title is amended by strik12 ing out ‘‘an Acquisition Corps’’ and inserting in lieu there13 of ‘‘the Acquisition Corps’’.

14 (4) Section 1734(a) of such title is amended—

15 (A) in paragraph (1)—

16 (i) in the first sentence, by striking

17 out ‘‘Secretary of each military depart18 ment, acting through the service acquisi19 tion executive for that department,’’ and

20 inserting in lieu thereof ‘‘Secretary of De21 fense, acting through the Under Secretary

22 of Defense for Acquisition,’’; and

23 (ii) in the second sentence, by striking

24 out ‘‘concerned’’; and
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1 (B) in paragraph (2), by striking out ‘‘con2 cerned’’ in the second sentence.

3 (5) Section 1738 of title 10, United States Code (as

4 redesignated by section 203(b)(1)(A)), is amended—

5 (A) in subsection (a)—

6 (i) in paragraph (1), by striking out ‘‘an

7 Acquisition Corps’’ and inserting in lieu thereof

8 ‘‘the Acquisition Corps’’; and

9 (ii) in paragraph (5), by striking out ‘‘,

10 serving’’ and all that follows through ‘‘Depart11 ment of Defense’’; and

12 (B) by striking out subsection (c) and inserting

13 in lieu thereof the following:

14 ‘‘(c) WAIVER.—(1) The Secretary of Defense may

15 waive, on a case-by-case basis, the requirements estab16 lished under this subchapter with respect to the assign17 ment of an individual to a particular critical acquisition

18 position. Such a waiver may be granted only if unusual

19 circumstances justify the waiver or if the Secretary deter20 mines that the individual’s qualifications obviate the need

21 for meeting the education, training, and experience re22 quirements established under this subchapter.

23 ‘‘(2) The Secretary shall act through the Under Sec24 retary of Defense for Acquisition in exercising the author25 ity provided in paragraph (1). The authority to grant
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1 waivers under this subsection may be delegated by the

2 Under Secretary only to the Director of Acquisition Edu3 cation, Training, and Career Development.’’.

4 (d) EDUCATION AND TRAINING.—(1) Section

5 1741(c) of title 10, United States Code, is amended to

6 read as follows:

7 ‘‘(c) PROGRAMS.—The Under Secretary shall estab8 lish and implement the education and training programs

9 authorized by this subchapter.’’.

10 (2) Section 1742 of such title is amended by striking

11 out ‘‘require that each military department’’.

12 (3) Section 1743 of such title is amended in the first

13 sentence by striking out ‘‘require that the Secretary of

14 each military department’’.

15 (e) GENERAL MANAGEMENT.—(1) Section 1761(a)

16 of title 10, United States Code, is amended by striking

17 out ‘‘prescribe regulations to ensure that the military de18 partments and Defense Agencies’’.

19 (2) Section 1762(c) of such title is amended—

20 (A) by striking out the parenthetical material in

21 the matter above paragraph (1); and

22 (B) in paragraph (4)(A), by striking out ‘‘an

23 acquisition corps’’ and inserting in lieu thereof ‘‘the

24 Acquisition Corps’’.
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1 (3) Section 1763 of such title is amended by striking

2 out the second sentence.

3 SEC. 403. PROCUREMENT PROCEDURES GENERALLY.

4 Chapter 137 of title 10, United States Code, is

5 amended as follows:

6 (1) Section 2305(d) is amended—

7 (A) in the first sentence of paragraph

8 (1)(A), by striking out ‘‘shall ensure that,’’ and

9 all that follows through ‘‘the head of an agen10 cy’’ and inserting in lieu thereof ‘‘, in preparing

11 a solicitation for the award of a development

12 contract for a major system, shall’’;

13 (B) in the first sentence of paragraph

14 (2)(A), by striking out ‘‘shall ensure that,’’ and

15 all that follows through ‘‘the head of an agen16 cy’’ and inserting in lieu thereof ‘‘, in preparing

17 a solicitation for the award of a production con18 tract for a major system, shall’’;

19 (C) by striking out ‘‘the head of the agen20 cy’’ each place it appears and inserting in lieu

21 thereof ‘‘the Secretary’’; and

22 (D) by striking out ‘‘the head of an agen23 cy’’ each place it appears and inserting in lieu

24 thereof ‘‘the Secretary of Defense’’.

