```

[Congressional Bills 116th Congress]
[From the U.S. Government Publishing Office]
[H.R. 3413 Reported in House (RH)]

<DOC>

                                                 Union Calendar No. 148
116th CONGRESS
  1st Session
                                H. R. 3413

                          [Report No. 116-190]

   To amend the Homeland Security Act of 2002 to provide for certain 
 acquisition authorities for the Under Secretary of Management of the 
        Department of Homeland Security, and for other purposes.

_______________________________________________________________________

                    IN THE HOUSE OF REPRESENTATIVES

                             June 21, 2019

 Mr. Crenshaw introduced the following bill; which was referred to the 
                     Committee on Homeland Security

                            August 30, 2019

      Additional sponsors: Mr. Rogers of Alabama and Mr. Hagedorn

                            August 30, 2019

  Reported with an amendment, committed to the Committee of the Whole 
       House on the State of the Union, and ordered to be printed
 [Strike out all after the enacting clause and insert the part printed 
                               in italic]
 [For text of introduced bill, see copy of bill as introduced on June 
                               21, 2019]

_______________________________________________________________________

                                 A BILL

 
   To amend the Homeland Security Act of 2002 to provide for certain 
 acquisition authorities for the Under Secretary of Management of the 
        Department of Homeland Security, and for other purposes.

 

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

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``DHS Acquisition Reform Act of 
2019''.

SEC. 2. ACQUISITION AUTHORITIES FOR UNDER SECRETARY FOR MANAGEMENT OF 
              THE DEPARTMENT OF HOMELAND SECURITY.

    Section 701 of the Homeland Security Act of 2002 (6 U.S.C. 341) is 
amended by--
            (1) redesignating subsection (d), the first subsection (e) 
        (relating to the system for award management consultation), and 
        the second subsection (e) (relating to the definition of 
        interoperable communications) as subsections (e), (f), and (g), 
        respectively; and
            (2) inserting after subsection (c) the following new 
        subsection:
    ``(d) Acquisition and Related Responsibilities.--
            ``(1) In general.--Notwithstanding section 1702(a) of title 
        41, United States Code, the Under Secretary for Management is 
        the Chief Acquisition Officer of the Department. As Chief 
        Acquisition Officer, the Under Secretary shall have the 
        authorities and perform the functions specified in such section 
        1702(b), and perform all other functions and responsibilities 
        delegated by the Secretary or described in this subsection.
            ``(2) Functions and responsibilities.--In addition to the 
        authorities and functions specified in section 1702(b) of title 
        41, United States Code, the functions and responsibilities of 
        the Under Secretary for Management related to acquisition (as 
        such term is defined in section 711) include the following:
                    ``(A) Advising the Secretary regarding acquisition 
                management activities, taking into account risks of 
                failure to achieve cost, schedule, or performance 
                parameters, to ensure that the Department achieves its 
                mission through the adoption of widely accepted program 
                management best practices (as such term is defined in 
                section 711) and standards and, where appropriate, 
                acquisition innovation best practices.
                    ``(B) Leading the Department's acquisition 
                oversight body, the Acquisition Review Board.
                    ``(C) Exercising the acquisition decision authority 
                (as such term is defined in section 711) to approve, 
                pause, modify (including the rescission of approvals of 
                program milestones), or cancel major acquisition 
                programs (as such term is defined in section 711), 
                unless the Under Secretary delegates such authority to 
                a Component Acquisition Executive (as such term is 
                defined in section 711) pursuant to paragraph (3).
                    ``(D) Establishing policies for acquisition that 
                implement an approach that takes into account risks of 
                failure to achieve cost, schedule, or performance 
                parameters that all components of the Department shall 
                comply with, including outlining relevant authorities 
                for program managers to effectively manage acquisition 
                programs (as such term is defined in section 711).
                    ``(E) Ensuring that each major acquisition program 
                has a Department-approved acquisition program baseline 
                (as such term is defined in section 711), pursuant to 
                the Department's acquisition management policy.
                    ``(F) Assisting the heads of components and 
                Component Acquisition Executives in efforts to comply 
                with Federal law, the Federal Acquisition Regulation, 
                and Department acquisition management directives.
