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[Congressional Bills 113th Congress]
[From the U.S. Government Publishing Office]
[H.R. 4228 Referred in Senate (RFS)]

113th CONGRESS
  2d Session
                                H. R. 4228

_______________________________________________________________________

                   IN THE SENATE OF THE UNITED STATES

                             June 10, 2014

Received; read twice and referred to the Committee on Homeland Security 
                        and Governmental Affairs

_______________________________________________________________________

                                 AN ACT

 
 To require the Department of Homeland Security to improve discipline, 
  accountability, and transparency in acquisition program management.

    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 Accountability and 
Efficiency Act''.

SEC. 2. TABLE OF CONTENTS.

    The table of contents for this Act is as follows:

Sec. 1. Short title.
Sec. 2. Table of contents.
Sec. 3. Findings.
Sec. 4. Definitions.
Sec. 5. Prohibition on additional authorization of appropriations.
                    TITLE I--ACQUISITION AUTHORITIES

Sec. 101. Acquisition authorities for Under Secretary for Management.
Sec. 102. Acquisition authorities for Chief Financial Officer.
Sec. 103. Acquisition authorities for Chief Information Officer.
Sec. 104. Chief Procurement Officer.
Sec. 105. Requirements to ensure greater accountability for acquisition 
                            programs.
          TITLE II--ACQUISITION PROGRAM MANAGEMENT DISCIPLINE

Sec. 201. Acquisition Review Board.
Sec. 202. Requirements to reduce duplication in acquisition programs.
Sec. 203. Government Accountability Office review of Board and of 
                            requirements to reduce duplication in 
                            acquisition programs.
Sec. 204. Excluded Party List System waivers.
Sec. 205. Inspector General oversight of suspension and debarment.
     TITLE III--ACQUISITION PROGRAM MANAGEMENT ACCOUNTABILITY AND 
                              TRANSPARENCY

Sec. 301. Congressional notification and other requirements for major 
                            acquisition program breach.
Sec. 302. Multiyear acquisition strategy.
Sec. 303. Acquisition reports.
Sec. 304. Government Accountability Office review of multiyear 
                            acquisition strategy.
Sec. 305. Office of Inspector General report.

SEC. 3. FINDINGS.

    Congress finds the following:
            (1) The Department of Homeland Security does not 
        consistently implement its policies and Government and private 
        sector best practices for acquisitions and procurement.
            (2) It is difficult to determine the cost of the 
        Department's major acquisition programs because the Department 
        has not provided consistent, comparable updates on an annual 
        basis. As of January 2014, the Department identified over 80 
        major acquisition programs costing over $300,000,000, and, 
        based on 2011, estimates it plans to spend about 
        $170,000,000,000 in the future on major acquisition programs.
            (3) Since 2005, the Government Accountability Office has 
        placed Department acquisition management activities on its 
        ``High-Risk List'', which identifies Government operations that 
        have greater susceptibility to fraud, waste, abuse, and 
        mismanagement or greater need for transformation to address 
        economy, efficiency, or effectiveness challenges.
            (4) While the Department has taken actions to address some 
        high-risk acquisition program management issues, many programs 
        continue to experience challenges with funding instability, 
        workforce shortfalls, reliable cost estimates, realistic 
        schedules, agreed-upon baseline objectives, and consistent and 
        reliable data needed to accurately measure program performance.
            (5) Of the 77 Department major acquisition programs in 
        2011, the Government Accountability Office identified 42 
        programs that experienced cost growth, schedule slips, or both. 
        The Department reported that the magnitude of the cost growth 
        for 16 of the 42 programs, which increased from almost 
        $20,000,000,000 to over $50,000,000,000 in 2011, had an 
        aggregate increase of 166 percent.
            (6) In 2012, the Government Accountability Office found 
        that only 20 of 63 programs had Department-approved acquisition 
        program baselines. The Government Accountability Office also 
        reported that the Department planned to spend more than $105 
        billion on programs lacking acquisition program baselines.

SEC. 4. DEFINITIONS.

