IB 

Union Calendar No. 266 

111TH CONGRESS 

2D SESSION H. R. 5013 

[Report No. 111–465, Part I] 

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 

APRIL 23, 2010 

Additional sponsors: Mr. ORTIZ, Mr. LARSON of Connecticut, and Mr. LARSEN

of Washington 

APRIL 23, 2010 

Reported from the Committee on Armed Services with an amendment 

[Strike out all after the enacting clause and insert the part printed in italic] 

APRIL 23, 2010 

Committee on Oversight and Government Reform discharged; committed to 

the Committee of the Whole House on the State of the Union and ordered to be printed 

[For text of introduced bill, see copy of bill as introduced on April 14, 2010] 


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A BILL 

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

and for other purposes. 


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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 Value 

6 in Every Acquisition Act of 2010’’. 

7 SEC. 2. DEFINITION OF CONGRESSIONAL DEFENSE COM8 MITTEES. 

9 In this Act, the term ‘‘congressional defense commit10 tees’’ has the meaning given that term in section 101(a)(16) 

11 of title 10, United States Code. 

12 SEC. 3. TABLE OF CONTENTS. 

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

Sec. 1. Short title. 

Sec. 2. Definition of congressional defense committees. 

Sec. 3. Table of contents. 

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. Requirements 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. 

Sec. 108. Procurement of military purpose nondevelopmental items. 

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. 


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Sec. 207. Definition of acquisition workforce. 

Sec. 208. Defense Acquisition University curriculum review. 

Sec. 209. Cost estimating internship and scholarship programs. 

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 contract audits and business system reviews. 

Sec. 405. Blue ribbon panel on eliminating barriers to contracting with the Department of Defense. 

Sec. 406. Inclusion of the providers of services and information technology in the 

national technology and industrial base. 

1 TITLE I—DEFENSE ACQUISITION 

2 SYSTEM 

3 SEC. 101. PERFORMANCE MANAGEMENT OF THE DEFENSE 

4 ACQUISITION SYSTEM. 

5 (a) PERFORMANCE MANAGEMENT OF THE DEFENSE

6 ACQUISITION SYSTEM.— 

7 (1) IN GENERAL.—Part IV of title 10, United 

8 States Code, is amended by inserting after chapter 

9 148 the following new chapter: 

10 ‘‘CHAPTER 149—PERFORMANCE MANAGE11 MENT OF THE DEFENSE ACQUISITION 

12 SYSTEM 

‘‘Sec. 

‘‘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. 


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1 ‘‘§ 2545. Performance assessment of the defense acqui2 sition system 

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

4 The Secretary of Defense shall ensure that all elements of 

5 the defense acquisition system are subject to regular per6 formance assessments— 

7 ‘‘(A) to determine the extent to which such ele8 ments deliver appropriate value to the Department of 

9 Defense; and 

10 ‘‘(B) to enable senior officials of the Department 

11 of Defense to manage the elements of the defense ac12 quisition system to maximize their value to the De13 partment. 

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

15 acquisition system shall be assessed as needed, but not less 

16 often than annually. 

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

18 assessments required by this subsection are appropriately 

19 tailored to reflect the diverse nature of defense acquisition 

20 so that the performance assessment of each element of the 

21 defense acquisition system accurately reflects the work per22 formed by such element. 

23 ‘‘(b) SYSTEMWIDE CATEGORIES.—(1) The Secretary of 

24 Defense shall establish categories of metrics for the defense 

25 acquisition system, including, at a minimum, categories re26 lating to cost, quality, delivery, workforce, and policy imVerDate Nov 24 2008 21:26 Apr 23, 2010 Jkt 089200 PO 00000 Frm 00005 Fmt 6652 Sfmt 6203 E:\BILLS\H5013.RH H5013

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1 plementation that apply to all elements of the defense acqui2 sition system. 

3 ‘‘(2) The Secretary of Defense shall issue guidance for 

4 service acquisition executives within the Department of De5 fense on the establishment of metrics, and goals and stand6 ards relating to such metrics, within the categories estab7 lished by the Secretary under paragraph (1) to ensure that 

8 there is sufficient uniformity in performance assessments 

9 across the defense acquisition system so that elements of the 

10 defense acquisition system can be meaningfully compared. 

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

12 service acquisition executive of the Department of Defense 

13 shall establish metrics to be used in the performance assess14 ments required by subsection (a) for each element of the de15 fense acquisition system for which such executive is respon16 sible within the categories established by the Secretary 

17 under subsection (b). Such metrics shall be appropriately 

18 tailored pursuant to subsection (a)(3) and may include 

19 measures of— 

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

21 ‘‘(B) contractor performance; 

22 ‘‘(C) excessive use of contract bundling and 

23 availability of non-bundled contract vehicles; 

24 ‘‘(D) workforce quality and program manager 

25 tenure (where applicable); 


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1 ‘‘(E) the quality of market research; 

2 ‘‘(F) appropriate use of integrated testing; 

3 ‘‘(G) appropriate consideration of long-term 

4 sustainment; and 

5 ‘‘(H) appropriate acquisition of technical data 

6 and other rights and assets necessary to support long7 term sustainment. 

8 ‘‘(2) Each service acquisition executive within the De9 partment of Defense shall establish goals and standards (in10 cluding, at a minimum, a threshold standard and an objec11 tive goal) for each metric established under paragraph (1) 

12 by the executive. In establishing the goals and standards 

13 for an element of the defense acquisition system, a service 

14 acquisition executive shall consult with the head of the ele15 ment to the maximum extent practicable, but the service 

16 acquisition executive shall retain the final authority to de17 termine the goals and standards established. The service ac18 quisition executive shall update the goals and standards as 

19 necessary and appropriate consistent with the guidance 

20 issued under subsection (b)(2). 

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

22 Technology, and Logistics shall periodically review the 

23 metrics, goals, and standards established by service acquisi24 tion executives under this subsection to ensure that they are 

25 consistent with the guidance issued under subsection (b)(2). 


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1 ‘‘(d) RESPONSIBILITY FOR OVERSIGHT AND DIREC2 TION OF PERFORMANCE ASSESSMENTS.—(1) Performance 

3 assessments required by subsection (a) shall either be car4 ried out by, or shall be subject to the oversight of, the Direc5 tor of the Office of Performance Assessment and Root Cause 

6 Analysis. The authority and responsibility granted by this 

7 subsection is in addition to any other authority or responsi8 bility granted to the Director of the Office of Performance 

9 Assessment and Root Cause Analysis by the Secretary of 

10 Defense or by any other provision of law. In the perform11 ance of duties pursuant to this section, the Director of the 

12 Office of Performance Assessment and Root Cause analysis 

13 shall coordinate with the Deputy Chief Management Officer 

14 to ensure that performance assessments carried out pursu15 ant to this section are consistent with the performance man16 agement initiatives of the Department of Defense. 

17 ‘‘(2) A performance assessment may be carried out by 

18 an organization under the control of the service acquisition 

19 executive of a military department if— 

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

21 subsection (a); 

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

23 the assessment by the Director of the Office of Per24 formance Assessment and Root Cause Analysis; and 


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1 ‘‘(C) the assessment is subject to the oversight of 

2 the Director of the Office of Performance Assessment 

3 and Root Cause Analysis in accordance with para4 graph (1). 

