I 

111TH CONGRESS 

2D SESSION H. R. 5013 

To amend title 10, United States Code, to provide for performance 

management of the defense acquisition system, and for other purposes. 

IN THE HOUSE OF REPRESENTATIVES 

APRIL 14, 2010 

Mr. ANDREWS (for himself, Mr. CONAWAY, Mr. SKELTON, Mr. MCKEON, Mr. 

ELLSWORTH, Mr. COFFMAN of Colorado, and Mr. HUNTER) introduced 

the following bill; which was referred to the Committee on Armed Services, and in addition to the Committee on Oversight and Government Reform, for a period to be subsequently determined by the Speaker, in each 

case for consideration of such provisions as fall within the jurisdiction of 

the committee concerned 

A BILL 

To amend title 10, United States Code, to provide for performance management of the defense acquisition system, 

and for other purposes. 

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

3 SECTION 1. SHORT TITLE. 

4 This Act may be cited as the ‘‘Implementing Manage5 ment for Performance and Related Reforms to Obtain 

6 Value in Every Acquisition Act of 2010’’. 


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1 SEC. 2. TABLE OF CONTENTS. 

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

Sec. 1. Short title. 

Sec. 2. Table of contents. 

Sec. 3. Definition of congressional defense committees. 

TITLE I—DEFENSE ACQUISITION SYSTEM 

Sec. 101. Performance management of the defense acquisition system. 

Sec. 102. Meaningful consideration by Joint Requirements Oversight Council of 

input from certain officials. 

Sec. 103. Performance management for the Joint Capabilities Integration and 

Development System. 

Sec. 104. Establishment of a requirements process for the acquisition of services. 

Sec. 105. Joint evaluation task forces. 

Sec. 106. Review of defense acquisition guidance. 

Sec. 107. Requirement to include references to services contracting throughout 

the Federal Acquisition Regulation. 

TITLE II—DEFENSE ACQUISITION WORKFORCE 

Sec. 201. Acquisition workforce excellence. 

Sec. 202. Amendments to the acquisition workforce demonstration project. 

Sec. 203. Incentive programs for civilian and military personnel in the acquisition workforce. 

Sec. 204. Career development for civilian and military personnel in the acquisition workforce. 

Sec. 205. Recertification and training requirements. 

Sec. 206. Information technology acquisition workforce. 

Sec. 207. Definition of acquisition workforce. 

TITLE III—FINANCIAL MANAGEMENT 

Sec. 301. Incentives for achieving auditability. 

Sec. 302. Measures required after failure to achieve auditability. 

Sec. 303. Review of obligation and expenditure thresholds. 

TITLE IV—INDUSTRIAL BASE 

Sec. 401. Expansion of the industrial base. 

Sec. 402. Commercial pricing analysis. 

Sec. 403. Contractor and grantee disclosure of delinquent Federal tax debts. 

Sec. 404. Independence of contractor business system reviews; risk-based reviews. 


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1 SEC. 3. DEFINITION OF CONGRESSIONAL DEFENSE COM2 MITTEES. 

3 In this Act, the term ‘‘congressional defense commit4 tees’’ has the meaning given that term in section 

5 101(a)(16) of title 10, United States Code. 

6 TITLE I—DEFENSE ACQUISITION 

7 SYSTEM 

8 SEC. 101. PERFORMANCE MANAGEMENT OF THE DEFENSE 

9 ACQUISITION SYSTEM. 

10 (a) IN GENERAL.—Part IV of title 10, United States 

11 Code, is amended by inserting after chapter 148 the fol12 lowing new chapter: 

13 ‘‘CHAPTER 149—PERFORMANCE MANAGE14 MENT OF THE DEFENSE ACQUISITION 

15 SYSTEM 

‘‘2545. Performance assessment of the defense acquisition system. 

‘‘2546. Audits of performance assessment. 

‘‘2547. Use of performance assessments for managing performance. 

‘‘2548. Acquisition-related functions of the Chiefs of Staff of the Armed Forces. 

16 ‘‘§ 2545. Performance assessment of the defense ac17 quisition system 

18 ‘‘(a) PERFORMANCE ASSESSMENTS REQUIRED.—(1) 

19 The Secretary of Defense shall ensure that all elements 

20 of the defense acquisition system are subject to regular 

21 performance assessments— 


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1 ‘‘(A) to determine the extent to which such ele2 ments deliver appropriate value to the Department 

3 of Defense; and 

4 ‘‘(B) to enable senior officials of the Depart5 ment of Defense to manage the elements of the de6 fense acquisition system to maximize their value to 

7 the Department. 

8 ‘‘(2) The performance of each element of the defense 

9 acquisition system shall be assessed as needed, but not 

10 less often than annually. 

11 ‘‘(3) The Secretary shall ensure that the performance 

12 assessments required by this subsection are appropriately 

13 tailored to reflect the diverse nature of defense acquisition 

14 so that the performance assessment of each element of the 

15 defense acquisition system accurately reflects the work 

16 performed by such element. 

17 ‘‘(b) SYSTEMWIDE CATEGORIES.—(1) The Secretary 

18 of Defense shall establish categories of metrics for the de19 fense acquisition system, including, at a minimum, cat20 egories relating to cost, quality, delivery, workforce, and 

21 policy implementation that apply to all elements of the de22 fense acquisition system. 

23 ‘‘(2) The Secretary of Defense shall issue guidance 

24 for service acquisition executives within the Department 

25 of Defense on the establishment of metrics, and goals and 


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1 standards relating to such metrics, within the categories 

2 established by the Secretary under paragraph (1) to en3 sure that there is sufficient uniformity in performance as4 sessments across the defense acquisition system so that 

5 elements of the defense acquisition system can be mean6 ingfully compared. 

7 ‘‘(c) METRICS, GOALS, AND STANDARDS.—(1) Each 

8 service acquisition executive of the Department of Defense 

9 shall establish metrics to be used in the performance as10 sessments required by subsection (a) for each element of 

11 the defense acquisition system for which such executive 

12 is responsible within the categories established by the Sec13 retary under subsection (b). Such metrics shall be appro14 priately tailored pursuant to subsection (a)(3) and may 

15 include measures of— 

16 ‘‘(A) cost, quality, and delivery; 

17 ‘‘(B) contractor performance; 

18 ‘‘(C) workforce quality and program manager 

19 tenure (where applicable); 

20 ‘‘(D) the quality of market research; 

21 ‘‘(E) appropriate use of integrated testing; and 

22 ‘‘(F) appropriate consideration of long-term 

23 sustainment. 

24 ‘‘(2) Each service acquisition executive within the De25 partment of Defense shall establish goals and standards 


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1 (including, at a minimum, a threshold standard and an 

2 objective goal) for each metric established under para3 graph (1) by the executive. In establishing the goals and 

4 standards for an element of the defense acquisition sys5 tem, a service acquisition executive shall consult with the 

6 element to the maximum extent practicable, but the serv7 ice acquisition executive shall retain the final authority to 

8 determine the goals and standards established. The service 

9 acquisition executive shall update the goals and standards 

10 as necessary and appropriate consistent with the guidance 

11 issued under subsection (b)(2). 

12 ‘‘(3) The Under Secretary of Defense for Acquisition, 

13 Technology, and Logistics shall periodically review the 

14 metrics, goals, and standards established by service acqui15 sition executives under this subsection to ensure that they 

16 are consistent with the guidance issued under subsection 

17 (b)(2). 

18 ‘‘(d) RESPONSIBILITY FOR OVERSIGHT AND DIREC19 TION OF PERFORMANCE ASSESSMENTS.—(1) Perform20 ance assessments required by subsection (a) shall either 

21 be carried out by, or shall be subject to the oversight of, 

22 the Director of the Office of Performance Assessment and 

23 Root Cause Analysis. The authority and responsibility 

24 granted by this subsection is in addition to any other au25 thority or responsibility granted to the Director of the OfVerDate Nov 24 2008 16:49 Apr 15, 2010 Jkt 089200 PO 00000 Frm 00006 Fmt 6652 Sfmt 6201 E:\BILLS\H5013.IH H5013

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1 fice of Performance Assessment and Root Cause Analysis 

2 by the Secretary of Defense or by any other provision of 

3 law. In the performance of duties pursuant to this section, 

4 the Director of the Office of Performance Assessment and 

5 Root Cause analysis shall coordinate with the Deputy 

6 Chief Management Officer to ensure that performance as7 sessments carried out pursuant to this section are con8 sistent with the performance management initiatives of 

9 the Department of Defense. 