25 (2) Section 2306(h) is amended—
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1 (A) in paragraph (1), by striking out ‘‘the

2 head of an agency’’ in the matter above sub3 paragraph (A) and inserting in lieu thereof ‘‘the

4 Secretary of Defense’’;

5 (B) in paragraph (2)(D), by striking out

6 ‘‘agencies in’’ in the matter above clause (i);

7 (C) in paragraph (3), by striking out ‘‘the

8 head of the agency concerned’’ and inserting in

9 lieu thereof ‘‘the Secretary of Defense’’;

10 (D) by striking out paragraph (7);

11 (E) in paragraph (10), by striking out ‘‘in12 struct the Secretary of the military department

13 concerned to’’; and

14 (F) by redesignating paragraphs (8), (9),

15 (10), and (11) as paragraphs (7), (8), (9), and

16 (10), respectively.

17 (3) Section 2307(e)(7) is amended by striking

18 out the second sentence.

19 (4) Section 2311 is amended—

20 (A) by striking out ‘‘Except as provided

21 in’’ and inserting in lieu thereof ‘‘(a) Except as

22 provided in subsection (b) and’’; and

23 (B) by adding at the end the following new

24 subsection:
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1 ‘‘(b) The Secretary of Defense may delegate any au2 thority of the Secretary under this chapter only to—

3 ‘‘(1) the Deputy Secretary of Defense, who may

4 successively delegate such authority only to the

5 Under Secretary of Defense for Acquisition;

6 ‘‘(2) the Under Secretary of Defense for Acqui7 sition; or

8 ‘‘(3) any acquisition program executive officer

9 or acquisition program manager of the Defense Re10 search, Development, and Acquisition Agency.’’.

11 (5) Section 2318 is amended—

12 (A) in subsection (a), by striking out ‘‘De13 fense Logistics Agency’’ each place it appears

14 and inserting in lieu thereof ‘‘Defense Research,

15 Development, and Acquisition Agency’’; and

16 (B) in subsection (c), by striking out

17 ‘‘Each advocate for competition of an agency’’

18 and inserting in lieu thereof ‘‘The advocate for

19 competition’’.

20 (6) Section 2320(b) is amended—

21 (A) in the matter above paragraph (1), by

22 striking out ‘‘an agency named in section 2303

23 of this title’’ and inserting in lieu thereof ‘‘the

24 Department of Defense’’; and
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1 (B) in paragraph (9), by striking out ‘‘the

2 head of the agency to withhold’’ and inserting

3 in lieu thereof ‘‘the withholding of’’.

4 (7) Section 2324 is amended—

5 (A) in subsection (e)—

6 (i) in paragraph (2)(C), by striking

7 out ‘‘head of the agency awarding the con8 tract’’ and inserting in lieu thereof ‘‘Sec9 retary’’; and

10 (ii) in paragraph (3)—

11 (I) in subparagraph (A), by strik12 ing out the matter above clause (i)

13 and inserting in lieu thereof the fol14 lowing:

15 ‘‘(A) Pursuant to regulations prescribed by the Sec16 retary and subject to the availability of appropriations, the

17 Secretary may waive the application of the provisions of

18 paragraphs (1)(M) and (1)(N) to a covered contract (other

19 than a contract to which paragraph (2) applies) if the Sec20 retary determines that—’’;

21 (II) by striking out ‘‘head of an

22 agency’’ each place it appears in sub23 paragraphs (B) and (C); and

24 (III) in subparagraph (B)(ii), by

25 striking out ‘‘head of the agency will
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1 consider granting such waiver, and, if

2 the agency head’’ and inserting in lieu

3 thereof ‘‘Secretary will consider grant4 ing such waiver, and, if the Sec5 retary’’;

6 (B) in subsection (h)(2), by striking out

7 ‘‘or the Secretary of the military department

8 concerned’’; and

9 (C) in subsection (k)(4)—

10 (i) by striking out ‘‘the head of the

11 agency that awarded the covered contract’’

12 and inserting in lieu thereof ‘‘the Secretary

13 of Defense’’;

14 (ii) by striking out ‘‘the agency head’’

15 and inserting in lieu thereof ‘‘the Sec16 retary’’;

17 (iii) by striking out ‘‘such agency

18 head’’ and inserting in lieu thereof ‘‘the

19 Secretary’’; and

20 (iv) in clause (B), by striking out

21 ‘‘agency’’ and inserting in lieu thereof

22 ‘‘Department of Defense’’.