5 ‘‘(e) RETENTION AND ACCESS TO RECORDS OF PER6 FORMANCE ASSESSMENTS WITHIN THE MILITARY DEPART7 MENTS AND DEFENSE AGENCIES.—The Secretary of De8 fense shall ensure that information from performance as9 sessments of all elements of the defense acquisition system 

10 are retained electronically and that the Director of the Of11 fice of Performance Assessment and Root Cause Analysis— 

12 ‘‘(1) promptly receives the results of all perform13 ance assessments conducted by an organization under 

14 the control of the service acquisition executive of a 

15 military department; and 

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

17 in the Department of Defense (including the records 

18 and data of each military department and Defense 

19 Agency and including classified and proprietary in20 formation) that the Director considers necessary to re21 view in order to perform or oversee performance as22 sessments pursuant to this section. 

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

24 ‘‘(1) The term ‘defense acquisition system’ means 

25 the acquisition workforce; the process by which the 


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1 Department of Defense manages the acquisition of 

2 goods and services, including weapon systems, com3 modities, commercial and military unique services, 

4 and information technology; and the management 

5 structure for carrying out the acquisition function 

6 within the Department of Defense. 

7 ‘‘(2) The term ‘element of the defense acquisition 

8 system’ means an organization that operates within 

9 the defense acquisition system and that focuses pri10 marily on acquisition. 

11 ‘‘(3) The term ‘metric’ means a specific measure 

12 that serves as a basis for comparison. 

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

14 means the minimum acceptable level of performance 

15 in relation to a metric. 

16 ‘‘(5) The term ‘objective performance goal’ means 

17 the most desired level of performance in relation to a 

18 metric. 

19 ‘‘(6) The term ‘Office of Performance Assessment 

20 and Root Cause Analysis’ means the office reporting 

21 to the senior official designated by the Secretary of 

22 Defense under section 103(a) of the Weapon Systems 

23 Acquisition Reform Act of 2009 (Public Law 111–23, 

24 10 U.S.C. 2430 note). 


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1 ‘‘§ 2546. Audits of performance assessment 

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

3 shall ensure that the performance assessments of the defense 

4 acquisition system required by section 2545 of this title are 

5 subject to periodic audits to determine the accuracy, reli6 ability, and completeness of such assessments. 

7 ‘‘(b) STANDARDS AND APPROACH.—In performing the 

8 audits required by subsection (a), the Secretary shall ensure 

9 that such audits— 

10 ‘‘(1) comply with generally accepted government 

11 auditing standards issued by the Comptroller Gen12 eral; 

13 ‘‘(2) use a risk-based approach to audit plan14 ning; and 

15 ‘‘(3) appropriately account for issues associated 

16 with auditing assessments of activities occurring in a 

17 contingency operation. 

18 ‘‘§ 2547. Use of performance assessments for managing 

19 performance 

20 ‘‘(a) IN GENERAL.—The Secretary of Defense shall en21 sure that the results of performance assessments are used 

22 in the management of elements of the defense acquisition 

23 system through direct linkages between the results of a per24 formance assessment and the following: 


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

2 workforce of an element of the defense acquisition sys3 tem. 

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

5 element of the defense acquisition system. 

6 ‘‘(3) Awards for acquisition excellence. 

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

8 the defense acquisition system. 

9 ‘‘(b) ADDITIONAL REQUIREMENTS.—The Secretary of 

10 Defense shall ensure that actions taken to manage the acqui11 sition workforce pursuant to subsection (a) are undertaken 

12 in accordance with the requirements of subsections (c) and 

13 (d) of section 1701a of this title. 

14 ‘‘§ 2548. Acquisition–related functions of the Chiefs of 

15 Staff of the armed forces 

16 ‘‘(a) ASSISTANCE.—The Secretary of Defense shall en17 sure, notwithstanding section 3014(c)(1)(A), section 

18 5014(c)(1)(A), and section 8014(c)(1)(A) of this title, that 

19 the Chief of Staff of the Army, the Chief of Naval Oper20 ations, the Chief of Staff of the Air Force, and the Com21 mandant of the Marine Corps assist the Secretary of the 

22 military department concerned in the performance of the 

23 following acquisition-related functions of such department: 

24 ‘‘(1) The development of requirements relating to 

25 the defense acquisition system. 


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1 ‘‘(2) The development of measures to control re2 quirements creep in the defense acquisition system. 

3 ‘‘(3) The development of career paths in acquisi4 tion for military personnel (as required by section 

5 1722a of this title). 

6 ‘‘(4) The assignment and training of contracting 

7 officer representatives when such representatives are 

8 required to be members of the armed forces because of 

9 the nature of the contract concerned. 

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

11 ‘‘(1) The term ‘requirements creep’ means the ad12 dition of new technical or operational specifications 

13 after a requirements document is approved. 

14 ‘‘(2) The term ‘requirements document’ means a 

15 document produced in the requirements process that 

16 is provided for an acquisition program to guide the 

17 subsequent development, production, and testing of the 

18 program and that— 

19 ‘‘(A) justifies the need for a materiel ap20 proach, or an approach that is a combination of 

21 materiel and non-materiel, to satisfy one or more 

22 specific capability gaps; 

23 ‘‘(B) details the information necessary to 

24 develop an increment of militarily useful, 

25 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 (2) CLERICAL AMENDMENTS.—The table of chap6 ters at the beginning of subtitle A of title 10, United 

7 States Code, and at the beginning of part IV of such 

8 subtitle, are each amended by inserting after the item 

9 relating to chapter 148 the following new item: 

‘‘149. Performance Management of the Defense Acquisition System ........... 2545’’. 

10 (b) PHASED IMPLEMENTATION OF PERFORMANCE AS11 SESSMENTS.—The Secretary of Defense shall implement the 

12 requirements of chapter 149 of title 10, United States Code, 

13 as added by subsection (a), in a phased manner while guid14 ance is issued, and categories, metrics, goals, and standards 

15 are established. Implementation shall begin with a cross sec16 tion of elements of the defense acquisition system represent17 ative of the entire system and shall be completed for all ele18 ments not later than two years after the date of the enact19 ment of this Act. 

20 SEC. 102. MEANINGFUL CONSIDERATION BY JOINT RE21 QUIREMENTS OVERSIGHT COUNCIL OF INPUT 

22 FROM CERTAIN OFFICIALS. 

23 (a) ADVISORS TO THE JOINT REQUIREMENTS OVER24 SIGHT COUNCIL.— 


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1 (1) ADDITIONAL CIVILIAN ADVISORS.—Subsection 

2 (d)(1) of section 181 of title 10, United States Code, 

3 is amended by striking ‘‘The Under Secretary’’ and 

4 all that follows through ‘‘and expertise.’’ and insert5 ing the following: ‘‘The following officials of the De6 partment of Defense shall serve as advisors to the 

7 Council on matters within their authority and exper8 tise: 

9 ‘‘(A) The Under Secretary of Defense for Acquisi10 tion, Technology, and Logistics. 

11 ‘‘(B) The Under Secretary of Defense (Comp12 troller). 

13 ‘‘(C) The Under Secretary of Defense for Policy. 

14 ‘‘(D) The Director of Cost Assessment and Pro15 gram Evaluation.’’. 