10 ‘‘(2) A performance assessment may be carried out 

11 by an organization under the control of the service acquisi12 tion executive of a military department if— 

13 ‘‘(A) the assessment fulfills the requirements of 

14 subsection (a); 

15 ‘‘(B) the organization is approved to carry out 

16 the assessment by the Director of the Office of Per17 formance Assessment and Root Cause Analysis; and 

18 ‘‘(C) the assessment is subject to the oversight 

19 of the Director of the Office of Performance Assess20 ment and Root Cause Analysis in accordance with 

21 paragraph (1). 

22 ‘‘(e) RETENTION AND ACCESS TO RECORDS OF PER23 FORMANCE ASSESSMENTS WITHIN THE MILITARY DE24 PARTMENTS AND DEFENSE AGENCIES.—The Secretary of 

25 Defense shall ensure that information from performance 


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1 assessments of all elements of the defense acquisition sys2 tem are retained electronically and that the Director of 

3 the Office of Performance Assessment and Root Cause 

4 Analysis— 

5 ‘‘(1) promptly receives the results of all per6 formance assessments conducted by an organization 

7 under the control of the service acquisition executive 

8 of a military department; and 

9 ‘‘(2) has timely access to any records and data 

10 in the Department of Defense (including the records 

11 and data of each military department and Defense 

12 Agency and including classified and proprietary in13 formation) that the Director considers necessary to 

14 review in order to perform or oversee performance 

15 assessments pursuant to this section. 

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

17 ‘‘(1) The term ‘defense acquisition system’ 

18 means the acquisition workforce; the process by 

19 which the Department of Defense manages the ac20 quisition of goods and services, including weapon 

21 systems, commodities, commercial and military 

22 unique services, and information technology; and the 

23 management structure for carrying out the acquisi24 tion function within the Department of Defense. 


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1 ‘‘(2) The term ‘element of the defense acquisi2 tion system’ means an organization that operates 

3 within the defense acquisition system and that fo4 cuses primarily on acquisition. 

5 ‘‘(3) The term ‘metric’ means a specific meas6 ure that serves as a basis for comparison. 

7 ‘‘(4) The term ‘threshold performance standard’ 

8 means the minimum acceptable level of performance 

9 in relation to a metric. 

10 ‘‘(5) The term ‘objective performance goal’ 

11 means the most desired level of performance in rela12 tion to a metric. 

13 ‘‘(6) The term ‘Office of Performance Assess14 ment and Root Cause Analysis’ means the office re15 porting to the senior official designated by the Sec16 retary of Defense under section 103(a) of the Weap17 on Systems Acquisition Reform Act of 2009 (Public 

18 Law 111–23, 10 U.S.C. 2430 note). 

19 ‘‘§ 2546. Audits of performance assessment 

20 ‘‘(a) AUDITS REQUIRED.—The Secretary of Defense 

21 shall ensure that the performance assessments of the de22 fense acquisition system required by section 2545 of this 

23 title are subject to periodic audits to determine the accu24 racy, reliability, and completeness of such assessments. 


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1 ‘‘(b) STANDARDS AND APPROACH.—In performing 

2 the audits required by subsection (a), the Secretary shall 

3 ensure that such audits— 

4 ‘‘(1) comply with generally accepted government 

5 auditing standards issued by the Comptroller Gen6 eral; 

7 ‘‘(2) use a risk-based approach to audit plan8 ning; and 

9 ‘‘(3) appropriately account for issues associated 

10 with auditing assessments of activities occurring in 

11 a contingency operation. 

12 ‘‘§ 2547. Use of performance assessments for man13 aging performance 

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

15 ensure that the results of performance assessments are 

16 used in the management of elements of the defense acqui17 sition system through direct linkages between the results 

18 of a performance assessment and the following: 

19 ‘‘(1) The size of the bonus pool available to the 

20 workforce of an element of the defense acquisition 

21 system. 

22 ‘‘(2) Rates of promotion in the workforce of an 

23 element of the defense acquisition system. 

24 ‘‘(3) Awards for acquisition excellence. 


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1 ‘‘(4) The scope of work assigned to an element 

2 of the defense acquisition system. 

3 ‘‘(b) ADDITIONAL REQUIREMENTS.—The Secretary 

4 of Defense shall ensure that actions taken to manage the 

5 acquisition workforce pursuant to subsection (a) are un6 dertaken in accordance with the requirements of sub7 sections (c) and (d) of section 1701a of this title. 

8 ‘‘§ 2548. Acquisition-related functions of the Chiefs of 

9 Staff of the Armed Forces 

10 ‘‘The Secretary of Defense shall ensure, notwith11 standing section 3014(c)(1)(A), section 5014(c)(1)(A), 

12 and section 8014(c)(1)(A) of this title, that the Chief of 

13 Staff of the Army, the Chief of Naval Operations, the 

14 Chief of Staff of the Air Force, and the Commandant of 

15 the Marine Corps assist the Secretary of the military de16 partment concerned in the performance of the following 

17 acquisition-related functions of such department: 

18 ‘‘(1) The development of requirements relating 

19 to the defense acquisition system. 

20 ‘‘(2) The development of measures to control 

21 requirements creep in the defense acquisition sys22 tem. 

23 ‘‘(3) The development of career paths in acqui24 sition for military personnel (as required by section 

25 1722a of this title). 


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1 ‘‘(4) The assignment and training of con2 tracting officer representatives when such represent3 atives are required to be members of the armed 

4 forces because of the nature of the contract con5 cerned.’’. 

6 (b) PHASED IMPLEMENTATION OF PERFORMANCE

7 ASSESSMENTS.—The Secretary of Defense shall imple8 ment the requirements of chapter 149 of title 10, United 

9 States Code, as added by subsection (a), in a phased man10 ner while guidance is issued, and categories, metrics, 

11 goals, and standards are established. Implementation shall 

12 begin with a cross section of elements of the defense acqui13 sition system representative of the entire system and shall 

14 be completed for all elements not later than two years 

15 after the date of the enactment of this Act. 

16 SEC. 102. MEANINGFUL CONSIDERATION BY JOINT RE17 QUIREMENTS OVERSIGHT COUNCIL OF 

18 INPUT FROM CERTAIN OFFICIALS. 

19 Paragraph (2) of section 105(e) of the Weapon Sys20 tem Acquisition Reform Act of 2009 (Public Law 111– 

21 23) is amended to read as follows: 

22 ‘‘(2) MATTERS COVERED.—The report shall in23 clude, at a minimum, an assessment of— 

24 ‘‘(A) the extent to which the Council has 

25 effectively sought, and the commanders of the 


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1 combatant commands have provided, meaning2 ful input on proposed joint military require3 ments; 

4 ‘‘(B) the extent to which the Council has 

5 meaningfully considered the input and expertise 

6 of the Under Secretary of Defense for Acquisi7 tion, Technology, and Logistics in its discus8 sions; 

9 ‘‘(C) the extent to which the Council has 

10 meaningfully considered the input and expertise 

11 of the Director of Cost Assessment and Pro12 gram Evaluation in its discussions; 

13 ‘‘(D) the quality and effectiveness of ef14 forts to estimate the level of resources needed 

15 to fulfill joint military requirements; and 

16 ‘‘(E) the extent to which the Council has 

17 considered trade-offs among cost, schedule, and 

18 performance objectives.’’. 

19 SEC. 103. PERFORMANCE MANAGEMENT FOR THE JOINT 

20 CAPABILITIES INTEGRATION AND DEVELOP21 MENT SYSTEM. 

22 (a) REQUIREMENT FOR PROGRAM.—The Secretary of 

23 Defense shall ensure that the Department of Defense de24 velops and implements a program to manage performance 


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1 in establishing joint military requirements pursuant to 

2 section 181 of title 10, United States Code. 

3 (b) LEADERS.—The Secretary of Defense shall des4 ignate an officer identified or designated as a joint quali5 fied officer to serve as leader of a joint effort to develop 

6 the performance management program required by sub7 section (a). The Secretary shall also designate an officer 

8 from each Armed Force to serve as leader of the effort 

9 within the Armed Force concerned. Officers designated 

10 pursuant to this section shall have the seniority and au11 thority necessary to oversee and direct all personnel en12 gaged in establishing joint military requirements within 

13 the Joint Staff or within the Armed Force concerned. 

14 (c) MATTERS COVERED.—The program developed 

15 pursuant to subsection (a) shall: 

16 (1) Measure the following in relation to each 

17 joint military requirement: 

18 (A) The time a requirements document 

19 takes to receive validation through the require20 ments process. 

21 (B) The quality of cost information associ22 ated with the requirement and the extent to 

23 which cost information was considered during 

24 the requirements process. 


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1 (C) The extent to which the requirements 

2 process established a meaningful level of pri3 ority for the requirement. 

4 (D) The extent to which the requirements 

5 process considered trade-offs between cost, 

6 schedule, and performance objectives. 

7 (E) The quality of information on 

8 sustainment associated with the requirement 

9 and the extent to which sustainment informa10 tion was considered during the requirements 

11 process. 