                    ``(G) Ensuring that grants and financial assistance 
                are provided only to individuals and organizations that 
                are not suspended or debarred.
                    ``(H) Distributing guidance throughout the 
                Department to ensure that contractors involved in 
                acquisitions, particularly contractors that access the 
                Department's information systems and technologies, 
                adhere to relevant Department policies related to 
                physical and information security as identified by the 
                Under Secretary for Management.
                    ``(I) Overseeing the Component Acquisition 
                Executive organizational structure to ensure Component 
                Acquisition Executives have sufficient capabilities and 
                comply with Department acquisition policies.
            ``(3) Delegation of certain acquisition decision 
        authority.--
                    ``(A) Level 3 acquisitions.--The Under Secretary 
                for Management may delegate acquisition decision 
                authority to the relevant Component Acquisition 
                Executive for an acquisition program that has a life 
                cycle cost estimate of less than $300,000,000.
                    ``(B) Level 2 acquisitions.--The Under Secretary 
                for Management may delegate acquisition decision 
                authority in writing to the relevant Component 
                Acquisition Executive for a major acquisition program 
                that has a life cycle cost estimate of at least 
                $300,000 but not more than $1,000,000,000 if all of the 
                following requirements are met:
                            ``(i) The component concerned possesses 
                        working policies, processes, and procedures 
                        that are consistent with Department-level 
                        acquisition policy.
                            ``(ii) The Component Acquisition Executive 
                        concerned has adequate, experienced, and 
                        dedicated professional employees with program 
                        management training, as applicable, 
                        commensurate with the size of the acquisition 
                        programs and related activities delegated to 
                        such Component Acquisition Executive by the 
                        Under Secretary for Management.
                            ``(iii) Each major acquisition program 
                        concerned has written documentation showing 
                        that it has a Department-approved acquisition 
                        program baseline and it is meeting agreed-upon 
                        cost, schedule, and performance thresholds.
                    ``(C) Level 1 acquisitions.--The Under Secretary 
                for Management may delegate acquisition decision 
                authority in writing to the relevant Component 
                Acquisition Executive for a Level 1 major acquisition 
                program that has a life cycle cost estimate of more 
                than $1,000,000,000 if all of the following 
                requirements are met:
                            ``(i) The Undersecretary for Management 
                        conducts a risk assessment of the planned 
                        acquisition and determines that it is 
                        appropriate to delegate authority for such 
                        major acquisition program.
                            ``(ii) The component concerned possesses 
                        working policies, processes, and procedures 
                        that are consistent with Department-level 
                        acquisition policy.
                            ``(iii) The Component Acquisition Executive 
                        concerned has adequate, experienced, and 
                        dedicated professional employees with program 
                        management training, as applicable, 
                        commensurate with the size of the acquisition 
                        programs and related activities delegated to 
                        such Component Acquisition Executive by the 
                        Under Secretary for Management.
                            ``(iv) Each Level 1 major acquisition 
                        program concerned has written documentation 
                        showing that it has a Department-approved 
                        acquisition program baseline and it is meeting 
                        agreed-upon cost, schedule, and performance 
                        thresholds.
                            ``(v) The Under Secretary for Management 
                        provides written notification to the 
                        appropriate congressional committees of the 
                        decision to delegate the authority to the 
                        relevant Component Acquisition Executive.
            ``(4) Relationship to under secretary for science and 
        technology.--
                    ``(A) In general.--Nothing in this subsection shall 
                diminish the authority granted to the Under Secretary 
                for Science and Technology under this Act. The Under 
                Secretary for Management and the Under Secretary for 
                Science and Technology shall cooperate in matters 
                related to the coordination of acquisitions across the 
                Department so that investments of the Directorate of 
                Science and Technology are able to support current and 
                future requirements of the components of the 
                Department.