23 (8) Section 2326 is amended—
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1 (A) by striking out ‘‘head of an agency’’

2 each place it appears and inserting in lieu

3 thereof ‘‘Secretary of Defense’’;

4 (B) by striking out ‘‘head of the agency’’

5 each place it appears and inserting in lieu

6 thereof ‘‘Secretary of Defense’’; and

7 (C) in subsection (a), by striking out ‘‘mili8 tary department concerned’’ and inserting in

9 lieu thereof ‘‘Department of Defense’’.

10 (9) Section 2327 is amended—

11 (A) in subsection (a), by striking out ‘‘The

12 head of an agency’’ and inserting in lieu thereof

13 ‘‘The Secretary of Defense’’;

14 (B) in subsection (b), by striking out ‘‘the

15 head of an agency’’ and inserting in lieu thereof

16 ‘‘the Secretary of Defense’’;

17 (C) in subsection (c)(1)—

18 (i) by striking out ‘‘the head of an

19 agency’’ each place it appears and insert20 ing in lieu thereof ‘‘the Secretary’’; and

21 (ii) by striking out ‘‘such head of an

22 agency’’ each place it appears and insert23 ing in lieu thereof ‘‘the Secretary’’;
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1 (D) in subsection (c)(2), by striking out

2 ‘‘Upon the request of the head of an agency,

3 the’’ and inserting in lieu thereof ‘‘The’’; and

4 (E) in subsection (d)—

5 (i) by striking out ‘‘(1)’’; and

6 (ii) by striking out paragraph (2).

7 (10) Section 2329 is amended—

8 (A) in subsection (a), by striking out the

9 second sentence;

10 (B) in subsection (b), by striking out ‘‘the

11 Secretary of a military department’’ and insert12 ing in lieu thereof ‘‘the Secretary of Defense’’;

13 (C) in subsection (c)—

14 (i) by striking out ‘‘the Secretary con15 cerned’’ each place it appears and inserting

16 in lieu thereof ‘‘the Secretary of Defense’’;

17 and

18 (ii) by striking out the second sen19 tence of paragraph (3).

20 SEC. 404. RESEARCH AND DEVELOPMENT.

21 Chapter 139 of title 10, United States Code, is

22 amended as follows:

23 (1) Section 2352(a) is amended in the matter

24 above paragraph (1)—
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1 (A) by striking out ‘‘The Secretary of a

2 military department’’ and inserting in lieu

3 thereof ‘‘The Secretary of Defense’’; and

4 (B) by striking out ‘‘of that military de5 partment’’.

6 (2) Section 2353 is amended—

7 (A) in the first sentence of subsection

8 (a)—

9 (i) by striking out ‘‘contract of a mili10 tary department’’ and inserting in lieu

11 thereof ‘‘Department of Defense contract’’;

12 and

13 (ii) by striking out ‘‘the Secretary of

14 the military department concerned’’ and

15 inserting in lieu thereof ‘‘the Secretary of

16 Defense’’; and

17 (B) in subsection (b)(3), by striking out

18 ‘‘the Secretary concerned’’ and inserting in lieu

19 thereof ‘‘the Secretary of Defense’’.

20 (3) Section 2354 is amended—

21 (A) in subsection (a), by striking out ‘‘the

22 Secretary of the military department concerned,

23 any contract of a military department’’ and in24 serting in lieu thereof ‘‘the Secretary of De-
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1 fense, any contract of the Department of De2 fense’’;

3 (B) in subsection (c)—

4 (i) by striking out ‘‘the Secretary of

5 the department concerned’’ and inserting

6 in lieu thereof ‘‘the Secretary of Defense’’;

7 and

8 (ii) by striking out ‘‘of his depart9 ment’’; and

10 (C) in subsection (d), by striking out ‘‘the

11 Secretary concerned’’ and inserting in lieu

12 thereof ‘‘the Secretary of Defense’’.