12 (F) Such other matters as the Secretary 

13 shall determine appropriate. 

14 (2) Achieve, to the maximum extent practicable, 

15 the following outcomes in the requirements process: 

16 (A) Timeliness in delivering capability to 

17 the warfighter. 

18 (B) Mechanisms for controlling require19 ments creep. 

20 (C) Responsiveness to fact-of-life changes 

21 occurring after the approval of a requirements 

22 document, including changes to the threat envi23 ronment, the emergence of new capabilities, or 

24 changes in the resources estimated to procure 

25 or sustain a capability. 


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1 (D) The development of the personnel 

2 skills, capacity, and training needed for an ef3 fective and efficient requirements process. 

4 (E) Such other outcomes as the Secretary 

5 shall determine appropriate. 

6 (d) IMPLEMENTATION.—The program required by 

7 subsection (a) shall be developed and initially implemented 

8 not later than one year after the date of the enactment 

9 of this Act and shall apply to joint military requirements 

10 entering the requirements process after the date of initial 

11 implementation. 

12 (e) INITIAL REPORT.—Not later than 90 days after 

13 the initial implementation of the program required by sub14 section (a), the Secretary shall submit to the congressional 

15 defense committees a report on the steps taken to develop 

16 and implement the performance management program for 

17 joint military requirements. The report shall address the 

18 measures specified in subsection (c)(1). 

19 (f) FINAL REPORT.—Not later than four years after 

20 the initial implementation of the program required by sub21 section (a), the Secretary shall submit to the congressional 

22 defense committees a report on the effectiveness of the 

23 program for joint military requirements in achieving the 

24 outcomes specified in subsection (c)(2). 

25 (g) DEFINITIONS.—In this section: 


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1 (1) REQUIREMENTS PROCESS.—The term ‘‘re2 quirements process’’ means the Joint Capabilities 

3 Integration and Development System (JCIDS) proc4 ess or any successor to such process established by 

5 the Chairman of the Joint Chiefs of Staff to support 

6 the statutory responsibility of the Joint Require7 ments Oversight Council in advising the Chairman 

8 and the Secretary of Defense in identifying, assess9 ing, and validating joint military capability needs, 

10 with their associated operational performance cri11 teria, in order to successfully execute missions. 

12 (2) REQUIREMENTS DOCUMENT.—The term 

13 ‘‘requirements document’’ means a document pro14 duced in the requirements process that is provided 

15 for an acquisition program to guide the subsequent 

16 development, production, and testing of the program 

17 and that— 

18 (A) justifies the need for a materiel ap19 proach, or an approach that is a combination of 

20 materiel and non-materiel, to satisfy one or 

21 more specific capability gaps; 

22 (B) details the information necessary to 

23 develop an increment of militarily useful, 

24 logistically supportable, and technically mature 


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1 capability, including key performance param2 eters; or 

3 (C) identifies production attributes re4 quired for a single increment of a program. 

5 (3) REQUIREMENTS CREEP.—The term ‘‘re6 quirements creep’’ means the addition of new tech7 nical or operational specifications after a require8 ments document is approved. 

9 (h) DISCRETIONARY IMPLEMENTATION AFTER 5 

10 YEARS.—After the date that is five years after the initial 

11 implementation of the performance management program 

12 under this section, the requirement to implement a pro13 gram under this section shall be at the discretion of the 

14 Secretary of Defense. 

15 SEC. 104. ESTABLISHMENT OF A REQUIREMENTS PROCESS 

16 FOR THE ACQUISITION OF SERVICES. 

17 (a) REQUIREMENTS PROCESS REQUIRED.—The Sec18 retary of Defense shall ensure that each military depart19 ment establishes a process for identifying, assessing, and 

20 approving requirements for the acquisition of services, and 

21 that commanders of unified combatant commands and 

22 other officers identified or designated as joint qualified of23 ficers have an opportunity to participate in the process 

24 of each military department to provide input on joint re25 quirements for the acquisition of services. 


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1 (b) GUIDANCE AND PLAN REQUIRED.—The Chief of 

2 Staff of the Army, the Chief of Naval Operations, the 

3 Chief of Staff of the Air Force, and the Commandant of 

4 the Marine Corps shall— 

5 (1) issue and maintain guidance relating to the 

6 requirements process required by subsection (a); and 

7 (2) develop a plan to implement the require8 ments process required by subsection (a). 

9 (c) MATTERS REQUIRED IN GUIDANCE.—The guid10 ance required under subsection (b) shall establish, in rela11 tion to the requirements process for the acquisition of 

12 services, the following: 

13 (1) Organization of the requirements process. 

14 (2) The level of command responsibility re15 quired for identifying and validating requirements in 

16 accordance with the categories established under sec17 tion 2330(a)(1)(C) of title 10, United States Code. 

18 (3) The composition of billets necessary to oper19 ate the requirements process. 

20 (4) The training required for personnel engaged 

21 in the requirements process. 

22 (5) The relationship between doctrine and the 

23 requirements process. 

24 (6) Methods of obtaining input on joint require25 ments. 


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1 (7) Procedures for coordinating with the acqui2 sition process. 

3 (8) Considerations relating to opportunities for 

4 strategic sourcing. 

5 (d) MATTERS REQUIRED IN IMPLEMENTATION

6 PLAN.—The plan required under subsection (b) shall pro7 vide for initial implementation of a requirements process 

8 not later than 180 days after the date of the enactment 

9 of this Act and shall provide for full implementation of 

10 the process at the earliest date practicable. 

11 (e) CONSISTENCY WITH JOINT GUIDANCE.—When12 ever, at any time, guidance is issued by the Joint Staff 

13 relating to the acquisition of services, each requirements 

14 process established pursuant to subsection (a) shall be re15 vised in accordance with the requirements of such joint 

16 guidance. 

17 SEC. 105. JOINT EVALUATION TASK FORCES. 

18 (a) TASK FORCES REQUIRED.—For each joint mili19 tary requirement involving a materiel solution for which 

20 the Chairman of the Joint Requirements Oversight Coun21 cil is the validation authority, the Chairman shall des22 ignate a commander of a unified combatant command to 

23 provide a joint evaluation task force to assist in the acqui24 sition of the materiel solution. Such task force shall— 


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1 (1) come from a military unit or units des2 ignated by the combatant commander concerned; 

3 (2) be selected based on the relevance of the 

4 materiel solution to the mission of the unit; and 

5 (3) participate consistent with its operational 

6 obligations. 

7 (b) RESPONSIBILITIES.—A task force provided pur8 suant to subsection (a) shall participate in all stages of 

9 the development and low rate initial production of the ma10 teriel solution, including— 

11 (1) providing input to the analysis of alter12 natives; 

13 (2) participating in testing (including limited 

14 user tests and prototype testing); 

15 (3) providing input on a concept of operations 

16 and doctrine; 

17 (4) providing end user feedback to the resource 

18 sponsor; and 

19 (5) participating in any alteration of the re20 quirement for such solution. 

21 (c) ADMINISTRATIVE SUPPORT.—The resource spon22 sor for the joint military requirement shall provide admin23 istrative support to the joint evaluation task force for pur24 poses of carrying out this section. 

25 (d) DEFINITIONS.—In this section: 


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1 (1) RESOURCE SPONSOR.—The term ‘‘resource 

2 sponsor’’ means the organization responsible for all 

3 common documentation, periodic reporting, and 

4 funding actions required to support the capabilities 

5 development and acquisition process for the materiel 

6 solution. 

7 (2) MATERIEL SOLUTION.—The term ‘‘materiel 

8 solution’’ means the development, acquisition, pro9 curement, or fielding of a new item, or of a modi10 fication to an existing item, necessary to equip, oper11 ate, maintain, and support military activities. 

12 SEC. 106. REVIEW OF DEFENSE ACQUISITION GUIDANCE. 

13 (a) REVIEW OF GUIDANCE.—The Secretary of De14 fense shall review the acquisition guidance of the Depart15 ment of Defense, including, at a minimum, the guidance 

16 contained in Department of Defense Instruction 5000.02 

17 entitled ‘‘Operation of the Defense Acquisition System’’. 