                    ``(B) Operational testing and evaluation.--The 
                Under Secretary for Science and Technology shall--
                            ``(i) ensure, in coordination with relevant 
                        component heads, that major acquisition 
                        programs--
                                    ``(I) complete operational testing 
                                and evaluation of technologies and 
                                systems to be acquired or developed by 
                                major acquisition programs to assess 
                                operational effectiveness, suitability, 
                                and cybersecurity;
                                    ``(II) use independent verification 
                                and validation of operational test and 
                                evaluation implementation and results, 
                                as appropriate; and
                                    ``(III) document whether such 
                                programs meet all performance 
                                requirements included in their 
                                acquisition program baselines;
                            ``(ii) ensure that such operational testing 
                        and evaluation includes all system components 
                        and incorporates operators into the testing to 
                        ensure that systems perform as intended in the 
                        appropriate operational setting; and
                            ``(iii) determine if testing conducted by 
                        other Federal departments and agencies and 
                        private entities is relevant and sufficient in 
                        determining whether systems perform as intended 
                        in the operational setting.''.

SEC. 3. ACQUISITION AUTHORITIES FOR CHIEF FINANCIAL OFFICER OF THE 
              DEPARTMENT OF HOMELAND SECURITY.

    Paragraph (2) of section 702(b) of the Homeland Security Act of 
2002 (6 U.S.C. 342(b)) is amended by--
            (1) redesignating subparagraph (I) as subparagraph (J); and
            (2) inserting after subparagraph (H) the following new 
        subparagraph:
                    ``(I) Oversee the costs of acquisition programs (as 
                such term is defined in section 711) and related 
                activities to ensure that actual and planned costs are 
                in accordance with budget estimates and are affordable, 
                or can be adequately funded, over the life cycle of 
                such programs and activities.''.

SEC. 4. ACQUISITION AUTHORITIES FOR CHIEF INFORMATION OFFICER OF THE 
              DEPARTMENT OF HOMELAND SECURITY.

    Section 703 of the Homeland Security Act of 2002 (6 U.S.C. 343) is 
amended--
            (1) by redesignating subsection (b) as subsection (c); and
            (2) by inserting after subsection (a) the following new 
        subsection:
    ``(b) Acquisition Responsibilities.--In addition to the 
responsibilities specified in section 11315 of title 40, United States 
Code, the acquisition responsibilities of the Chief Information 
Officer, in consultation with the Under Secretary for Management, shall 
include the following:
            ``(1) Overseeing the management of the Homeland Security 
        Enterprise Architecture and ensuring that, before each 
        acquisition decision event (as such term is defined in section 
        711), approved information technology acquisitions comply with 
        any departmental information technology management 
        requirements, security protocols, and the Homeland Security 
        Enterprise Architecture, and in any case in which information 
        technology acquisitions do not comply with the Department's 
        management directives, making recommendations to the 
        Department's Acquisition Review Board regarding such 
        noncompliance.
            ``(2) Providing recommendations to the Acquisition Review 
        Board regarding information technology programs, and developing 
        information technology acquisition strategic guidance.''.

SEC. 5. ACQUISITION AUTHORITIES FOR UNDER SECRETARY OF STRATEGY, 
              POLICY, AND PLANS.

    Subsection (c) of section 709 of the Homeland Security Act of 2002 
(6 U.S.C. 349) is amended by--
            (1) redesignating paragraphs (4) through (7) as (5) through 
        (8), respectively; and
            (2) inserting after paragraph (3) the following new 
        paragraph:
            ``(4) ensure acquisition programs (as such term is defined 
        in section 711) support the DHS Quadrennial Homeland Security 
        Review Report, the DHS Strategic Plan, the DHS Strategic 
        Priorities, and other appropriate successor documents;''.

SEC. 6. ACQUISITION AUTHORITIES FOR PROGRAM ACCOUNTABILITY AND RISK 
              MANAGEMENT (PARM).

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

``SEC. 711. ACQUISITION AUTHORITIES FOR PROGRAM ACCOUNTABILITY AND RISK 
              MANAGEMENT.

    ``(a) Establishment of Office.--Within the Management Directorate, 
there shall be a Program Accountability and Risk Management office to--
            ``(1) provide consistent accountability, standardization, 
        and transparency of major acquisition programs of the 
        Department;
            ``(2) serve as the central oversight function for all 
        Department major acquisition programs; and
            ``(3) provide review and analysis of Department acquisition 
        programs, as appropriate.