    (a) In General.--In this Act:
            (1) Secretary.--The term ``Secretary'' means the Secretary 
        of Homeland Security.
            (2) Department.--The term ``Department'' means the 
        Department of Homeland Security.
            (3) Congressional homeland security committees.--The term 
        ``congressional homeland security committees'' means--
                    (A) the Committee on Homeland Security of the House 
                of Representatives and the Committee on Homeland 
                Security and Governmental Affairs of the Senate; and
                    (B) the Committee on Appropriations of the House of 
                Representatives and of the Senate.
    (b) Additional Definitions.--In this Act:
            (1) Acquisition.--The term ``acquisition'' has the meaning 
        provided in section 131 of title 41, United States Code.
            (2) Best practices.--The term ``best practices'', with 
        respect to acquisition, means a knowledge-based approach to 
        capability development that includes identifying and validating 
        needs; assessing alternatives to select the most appropriate 
        solution; clearly establishing well-defined requirements; 
        developing realistic cost assessments and schedules; securing 
        stable funding that matches resources to requirements; 
        demonstrating technology, design, and manufacturing maturity; 
        using milestones and exit criteria or specific accomplishments 
        that demonstrate progress; adopting and executing standardized 
        processes with known success across programs; establishing an 
        adequate workforce that is qualified and sufficient to perform 
        necessary functions; and integrating these capabilities into 
        the Department's mission and business operations.
    (c) Amendments to Definitions in Homeland Security Act of 2002.--
Section 2 of the Homeland Security Act of 2002 is amended--
            (1) by striking ``In this Act,'' and inserting ``(a) In 
        General.--In this Act,'';
            (2) in paragraph (2)--
                    (A) by inserting ``(A)'' after ``(2)''; and
                    (B) by adding at the end the following new 
                subparagraph:
            ``(B) The term `congressional homeland security committees' 
        means--
                    ``(i) the Committee on Homeland Security of the 
                House of Representatives and the Committee on Homeland 
                Security and Governmental Affairs of the Senate; and
                    ``(ii) the Committee on Appropriations of the House 
                of Representatives and of the Senate, where 
                appropriate.''; and
            (3) by adding at the end the following new subsection:
    ``(b) Acquisition-Related Definitions.--In this Act, the following 
definitions apply:
            ``(1) Acquisition.--The term `acquisition' has the meaning 
        provided in section 131 of title 41, United States Code.
            ``(2) Acquisition decision authority.--The term 
        `acquisition decision authority' means the authority, held by 
        the Secretary acting through the Deputy Secretary or Under 
        Secretary for Management--
                    ``(A) to ensure compliance with Federal law, the 
                Federal Acquisition Regulation, and Department 
                acquisition management directives;
                    ``(B) to review (including approving, halting, 
                modifying, or cancelling) an acquisition program 
                through the life cycle of the program;
                    ``(C) to ensure that program managers have the 
                resources necessary to successfully execute an approved 
                acquisition program; and
                    ``(D) to ensure good program management of cost, 
                schedule, risk, and system performance of the 
                acquisition, including assessing acquisition program 
                baseline breaches and directing any corrective action 
                for such breaches.
            ``(3) Acquisition decision event.--The term `acquisition 
        decision event', with respect to an investment or acquisition 
        program, means a predetermined point within the acquisition 
        phases of the investment or acquisition program at which the 
        investment or acquisition program will undergo a review prior 
        to commencement of the next phase.
            ``(4) Acquisition decision memorandum.--The term 
        `acquisition decision memorandum', with respect to an 
        acquisition, means the official acquisition decision event 
        record that includes a documented record of decisions, exit 
        criteria, and assigned actions for the acquisition as 
        determined by the person exercising acquisition decision 
        authority for the acquisition.
            ``(5) Acquisition program baseline.--The term `acquisition 
        program baseline', with respect to an acquisition program, 
        means a summary of the cost, schedule, and performance 
        parameters, expressed in standard, measurable, quantitative 
        terms, which must be met in order to accomplish the goals of 
        the program.
            ``(6) Capability development plan.--The term `capability 
        development plan', with respect to a proposed acquisition, 
        means the document that the Acquisition Review Board approves 
        for the first acquisition decision event related to validating 
        the need of a proposed acquisition.
            ``(7) Component acquisition executive.--The term `Component 
        Acquisition Executive' means the senior acquisition official 
        within a Component who is designated in writing by the Under 
        Secretary for Management, in consultation with the Component 
        head, with authority and responsibility for leading a process 
        and staff to provide acquisition and program management 
        oversight, policy, and guidance to ensure that statutory, 
        regulatory, and higher level policy requirements are fulfilled, 
        including compliance with Federal law, the Federal Acquisition 
        Regulation, and Department acquisition management directives 
        established by the Under Secretary for Management.
            ``(8) Life cycle cost.--The term `life cycle cost', with 
        respect to an acquisition program, means all costs associated 
        with research, development, procurement, operation, integrated 
        logistics support, and disposal under the program, including 
        supporting infrastructure that plans, manages, and executes the 
        program over its full life, and costs of common support items 
        incurred as a result of the program.
            ``(9) Major acquisition program.--The term `major 
        acquisition program' means a Department acquisition program 
        that is estimated by the Secretary to require an eventual total 
        expenditure of at least $300,000,000 (based on fiscal year 2014 
        constant dollars) over its life cycle cost.''.