13 (4) Section 2355 is amended—

14 (A) by striking out ‘‘Secretary of each

15 military department’’ and all that follows

16 through ‘‘Comptroller General,’’ and inserting

17 in lieu thereof ‘‘Secretary of Defense, with the

18 approval of the Comptroller General, may’’; and

19 (B) by striking out ‘‘his department’’.

20 (5) Section 2356(a) is amended to read as

21 follows:

22 ‘‘(a)(1) Except as provided in paragraph (2), the Sec23 retary of Defense may delegate any authority under sec24 tion 1584, 2353, 2354, 2355, or 2358 of this title to—
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1 ‘‘(A) the Deputy Secretary of Defense, who may

2 successively delegate such authority only to the

3 Under Secretary of Defense for Acquisition;

4 ‘‘(B) the Under Secretary of Defense for Acqui5 sition; or

6 ‘‘(C) any employee of the Defense Research,

7 Development, and Acquisition Agency.

8 ‘‘(2) The authority of the Secretary under section

9 2353(b)(3) of this title may not be delegated to a person

10 described in paragraph (1)(C).’’.

11 (6) Section 2367(c) is amended to read as fol12 lows:

13 ‘‘(c) Funds appropriated to the Department of De14 fense may not be obligated or expended for purposes of

15 operating a federally funded research center that was not

16 in existence before June 2, 1986, until—

17 ‘‘(1) the Secretary of Defense submits to Con18 gress a report with respect to such center that de19 scribes the purpose, mission, and general scope of ef20 fort of the center; and

21 ‘‘(2) 60 days elapse after the date on which

22 such report is received by Congress.’’.

23 (7) Section 2369 is amended—

24 (A) in subsection (a), by striking out ‘‘a

25 program for the supervision and coordination
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1 of’’ and inserting in lieu thereof ‘‘and conduct

2 appropriate’’; and

3 (B) by striking out subsection (b) and in4 serting in lieu thereof the following:

5 ‘‘(b) PURPOSE OF PRODUCT EVALUATION.—The

6 purpose of each product evaluation activity established

7 under subsection (a) is to evaluate products developed by

8 private industry independent of any contract or other ar9 rangement with the United States in order to determine

10 the utility of such products in the Department of De11 fense.’’.

12 (8) Subsections (a) and (g) of section 2371 are

13 amended by striking out ‘‘in carrying out advanced

14 research projects through the Defense Advanced Re15 search Projects Agency, and the Secretary of each

16 military department,’’.

17 SEC. 405. MISCELLANEOUS PROCUREMENT PROVISIONS.

18 Chapter 141 of title 10, United States Code, is

19 amended as follows:

20 (1) Section 2381 is amended—

21 (A) in subsection (a)—

22 (i) by striking out ‘‘The Secretary of

23 a military department’’ and inserting in

24 lieu thereof ‘‘The Secretary of Defense’’;

25 and
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1 (ii) by striking out ‘‘that department’’

2 in paragraph (1) and inserting in lieu

3 thereof ‘‘the Department of Defense’’; and

4 (B) in subsection (b)—

5 (i) in the matter above paragraph (1),

6 by striking out ‘‘the Secretary concerned’’

7 and inserting in lieu thereof ‘‘the Secretary

8 of Defense’’; and

9 (ii) in paragraph (2), by striking out

10 ‘‘military department concerned’’ and in11 serting in lieu thereof ‘‘Department of De12 fense’’.

13 (2) Section 2385 is amended by striking out ‘‘a

14 military department’’ and inserting in lieu thereof

15 ‘‘the Department of Defense’’.

16 (3) Section 2386 is amended by striking out ‘‘a

17 military department’’ and inserting in lieu thereof

18 ‘‘the Department of Defense’’.

19 (4) Section 2388(a) is amended by striking out

20 ‘‘The Secretary of a military department’’ and in21 serting in lieu thereof ‘‘The Secretary of Defense’’.

22 (5) Section 2393 is amended—

23 (A) in subsection (a)—

24 (i) by striking out ‘‘the Secretary of a

25 military department’’ in paragraph (1) and
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1 inserting in lieu thereof ‘‘the Secretary of

2 Defense’’; and

3 (ii) by striking out ‘‘the Secretary

4 concerned’’ in paragraph (2) and inserting

5 in lieu thereof ‘‘the Secretary of Defense’’;

6 and

7 (B) in subsection (b), by striking out ‘‘the

8 Secretary concerned’’ and inserting in lieu

9 thereof ‘‘the Secretary of Defense’’.