16 (2) ROLE OF COMBATANT COMMANDERS AS MEM17 BERS OF THE JROC.—Paragraph (1) of subsection (c) 

18 of such section is amended— 

19 (A) by striking ‘‘and’’ at the end of sub20 paragraph (D); 

21 (B) by striking the period at the end of sub22 paragraph (E) and inserting ‘‘; and’’; and 

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

24 subparagraph: 


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1 ‘‘(F) when directed by the chairman, the 

2 commander of any combatant command (or, as 

3 directed by that commander, the deputy com4 mander of that command) when matters related 

5 to the area of responsibility or functions of that 

6 command will be under consideration by the 

7 Council.’’. 

8 (b) AMENDMENT RELATED TO REPORT.—Paragraph 

9 (2) of section 105(c) of the Weapon System Acquisition Re10 form Act of 2009 (Public Law 111–23; 123 Stat. 1718) is 

11 amended to read as follows: 

12 ‘‘(2) MATTERS COVERED.—The report shall in13 clude, at a minimum, an assessment of— 

14 ‘‘(A) the extent to which the Council has ef15 fectively sought, and the commanders of the com16 batant commands have provided, meaningful 

17 input on proposed joint military requirements; 

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

19 meaningfully considered the input and expertise 

20 of the Under Secretary of Defense for Acquisi21 tion, Technology, and Logistics in its discus22 sions; 

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

24 meaningfully considered the input and expertise 


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1 of the Director of Cost Assessment and Program 

2 Evaluation in its discussions; 

3 ‘‘(D) the quality and effectiveness of efforts 

4 to estimate the level of resources needed to fulfill 

5 joint military requirements; and 

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

7 considered trade-offs among cost, schedule, and 

8 performance objectives.’’. 

9 SEC. 103. PERFORMANCE MANAGEMENT FOR THE JOINT CA10 PABILITIES INTEGRATION AND DEVELOP11 MENT SYSTEM. 

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

13 Defense shall ensure that the Department of Defense devel14 ops and implements a program to manage performance in 

15 establishing joint military requirements pursuant to section 

16 181 of title 10, United States Code. 

17 (b) LEADERS.—The Secretary of Defense shall des18 ignate an officer identified or designated as a joint qualified 

19 officer to serve as leader of a joint effort to develop the per20 formance management program required by subsection (a). 

21 The Secretary shall also designate an officer from each 

22 Armed Force to serve as leader of the effort within the 

23 Armed Force concerned. Officers designated pursuant to 

24 this section shall have the seniority and authority necessary 

25 to oversee and direct all personnel engaged in establishing 


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1 joint military requirements within the Joint Staff or with2 in the Armed Force concerned. 

3 (c) MATTERS COVERED.—The program developed pur4 suant to subsection (a) shall: 

5 (1) Measure the following in relation to each 

6 joint military requirement: 

7 (A) The time a requirements document 

8 takes to receive validation through the require9 ments process. 

10 (B) The quality of cost information associ11 ated with the requirement and the extent to 

12 which cost information was considered during 

13 the requirements process. 

14 (C) The extent to which the requirements 

15 process established a meaningful level of priority 

16 for the requirement. 

17 (D) The extent to which the requirements 

18 process considered trade-offs between cost, sched19 ule, and performance objectives. 

20 (E) The quality of information on 

21 sustainment associated with the requirement and 

22 the extent to which sustainment information was 

23 considered during the requirements process. 

24 (F) Such other matters as the Secretary 

25 shall determine appropriate. 


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

2 the following outcomes in the requirements process: 

3 (A) Timeliness in delivering capability to 

4 the warfighter. 

5 (B) Mechanisms for controlling require6 ments creep. 

7 (C) Responsiveness to fact-of-life changes oc8 curring after the approval of a requirements doc9 ument, including changes to the threat environ10 ment, the emergence of new capabilities, or 

11 changes in the resources estimated to procure or 

12 sustain a capability. 

13 (D) The development of the personnel skills, 

14 capacity, and training needed for an effective 

15 and efficient requirements process. 

16 (E) Such other outcomes as the Secretary 

17 shall determine appropriate. 

18 (d) IMPLEMENTATION.—The program required by sub19 section (a) shall be developed and initially implemented not 

20 later than one year after the date of the enactment of this 

21 Act and shall apply to requirements documents entering the 

22 requirements process after the date of initial implementa23 tion. 

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

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1 section (a), the Secretary shall submit to the congressional 

2 defense committees a report on the steps taken to develop 

3 and implement the performance management program for 

4 joint military requirements. The report shall address the 

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

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

7 the initial implementation of the program required by sub8 section (a), the Secretary shall submit to the congressional 

9 defense committees a report on the effectiveness of the pro10 gram for joint military requirements in achieving the out11 comes specified in subsection (c)(2). 

12 (g) DEFINITIONS.—In this section: 

13 (1) REQUIREMENTS PROCESS.—The term ‘‘re14 quirements process’’ means the Joint Capabilities In15 tegration and Development System (JCIDS) process 

16 or any successor to such process established by the 

17 Chairman of the Joint Chiefs of Staff to support the 

18 statutory responsibility of the Joint Requirements 

19 Oversight Council in advising the Chairman and the 

20 Secretary of Defense in identifying, assessing, and 

21 validating joint military capability needs, with their 

22 associated operational performance criteria, in order 

23 to successfully execute missions. 

24 (2) REQUIREMENTS DOCUMENT.—The term ‘‘re25 quirements document’’ means a document produced in 


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1 the requirements process that is provided for an ac2 quisition program to guide the subsequent develop3 ment, production, and testing of the program and 

4 that— 

5 (A) justifies the need for a materiel ap6 proach, or an approach that is a combination of 

7 materiel and non-materiel, to satisfy one or more 

8 specific capability gaps; 

9 (B) details the information necessary to de10 velop an increment of militarily useful, 

11 logistically supportable, and technically mature 

12 capability, including key performance param13 eters; or 

14 (C) identifies production attributes required 

15 for a single increment of a program. 

16 (3) REQUIREMENTS CREEP.—The term ‘‘require17 ments creep’’ means the addition of new technical or 

18 operational specifications after a requirements docu19 ment is approved. 

20 (h) DISCRETIONARY IMPLEMENTATION AFTER 5 

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

22 implementation of the performance management program 

23 under this section, the requirement to implement a program 

24 under this section shall be at the discretion of the Secretary 

25 of Defense. 


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1 SEC. 104. REQUIREMENTS FOR THE ACQUISITION OF SERV2 ICES. 

3 (a) PROCESS REQUIRED.—The Secretary of Defense 

4 shall ensure that each military department establishes a 

5 process for identifying, assessing, and approving require6 ments for the acquisition of services, and that commanders 

7 of unified combatant commands and other officers identi8 fied or designated as joint qualified officers have an oppor9 tunity to participate in the process of each military depart10 ment to provide input on joint requirements for the acquisi11 tion of services. 

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

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

14 of Staff of the Air Force, and the Commandant of the Ma15 rine Corps shall— 

16 (1) issue and maintain guidance relating to each 

17 process established under subsection (a); and 

18 (2) develop a plan to implement each process es19 tablished under subsection (a). 

20 (c) MATTERS REQUIRED IN GUIDANCE.—The guidance 

21 issued under subsection (b) shall establish, in relation to 

22 a process for identifying, assessing, and approving require23 ments for the acquisition of services, the following: 

24 (1) Organization of such process. 

25 (2) The level of command responsibility required 

26 for identifying and validating requirements for the 


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1 acquisition of services in accordance with the cat2 egories established under section 2330(a)(1)(C) of title 

3 10, United States Code. 

4 (3) The composition of billets necessary to oper5 ate such process. 

6 (4) The training required for personnel engaged 

7 in such process. 

8 (5) The relationship between doctrine and such 

9 process. 

10 (6) Methods of obtaining input on joint require11 ments for the acquisition of services. 

12 (7) Procedures for coordinating with the acquisi13 tion process. 

14 (8) Considerations relating to opportunities for 

15 strategic sourcing. 

16 (d) MATTERS REQUIRED IN IMPLEMENTATION

17 PLAN.—Each plan required under subsection (b) shall pro18 vide for initial implementation of a process for identifying, 

19 assessing, and approving requirements for the acquisition 

20 of services not later than 180 days after the date of the en21 actment of this Act and shall provide for full implementa22 tion of such process at the earliest date practicable. 