18 (b) MATTERS CONSIDERED.—The review performed 

19 under subsection (a) shall consider— 

20 (1) the extent to which it is appropriate to 

21 apply guidance relating to the acquisition of weapon 

22 systems to acquisitions not involving weapon systems 

23 (including the acquisition of commercial goods and 

24 commodities, commercial and military unique serv25 ices, and information technology); 


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1 (2) whether long-term sustainment of weapon 

2 systems is appropriately emphasized; 

3 (3) whether appropriate mechanisms exist to 

4 communicate information relating to the mission 

5 needs of the Department of Defense to the industrial 

6 base in a way that allows the industrial base to 

7 make appropriate investments in infrastructure, ca8 pacity, and technology development to help meet 

9 such needs; 

10 (4) the extent to which earned value manage11 ment should be required on acquisitions not involv12 ing the acquisition of weapon systems; 

13 (5) the extent to which it is appropriate to 

14 apply processes primarily relating to the acquisition 

15 of weapon systems to the acquisition of information 

16 technology systems, consistent with the requirement 

17 to develop an alternative process for such systems 

18 contained in section 804 of the National Defense 

19 Authorization Act for Fiscal Year 2010 (Public Law 

20 111–84; 123 Stat. 2401; 10 U.S.C. 2225 note); and 

21 (6) such other matters as the Secretary con22 siders appropriate. 

23 (c) REPORT.—Not later than 270 days after the date 

24 of the enactment of this Act, the Secretary of Defense 

25 shall submit to the Committees on Armed Services of the 


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1 Senate and of the House of Representatives a report de2 tailing any changes in the acquisition guidance of the De3 partment of Defense identified during the review required 

4 by subsection (a), and any actions taken, or planned to 

5 be taken, to implement such changes. 

6 SEC. 107. REQUIREMENT TO INCLUDE REFERENCES TO 

7 SERVICES CONTRACTING THROUGHOUT THE 

8 FEDERAL ACQUISITION REGULATION. 

9 (a) FINDINGS.—Congress finds the following: 

10 (1) The acquisition of services can be extremely 

11 complex, and program management skills, tools, and 

12 processes need to be applied to services acquisitions. 

13 (2) An emphasis on the concept of ‘‘services’’ 

14 throughout the Federal Acquisition Regulation 

15 would enhance and support the procurement and 

16 project management community in all aspects of the 

17 acquisition planning process, including requirements 

18 development, assessment of reasonableness, and 

19 post-award management and oversight. 

20 (b) REQUIREMENT FOR CHANGES TO FAR.—The 

21 Federal Acquisition Regulation shall be revised to provide, 

22 throughout the Regulation, appropriate references to serv23 ices contracting that are in addition to references provided 

24 in part 37 (which relates specifically to services con25 tracting). 


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1 (c) DEADLINE.—This section shall be carried out 

2 within 270 days after the date of the enactment of this 

3 Act. 

4 TITLE II—DEFENSE 

5 ACQUISITION WORKFORCE 

6 SEC. 201. ACQUISITION WORKFORCE EXCELLENCE. 

7 (a) IN GENERAL.— 

8 (1) ACQUISITION WORKFORCE EXCELLENCE.— 

9 Subchapter I of chapter 87 of title 10, United States 

10 Code, is amended by inserting after section 1701 the 

11 following new section: 

12 ‘‘§ 1701a. Management for acquisition workforce ex13 cellence 

14 ‘‘(a) PURPOSE.—The purpose of this chapter is to re15 quire the Department of Defense to develop and manage 

16 a highly skilled professional acquisition workforce— 

17 ‘‘(1) in which excellence and contribution to 

18 mission is rewarded; 

19 ‘‘(2) which has the technical expertise and busi20 ness skills to ensure the Department receives the 

21 best value for the expenditure of public resources; 

22 ‘‘(3) which serves as a model for performance 

23 management of employees of the Department; and 

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1 ment of the defense acquisition system pursuant to 

2 chapter 149 of this title. 

3 ‘‘(b) PERFORMANCE MANAGEMENT.—In order to 

4 achieve the purpose set forth in subsection (a), the Sec5 retary of Defense shall— 

6 ‘‘(1) use the full authorities provided in sub7 sections (a) through (d) of section 9902 of title 5, 

8 including flexibilities related to performance manage9 ment and hiring and to training of managers; 

10 ‘‘(2) require managers to develop performance 

11 plans for individual members of the acquisition 

12 workforce in order to give members an under13 standing of how their performance contributes to 

14 their organization’s mission and the success of the 

15 defense acquisition system (as defined in section 

16 2545 of this title); 

17 ‘‘(3) to the extent appropriate, use the lessons 

18 learned from the acquisition demonstration project 

19 carried out under section 1762 of this title related 

20 to contribution-based compensation and appraisal, 

21 and how those lessons may be applied within the 

22 General Schedule system; 

23 ‘‘(4) develop attractive career paths; 

24 ‘‘(5) encourage continuing education and train25 ing; 


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1 ‘‘(6) develop appropriate procedures for warn2 ings during performance evaluations and due process 

3 for members of the acquisition workforce who con4 sistently fail to meet performance standards; 

5 ‘‘(7) take full advantage of the Defense Civilian 

6 Leadership Program established under section 1112 

7 of the National Defense Authorization Act for Fiscal 

8 Year 2010, (Public Law 111–84; 123 Stat. 2496; 10 

9 U.S.C. 1580 note prec.); 

10 ‘‘(8) use the authorities for highly qualified ex11 perts under section 9903 of title 5, United States 

12 Code, to hire experts who are skilled acquisition pro13 fessionals to— 

14 ‘‘(A) serve in leadership positions within 

15 the acquisition workforce to strengthen manage16 ment and oversight; 

17 ‘‘(B) provide mentors to advise individuals 

18 within the acquisition workforce on their career 

19 paths and opportunities to advance and excel 

20 within the acquisition workforce; and 

21 ‘‘(C) assist with the design of education 

22 and training courses and the training of indi23 viduals in the acquisition workforce; and 


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1 ‘‘(9) use the authorities for expedited security 

2 clearance processing pursuant to section 1564 of 

3 title 10, United States Code. 

4 ‘‘(c) NEGOTIATIONS.—Any action taken by the Sec5 retary under this section, or to implement this section, 

6 shall be subject to the requirements of chapter 71 of title 

7 5. 

8 ‘‘(d) REGULATIONS.—Any rules or regulations pre9 scribed pursuant to this section shall be deemed an agency 

10 rule or regulation under section 7117(a)(2) of title 5, and 

11 shall not be deemed a Government-wide rule or regulation 

12 under section 7117(a)(1) of such title.’’. 

13 (2) CLERICAL AMENDMENT.—The table of sec14 tions at the beginning of such subchapter is amend15 ed by inserting after the item relating to section 

16 1701 the following new item: 

‘‘1701a. Management for acquisition workforce excellence.’’. 

17 (b) AUTHORITY TO APPOINT HIGHLY QUALIFIED

18 EXPERTS ON PART-TIME BASIS.—Section 9903(b)(1) of 

19 title 5, United States Code, is amended by inserting ‘‘, 

20 on a full-time or part-time basis,’’ after ‘‘positions in the 

21 Department of Defense’’. 

22 SEC. 202. AMENDMENTS TO THE ACQUISITION WORKFORCE 

23 DEMONSTRATION PROJECT. 

24 (a) CODIFICATION INTO TITLE 10.— 


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1 (1) IN GENERAL.—Chapter 87 of title 10, 

2 United States Code, is amended by inserting after 

3 section 1761 the following new section: 

4 ‘‘§ 1762. Demonstration project relating to certain ac5 quisition personnel management policies 

6 and procedures 

7 ‘‘(a) COMMENCEMENT.—The Secretary of Defense is 

8 encouraged to carry out a demonstration project, the pur9 pose of which is to determine the feasibility or desirability 

10 of one or more proposals for improving the personnel man11 agement policies or procedures that apply with respect to 

12 the acquisition workforce of the Department of Defense 

13 and supporting personnel assigned to work directly with 

14 the acquisition workforce. 

15 ‘‘(b) TERMS AND CONDITIONS.—(1) Except as other16 wise provided in this subsection, any demonstration 

17 project described in subsection (a) shall be subject to sec18 tion 4703 of title 5 and all other provisions of such title 

19 that apply with respect to any demonstration project 

20 under such section. 

21 ‘‘(2) Subject to paragraph (3), in applying section 

22 4703 of title 5 with respect to a demonstration project 

23 described in subsection (a)— 

24 ‘‘(A) ‘180 days’ in subsection (b)(4) of such 

25 section shall be deemed to read ‘120 days’; 


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1 ‘‘(B) ‘90 days’ in subsection (b)(6) of such sec2 tion shall be deemed to read ‘30 days’; and 

3 ‘‘(C) subsection (d)(1) of such section shall be 

4 disregarded. 

5 ‘‘(3) Paragraph (2) shall not apply with respect to 

6 a demonstration project unless— 

7 ‘‘(A) for each organization or team partici8 pating in the demonstration project— 

9 ‘‘(i) at least one-third of the workforce par10 ticipating in the demonstration project consists 

11 of members of the acquisition workforce; and 

12 ‘‘(ii) at least two-thirds of the workforce 

13 participating in the demonstration project con14 sists of members of the acquisition workforce 

15 and supporting personnel assigned to work di16 rectly with the acquisition workforce; and 

17 ‘‘(B) the demonstration project commences be18 fore October 1, 2007. 