    ``(b) Responsibilities of Executive Director.--The Program 
Accountability and Risk Management office shall be led by an Executive 
Director to oversee the requirements specified in subsection (a). The 
Executive Director shall report directly to the Under Secretary for 
Management, and shall carry out the following responsibilities:
            ``(1) Monitor regularly the performance of Department major 
        acquisition programs between acquisition decision events to 
        identify problems with cost, performance, or schedule that 
        components may need to address to prevent cost overruns, 
        performance issues, or schedule delays.
            ``(2) Assist the Under Secretary for Management in managing 
        the Department's acquisition programs and related activities.
            ``(3) Conduct oversight of individual acquisition programs 
        to implement Department acquisition program policy, procedures, 
        and guidance with a priority on ensuring the data the office 
        collects and maintains from Department components is accurate 
        and reliable.
            ``(4) Serve as the focal point and coordinator for the 
        acquisition life cycle review process and as the executive 
        secretariat for the Department's Acquisition Review Board.
            ``(5) Advise the persons having acquisition decision 
        authority in making acquisition decisions consistent with all 
        applicable laws and in establishing clear lines of authority, 
        accountability, and responsibility for acquisition 
        decisionmaking within the Department.
            ``(6) Assist the Chief Procurement Officer of the 
        Department, as appropriate, in developing strategies and 
        specific plans for hiring, training, and professional 
        development to address any deficiency within the Department's 
        acquisition workforce.
            ``(7) Develop standardized certification standards in 
        consultation with the Component Acquisition Executives for all 
        acquisition program managers.
            ``(8) Assess the results of major acquisition programs' 
        post-implementation reviews and identify opportunities to 
        improve performance throughout the acquisition process.
            ``(9) Provide technical support and assistance to 
        Department acquisition programs and acquisition personnel and 
        coordinate with the Chief Procurement Officer regarding 
        workforce training and development activities.
            ``(10) Assist, as appropriate, with the preparation of the 
        Future Years Homeland Security Program, and make such 
        information available to the congressional homeland security 
        committees.
    ``(c) Responsibilities of Components.--Each head of a component 
shall comply with Federal law, the Federal Acquisition Regulation, and 
Department acquisition management directives established by the Under 
Secretary for Management. For each major acquisition program, each head 
of a component shall--
            ``(1) define baseline requirements and document changes to 
        such requirements, as appropriate;
            ``(2) establish a complete life cycle cost estimate with 
        supporting documentation that is consistent with cost 
        estimating best practices as identified by the Comptroller 
        General of the United States;
            ``(3) verify each life cycle cost estimate against 
        independent cost estimates or assessments, as appropriate, and 
        reconcile any differences;
            ``(4) complete a cost-benefit analysis with supporting 
        documentation;
            ``(5) develop and maintain a schedule that is consistent 
        with scheduling best practices as identified by the Comptroller 
        General of the United States, including, in appropriate cases, 
        an integrated master schedule; and
            ``(6) ensure that all acquisition program information 
        provided by the component is complete, accurate, timely, and 
        valid.
    ``(d) Definitions.--In this section:
            ``(1) Acquisition.--The term `acquisition' has the meaning 
        given such term in section 131 of title 41, United States Code.
            ``(2) Acquisition decision authority.--The term 
        `acquisition decision authority' means the authority, held by 
        the Secretary acting through the Deputy Secretary or Under 
        Secretary for Management to--
                    ``(A) ensure compliance with Federal law, the 
                Federal Acquisition Regulation, and Department 
                acquisition management directives;
                    ``(B) review (including approving, pausing, 
                modifying, or canceling) an acquisition program through 
                the life cycle of such program;
                    ``(C) ensure that acquisition program managers have 
                the resources necessary to successfully execute an 
                approved acquisition program;
                    ``(D) ensure good acquisition program management of 
                cost, schedule, risk, and system performance of the 
                acquisition program at issue, including assessing 
                acquisition program baseline breaches and directing any 
                corrective action for such breaches; and
                    ``(E) ensure that acquisition program managers, on 
                an ongoing basis, monitor cost, schedule, and 
                performance against established baselines and use tools 
                to assess risks to an acquisition program at all phases 
                of the life cycle of such program to avoid and mitigate 
                acquisition program baseline breaches.