23 (e) CONSISTENCY WITH JOINT GUIDANCE.—Whenever, 

24 at any time, guidance is issued by the Chairman of the 

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1 sition of services, each process established under subsection 

2 (a) shall be revised in accordance with such joint guidance. 

3 (f) DEFINITION.—The term ‘‘requirements for the ac4 quisition of services’’ means objectives to be achieved 

5 through acquisitions primarily involving the procurement 

6 of services. 

7 SEC. 105. JOINT EVALUATION TASK FORCES. 

8 (a) TASK FORCES REQUIRED.—For each joint mili9 tary requirement involving a materiel solution for which 

10 the Chairman of the Joint Requirements Oversight Council 

11 is the validation authority, the Chairman shall designate 

12 a commander of a unified combatant command to provide 

13 a joint evaluation task force to participate in such materiel 

14 solution. Such task force shall— 

15 (1) come from a military unit or units des16 ignated by the combatant commander concerned; 

17 (2) be selected based on the relevance of such ma18 teriel solution to the mission of the unit; and 

19 (3) participate consistent with its operational 

20 obligations. 

21 (b) RESPONSIBILITIES.—A task force provided pursu22 ant to subsection (a) shall, for the materiel solution con23 cerned— 

24 (1) provide input to the analysis of alternatives; 


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1 (2) participate in testing (including limited user 

2 tests and prototype testing); 

3 (3) provide input on a concept of operations and 

4 doctrine; 

5 (4) provide end user feedback to the resource 

6 sponsor; and 

7 (5) participate, through the combatant com8 mander concerned, in any alteration of the require9 ment for such solution. 

10 (c) ADMINISTRATIVE SUPPORT.—The resource sponsor 

11 for the joint military requirement shall provide administra12 tive support to the joint evaluation task force for purposes 

13 of carrying out this section. 

14 (d) DEFINITIONS.—In this section: 

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

16 sponsor’’ means the organization responsible for all 

17 common documentation, periodic reporting, and fund18 ing actions required to support the capabilities devel19 opment and acquisition process for the materiel solu20 tion. 

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

22 solution’’ means the development, acquisition, pro23 curement, or fielding of a new item, or of a modifica24 tion to an existing item, necessary to equip, operate, 

25 maintain, and support military activities. 


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1 SEC. 106. REVIEW OF DEFENSE ACQUISITION GUIDANCE. 

2 (a) REVIEW OF GUIDANCE.—The Secretary of Defense 

3 shall review the acquisition guidance of the Department of 

4 Defense, including, at a minimum, the guidance contained 

5 in Department of Defense Instruction 5000.02 entitled ‘‘Op6 eration of the Defense Acquisition System’’. 

7 (b) MATTERS CONSIDERED.—The review performed 

8 under subsection (a) shall consider— 

9 (1) the extent to which it is appropriate to apply 

10 guidance relating to the acquisition of weapon sys11 tems to acquisitions not involving weapon systems 

12 (including the acquisition of commercial goods and 

13 commodities, commercial and military unique serv14 ices, and information technology); 

15 (2) whether long-term sustainment of weapon 

16 systems is appropriately emphasized; 

17 (3) whether appropriate mechanisms exist to 

18 communicate information relating to the mission 

19 needs of the Department of Defense to the industrial 

20 base in a way that allows the industrial base to make 

21 appropriate investments in infrastructure, capacity, 

22 and technology development to help meet such needs; 

23 (4) the extent to which earned value management 

24 should be required on acquisitions not involving the 

25 acquisition of weapon systems and whether measures 


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1 of quality and technical performance should be in2 cluded in any earned value management system; 

3 (5) the extent to which it is appropriate to apply 

4 processes primarily relating to the acquisition of 

5 weapon systems to the acquisition of information 

6 technology systems, consistent with the requirement to 

7 develop an alternative process for such systems con8 tained in section 804 of the National Defense Author9 ization Act for Fiscal Year 2010 (Public Law 111– 

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

11 (6) such other matters as the Secretary considers 

12 appropriate. 

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

14 of the enactment of this Act, the Secretary of Defense shall 

15 submit to the Committees on Armed Services of the Senate 

16 and of the House of Representatives a report detailing any 

17 changes in the acquisition guidance of the Department of 

18 Defense identified during the review required by subsection 

19 (a), and any actions taken, or planned to be taken, to im20 plement such changes 

21 SEC. 107. REQUIREMENT TO INCLUDE REFERENCES TO 

22 SERVICES CONTRACTING THROUGHOUT THE 

23 FEDERAL ACQUISITION REGULATION. 

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


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1 (1) The acquisition of services can be extremely 

2 complex, and program management skills, tools, and 

3 processes need to be applied to services acquisitions. 

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

5 throughout the Federal Acquisition Regulation would 

6 enhance and support the procurement and project 

7 management community in all aspects of the acquisi8 tion planning process, including requirements devel9 opment, assessment of reasonableness, and post-award 

10 management and oversight. 

11 (b) REQUIREMENT FOR CHANGES TO FAR.—The Fed12 eral Acquisition Regulation shall be revised to provide, 

13 throughout the Regulation, appropriate references to serv14 ices contracting that are in addition to references provided 

15 in part 37 (which relates specifically to services con16 tracting). 

17 (c) DEADLINE.—This section shall be carried out with18 in 270 days after the date of the enactment of this Act. 

19 SEC. 108. PROCUREMENT OF MILITARY PURPOSE NON20 DEVELOPMENTAL ITEMS. 

21 (a) IN GENERAL.— 

22 (1) PROCUREMENT OF MILITARY PURPOSE NON23 DEVELOPMENTAL ITEMS.—Chapter 141 of title 10, 

24 United States Code, is amended by adding at the end 

25 the following new section: 


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1 ‘‘§ 2410r. Military purpose nondevelopmental items 

2 ‘‘(a) DEFINITIONS.—In this section: 

3 ‘‘(1) The term ‘military purpose nondevelop4 mental item’ means an item— 

5 ‘‘(A) developed exclusively at private ex6 pense; 

7 ‘‘(B) that meets a validated military re8 quirement and for which the United States has 

9 rights in technical data as prescribed in section 

10 2320(a)(2)(B) of this title, as certified in writing 

11 by the responsible program manager; 

12 ‘‘(C) for which delivery of an initial lot of 

13 production-representative items may be made 

14 within nine months after contract award; and 

15 ‘‘(D) for which the unit cost is less than 

16 $10,000,000. 

17 ‘‘(2) The term ‘item’ has the meaning provided 

18 in section 2302(3) of this title. 

19 ‘‘(b) REQUIREMENTS.—The Secretary of Defense shall 

20 ensure that, with respect to a contract for the acquisition 

21 of a military purpose nondevelopmental item, the following 

22 requirements apply: 

23 ‘‘(1) The contract shall be awarded using com24 petitive procedures in accordance with section 2304 of 

25 this title. 


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1 ‘‘(2) Certain contract clauses, as specified in reg2 ulations prescribed under subsection (c), shall be in3 cluded in each such contract. 

4 ‘‘(3) The type of contract used shall be a firm, 

5 fixed price type contract. 