SEC. 5. PROHIBITION ON ADDITIONAL AUTHORIZATION OF APPROPRIATIONS.

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

                    TITLE I--ACQUISITION AUTHORITIES

SEC. 101. ACQUISITION AUTHORITIES FOR UNDER SECRETARY FOR MANAGEMENT.

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

SEC. 102. ACQUISITION AUTHORITIES FOR CHIEF FINANCIAL OFFICER.

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

SEC. 103. ACQUISITION AUTHORITIES FOR CHIEF INFORMATION OFFICER.

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

SEC. 104. CHIEF PROCUREMENT OFFICER.

    (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. 708. CHIEF PROCUREMENT OFFICER.

    ``(a) In General.--There is a Chief Procurement Officer of the 
Department, who shall report directly to the Under Secretary for 
Management. The Chief Procurement Officer is the senior procurement 
executive for purposes of section 1702(c) of title 41, United States 
Code, and shall perform procurement functions as specified in such 
section. The Chief Procurement Officer also shall perform other 
functions and responsibilities set forth in this section and as may be 
assigned by the Under Secretary for Management.
    ``(b) Responsibilities.--The Chief Procurement Officer shall--
            ``(1) exercise leadership and authority to the extent 
        delegated by the Under Secretary for Management over the 
        Department procurement function;
            ``(2) issue acquisition regulations and policies;
            ``(3) account for the integrity, performance, and oversight 
        of Department procurement and contracting functions and be 
        responsible for ensuring that a procurement's contracting 
        strategy and plans are consistent with the intent and direction 
        of the Acquisition Review Board established in section 836 of 
        this Act;
            ``(4) serve as the Department's business advisor and main 
        liaison to industry on procurement-related issues by providing 
        advice on industry engagement, acquisition policy, oversight of 
        the procurement function, and development of the acquisition 
        workforce;
            ``(5) oversee a centralized certification and training 
        program, in consultation with the Under Secretary for 
        Management, for the entire Department acquisition workforce 
        while using, to the greatest extent practicable, best practices 
        and acquisitions training opportunities already in existence 
        within the Federal Government, the private sector, or 
        universities and colleges, as appropriate, and including 
        training on how best to identify actions that warrant referrals 
        for suspension or debarment;
            ``(6) delegate or retain contracting authority, as 
        appropriate, except as provided in section 701(d)(3) of this 
        Act;
            ``(7) participate in the selection, and periodic 
        performance review, of the head of each contracting activity 
        within the Department;
            ``(8) collect baseline data and establish performance 
        measures on the impact of strategic sourcing initiatives on the 
        private sector, including, in particular, small businesses; and
            ``(9) ensure that a fair proportion (as defined pursuant to 
        the Small Business Act (15 U.S.C. 631 et seq.)) of Federal 
        contract and subcontract dollars are awarded to small 
        businesses, maximize opportunities for small business 
        participation, and ensure, to the extent practicable, small 
        businesses that achieve qualified vendor status for security-
        related technologies are provided an opportunity to compete for 
        contracts for such technology.''.
    (b) Clerical Amendment.--The table of contents in section 1(b) of 
the Homeland Security Act of 2002 (6 U.S.C. 101 et seq.) is amended by 
adding after the item relating to section 707 the following new item:

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

SEC. 105. REQUIREMENTS TO ENSURE GREATER ACCOUNTABILITY FOR ACQUISITION 
              PROGRAMS.