19 ‘‘(c) LIMITATION ON NUMBER OF PARTICIPANTS.— 

20 The total number of persons who may participate in the 

21 demonstration project under this section may not exceed 

22 120,000. 

23 ‘‘(d) EFFECT OF REORGANIZATIONS.—The applica24 bility of paragraph (2) of subsection (b) to an organization 

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1 tion or team, after having satisfied the conditions in para2 graph (3) of such subsection when it began to participate 

3 in a demonstration project under this section, ceases to 

4 meet one or both of the conditions set forth in subpara5 graph (A) of such paragraph (3) as a result of a reorga6 nization, restructuring, realignment, consolidation, or 

7 other organizational change. 

8 ‘‘(e) ASSESSMENT.—(1) The Secretary of Defense 

9 shall designate an independent organization to review the 

10 acquisition workforce demonstration project described in 

11 subsection (a). 

12 ‘‘(2) Such assessment shall include: 

13 ‘‘(A) A description of the workforce included in 

14 the project. 

15 ‘‘(B) An explanation of the flexibilities used in 

16 the project to appoint individuals to the acquisition 

17 workforce and whether those appointments are based 

18 on competitive procedures and recognize veteran’s 

19 preferences. 

20 ‘‘(C) An explanation of the flexibilities used in 

21 the project to develop a performance appraisal sys22 tem that recognizes excellence in performance and 

23 offers opportunities for improvement. 


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1 ‘‘(D) The steps taken to ensure that such sys2 tem is fair and transparent for all employees in the 

3 project. 

4 ‘‘(E) How the project allows the organization to 

5 better meet mission needs. 

6 ‘‘(F) An analysis of how the flexibilities in sub7 paragraphs (B) and (C) are used, and what barriers 

8 have been encountered that inhibit their use. 

9 ‘‘(G) Whether there is a process for (i) ensuring 

10 ongoing performance feedback and dialogue among 

11 supervisors, managers, and employees throughout 

12 the performance appraisal period, and (ii) setting 

13 timetables for performance appraisals. 

14 ‘‘(H) The project’s impact on career progres15 sion. 

16 ‘‘(I) The project’s appropriateness or inappro17 priateness in light of the complexities of the work18 force affected. 

19 ‘‘(J) The project’s sufficiency in terms of pro20 viding protections for diversity in promotion and re21 tention of personnel. 

22 ‘‘(K) The adequacy of the training, policy 

23 guidelines, and other preparations afforded in con24 nection with using the project. 


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1 ‘‘(L) Whether there is a process for ensuring 

2 employee involvement in the development and im3 provement of the project. 

4 ‘‘(3) The first such assessment under this subsection 

5 shall be completed not later than September 30, 2011, and 

6 subsequent assessments shall be completed every two 

7 years thereafter until the termination of the project. The 

8 Secretary shall submit to the covered congressional com9 mittees a copy of the assessment within 30 days after re10 ceipt by the Secretary of the assessment. 

11 ‘‘(f) COVERED CONGRESSIONAL COMMITTEES.—In 

12 this section, the term ‘covered congressional committees’ 

13 means— 

14 ‘‘(1) the Committees on Armed Services of the 

15 Senate and the House of Representatives; 

16 ‘‘(2) the Committee on Homeland Security and 

17 Governmental Affairs of the Senate; and 

18 ‘‘(3) the Committee on Oversight and Govern19 ment Reform of the House of Representatives. 

20 ‘‘(g) TERMINATION OF AUTHORITY.—The authority 

21 to conduct a demonstration program under this section 

22 shall terminate on September 30, 2017. 

23 ‘‘(h) CONVERSION.—Within six months after the au24 thority to conduct a demonstration project under this sec25 tion is terminated as provided in subsection (i), employees 


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1 in the project shall convert to the civilian personnel system 

2 created pursuant to section 9902 of title 5, United States 

3 Code.’’. 

4 (2) CLERICAL AMENDMENT.—The table of sec5 tions at the beginning of subchapter V of chapter 87 

6 of title 10, United States Code, is amended by in7 serting after the item relating to section 1761 the 

8 following new item: 

‘‘1762. Demonstration project relating to certain acquisition personnel management policies and procedures.’’. 

9 (b) CONFORMING REPEAL.—Section 4308 of the Na10 tional Defense Authorization Act for Fiscal Year 1996 

11 (Public Law 104–106; 10 U.S.C. 1701 note) is repealed. 

12 SEC. 203. INCENTIVE PROGRAMS FOR CIVILIAN AND MILI13 TARY PERSONNEL IN THE ACQUISITION 

14 WORKFORCE. 

15 (a) IN GENERAL.—Chapter 87 of title 10, United 

16 States Code, is amended by inserting after section 1762, 

17 as added by section 202, the following new section: 

18 ‘‘§ 1763. Incentive programs for civilian and military 

19 personnel in the acquisition workforce 

20 ‘‘(a) CIVILIAN ACQUISITION WORKFORCE INCEN21 TIVES.—The Secretary of Defense, acting through the 

22 Under Secretary of Defense for Acquisition, Technology, 

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1 sition workforce by providing rewards for employees who 

2 contribute to achieving the agency’s performance goals. 

3 The system of incentives shall include provisions that— 

4 ‘‘(1) relate salary increases, bonuses, and 

5 awards to performance and contribution to the agen6 cy mission (including the extent to which the per7 formance of personnel in such workforce contributes 

8 to achieving the goals and standards established for 

9 acquisition programs pursuant to section 2545 of 

10 this title; 

11 ‘‘(2) provide for consideration, in personnel 

12 evaluations and promotion decisions, of the extent to 

13 which the performance of personnel in such work14 force contributes to achieving such goals and stand15 ards; 

16 ‘‘(3) use the Department of Defense Civilian 

17 Workforce Incentives Fund established pursuant to 

18 section 9902(a) of title 5; and 

19 ‘‘(4) provide opportunities for career broad20 ening experiences for high performers. 

21 ‘‘(b) MILITARY ACQUISITION WORKFORCE INCEN22 TIVES.—The Secretaries of the military departments shall 

23 fully use and enhance incentive programs that reward in24 dividuals, through recognition certificates or cash awards, 

25 for suggestions of process improvements that contribute 


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1 to improvements in efficiency and economy and a better 

2 way of doing business.’’. 

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

4 at the beginning of subchapter V of chapter 87 of title 

5 10, United States Code, is amended by inserting after the 

6 item relating to section 1762, as added by section 202, 

7 the following new item: 

‘‘1763. Incentive programs for civilian and military personnel in the acquisition 

workforce.’’. 

8 SEC. 204. CAREER DEVELOPMENT FOR CIVILIAN AND MILI9 TARY PERSONNEL IN THE ACQUISITION 

10 WORKFORCE. 

11 (a) CAREER PATHS.— 

12 (1) AMENDMENT.—Chapter 87 of title 10, 

13 United States Code, is amended by inserting after 

14 section 1722a the following new section: 

15 ‘‘§ 1722b. Special requirements for civilian employees 

16 in the acquisition field 

17 ‘‘(a) REQUIREMENT FOR POLICY AND GUIDANCE RE18 GARDING CIVILIAN PERSONNEL IN ACQUISITION.—The 

19 Secretary of Defense, acting through the Under Secretary 

20 of Defense for Acquisition, Technology, and Logistics, 

21 shall establish policies and issue guidance to ensure the 

22 proper development, assignment, and employment of civil23 ian members of the acquisition workforce to achieve the 

24 objectives specified in subsection (b). 


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1 ‘‘(b) OBJECTIVES.—Policies established and guidance 

2 issued pursuant to subsection (a) shall ensure, at a min3 imum, the following: 

4 ‘‘(1) A career path in the acquisition field that 

5 attracts the highest quality civilian personnel, from 

6 either within or outside the Federal Government. 

7 ‘‘(2) A deliberate workforce development strat8 egy that increases attainment of key experiences 

9 that contribute to a highly qualified acquisition 

10 workforce. 

11 ‘‘(3) Sufficient opportunities for promotion and 

12 advancement in the acquisition field. 

13 ‘‘(4) A sufficient number of qualified, trained 

14 members eligible for and active in the acquisition 

15 field to ensure adequate capacity, capability, and ef16 fective succession for acquisition functions, including 

17 contingency contracting, of the Department of De18 fense. 