10 (6) Section 2394 is amended—

11 (A) in subsection (a), by striking out ‘‘the

12 Secretary of a military department’’ and insert13 ing in lieu thereof ‘‘the Secretary of Defense’’;

14 (B) by striking out subsection (b); and

15 (C) by redesignating subsection (c) as sub16 section (b).

17 (7) Section 2394a is amended—

18 (A) in subsection (a)—

19 (i) by striking out ‘‘Secretary of a

20 military department’’ and inserting in lieu

21 thereof ‘‘Secretary of Defense’’; and

22 (ii) by striking out ‘‘military depart23 ment under his jurisdiction’’ and inserting

24 in lieu thereof ‘‘Department of Defense’’;

25 and
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1 (B) in subsection (b), by striking out the

2 second sentence.

3 (8) Section 2401(a) is amended by striking out

4 ‘‘The Secretary of a military department’’ both

5 places it appears and inserting in lieu thereof ‘‘The

6 Secretary of Defense’’.

7 (9) Section 2403 is amended—

8 (A) in subsection (a), by striking out para9 graph (8);

10 (B) in subsection (b), by striking out ‘‘the

11 head of an agency’’ in the matter above para12 graph (1) and inserting in lieu thereof ‘‘the

13 Secretary of Defense’’;

14 (C) in subsections (c), (f), and (g), by

15 striking out ‘‘head of the agency concerned’’

16 each place it appears and inserting in lieu

17 thereof ‘‘Secretary of Defense’’;

18 (D) in subsection (d)—

19 (i) by inserting ‘‘(1)’’ after the sub20 section designation;

21 (ii) by redesignating paragraphs (1)

22 and (2) as subparagraphs (A) and (B),

23 respectively;

24 (iii) by striking out the second sen25 tence; and
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1 (iv) by adding at the end the following

2 new paragraph:

3 ‘‘(2) The Secretary may delegate authority under this

4 subsection only to the Under Secretary of Defense for Ac5 quisition.’’; and

6 (E) in subsection (h)—

7 (i) by striking out ‘‘(1)’’; and

8 (ii) by striking out paragraph (2).

9 (10) Section 2405(a) is amended by striking

10 out ‘‘The Secretary of a military department’’ and

11 inserting in lieu thereof ‘‘The Secretary of Defense’’.

12 (11) Section 2406 is amended—

13 (A) in subsection (a)—

14 (i) by striking out ‘‘head of an agen15 cy’’ and inserting in lieu thereof ‘‘Sec16 retary of Defense’’;

17 (ii) by striking out ‘‘with that agen18 cy’’; and

19 (iii) by striking out ‘‘head of the agen20 cy’’ each place it appears and inserting in

21 lieu thereof ‘‘Secretary’’; and

22 (B) in subsection (f)—

23 (i) by striking out paragraph (1);
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1 (ii) by redesignating paragraphs (2),

2 (3), and (4) as paragraphs (1), (2), and

3 (3), respectively;

4 (iii) by striking out ‘‘2432(a)’’ and in5 serting in lieu thereof ‘‘2430’’ in para6 graph (1) (as redesignated by clause (ii));

7 and

8 (iv) by striking out ‘‘the head of an

9 agency’’ and inserting in lieu thereof ‘‘the

10 Secretary of Defense’’ in paragraph (3) (as

11 redesignated by clause (ii)).

12 (12) Section 2411(3) is amended by striking

13 out ‘‘Director of the Defense Logistics Agency’’ and

14 inserting in lieu thereof ‘‘Under Secretary of De15 fense for Acquisition’’.