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

``SEC. 709. REQUIREMENTS TO ENSURE GREATER ACCOUNTABILITY FOR 
              ACQUISITION PROGRAMS.

    ``(a) Requirement To Establish Mechanism.--Within the Management 
Directorate, the Under Secretary for Management shall establish a 
mechanism to prioritize improving the accountability, standardization, 
and transparency of major acquisition programs of the Department in 
order to increase opportunities for effectiveness and efficiencies and 
to serve as the central oversight function of all Department 
acquisition programs.
    ``(b) Responsibilities of Executive Director.--The Under Secretary 
for Management shall designate an Executive Director to oversee the 
requirement under subsection (a). The Executive Director shall report 
directly to the Under Secretary and shall carry out the following 
responsibilities:
            ``(1) Monitor the performance of Department acquisition 
        programs regularly between acquisition decision events to 
        identify problems with cost, performance, or schedule that 
        Components may need to address to prevent cost overruns, 
        performance issues, or schedule delays.
            ``(2) Assist the Chief Acquisition Officer in managing the 
        Department's acquisition portfolio.
            ``(3) Conduct oversight of individual acquisition programs 
        to implement Department acquisition program policy, procedures, 
        and guidance with a priority on ensuring the data it collects 
        and maintains from its Components is accurate and reliable.
            ``(4) Serve as the focal point within the Department for 
        policy, process, and procedure regarding life cycle cost 
        estimating and analysis.
            ``(5) Serve as the focal point and coordinator for the 
        acquisition life cycle review process and as the executive 
        secretariat for the Acquisition Review Board established under 
        section 836 of this Act.
            ``(6) 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.
            ``(7) Engage in the strategic planning and performance 
        evaluation process required under section 306 of title 5, 
        United States Code, and sections 1105(a)(28), 1115, 1116, and 
        9703 of title 31, United States Code, by supporting the Chief 
        Procurement Officer in developing strategies and specific plans 
        for hiring, training, and professional development in order to 
        rectify any deficiency within the Department's acquisition 
        workforce.
            ``(8) Oversee the Component Acquisition Executive structure 
        to ensure it has sufficient capabilities and complies with 
        Department policies.
            ``(9) Develop standardized certification standards in 
        consultation with the Component Acquisition Executives for all 
        acquisition program managers.
            ``(10) In the event that a program manager's certification 
        or actions need review for purposes of promotion or removal, 
        provide input, in consultation with the relevant Component 
        Acquisition Executive, into the relevant program manager's 
        performance evaluation, and report positive or negative 
        experiences to the relevant certifying authority.
            ``(11) Provide technical support and assistance to 
        Department acquisitions and acquisition personnel in 
        conjunction with the Chief Procurement Officer.
            ``(12) Prepare the Department's Comprehensive Acquisition 
        Status Report, as required by the Department of Homeland 
        Security Appropriations Act, 2013 (division D of Public Law 
        113-6; 127 Stat. 343) and section 840 of this Act, and make 
        such report available to congressional homeland security 
        committees.
            ``(13) Prepare the Department's Quarterly Program 
        Accountability Report as required by section 840 of this Act, 
        and make such report available to the congressional homeland 
        security committees.
    ``(c) Responsibilities of Components.--Each head of a Component 
shall comply with Federal law, the Federal Acquisition Regulation, and 
Department acquisition management directives established by the Under 
Secretary for Management. For each major acquisition program, each head 
of a Component shall--
            ``(1) establish a complete life cycle cost estimate with 
        supporting documentation, including an acquisition program 
        baseline;
            ``(2) verify each life cycle cost estimate against 
        independent cost estimates, and reconcile any differences;
            ``(3) complete a cost-benefit analysis with supporting 
        documentation;
            ``(4) 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
            ``(5) ensure that all acquisition program information 
        provided by the Component is complete, accurate, timely, and 
        valid.''.
    (b) Clerical Amendment.--The table of contents in section 1(b) of 
the Homeland Security Act of 2002 (6 U.S.C. 101 et seq.) is further 
amended by adding after the item relating to section 708 the following 
new item:

``Sec. 709. Requirements to ensure greater accountability for 
                            acquisition programs.''.