19 ‘‘(c) INCLUSION OF INFORMATION IN ANNUAL RE20 PORT.—The Secretary of Defense shall include in the re21 port to Congress required under section 115b(d) of this 

22 title the following information related to the acquisition 

23 workforce for the period covered by the report (which shall 

24 be shown for the Department of Defense as a whole and 


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1 separately for the Army, Navy, Air Force, Marine Corps, 

2 Defense Agencies, and Office of the Secretary of Defense): 

3 ‘‘(1) The total number of persons serving in the 

4 Acquisition Corps, set forth separately for members 

5 of the Armed Forces and civilian employees, by 

6 grade level and by functional specialty. 

7 ‘‘(2) The total number of critical acquisition po8 sitions held, set forth separately for members of the 

9 armed forces and civilian employees, by grade level 

10 and by other appropriate categories (including by 

11 program manager, deputy program manager, and di12 vision head positions). For each such category, the 

13 report shall specify the number of civilians holding 

14 such positions compared to the total number of posi15 tions filled. 

16 ‘‘(3) The number of employees to whom the re17 quirements of subsections (b)(2)(A) and (b)(2)(B) of 

18 section 1732 of this title did not apply because of 

19 the exceptions provided in paragraphs (1) and (2) of 

20 section 1732(c) of this title, set forth separately by 

21 type of exception. 

22 ‘‘(4) The number of program managers and 

23 deputy program managers who were reassigned after 

24 completion of a major milestone occurring closest in 

25 time to the date on which the person has served in 


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1 the position for four years (as required under section 

2 1734(b) of this title), and the proportion of those re3 assignments to the total number of reassignments of 

4 program managers and deputy program managers, 

5 set forth separately for program managers and dep6 uty program managers. The Secretary also shall in7 clude the average length of assignment served by 

8 program managers and deputy program managers so 

9 reassigned. 

10 ‘‘(5) The number of persons, excluding those 

11 reported under paragraph (4), in critical acquisition 

12 positions who were reassigned after a period of three 

13 years or longer (as required under section 1734(a) 

14 of this title), and the proportion of those reassign15 ments to the total number of reassignments of per16 sons, excluding those reported under paragraph (4), 

17 in critical acquisition positions. 

18 ‘‘(6) The number of times a waiver authority 

19 was exercised under section 1724(d), 1732(d), 

20 1734(d), or 1736(c) of this title or any other provi21 sion of this chapter (or other provision of law) which 

22 permits the waiver of any requirement relating to 

23 the acquisition workforce, and in the case of each 

24 such authority, the reasons for exercising the au25 thority. The Secretary may present the information 


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1 provided under this paragraph by category or group2 ing of types of waivers and reasons.’’. 

3 (2) CLERICAL AMENDMENT.—The table of sec4 tions at the beginning of subchapter II of chapter 87 

5 of title 10, United States Code, is amended by in6 serting after the item relating to section 1722a the 

7 following new item: 

‘‘1722b. Special requirements for civilian employees in the acquisition field.’’. 

8 (b) CAREER EDUCATION AND TRAINING.—Chapter 

9 87 of title 10, United States Code, is amended in section 

10 1723 by redesignating subsection (b) as (c) and inserting 

11 after subsection (a) the following new subsection: 

12 ‘‘(b) CAREER PATH REQUIREMENTS.—For each ca13 reer path, the Secretary of Defense, acting through the 

14 Under Secretary of Defense for Acquisition, Technology, 

15 and Logistics shall establish requirements for the comple16 tion of course work and related on-the-job training and 

17 demonstration of qualifications in the critical acquisition18 related duties and tasks of the career path. The Secretary 

19 of Defense, acting through the Under Secretary, shall 

20 also— 

21 ‘‘(1) encourage individuals in the acquisition 

22 workforce to maintain the currency of their acquisi23 tion knowledge and generally enhance their knowl24 edge of related acquisition management disciplines 


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1 through academic programs and other self-develop2 mental activities; and 

3 ‘‘(2) develop key work experiences for individ4 uals in the acquisition workforce so that the individ5 uals may gain in-depth knowledge and experience in 

6 the acquisition process and become seasoned, well7 qualified members of the acquisition workforce.’’. 

8 SEC. 205. RECERTIFICATION AND TRAINING REQUIRE9 MENTS. 

10 (a) CONTINUING EDUCATION.—Section 1723 of title 

11 10, United States Code, as amended by section 204, is 

12 further amended by amending subsection (a) to read as 

13 follows: 

14 ‘‘(a) QUALIFICATION REQUIREMENTS.—(1) The Sec15 retary of Defense shall establish education, training and 

16 experience requirements for each acquisition position, 

17 based on the level of complexity of duties carried out in 

18 the position. In establishing such requirements, the Sec19 retary shall ensure the availability and sufficiency of train20 ing in all areas of acquisition, including additional training 

21 courses with an emphasis on services contracting, informa22 tion technology, and rapid acquisition. 

23 ‘‘(2) In establishing such requirements for positions 

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1 ant to section 1733 of this title, the Secretary may state 

2 the requirements by categories of positions. 

3 ‘‘(3) The Secretary of Defense, acting through the 

4 Under Secretary of Defense for Acquisition, Technology, 

5 and Logistics, shall establish requirements for continuing 

6 education and periodic renewal of an individual’s certifi7 cation. Any requirement for a certification renewal shall 

8 not require a renewal more often than once every five 

9 years.’’. 

10 (b) STANDARDS FOR TRAINING.— 

11 (1) IN GENERAL.—Subchapter IV of Chapter 

12 87 of title 10, United States Code, is amended by 

13 adding at the end the following new section: 

14 ‘‘§ 1748. Guidance and standards for acquisition 

15 workforce training 

16 ‘‘(a) FULFILLMENT STANDARDS.—The Secretary of 

17 Defense, acting through the Under Secretary of Defense 

18 for Acquisition, Technology, and Logistics, shall develop 

19 fulfillment standards, and implement and maintain a pro20 gram, for purposes of the training requirements of sec21 tions 1723, 1724, and 1735 of this title. Such fulfillment 

22 standards shall consist of criteria for determining whether 

23 an individual has demonstrated competence in the areas 

24 that would be taught in the training courses required 

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1 priate fulfillment standard, the applicable training re2 quirement is fulfilled. 

3 ‘‘(b) GUIDANCE AND STANDARDS RELATING TO CON4 TRACTS FOR TRAINING.—The Secretary of Defense shall 

5 develop appropriate guidance and standards to ensure that 

6 the Department of Defense will continue, where appro7 priate and cost-effective, to enter into contracts for the 

8 training requirements of sections 1723, 1724, and 1735 

9 of this title, while maintaining appropriate control over the 

10 content and quality of such training.’’. 

11 (2) CLERICAL AMENDMENT.—The table of sec12 tions at the beginning of such subchapter is amend13 ed by adding at the end the following new item: 

‘‘1748. Guidance and standards for acquisition workforce training.’’. 

14 (3) DEADLINE FOR FULFILLMENT STAND15 ARDS.—The fulfillment standards required under 

16 section 1748(a) of title 10, United States Code, as 

17 added by paragraph (1), shall be developed not later 

18 than 90 days after the date of the enactment of this 

19 Act. 

20 (4) CONFORMING REPEAL.—Section 853 of 

21 Public Law 105–85 (111 Stat. 1851) is repealed. 

22 SEC. 206. INFORMATION TECHNOLOGY ACQUISITION 

23 WORKFORCE. 

24 (a) IN GENERAL.— 


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1 (1) INFORMATION TECHNOLOGY.—Subchapter 

2 II of chapter 87 of title 10, United States Code, is 

3 amended by adding at the end the following new sec4 tion: 

5 ‘‘§ 1725. Information technology acquisition positions 

6 ‘‘(a) PLAN REQUIRED.—The Secretary of Defense 

7 shall develop and carry out a plan to strengthen the part 

8 of the acquisition workforce that specializes in information 

9 technology. The plan shall include the following: 

10 ‘‘(1) Defined targets for billets devoted to infor11 mation technology acquisition. 

12 ‘‘(2) Specific certification requirements for indi13 viduals in the acquisition workforce who specialize in 

14 information technology acquisition. 

15 ‘‘(3) Defined career paths for individuals in the 

16 acquisition workforce who specialize in information 

17 technology acquisitions. 

18 ‘‘(b) DEFINITIONS.—In this section: 

19 ‘‘(1) The term ‘information technology’ has the 

20 meaning provided such term in section 11101 of title 

21 40 and includes information technology incorporated 

22 into a major weapon system. 

23 ‘‘(2) The term ‘major weapon system’ has the 

24 meaning provided such term in section 2379(f) of 

25 this title.’’. 


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1 (2) CLERICAL AMENDMENT.—The table of sec2 tions at the beginning of such subchapter is amend3 ed by adding at the end the following new item: 

‘‘1725. Information technology acquisition positions.’’. 

4 (b) DEADLINE.—The Secretary of Defense shall de5 velop the plan required under section 1725 of title 10, 

6 United States Code, as added by subsection (a), not later 

7 than 180 days after the date of the enactment of this Act. 