16 SEC. 406. MAJOR DEFENSE ACQUISITION PROGRAMS.

17 Chapter 144 of title 10, United States Code, is

18 amended as follows:

19 (1) Section 2433 is amended—

20 (A) by striking out ‘‘service acquisition ex21 ecutive designated by the Secretary concerned’’

22 each place it appears and inserting in lieu

23 thereof ‘‘Under Secretary of Defense for Acqui24 sition’’;
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1 (B) in subsection (c)(2), by striking out

2 ‘‘such service acquisition executive’’ each place

3 it appears and inserting in lieu thereof ‘‘the

4 Under Secretary of Defense for Acquisition’’;

5 (C) in subsection (d)—

6 (i) by striking out ‘‘the service acqui7 sition executive’’ in paragraphs (1) and (2)

8 and inserting in lieu thereof ‘‘the Under

9 Secretary’’; and

10 (ii) in paragraph (3), by striking out

11 ‘‘If, based upon the service acquisition ex12 ecutive’s determination, the Secretary con13 cerned’’ and inserting in lieu thereof ‘‘If

14 the Under Secretary of Defense for Acqui15 sition’’; and

16 (D) in subsection (e)—

17 (i) in paragraph (1)(A), by striking

18 out ‘‘Secretary concerned’’ and inserting in

19 lieu thereof ‘‘Under Secretary of Defense

20 for Acquisition’’;

21 (ii) in paragraph (1)(B), by striking

22 out ‘‘Secretary’’ and inserting in lieu

23 thereof ‘‘Under Secretary’’;

24 (iii) in paragraph (2), by striking out

25 ‘‘(as determined by the Secretary’’ in the
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1 matter above subparagraph (A) and insert2 ing in lieu thereof ‘‘(as determined by the

3 Under Secretary’’; and

4 (iv) in paragraph (3), by striking out

5 ‘‘by the Secretary’’ both places it appears

6 in the first sentence and inserting in lieu

7 thereof ‘‘by the Under Secretary’’.

8 (2) Section 2434(b)(1) is amended by striking

9 out ‘‘the military department,’’ and all that follows

10 and inserting in lieu thereof ‘‘Department of De11 fense.’’.

12 (3) Section 2435 is amended—

13 (A) in subsection (a)(1), by striking out

14 the matter above subparagraph (A) and insert15 ing in lieu thereof the following:

16 ‘‘(a) BASELINE DESCRIPTION REQUIREMENT.—(1)

17 The Under Secretary of Defense for Acquisition shall es18 tablish a baseline description for each major defense ac19 quisition program—’’; and

20 (B) in subsection (b)—

21 (i) in paragraph (1), by striking out

22 ‘‘Secretary of the military department con23 cerned and to the service acquisition execu24 tive designated by such Secretary’’ and in-
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1 serting in lieu thereof ‘‘Under Secretary of

2 Defense for Acquisition’’; and

3 (ii) in paragraph (2), in the matter

4 above subparagraph (A)—

5 (I) by striking out ‘‘The Sec6 retary of the military department con7 cerned’’ and inserting in lieu thereof

8 ‘‘The Under Secretary of Defense for

9 Acquisition’’; and

10 (II) by striking out ‘‘180

11 days—’’ and all that follows and in12 serting in lieu thereof the following:

13 ‘‘180 days, establish a review panel to

14 review such program and to submit to

15 the Under Secretary a report on the

16 results of such review within 45 days

17 after the date on which the program

18 deviation report is submitted under

19 paragraph (1).’’.

20 (4) Section 2436 is amended—

21 (A) in subsection (a)—

22 (i) by striking out ‘‘, through the Sec23 retaries of the military departments,’’; and

24 (ii) by striking out ‘‘senior procure25 ment executive of the military department
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1 concerned’’ and inserting in lieu thereof

2 ‘‘Under Secretary of Defense for Acquisi3 tion’’;

4 (B) in subsection (b)—

5 (i) by striking out ‘‘Secretary of a

6 military department’’ and inserting in lieu

7 thereof ‘‘Secretary’’; and

8 (ii) by striking out ‘‘under the juris9 diction of the Secretary’’;

10 (C) in subsection (c)—

11 (i) in paragraph (1), by striking out

12 ‘‘Secretary concerned’’ and inserting in

13 lieu thereof ‘‘Under Secretary of Defense

14 for Acquisition’’; and

15 (ii) in paragraph (3), by striking out

16 ‘‘senior procurement executive’’ and all

17 that follows and inserting in lieu thereof

18 ‘‘Under Secretary.’’; and

19 (D) in subsection (d), by striking out ‘‘the

20 senior procurement executive of the military de21 partment concerned, with the approval of’’.