          TITLE II--ACQUISITION PROGRAM MANAGEMENT DISCIPLINE

SEC. 201. ACQUISITION REVIEW BOARD.

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

``SEC. 836. ACQUISITION REVIEW BOARD.

    ``(a) In General.--The Secretary shall establish an Acquisition 
Review Board (in this section referred to as the `Board') to strengthen 
accountability and uniformity within the Department acquisition review 
process, review major acquisition programs, and review the use of best 
practices.
    ``(b) Composition.--The Deputy Secretary or Under Secretary for 
Management shall serve as chair of the Board. The Secretary shall also 
ensure participation by other relevant Department officials, including 
at least two Component heads or their designees, as permanent members 
of the Board.
    ``(c) Meetings.--The Board shall meet every time a major 
acquisition program needs authorization to proceed from acquisition 
decision events through the acquisition life cycle and to consider any 
major acquisition program in breach as necessary. The Board may also be 
convened for non-major acquisitions that are deemed high-risk by the 
Executive Director referred to in section 709(b) of this Act. The Board 
shall also meet regularly for purposes of ensuring all acquisitions 
processes proceed in a timely fashion to achieve mission readiness.
    ``(d) Responsibilities.--The responsibilities of the Board are as 
follows:
            ``(1) Determine whether a proposed acquisition has met the 
        requirements of key phases of the acquisition life cycle 
        framework and is able to proceed to the next phase and eventual 
        full production and deployment.
            ``(2) Oversee executable business strategy, resources, 
        management, accountability, and alignment to strategic 
        initiatives.
            ``(3) Support the person with acquisition decision 
        authority for an acquisition in determining the appropriate 
        direction for the acquisition at key acquisition decision 
        events.
            ``(4) Conduct systematic reviews of acquisitions to ensure 
        that they are progressing in compliance with the approved 
        documents for their current acquisition phase.
            ``(5) Validate the acquisition documents of each major 
        acquisition program, including the acquisition program 
        baseline, to ensure the reliability of underlying data.
            ``(6) Ensure that practices are adopted and implemented to 
        require consideration of trade-offs among cost, schedule, and 
        performance objectives as part of the process for developing 
        requirements for major acquisition programs prior to the 
        initiation of the capability development plan, second 
        acquisition decision event, including, at a minimum, the 
        following practices:
                    ``(A) Department officials responsible for 
                acquisition, budget, and cost estimating functions are 
                provided with the appropriate opportunity to develop 
                estimates and raise cost and schedule matters before 
                performance objectives are established for capabilities 
                when feasible.
                    ``(B) Full consideration of possible trade-offs 
                among cost, schedule, and performance objectives for 
                each alternative is considered.
    ``(e) Acquisition Program Baseline Report Requirement.--If the 
person exercising acquisition decision authority over a major 
acquisition program approves the program to proceed beyond the 
acquisition decision event requiring a capability development plan 
before it has a Department-approved acquisition program baseline, then 
the Under Secretary for Management shall create and approve an 
acquisition program baseline report on the decision, and the Secretary 
shall--
            ``(1) within seven days after an acquisition decision 
        memorandum is signed, notify in writing the congressional 
        homeland security committees of such decision; and
            ``(2) within 60 days after the acquisition decision 
        memorandum is signed, submit a report to such committees 
        stating the rationale for the decision and a plan of action to 
        require an acquisition program baseline for the program.
    ``(f) Best Practices Defined.--In this section, the term `best 
practices' has the meaning provided in section 4(b) of the DHS 
Acquisition Accountability and Efficiency Act.''.
    (b) Clerical Amendment.--The table of contents in section 1(b) of 
the Homeland Security Act of 2002 (6 U.S.C. 101 et seq.) is further 
amended by adding after the item relating to section 835 the following 
new item:

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

SEC. 202. REQUIREMENTS TO REDUCE DUPLICATION IN ACQUISITION PROGRAMS.