8 SEC. 207. DEFINITION OF ACQUISITION WORKFORCE. 

9 Section 101(a) of title 10, United States Code, is 

10 amended by inserting after paragraph (17) the following 

11 new paragraph: 

12 ‘‘(18) The term ‘acquisition workforce’ means 

13 the persons serving in acquisition positions within 

14 the Department of Defense, as designated pursuant 

15 to section 1721(a) of this title.’’. 

16 TITLE III—FINANCIAL 

17 MANAGEMENT 

18 SEC. 301. INCENTIVES FOR ACHIEVING AUDITABILITY. 

19 (a) PREFERENTIAL TREATMENT AUTHORIZED.—The 

20 Under Secretary of Defense (Comptroller) shall ensure 

21 that any component of the Department of Defense that 

22 the Under Secretary determines has financial statements 

23 validated as ready for audit earlier than September 30, 

24 2017, shall receive preferential treatment, as the Under 

25 Secretary determines appropriate— 


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1 (1) in financial matter matters, including— 

2 (A) consistent with the need to fund ur3 gent warfighter requirements and operational 

4 needs, priority in the release of appropriated 

5 funds to such component; 

6 (B) relief from the frequency of financial 

7 reporting of such component in cases in which 

8 such reporting is not required by law; 

9 (C) relief from departmental obligation and 

10 expenditure thresholds to the extent that such 

11 thresholds establish requirements more restric12 tive than those required by law; or 

13 (D) such other measures as the Under 

14 Secretary considers appropriate; and 

15 (2) in the availability of personnel management 

16 incentives, including— 

17 (A) the size of the bonus pool available to 

18 the financial and business management work19 force of the component; 

20 (B) the rates of promotion within the fi21 nancial and business management workforce of 

22 the component; 

23 (C) awards for excellence in financial and 

24 business management; or 


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1 (D) the scope of work assigned to the fi2 nancial and business management workforce of 

3 the component. 

4 (b) INCLUSION OF INFORMATION IN REPORT.—The 

5 Under Secretary shall include information on any measure 

6 initiated pursuant to this section in the next semiannual 

7 report pursuant to section 1003(b) of the National De8 fense Authorization Act for Fiscal Year 2010 (Public Law 

9 111–84; 123 Stat. 2439; 10 U.S.C. 2222 note) after such 

10 measure is initiated. 

11 (c) EXPIRATION.—This section shall expire on Sep12 tember 30, 2017. 

13 (d) DEFINITION.—In this section, the term ‘‘compo14 nent of the Department of Defense’’ means any organiza15 tion within the Department of Defense that is required 

16 to submit an auditable financial statement to the Sec17 retary of Defense. 

18 SEC. 302. MEASURES REQUIRED AFTER FAILURE TO 

19 ACHIEVE AUDITABILITY. 

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

21 ensure that corrective measures are immediately taken to 

22 address the failure of a component of the Department of 

23 Defense to achieve a financial statement validated as 

24 ready for audit by September 30, 2017. 


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1 (b) MEASURES REQUIRED.—Not later than 180 days 

2 after the date of the enactment of this Act, the Secretary 

3 shall develop and issue guidance detailing measures to be 

4 taken in accordance with subsection (a). Such measures 

5 shall include— 

6 (1) the development of a remediation plan to 

7 ensure the component can achieve a financial state8 ment validated as ready for audit within one year; 

9 (2) additional reporting requirements that may 

10 be necessary to mitigate financial risk to the compo11 nent; 

12 (3) delaying the release of appropriated funds 

13 to such component, consistent with the need to fund 

14 urgent warfighter requirements and operational 

15 needs, until such time as the Secretary is assured 

16 that the component will achieve a financial state17 ment validated as ready for audit within one year; 

18 (4) specific consequences for key personnel in 

19 order to ensure accountability within the leadership 

20 of the component; and 

21 (5) such other measures as the Secretary con22 siders appropriate. 

23 (c) DEFINITION.—The term ‘‘component’’ of the De24 partment of Defense means any organization within the 


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1 Department of Defense that is required to submit an 

2 auditable financial statement to the Secretary of Defense. 

3 SEC. 303. REVIEW OF OBLIGATION AND EXPENDITURE 

4 THRESHOLDS. 

5 (a) SENSE OF CONGRESS.—It is the sense of Con6 gress that— 

7 (1) Department of Defense program managers 

8 should be encouraged to place a higher priority on 

9 seeking the best value for the Government than on 

10 meeting arbitrary benchmarks for spending; and 

11 (2) actions to carry out paragraph (1) should 

12 be supported by the Department’s leadership at 

13 every level. 

14 (b) POLICY REVIEW.—Not later than 180 days after 

15 the date of the enactment of this Act, the Chief Manage16 ment Officer of the Department of Defense, in coordina17 tion with the Chief Management Officer of each military 

18 department, shall review and update as necessary all rel19 evant policy and instruction regarding obligation and ex20 penditure benchmarks to ensure that such guidance does 

21 not inadvertantly prevent achieving the best value for the 

22 Government in the obligation and expenditure of funds. 

23 (c) GUIDANCE.—Not later than one year after the 

24 date of the enactment of this Act, the Chief Management 

25 Officer, in coordination with the Chief Management OffiVerDate Nov 24 2008 16:49 Apr 15, 2010 Jkt 089200 PO 00000 Frm 00049 Fmt 6652 Sfmt 6201 E:\BILLS\H5013.IH H5013

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1 cer of each military department, the Director of the Office 

2 of Performance Assessment and Root Cause Analysis, the 

3 Under Secretary of Defense (Comptroller), and the Comp4 trollers of the military departments, should conduct a 

5 comprehensive review of the use and value of obligation 

6 and expenditure benchmarks and propose new benchmarks 

7 or processes for tracking financial performance, including, 

8 as appropriate— 

9 (1) increased reliance on individual obligation 

10 and expenditure plans for measuring program finan11 cial performance; 

12 (2) mechanisms to improve funding stability 

13 and to increase the predictability of the release of 

14 funding for obligation and expenditure; and 

15 (3) streamlined mechanisms for a program 

16 manager to submit an appeal for funding changes 

17 and to have such appeal evaluated promptly. 

18 (d) TRAINING.—The Under Secretary of Defense for 

19 Acquisition, Technology, and Logistics and the Under Sec20 retary of Defense (Comptroller) shall ensure that as part 

21 of the training required for program managers and busi22 ness managers, an emphasis is placed on obligating and 

23 expending appropriated funds in a manner that achieves 

24 the best value for the Government and that the purpose 


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1 and limitations of obligation and expenditure benchmarks 

2 is made clear. 

3 TITLE IV—INDUSTRIAL BASE 

4 SEC. 401. EXPANSION OF THE INDUSTRIAL BASE. 

5 (a) PROGRAM TO EXPAND INDUSTRIAL BASE RE6 QUIRED.—The Secretary of Defense shall establish a pro7 gram to expand the industrial base of the Department of 

8 Defense to increase the Department’s access to innovation 

9 and the benefits of competition. 

10 (b) IDENTIFYING AND COMMUNICATING WITH NON11 TRADITIONAL SUPPLIERS.—The program established 

12 under subsection (a) shall use tools and resources available 

13 within the Federal Government and available from the pri14 vate sector, to provide a capability for identifying and 

15 communicating with nontraditional suppliers, including 

16 commercial firms and firms of all business sizes, that are 

17 engaged in markets of importance to the Department of 

18 Defense. 

19 (c) INDUSTRIAL BASE REVIEW.—The program re20 quired by subsection (a) shall include a continuous effort 

21 to review the industrial base supporting the Department 

22 of Defense, including the identification of markets of im23 portance to the Department of Defense. 

24 (d) DEFINITION.—In this section: 


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1 (1) NONTRADITIONAL SUPPLIERS.—The term 

2 ‘‘nontraditional suppliers’’ means firms that have re3 ceived contracts from the Department of Defense 

4 with a total value of not more than $100,000 in the 

5 previous 5 years. 

6 (2) MARKETS OF IMPORTANCE TO THE DE7 PARTMENT OF DEFENSE.—The term ‘‘markets of 

8 importance to the Department of Defense’’ means 

9 industrial sectors in which the Department of De10 fense spends more than $500,000,000 annually. 

11 SEC. 402. COMMERCIAL PRICING ANALYSIS. 

12 Section 803(c) of the Strom Thurmond National De13 fense Authorization Act for Fiscal Year 1999 Public Law 

14 105–261; 10 U.S.C. 2306a note) is amended to read as 

15 follows: 

16 ‘‘(c) COMMERCIAL PRICE TREND ANALYSIS.— 

17 ‘‘(1) The Secretary of Defense shall develop and 

18 implement procedures that, to the maximum extent 

19 practicable, provide for the collection and analysis of 

20 information on price trends for categories of exempt 

21 commercial items described in paragraph (2). 