22 (5)(A) Section 2437 is repealed.

23 (B) The table of sections at the beginning of

24 chapter 144 is amended by striking out the item re25 lating to section 2437.
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1 SEC. 407. SERVICE SPECIFIC ACQUISITION AUTHORITY.

2 (a) ARMY.—Part IV of subtitle B of title 10, United

3 States Code, is amended in sections 4501(c), 4502(a),

4 4503, 4504, 4505, 4506, 4507, 4508(a), 4531, 4532(a),

5 4533, 4535, 4537, 4538, 4540(a), and 4542 (each place

6 it appears) by striking out ‘‘Secretary of the Army’’ and

7 inserting in lieu thereof ‘‘Secretary of Defense’’.

8 (b) NAVY.—Part IV of subtitle C of such title is

9 amended as follows:

10 (1) In sections 7201, 7203(a), 7210(a),

11 7212(a), 7213, 7229, 7299a (each place it appears),

12 7301(a), 7309(e), 7311(a), 7311(b), 7312 (each

13 place it appears), 7314, 7341(a), 7342(b), 7345(a),

14 7361 (each place it appears), 7362, 7364, 7365, and

15 7521, strike out ‘‘Secretary of the Navy’’ and insert

16 in lieu thereof ‘‘Secretary of Defense’’.

17 (2) Section 7203 is amended—

18 (A) in subsection (a), by striking out

19 ‘‘(a)’’; and

20 (B) by striking out subsection (b).

21 (3) Section 7210 is amended—

22 (A) in subsection (a), by striking out

23 ‘‘(a)’’; and

24 (B) by striking out subsection (b).

25 (4) Section 7310(a) is amended by striking out

26 ‘‘Navy’’ the first place it appears in the second sen-
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1 tence and inserting in lieu thereof ‘‘Secretary of De2 fense’’.

3 (5) Section 7311(a)(1) is amended by striking

4 out ‘‘Navy’’ the first place it appears and inserting

5 in lieu thereof ‘‘Secretary of Defense’’.

6 (6) Section 7314(2) is amended by striking out

7 ‘‘Navy’’ and inserting in lieu thereof ‘‘Department of

8 Defense’’.

9 (7) Section 7363 is amended in the first sen10 tence—

11 (A) by striking out ‘‘Department of the

12 Navy’’ and inserting in lieu thereof ‘‘Secretary

13 of Defense’’; and

14 (B) by striking out ‘‘Secretary’’ and insert15 ing in lieu thereof ‘‘Secretary of Defense’’.

16 (8) Section 7521 is amended by striking out

17 ‘‘contract made by the Department of the Navy’’ in

18 the first sentence and inserting in lieu thereof ‘‘con19 tract entered into for the Department of the Navy’’.

20 (9) Section 7522 is amended by striking out

21 ‘‘Secretary of the Navy’’ and all that follows through

22 ‘‘chiefs of bureaus’’ and inserting in lieu thereof

23 ‘‘Secretary of Defense’’.

24 (c) AIR FORCE.—Part IV of subtitle D of such title

25 is amended in sections 9501(c), 9502(a), 9503, 9504,
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1 9505, 9506, 9507, 9511(11), 9531, 9532, 9535, 9537,

2 9538(a), and 9540(a) by striking out ‘‘Secretary of the

3 Air Force’’ and inserting in lieu thereof ‘‘Secretary of De4 fense’’.

5 SEC. 408. OTHER LAWS.

6 In any other provision of law providing authority for

7 the Secretary of a military department or the head of a

8 Defense Agency of the Department of Defense to perform

9 a research, development, or acquisition function of the De10 partment of Defense, the reference to that official shall

11 be deemed to refer to the Secretary of Defense. That func12 tion shall be performed as provided in section 133(b) of

13 title 10, United States Code (as amended by section

14 101(a)), and section 232 of such title (as added by section

15 101(b)).

16 TITLE V—EFFECTIVE DATES

17 SEC. 501. EFFECTIVE DATES.

18 (a) TITLES I AND III.—Titles I, III, and IV, section

19 204, and the amendments made by such titles and section

20 shall take effect on October 1, 1994.

21 (b) TITLE II.—Title II, except section 204, shall take

22 effect on the date of the enactment of this Act.

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