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

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

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

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

SEC. 203. GOVERNMENT ACCOUNTABILITY OFFICE REVIEW OF BOARD AND OF 
              REQUIREMENTS TO REDUCE DUPLICATION IN ACQUISITION 
              PROGRAMS.

    (a) Review Required.--The Comptroller General of the United States 
shall conduct a review of the effectiveness of the Acquisition Review 
Board established under section 836 of the Homeland Security Act of 
2002 (as added by section 201) and the requirements to reduce 
duplication in acquisition programs established under section 837 of 
such Act (as added by section 202) in improving the Department's 
acquisition management process.
    (b) Scope of Report.--The review shall include the following:
            (1) An assessment of the effectiveness of the Department in 
        increasing program management oversight, best practices and 
        standards, and discipline among the Components of the 
        Department, including in working together and in preventing 
        overlap and duplication.
            (2) An assessment of the effectiveness of the Department in 
        instilling program management discipline.
            (3) A statement of how regularly each major acquisition 
        program is reviewed by the Board, how often the Board stops 
        major acquisition programs from moving forward in the phases of 
        the acquisition life cycle process, and the number of major 
        acquisition programs that have been halted because of problems 
        with operational effectiveness, schedule delays, or cost 
        overruns.
    (c) Report Required.--The Comptroller General shall submit to the 
congressional homeland security committees a report on the review 
required by this section not later than one year after the date of the 
enactment of this Act. The report shall be submitted in unclassified 
form but may include a classified annex.

SEC. 204. EXCLUDED PARTY LIST SYSTEM WAIVERS.

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

SEC. 205. INSPECTOR GENERAL OVERSIGHT OF SUSPENSION AND DEBARMENT.

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

     TITLE III--ACQUISITION PROGRAM MANAGEMENT ACCOUNTABILITY AND 
                              TRANSPARENCY

SEC. 301. CONGRESSIONAL NOTIFICATION AND OTHER REQUIREMENTS FOR MAJOR 
              ACQUISITION PROGRAM BREACH.