6 ‘‘(c) REGULATIONS.—The Secretary of Defense shall 

7 prescribe regulations to carry out this section. Such regula8 tions shall be included in regulations of the Department of 

9 Defense prescribed as part of the Federal Acquisition Regu10 lation. At a minimum, the regulations shall include— 

11 ‘‘(1) a list of contract clauses to be included in 

12 each contract for the acquisition of a military pur13 pose nondevelopmental item; 

14 ‘‘(2) definitions for the terms ‘developed’ and ‘ex15 clusively at private expense’ that— 

16 ‘‘(A) are consistent with the definitions de17 veloped for such terms in accordance with 

18 2320(a)(3) of this title; and 

19 ‘‘(B) also exclude an item developed in part 

20 or in whole with— 

21 ‘‘(i) foreign government funding; or 

22 ‘‘(ii) foreign or Federal Government 

23 loan financing at nonmarket rates; and 


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1 ‘‘(3) standards for evaluating the reasonableness 

2 of price for the military purpose nondevelopmental 

3 item, in lieu of certified cost or pricing data.’’. 

4 (2) CLERICAL AMENDMENT.—The table of sec5 tions at the beginning of such chapter is amended by 

6 adding at the end the following new item: 

‘‘2410r. Military purpose nondevelopmental items.’’. 

7 (b) COST OR PRICING DATA EXCEPTION.—Section 

8 2306a(b)(1) of title 10, United States Code, is amended— 

9 (1) by striking ‘‘or’’ at the end of subparagraph 

10 (B); 

11 (2) by striking the period at the end of subpara12 graph (C) and inserting ‘‘; or’’; and 

13 (3) by adding at the end the following new sub14 paragraph: 

15 ‘‘(D) for the acquisition of a military pur16 pose nondevelopmental item, as defined in sec17 tion 2410r of this title, if the contracting officer 

18 determines in writing that— 

19 ‘‘(i) the contract, subcontract or modi20 fication will be a firm, fixed price type con21 tract; and 

22 ‘‘(ii) the offeror has submitted suffi23 cient information to evaluate, through price 

24 analysis, the reasonableness of the price for 


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1 the military purpose nondevelopmental 

2 item.’’. 

3 (c) EFFECTIVE DATE.—Section 2410r of title 10, 

4 United States Code, as added by subsection (a), and the 

5 amendment made by subsection (b), shall apply with respect 

6 to contracts entered into after the date that is 120 days 

7 after the date of the enactment of this Act. 

8 TITLE II—DEFENSE 

9 ACQUISITION WORKFORCE 

10 SEC. 201. ACQUISITION WORKFORCE EXCELLENCE. 

11 (a) IN GENERAL.— 

12 (1) ACQUISITION WORKFORCE EXCELLENCE.— 

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

14 Code, is amended by inserting after section 1701 the 

15 following new section: 

16 ‘‘§ 1701a. Management for acquisition workforce ex17 cellence 

18 ‘‘(a) PURPOSE.—The purpose of this chapter is to re19 quire the Department of Defense to develop and manage a 

20 highly skilled professional acquisition workforce— 

21 ‘‘(1) in which excellence and contribution to mis22 sion is rewarded; 

23 ‘‘(2) which has the technical expertise and busi24 ness skills to ensure the Department receives the best 

25 value for the expenditure of public resources; 


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

2 management of employees of the Department; and 

3 ‘‘(4) which is managed in a manner that com4 plements and reinforces the performance management 

5 of the defense acquisition system pursuant to chapter 

6 149 of this title. 

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

8 achieve the purpose set forth in subsection (a), the Secretary 

9 of Defense shall— 

10 ‘‘(1) use the full authorities provided in sub11 sections (a) through (d) of section 9902 of title 5, in12 cluding flexibilities related to performance manage13 ment and hiring and to training of managers; 

14 ‘‘(2) require managers to develop performance 

15 plans for individual members of the acquisition work16 force in order to give members an understanding of 

17 how their performance contributes to their organiza18 tion’s mission and the success of the defense acquisi19 tion system (as defined in section 2545 of this title); 

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

21 learned from the acquisition demonstration project 

22 carried out under section 1762 of this title related to 

23 contribution-based compensation and appraisal, and 

24 how those lessons may be applied within the General 

25 Schedule system; 


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1 ‘‘(4) develop attractive career paths; 

2 ‘‘(5) encourage continuing education and train3 ing; 

4 ‘‘(6) develop appropriate procedures for warn5 ings during performance evaluations and due process 

6 for members of the acquisition workforce who consist7 ently fail to meet performance standards; 

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

9 Leadership Program established under section 1112 of 

10 the National Defense Authorization Act for Fiscal 

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

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

13 ‘‘(8) use the authorities for highly qualified ex14 perts under section 9903 of title 5, to hire experts who 

15 are skilled acquisition professionals to— 

16 ‘‘(A) serve in leadership positions within 

17 the acquisition workforce to strengthen manage18 ment and oversight; 

19 ‘‘(B) provide mentors to advise individuals 

20 within the acquisition workforce on their career 

21 paths and opportunities to advance and excel 

22 within the acquisition workforce; and 

23 ‘‘(C) assist with the design of education and 

24 training courses and the training of individuals 

25 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 this 

3 title. 

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

6 be subject to the requirements of chapter 71 of title 5. 

7 ‘‘(d) REGULATIONS.—Any rules or regulations pre8 scribed pursuant to this section shall be deemed an agency 

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

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

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

12 (2) CLERICAL AMENDMENT.—The table of sec13 tions at the beginning of such subchapter is amended 

14 by inserting after the item relating to section 1701 the 

15 following new item: 

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

16 (b) AUTHORITY TO APPOINT HIGHLY QUALIFIED EX17 PERTS ON PART-TIME BASIS.—Section 9903(b)(1) of title 

18 5, United States Code, is amended by inserting ‘‘, on a full19 time or part-time basis,’’ after ‘‘positions in the Depart20 ment of Defense’’ the first place it appears. 

21 SEC. 202. AMENDMENTS TO THE ACQUISITION WORKFORCE 

22 DEMONSTRATION PROJECT. 

23 (a) CODIFICATION INTO TITLE 10.— 


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

2 States Code, is amended by inserting after section 

3 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 and 

13 supporting personnel assigned to work directly with the ac14 quisition workforce. 

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

17 described in subsection (a) shall be subject to section 4703 

18 of title 5 and all other provisions of such title that apply 

19 with respect to any demonstration project under such sec20 tion. 

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

22 4703 of title 5 with respect to a demonstration project de23 scribed in subsection (a)— 

24 ‘‘(A) ‘180 days’ in subsection (b)(4) of such sec25 tion 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 a 

6 demonstration project unless— 

7 ‘‘(A) for each organization or team participating 

8 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 and 

15 supporting personnel assigned to work directly 

16 with the acquisition workforce; and 

17 ‘‘(B) the demonstration project commences before 

18 October 1, 2007. 

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

20 total number of persons who may participate in the dem21 onstration 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 

25 or team shall not terminate by reason that the organization 


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1 or team, after having satisfied the conditions in paragraph 

2 (3) of such subsection when it began to participate in a 

3 demonstration project under this section, ceases to meet one 

4 or both of the conditions set forth in subparagraph (A) of 

5 such paragraph (3) as a result of a reorganization, restruc6 turing, realignment, consolidation, or other organizational 

7 change. 

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

9 designate an independent organization to review the acqui10 sition workforce demonstration project described in sub11 section (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 system 

22 that recognizes excellence in performance and offers 

23 opportunities for improvement. 


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1 ‘‘(D) The steps taken to ensure that such system 

2 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 the 

12 performance appraisal period, and (ii) setting time13 tables for performance appraisals. 

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

15 ‘‘(I) The project’s appropriateness or inappropri16 ateness in light of the complexities of the workforce af17 fected. 