            ``(3) Acquisition decision event.--The term `acquisition 
        decision event', with respect to an acquisition program, means 
        a predetermined point within each of the acquisition phases at 
        which the acquisition decision authority determines whether 
        such acquisition program shall proceed to the next acquisition 
        phase.
            ``(4) Acquisition program.--The term `acquisition program' 
        means the process by which the Department acquires, with any 
        appropriated amounts or fee funding, by contract for purchase 
        or lease, property or services (including construction) that 
        support the missions and goals of the Department.
            ``(5) Acquisition program baseline.--The term `acquisition 
        program baseline', with respect to an acquisition program, 
        means a summary of the cost, schedule, and performance 
        parameters, expressed in standard, measurable, quantitative 
        terms, which must be met in order to accomplish the goals of 
        such program.
            ``(6) Best practices.--The term `best practices', with 
        respect to acquisition, means a knowledge-based approach to 
        capability development that includes the following:
                    ``(A) Identifying and validating needs.
                    ``(B) Assessing alternatives to select the most 
                appropriate solution.
                    ``(C) Clearly establishing well-defined 
                requirements.
                    ``(D) Developing realistic cost assessments and 
                schedules.
                    ``(E) Securing stable funding that matches 
                resources to requirements.
                    ``(F) Demonstrating technology, design, and 
                manufacturing maturity.
                    ``(G) Using milestones and exit criteria or 
                specific accomplishments that demonstrate progress.
                    ``(H) Adopting and executing standardized processes 
                with known success across programs.
                    ``(I) Establishing an adequate workforce that is 
                qualified and sufficient to perform necessary 
                functions.
                    ``(J) Integrating the capabilities described in 
                subparagraphs (A) through (I) into the Department's 
                mission and business operations.
            ``(7) Breach.--The term `breach', with respect to a major 
        acquisition program, means a failure to meet any cost, 
        schedule, or performance threshold specified in the most 
        recently approved acquisition program baseline.
            ``(8) Congressional homeland security committees.--The term 
        `congressional homeland security committees' means--
                    ``(A) the Committee on Homeland Security of the 
                House of Representatives and the Committee on Homeland 
                Security and Governmental Affairs of the Senate; and
                    ``(B) the Committee on Appropriations of the House 
                of Representatives and the Committee on Appropriations 
                of the Senate.
            ``(9) Component acquisition executive.--The term `Component 
        Acquisition Executive' means the senior acquisition official 
        within a component who is designated in writing by the Under 
        Secretary for Management, in consultation with the component 
        head, with authority and responsibility for leading a process 
        and staff to provide acquisition and program management 
        oversight, policy, and guidance to ensure that statutory, 
        regulatory, and higher level policy requirements are fulfilled, 
        including compliance with Federal law, the Federal Acquisition 
        Regulation, and Department acquisition management directives 
        established by the Under Secretary for Management.
            ``(10) Major acquisition program.--The term `major 
        acquisition program' means a Department acquisition program 
        that is estimated by the Secretary to require an eventual total 
        expenditure of at least $300,000,000 (based on fiscal year 2019 
        constant dollars) over its life cycle cost or a program 
        identified by the Chief Acquisition Officer as a program of 
        special interest.''.
    (b) Clerical Amendment.--The table of contents in section 1(b) of 
the Homeland Security Act of 2002 is amended by inserting after the 
item relating to section 710 the following new item:

``Sec. 711. Acquisition authorities for Program Accountability and Risk 
                            Management.''.
                                                 Union Calendar No. 148

116th CONGRESS

  1st Session

                               H. R. 3413

                          [Report No. 116-190]

_______________________________________________________________________

                                 A BILL

   To amend the Homeland Security Act of 2002 to provide for certain 
 acquisition authorities for the Under Secretary of Management of the 
        Department of Homeland Security, and for other purposes.

_______________________________________________________________________

                            August 30, 2019

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