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

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

    ``(a) Breach Defined.--The term `breach', with respect to a major 
acquisition program, means a failure to meet any cost, schedule, or 
performance parameter specified in the acquisition program baseline.
    ``(b) Requirements Within Department if Breach Occurs.--
            ``(1) Notifications.--
                    ``(A) Notification of potential breach.--If a major 
                acquisition program has a potential for a future 
                breach, as determined by the program manager for that 
                program, the program manager shall notify the person 
                exercising acquisition decision authority for the 
                program.
                    ``(B) Notification of actual breach.--If an actual 
                breach occurs in a major acquisition program, the 
                program manager for that program shall notify the head 
                of the Component concerned, the Component Acquisition 
                Executive for the program, the Executive Director 
                referred to in section 709(b) of this Act, the Under 
                Secretary for Management, and the Deputy Secretary.
                    ``(C) Notification to secretary.--If a major 
                acquisition program has an actual breach with a cost 
                overrun greater than 20 percent or a schedule delay 
                greater than 12 months from the costs or schedule set 
                forth in the acquisition program baseline for the 
                program, the Secretary and the Inspector General of the 
                Department shall be notified not later than five 
                business days after the actual breach is identified.
            ``(2) Remediation plan and root cause analysis.--
                    ``(A) In general.--In the case of an actual breach 
                with a cost overrun greater than 15 percent or a 
                schedule delay greater than 180 days from the costs or 
                schedule set forth in the acquisition program baseline, 
                a remediation plan and root cause analysis is required, 
                and the Under Secretary for Management or his designee 
                shall establish a date for submission within the 
                Department of a breach remediation plan and root cause 
                analysis in accordance with this subsection.
                    ``(B) Remediation plan.--The remediation plan 
                required under this subsection shall be submitted in 
                writing to the head of the Component concerned, the 
                Executive Director referred to in section 709(b) of 
                this Act, and the Under Secretary for Management. The 
                plan shall--
                            ``(i) explain the circumstances of the 
                        breach;
                            ``(ii) provide prior cost estimating 
                        information;
                            ``(iii) propose corrective action to 
                        control cost growth, schedule delays, or 
                        performance issues;
                            ``(iv) in coordination with Component 
                        Acquisition Executive, discuss all options 
                        considered, including the estimated impact on 
                        cost, schedule, or performance of the program 
                        if no changes are made to current requirements, 
                        the estimated cost of the program if 
                        requirements are modified, and the extent to 
                        which funding from other programs will need to 
                        be reduced to cover the cost growth of the 
                        program; and
                            ``(v) explain the rationale for why the 
                        proposed corrective action is recommended.
                    ``(C) Root cause analysis.--The root cause analysis 
                required under this subsection shall determine the 
                underlying cause or causes of shortcomings in cost, 
                schedule, or performance of the program, including the 
                role, if any, of the following:
                            ``(i) Unrealistic performance expectations.
                            ``(ii) Unrealistic baseline estimates for 
                        cost or schedule or changes in program 
                        requirements.
                            ``(iii) Immature technologies or excessive 
                        manufacturing or integration risk.
                            ``(iv) Unanticipated design, engineering, 
                        manufacturing, or technology integration issues 
                        arising during program performance.
                            ``(v) Changes in procurement quantities.
                            ``(vi) Inadequate program funding or 
                        changes in planned out-year funding from one 
                        five-year funding plan to the next five-year 
                        funding plan as outlined in the Future Years 
                        Homeland Security Program required under 
                        section 874 of this Act.
                            ``(vii) Legislative, legal, or regulatory 
                        changes.
                            ``(viii) Inadequate program management 
                        personnel, including lack of training, 
                        credentials, certifications, or use of best 
                        practices.
            ``(3) Correction of breach.--The Under Secretary for 
        Management or his designee shall establish a date for 
        submission within the Department of a program of corrective 
        action that ensures that one of the following actions has 
        occurred:
                    ``(A) The breach has been corrected and the program 
                is again in compliance with the original acquisition 
                program baseline parameters.
                    ``(B) A revised acquisition program baseline has 
                been approved.
                    ``(C) The program has been halted or cancelled.
    ``(c) Requirements Relating to Congressional Notification if Breach 
Occurs.--
            ``(1) Notification to congress.--If a notification is made 
        under subsection (b)(1)(B) for a breach in a major acquisition 
        program with a cost overrun greater than 15 percent or a 
        schedule delay greater than 180 days from the costs or schedule 
        set forth in the acquisition program baseline, or with an 
        anticipated failure for any key performance threshold or 
        parameter specified in the acquisition program baseline, the 
        Under Secretary for Management shall notify the congressional 
        homeland security committees of the breach in the next 
        quarterly Comprehensive Acquisition Status Report after the 
        Under Secretary for Management receives the notification from 
        the program manager under subsection (b)(1)(B).
            ``(2) Substantial variances in costs or schedule.--If a 
        likely cost overrun is greater than 20 percent or a likely 
        delay is greater than 12 months from the costs and schedule set 
        forth in the acquisition program baseline for a major 
        acquisition program, the Under Secretary for Management shall 
        include in the notification required in (c)(1) a written 
        certification, with supporting explanation, that--
                    ``(A) the acquisition is essential to the 
                accomplishment of the Department's mission;
                    ``(B) there are no alternatives to such capability 
                or asset that will provide equal or greater capability 
                in both a more cost-effective and timely manner;
                    ``(C) the new acquisition schedule and estimates 
                for total acquisition cost are reasonable; and
                    ``(D) the management structure for the acquisition 
                program is adequate to manage and control performance, 
                cost, and schedule.
            ``(3) Submissions to congress.--Not later than 30 calendar 
        days after submission to such committees of a breach 
        notification under paragraph (1) of this section for a major 
        acquisition program, the Under Secretary for Management shall 
        submit to such committees the following:
                    ``(A) A copy of the remediation plan and the root 
                cause analysis prepared under subsection (b)(2) for the 
                program.
                    ``(B) A statement describing the corrective action 
                or actions that have occurred pursuant to subsection 
                (b)(3) for the program, with a justification for the 
                action or actions.
    ``(d) Additional Actions if Breach Occurs.--
            ``(1) Prohibition on obligation of funds.--During the 90-
        day period following submission under subsection (c)(3) of a 
        remediation plan, root cause analysis, and statement of 
        corrective actions with respect to a major acquisition program, 
        the Under Secretary for Management shall submit a certification 
        described in paragraph (2) of this subsection to the 
        congressional homeland security committees. If the Under 
        Secretary for Management does not submit such certification by 
        the end of such 90-day period, then funds appropriated to the 
        major acquisition program shall not be obligated until the 
        Under Secretary for Management submits such certification.
            ``(2) Certification.--For purposes of paragraph (1), the 
        certification described in this paragraph is a certification 
        that--
                    ``(A) the Department has adjusted or restructured 
                the program in a manner that addresses the root cause 
                or causes of the cost growth in the program; and
                    ``(B) the Department has conducted a thorough 
                review of the breached program's acquisition decision 
                event approvals and the current acquisition decision 
                event approval for the breached program has been 
                adjusted as necessary to account for the restructured 
                program.''.
    (b) Clerical Amendment.--The table of contents in section 1(b) of 
the Homeland Security Act of 2002 (6 U.S.C. 101 et seq.) is further 
amended by adding after the item relating to section 837 the following 
new item:

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

SEC. 302. MULTIYEAR ACQUISITION STRATEGY.

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

``SEC. 839. MULTIYEAR ACQUISITION STRATEGY.

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

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

SEC. 303. ACQUISITION REPORTS.

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

``SEC. 840. ACQUISITION REPORTS.

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

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

SEC. 304. GOVERNMENT ACCOUNTABILITY OFFICE REVIEW OF MULTIYEAR 
              ACQUISITION STRATEGY.

    (a) Review Required.--After submission to Congress of the first 
multiyear acquisition strategy (pursuant to section 839 of the Homeland 
Security Act of 2002) after the date of the enactment of this Act, the 
Comptroller General of the United States shall conduct a review of the 
plan within 180 days to analyze the viability of the plan's 
effectiveness in the following:
            (1) Complying with the requirements in section 839 of the 
        Homeland Security Act of 2002, as added by section 302 of this 
        Act.
            (2) Establishing clear connections between Department 
        objectives and acquisition priorities.
            (3) Demonstrating that Department acquisition policy 
        reflects program management best practices and standards.
            (4) Ensuring competition or the option of competition for 
        major acquisition programs.
            (5) Considering potential cost savings through using 
        already-existing technologies when developing acquisition 
        program requirements.
            (6) Preventing duplication within Department acquisition 
        workforce training requirements through leveraging already-
        existing training within the Federal Government, academic 
        community, or private industry.
            (7) Providing incentives for program managers to reduce 
        acquisition and procurement costs through the use of best 
        practices and disciplined program management.
            (8) Assessing the feasibility of conducting a pilot program 
        to establish a Homeland Security Acquisition Workforce 
        Development Fund.
    (b) Report Required.--The Comptroller General shall submit to the 
congressional homeland security committees a report on the review 
required by this section. The report shall be submitted in unclassified 
form but may include a classified annex.

SEC. 305. OFFICE OF INSPECTOR GENERAL REPORT.

    (a) Review Required.--No later than 2 years following the 
submission of the report submitted by the Comptroller General of the 
United States as required by section 304, the Department's Inspector 
General shall conduct a review of whether the Department has complied 
with the multiyear acquisition strategy (pursuant to section 839 of the 
Homeland Security Act of 2002) and adhered to the strategies set forth 
in the plan. The review shall also consider whether the Department has 
complied with the requirements to provide the Acquisition Review Board 
with a capability development plan for each major acquisition program.
    (b) Report Required.--The Inspector General shall submit to the 
congressional homeland security committees a report of the review 
required by this section. The report shall be submitted in unclassified 
form but may include a classified annex.

            Passed the House of Representatives June 9, 2014.

            Attest:

                                                 KAREN L. HAAS,

                                                                 Clerk.
```