18 ‘‘(J) The project’s sufficiency in terms of pro19 viding protections for diversity in promotion and re20 tention of personnel. 

21 ‘‘(K) The adequacy of the training, policy guide22 lines, and other preparations afforded in connection 

23 with using the project. 


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1 ‘‘(L) Whether there is a process for ensuring em2 ployee involvement in the development and improve3 ment 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 years 

7 thereafter until the termination of the project. The Secretary 

8 shall submit to the covered congressional committees a copy 

9 of the assessment within 30 days after receipt by the Sec10 retary of the assessment. 

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

12 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 to 

21 conduct a demonstration program under this section shall 

22 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 (g), 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.’’. 

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

5 of title 10, United States Code, is amended by insert6 ing after the item relating to section 1761 the fol7 lowing new item: 

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

8 (b) CONFORMING REPEAL.—Section 4308 of the Na9 tional Defense Authorization Act for Fiscal Year 1996 (Pub10 lic Law 104–106; 10 U.S.C. 1701 note) is repealed. 

11 SEC. 203. INCENTIVE PROGRAMS FOR CIVILIAN AND MILI12 TARY PERSONNEL IN THE ACQUISITION 

13 WORKFORCE. 

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

15 States Code, is amended by inserting after section 1762, as 

16 added by section 202, the following new section: 

17 ‘‘§ 1763. Incentive programs for civilian and military 

18 personnel in the acquisition workforce 

19 ‘‘(a) CIVILIAN ACQUISITION WORKFORCE INCEN20 TIVES.—The Secretary of Defense, acting through the Under 

21 Secretary of Defense for Acquisition, Technology, and Lo22 gistics, shall provide for an enhanced system of incentives 

23 for the encouragement of excellence in the acquisition work24 force by providing rewards for employees who contribute to 


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1 achieving the agency’s performance goals. The system of in2 centives shall include provisions that— 

3 ‘‘(1) relate salary increases, bonuses, and awards 

4 to performance and contribution to the agency mis5 sion (including the extent to which the performance of 

6 personnel in such workforce contributes to achieving 

7 the goals and standards established for acquisition 

8 programs pursuant to section 2545 of this title; 

9 ‘‘(2) provide for consideration, in personnel eval10 uations and promotion decisions, of the extent to 

11 which the performance of personnel in such workforce 

12 contributes to achieving such goals and standards; 

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

14 Workforce Incentive Fund established pursuant to sec15 tion 9902(a) of title 5; and 

16 ‘‘(4) provide opportunities for career broadening 

17 experiences for high performers. 

18 ‘‘(b) MILITARY ACQUISITION WORKFORCE INCEN19 TIVES.—The Secretaries of the military departments shall 

20 fully use and enhance incentive programs that reward indi21 viduals, through recognition certificates or cash awards, for 

22 suggestions of process improvements that contribute to im23 provements in efficiency and economy and a better way of 

24 doing business.’’. 


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1 (b) CLERICAL AMENDMENT.—The table of sections at 

2 the beginning of subchapter V of chapter 87 of title 10, 

3 United States Code, is amended by inserting after the item 

4 relating to section 1762, as added by section 202, the fol5 lowing new item: 

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

workforce.’’. 

6 SEC. 204. CAREER DEVELOPMENT FOR CIVILIAN AND MILI7 TARY PERSONNEL IN THE ACQUISITION 

8 WORKFORCE. 

9 (a) CAREER PATHS.— 

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

11 States Code, is amended by inserting after section 

12 1722a the following new section: 

13 ‘‘§ 1722b. Special requirements for civilian employees 

14 in the acquisition field 

15 ‘‘(a) REQUIREMENT FOR POLICY AND GUIDANCE RE16 GARDING CIVILIAN PERSONNEL IN ACQUISITION.—The Sec17 retary of Defense, acting through the Under Secretary of 

18 Defense for Acquisition, Technology, and Logistics, shall es19 tablish policies and issue guidance to ensure the proper de20 velopment, assignment, and employment of civilian mem21 bers of the acquisition workforce to achieve the objectives 

22 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 strategy 

8 that increases attainment of key experiences that con9 tribute to a highly qualified acquisition workforce. 

10 ‘‘(3) Sufficient opportunities for promotion and 

11 advancement in the acquisition field. 

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

13 members eligible for and active in the acquisition 

14 field to ensure adequate capacity, capability, and ef15 fective succession for acquisition functions, including 

16 contingency contracting, of the Department of De17 fense. 

18 ‘‘(c) INCLUSION OF INFORMATION IN ANNUAL RE19 PORT.—The Secretary of Defense shall include in the report 

20 to Congress required under section 115b(d) of this title the 

21 following information related to the acquisition workforce 

22 for the period covered by the report (which shall be shown 

23 for the Department of Defense as a whole and separately 

24 for the Army, Navy, Air Force, Marine Corps, Defense 

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


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

2 Acquisition Corps, set forth separately for members of 

3 the armed forces and civilian employees, by grade 

4 level and by functional specialty. 

5 ‘‘(2) The total number of critical acquisition po6 sitions held, set forth separately for members of the 

7 armed forces and civilian employees, by grade level 

8 and by other appropriate categories (including by 

9 program manager, deputy program manager, and di10 vision head positions). For each such category, the re11 port shall specify the number of civilians holding such 

12 positions compared to the total number of positions 

13 filled. 

14 ‘‘(3) The number of employees to whom the re15 quirements of subsections (b)(2)(A) and (b)(2)(B) of 

16 section 1732 of this title did not apply because of the 

17 exceptions provided in paragraphs (1) and (2) of sec18 tion 1732(c) of this title, set forth separately by type 

19 of exception. 

20 ‘‘(4) The number of program managers and dep21 uty program managers who were reassigned after 

22 completion of a major milestone occurring closest in 

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

24 position for four years (as required under section 

25 1734(b) of this title), and the proportion of those reVerDate Nov 24 2008 21:26 Apr 23, 2010 Jkt 089200 PO 00000 Frm 00045 Fmt 6652 Sfmt 6203 E:\BILLS\H5013.RH H5013

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1 assignments to the total number of reassignments of 

2 program managers and deputy program managers, 

3 set forth separately for program managers and deputy 

4 program managers. The Secretary also shall include 

5 the average length of assignment served by program 

6 managers and deputy program managers so reas7 signed. 

8 ‘‘(5) The number of persons, excluding those re9 ported under paragraph (4), in critical acquisition 

10 positions who were reassigned after a period of three 

11 years or longer (as required under section 1734(a) of 

12 this title), and the proportion of those reassignments 

13 to the total number of reassignments of persons, ex14 cluding those reported under paragraph (4), in crit15 ical acquisition positions. 

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

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

18 1734(d), or 1736(c) of this title or any other provi19 sion of this chapter (or other provision of law) which 

20 permits the waiver of any requirement relating to the 

21 acquisition workforce, and in the case of each such 

22 authority, the reasons for exercising the authority. 

23 The Secretary may present the information provided 

24 under this paragraph by category or grouping of 

25 types of waivers and reasons.’’. 