22 ‘‘(2) A category of exempt commercial items re23 ferred to in paragraph (1) consists of exempt com24 mercial items that are in a single Federal Supply 

25 Group or Federal Supply Class, are provided by a 


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1 single contractor, or are otherwise logically grouped 

2 for the purpose of analyzing information on price 

3 trends. 

4 ‘‘(3) The analysis of information on price 

5 trends under paragraph (1) shall include, in any cat6 egory in which significant escalation in prices is 

7 identified, a more detailed examination of the causes 

8 of escalation for such prices within the category and 

9 whether such price escalation is consistent across the 

10 Department of Defense. 

11 ‘‘(4) The head of a Department of Defense 

12 agency or the Secretary of a military department 

13 shall take appropriate action to address any unjusti14 fied escalation in prices being paid for items pro15 cured by that agency or military department as iden16 tified in an analysis conducted pursuant to para17 graph (1). 

18 ‘‘(5) Not later than April 1 of each of year, the 

19 Secretary of Defense shall submit to the Committee 

20 on Armed Services of the Senate and the Committee 

21 on Armed Services of the House of Representatives 

22 a report on the analyses of price trends that were 

23 conducted for categories of exempt commercial items 

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1 port shall include a description of the actions taken 

2 to identify and address any unjustified price esca3 lation for the categories of items. 

4 ‘‘(6) TERMINATION.—This subsection shall not 

5 be in effect on and after April 1, 2013.’’. 

6 SEC. 403. CONTRACTOR AND GRANTEE DISCLOSURE OF DE7 LINQUENT FEDERAL TAX DEBTS. 

8 (a) REQUIREMENT.— 

9 (1) IN GENERAL.—Chapter 37 of title 31, 

10 United States Code, is amended by adding at the 

11 end of subchapter II the following new section: 

12 ‘‘§ 3720F. Contractor and grantee disclosure of delin13 quent Federal tax debts 

14 ‘‘(a) REQUIREMENT RELATING TO CONTRACTS.— 

15 The head of any executive agency that issues an invitation 

16 for bids or a request for proposals for a contract in an 

17 amount greater than the simplified acquisition threshold 

18 shall require each person that submits a bid or proposal 

19 to submit with the bid or proposal a form— 

20 ‘‘(1) certifying that the person does not have a 

21 seriously delinquent tax debt; and 

22 ‘‘(2) authorizing the Secretary of the Treasury 

23 to disclose to the head of the agency information 

24 strictly limited to verifying whether the person has 

25 a seriously delinquent tax debt. 


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1 ‘‘(b) REQUIREMENT RELATING TO GRANTS.—The 

2 head of any executive agency that offers a grant in excess 

3 of an amount equal to the simplified acquisition threshold 

4 may not award such grant to any person unless such per5 son submits with the application for such grant a form— 

6 ‘‘(1) certifying that the person does not have a 

7 seriously delinquent tax debt; and 

8 ‘‘(2) authorizing the Secretary of the Treasury 

9 to disclose to the head of the executive agency infor10 mation strictly limited to verifying whether the per11 son has a seriously delinquent tax debt. 

12 ‘‘(c) FORM FOR RELEASE OF INFORMATION.—The 

13 Secretary of the Treasury shall make available to all exec14 utive agencies a standard form for the certification and 

15 authorization described in subsections (a) and (b). 

16 ‘‘(d) DEFINITIONS.—In this section: 

17 ‘‘(1) CONTRACT.—The term ‘contract’ means a 

18 binding agreement entered into by an executive 

19 agency for the purpose of obtaining property or serv20 ices, but does not include— 

21 ‘‘(A) a contract for property or services 

22 that is intended to be entered into through the 

23 use of procedures other than competitive proce24 dures by reason of section 2304(c)(2) of this 

25 title; or 


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1 ‘‘(B) a contract designated by the head of 

2 the agency as necessary to the national security 

3 of the United States. 

4 ‘‘(2) EXECUTIVE AGENCY.—The term ‘executive 

5 agency’ has the meaning given that term in section 

6 4(1) of the Office of Federal Procurement Policy 

7 Act (41 U.S.C. 403(1)). 

8 ‘‘(3) PERSON.—The term ‘person’ includes— 

9 ‘‘(A) an individual; 

10 ‘‘(B) a partnership; 

11 ‘‘(C) a corporation; and 

12 ‘‘(D) a joint venture. 

13 ‘‘(4) SERIOUSLY DELINQUENT TAX DEBT.—The 

14 term ‘seriously delinquent tax debt’ means any Fed15 eral tax liability— 

16 ‘‘(A) that exceeds $3,000; 

17 ‘‘(B) that has been assessed by the Sec18 retary of the Treasury; 

19 ‘‘(C) with respect to which all judicial and 

20 administrative remedies have been exhausted, or 

21 have lapsed; and 

22 ‘‘(D) with respect to which levy may be 

23 made by such Secretary under section 6331 of 

24 the Internal Revenue Code of 1986. 


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1 ‘‘(5) SIMPLIFIED ACQUISITION THRESHOLD.— 

2 The term ‘simplified acquisition threshold’ has the 

3 meaning given that term in section 4(11) of the Of4 fice of Federal Procurement Policy Act (41 U.S.C. 

5 403(11)). 

6 ‘‘(e) SPECIAL RULES RELATING TO PARTNERS AND

7 SHAREHOLDERS.—For purposes of this section— 

8 ‘‘(1) a partnership shall be treated as a person 

9 with a seriously delinquent tax debt if such partner10 ship has a partner— 

11 ‘‘(A) who holds an ownership interest of 50 

12 percent or more in that partnership; and 

13 ‘‘(B) who has a seriously delinquent tax 

14 debt; and 

15 ‘‘(2) a corporation shall be treated as a person 

16 with a seriously delinquent tax debt if— 

17 ‘‘(A) another corporation or a joint venture 

18 holds 50 percent or more of the outstanding 

19 shares of corporate stock in that corporation 

20 and the other corporation or joint venture has 

21 a seriously delinquent tax debt; or 

22 ‘‘(B) another corporation or joint venture 

23 holds a controlling interest that is less than 50 

24 percent of the outstanding shares of corporate 

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1 tion or joint venture has a seriously delinquent 

2 tax debt.’’. 

3 (2) CLERICAL AMENDMENT.—The table of sec4 tions at the beginning of chapter 37 of such title is 

5 amended by adding after the item relating to section 

6 3720E the following new item: 

‘‘3720F. Contractor and grantee disclosure of delinquent Federal tax debts.’’. 

7 (b) REVISION OF FAR.—Not later than 270 days 

8 after the date of enactment of this section, the Federal 

9 Acquisition Regulation shall be revised to incorporate the 

10 requirements of section 3720F of title 31, United States 

11 Code, as added by this section. 

12 SEC. 404. INDEPENDENCE OF CONTRACTOR BUSINESS SYS13 TEM REVIEWS; RISK-BASED REVIEWS. 

14 (a) IN GENERAL.— 

15 (1) AMENDMENT.—Chapter 131 of title 10, 

16 United States Code, is amended by inserting after 

17 section 2222 the following new section: 

18 ‘‘§ 2222a. Criteria for business system reviews 

19 ‘‘(a) CRITERIA FOR BUSINESS SYSTEM REVIEWS.— 

20 The Secretary of Defense shall ensure that any contractor 

21 business system review carried out by a military depart22 ment, a Defense Agency, or a Department of Defense 

23 Field Activity— 


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1 ‘‘(1) complies with generally accepted govern2 ment auditing standards issued by the Comptroller 

3 General; 

4 ‘‘(2) is performed by an audit team that does 

5 not engage in any other official activity (audit-re6 lated or otherwise) involving the contractor con7 cerned; and 

8 ‘‘(3) is performed in a time and manner con9 sistent with a documented assessment of the risk to 

10 the Federal Government. 

11 ‘‘(b) CONTRACTOR BUSINESS SYSTEM REVIEW DE12 FINED.—In this section, the term ‘contractor business sys13 tem review’ means an audit of policies, procedures, and 

14 internal controls relating to accounting and management 

15 systems of a contractor.’’. 

16 (2) CLERICAL AMENDMENT.—The table of sec17 tions at the beginning of such chapter is amended 

18 by inserting after the item relating to section 2222 

19 the following new item: 

‘‘2222a. Criteria for business system reviews.’’. 

20 (b) EFFECTIVE DATE.—Section 2222a of title 10, 

21 United States Code, as added by subsection (a), shall take 

22 effect 180 days after the date of the enactment of this 

23 Act. 

Æ 


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