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1 (2) CLERICAL AMENDMENT.—The table of sec2 tions at the beginning of subchapter II of chapter 87 

3 of title 10, United States Code, is amended by insert4 ing after the item relating to section 1722a the fol5 lowing new item: 

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

6 (b) CAREER EDUCATION AND TRAINING.—Chapter 87 

7 of title 10, United States Code, is amended in section 1723 

8 by redesignating subsection (b) as subsection (c) and insert9 ing after subsection (a) the following new subsection: 

10 ‘‘(b) CAREER PATH REQUIREMENTS.—For each career 

11 path, the Secretary of Defense, acting through the Under 

12 Secretary of Defense for Acquisition, Technology, and Lo13 gistics shall establish requirements for the completion of 

14 course work and related on-the-job training and demonstra15 tion of qualifications in the critical acquisition-related du16 ties and tasks of the career path. The Secretary of Defense, 

17 acting through the Under Secretary, shall also— 

18 ‘‘(1) encourage individuals in the acquisition 

19 workforce to maintain the currency of their acquisi20 tion knowledge and generally enhance their knowledge 

21 of related acquisition management disciplines through 

22 academic programs and other self-developmental ac23 tivities; and 

24 ‘‘(2) develop key work experiences, including the 

25 creation of a program sponsored by the Department 


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1 of Defense that facilitates the periodic interaction be2 tween individuals in the acquisition workforce and 

3 the end user in such end user’s environment to en4 hance the knowledge base of such workforce, for indi5 viduals in the acquisition workforce so that the indi6 viduals may gain in-depth knowledge and experience 

7 in the acquisition process and become seasoned, well8 qualified members of the acquisition workforce.’’. 

9 SEC. 205. RECERTIFICATION AND TRAINING REQUIRE10 MENTS. 

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

12 10, United States Code, as amended by section 204, is fur13 ther amended by amending subsection (a) to read as follows: 

14 ‘‘(a) QUALIFICATION REQUIREMENTS.—(1) The Sec15 retary of Defense shall establish education, training and ex16 perience requirements for each acquisition position, based 

17 on the level of complexity of duties carried out in the posi18 tion. In establishing such requirements, the Secretary shall 

19 ensure the availability and sufficiency of training in all 

20 areas of acquisition, including additional training courses 

21 with an emphasis on services contracting, long-term 

22 sustainment strategies, information technology, and rapid 

23 acquisition. 

24 ‘‘(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 87 

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

13 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 for 

18 Acquisition, Technology, and Logistics, shall develop fulfill19 ment standards, and implement and maintain a program, 

20 for purposes of the training requirements of sections 1723, 

21 1724, and 1735 of this title. Such fulfillment standards 

22 shall consist of criteria for determining whether an indi23 vidual has demonstrated competence in the areas that would 

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1 tions. If an individual meets the appropriate fulfillment 

2 standard, the applicable training requirement is fulfilled. 

3 ‘‘(b) GUIDANCE AND STANDARDS RELATING TO CON4 TRACTS FOR TRAINING.—The Secretary of Defense shall de5 velop appropriate guidance and standards to ensure that 

6 the Department of Defense will continue, where appropriate 

7 and cost-effective, to enter into contracts for the training 

8 requirements of sections 1723, 1724, and 1735 of this title, 

9 while maintaining appropriate control over the content and 

10 quality of such training.’’. 

11 (2) CLERICAL AMENDMENT.—The table of sec12 tions at the beginning of such subchapter is amended 

13 by adding at the end the following new item: 

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

14 (3) DEADLINE FOR FULFILLMENT STANDARDS.— 

15 The fulfillment standards required under section 

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

17 paragraph (1), shall be developed not later than 90 

18 days after the date of the enactment of this Act. 

19 (4) CONFORMING REPEAL.—Section 853 of Pub20 lic Law 105–85 (111 Stat. 1851) is repealed. 

21 SEC. 206. INFORMATION TECHNOLOGY ACQUISITION WORK22 FORCE. 

23 (a) IN GENERAL.— 

24 (1) INFORMATION TECHNOLOGY.—Subchapter II 

25 of chapter 87 of title 10, United States Code, is 


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1 amended by adding at the end the following new sec2 tion: 

3 ‘‘§ 1725. Information technology acquisition positions 

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

5 develop and carry out a plan to strengthen the part of the 

6 acquisition workforce that specializes in information tech7 nology. The plan shall include the following: 

8 ‘‘(1) Defined targets for billets devoted to infor9 mation technology acquisition. 

10 ‘‘(2) Specific certification requirements for indi11 viduals in the acquisition workforce who specialize in 

12 information technology acquisition. 

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

14 acquisition workforce who specialize in information 

15 technology acquisitions. 

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

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

18 meaning provided such term in section 11101 of title 

19 40 and includes information technology incorporated 

20 into a major weapon system. 

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

22 meaning provided such term in section 2379(f) of this 

23 title.’’. 


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1 (2) CLERICAL AMENDMENT.—The table of sec2 tions at the beginning of such subchapter is amended 

3 by adding at the end the following new item: 

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

4 (b) DEADLINE.—The Secretary of Defense shall develop 

5 the plan required under section 1725 of title 10, United 

6 States Code, as added by subsection (a), not later than 180 

7 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 the 

13 persons serving in acquisition positions within the 

14 Department of Defense, as designated pursuant to sec15 tion 1721(a) of this title.’’. 

16 SEC. 208. DEFENSE ACQUISITION UNIVERSITY CUR17 RICULUM REVIEW. 

18 (a) CURRICULUM REVIEW.—Not later than one year 

19 after the date of the enactment of this Act, the Under Sec20 retary of Defense for Acquisition, Technology, and Logistics 

21 shall lead a review of the curriculum offered by the Defense 

22 Acquisition University to ensure it adequately supports the 

23 training and education requirements of acquisition profes24 sionals, particularly in service contracting, long term 

25 sustainment strategies, information technology, and rapid 


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1 acquisition. The review shall also involve the service acqui2 sition executives of each military department. 

3 (b) ANALYSIS OF FUNDING REQUIREMENTS FOR

4 TRAINING.—Following the review conducted under sub5 section (a), the Secretary of Defense shall analyze the most 

6 recent future-years defense program to determine the 

7 amounts of estimated expenditures and proposed appro8 priations necessary to support the training requirements of 

9 the amendments made by section 205 of this Act, including 

10 any new training requirements determined after the review 

11 conducted under subsection (a). The Secretary shall identify 

12 any additional funding needed for such training require13 ments in the separate chapter on the defense acquisition 

14 workforce required in the next annual strategic workforce 

15 plan under 115b of title 10, United States Code. 

16 (c) REQUIREMENT FOR ONGOING CURRICULUM DE17 VELOPMENT WITH CERTAIN SCHOOLS.— 

18 (1) REQUIREMENT.—Section 1746 of title 10, 

19 United States Code, is amended by adding at the end 

20 the following new subsection: 

21 ‘‘(c) CURRICULUM DEVELOPMENT.—The President of 

22 the Defense Acquisition University shall work with the rel23 evant professional schools and degree-granting institutions 

24 of the Department of Defense and military departments to 


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1 ensure that best practices are used in curriculum develop2 ment to support acquisition workforce positions.’’. 

3 (2) AMENDMENT TO SECTION HEADING.—(A) 

4 The heading of section 1746 of such title is amended 

5 to read as follows: 

6 ‘‘§ 1746. Defense Acquisition University’’. 

7 (B) The item relating to section 1746 in the 

8 table of sections at the beginning of subchapter IV of 

9 chapter 87 of such title is amended to read as follows: 

‘‘1746. Defense Acquisition University.’’. 

10 SEC. 209. COST ESTIMATING INTERNSHIP AND SCHOLAR11 SHIP PROGRAMS. 

12 (a) PURPOSE.—The purpose of this section is to re13 quire the Department of Defense to develop internship and 

14 scholarship programs in cost estimating to underscore the 

15 importance of cost estimating, as a core acquisition func16 tion, to the acquisition process. 

17 (b) REQUIREMENT.—The Secretary of Defense shall de18 velop intern and scholarship programs in cost estimating 

19 for purposes of improving education and training in cost 

20 estimating and providing an opportunity to meet any cer21 tification requirements in cost estimating. 

22 (c) IMPLEMENTATION.—Such programs shall be estab23 lished not later than 270 days after the date of the enact24 ment of this Act and shall be implemented for a four-year 

25 period following establishment of the programs. 


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1 TITLE III—FINANCIAL 

2 MANAGEMENT 

3 SEC. 301. INCENTIVES FOR ACHIEVING AUDITABILITY. 

4 (a) PREFERENTIAL TREATMENT AUTHORIZED.—The 

5 Under Secretary of Defense (Comptroller) shall ensure that 

6 any component of the Department of Defense that the Under 

7 Secretary determines has financial statements validated as 

8 ready for audit earlier than September 30, 2017, shall re9 ceive preferential treatment, as the Under Secretary deter10 mines appropriate— 

11 (1) in financial matter matters, including— 

12 (A) consistent with the need to fund urgent 

13 warfighter requirements and operational needs, 

14 priority in the release of appropriated funds to 

15 such component; 

16 (B) relief from the frequency of financial re17 porting of such component in cases in which 

18 such reporting is not required by law; 

19 (C) relief from departmental obligation and 

20 expenditure thresholds to the extent that such 

21 thresholds establish requirements more restrictive 

22 than those required by law; or 

23 (D) such other measures as the Under Sec24 retary considers appropriate; and 


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1 (2) in the availability of personnel management 

2 incentives, including— 

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

4 the financial and business management work5 force of the component; 

6 (B) the rates of promotion within the finan7 cial and business management workforce of the 

8 component; 

9 (C) awards for excellence in financial and 

10 business management; or 

11 (D) the scope of work assigned to the finan12 cial and business management workforce of the 

13 component. 

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

15 Under Secretary shall include information on any measure 

16 initiated pursuant to this section in the next semiannual 

17 report pursuant to section 1003(b) of the National Defense 

18 Authorization Act for Fiscal Year 2010 (Public Law 111– 

19 84; 123 Stat. 2439; 10 U.S.C. 2222 note) after such measure 

20 is initiated. 

21 (c) EXPIRATION.—This section shall expire on Sep22 tember 30, 2017. 

23 (d) DEFINITION.—In this section, the term ‘‘compo24 nent of the Department of Defense’’ means any organization 

25 within the Department of Defense that is required to submit 


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1 an auditable financial statement to the Secretary of De2 fense. 

3 SEC. 302. MEASURES REQUIRED AFTER FAILURE TO 

4 ACHIEVE AUDITABILITY. 

5 (a) IN GENERAL.—The Secretary of Defense shall en6 sure that corrective measures are immediately taken to ad7 dress the failure of a component of the Department of De8 fense to achieve a financial statement validated as ready 

9 for audit by September 30, 2017. 

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

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

12 shall develop and issue guidance detailing measures to be 

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

14 shall include— 

15 (1) the development of a remediation plan to en16 sure the component can achieve a financial statement 

17 validated as ready for audit within one year; 

18 (2) additional reporting requirements that may 

19 be necessary to mitigate financial risk to the compo20 nent; 

21 (3) delaying the release of appropriated funds to 

22 such component, consistent with the need to fund ur23 gent warfighter requirements and operational needs, 

24 until such time as the Secretary is assured that the 


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1 component will achieve a financial statement vali2 dated as ready for audit within one year; 

3 (4) specific consequences for key personnel in 

4 order to ensure accountability within the leadership 

5 of the component; and 

6 (5) such other measures as the Secretary con7 siders appropriate. 

8 (c) DEFINITION.—The term ‘‘component’’ of the De9 partment of Defense means any organization within the De10 partment of Defense that is required to submit an auditable 

11 financial statement to the Secretary of Defense. 

12 SEC. 303. REVIEW OF OBLIGATION AND EXPENDITURE 

13 THRESHOLDS. 

14 (a) SENSE OF CONGRESS.—It is the sense of Congress 

15 that— 

16 (1) Department of Defense program managers 

17 should be encouraged to place a higher priority on 

18 seeking the best value for the Government than on 

19 meeting arbitrary benchmarks for spending; and 

20 (2) actions to carry out paragraph (1) should be 

21 supported by the Department’s leadership at every 

22 level. 

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

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

25 Officer of the Department of Defense, in coordination with 


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1 the Chief Management Officer of each military department, 

2 shall review and update as necessary all relevant policy and 

3 instruction regarding obligation and expenditure bench4 marks to ensure that such guidance does not inadvertantly 

5 prevent achieving the best value for the Government in the 

6 obligation and expenditure of funds. 

7 (c) PROCESS REVIEW.—Not later than one year after 

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

9 Officer, in coordination with the Chief Management Officer 

10 of each military department, the Director of the Office of 

11 Performance Assessment and Root Cause Analysis, the 

12 Under Secretary of Defense (Comptroller), and the Comp13 trollers of the military departments, shall conduct a com14 prehensive review of the use and value of obligation and 

15 expenditure benchmarks and propose new benchmarks or 

16 processes for tracking financial performance, including, as 

17 appropriate— 

18 (1) increased reliance on individual obligation 

19 and expenditure plans for measuring program finan20 cial performance; 

21 (2) mechanisms to improve funding stability and 

22 to increase the predictability of the release of funding 

23 for obligation and expenditure; and 


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1 (3) streamlined mechanisms for a program man2 ager to submit an appeal for funding changes and to 

3 have such appeal evaluated promptly. 

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

5 Acquisition, Technology, and Logistics and the Under Sec6 retary of Defense (Comptroller) shall ensure that as part 

7 of the training required for program managers and business 

8 managers, an emphasis is placed on obligating and expend9 ing appropriated funds in a manner that achieves the best 

10 value for the Government and that the purpose and limita11 tions of obligation and expenditure benchmarks are made 

12 clear. 

13 TITLE IV—INDUSTRIAL BASE 

14 SEC. 401. EXPANSION OF THE INDUSTRIAL BASE. 

15 (a) PROGRAM TO EXPAND INDUSTRIAL BASE RE16 QUIRED.—The Secretary of Defense shall establish a pro17 gram to expand the industrial base of the Department of 

18 Defense to increase the Department’s access to innovation 

19 and the benefits of competition. 

20 (b) IDENTIFYING AND COMMUNICATING WITH NON21 TRADITIONAL SUPPLIERS.—The program established under 

22 subsection (a) shall use tools and resources available within 

23 the Federal Government and available from the private sec24 tor, to provide a capability for identifying and commu25 nicating with nontraditional suppliers, including commerVerDate Nov 24 2008 21:26 Apr 23, 2010 Jkt 089200 PO 00000 Frm 00060 Fmt 6652 Sfmt 6203 E:\BILLS\H5013.RH H5013

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1 cial firms and firms of all business sizes, that are engaged 

2 in markets of importance to the Department of Defense. 

3 (c) INDUSTRIAL BASE REVIEW.—The program re4 quired by subsection (a) shall include a continuous effort 

5 to review the industrial base supporting the Department of 

6 Defense, including the identification of markets of impor7 tance to the Department of Defense. 

8 (d) DEFINITION.—In this section: 

9 (1) NONTRADITIONAL SUPPLIERS.—The term 

10 ‘‘nontraditional suppliers’’ means firms that have re11 ceived contracts from the Department of Defense with 

12 a total value of not more than $100,000 in the pre13 vious 5 years. 

14 (2) MARKETS OF IMPORTANCE TO THE DEPART15 MENT OF DEFENSE.—The term ‘‘markets of impor16 tance to the Department of Defense’’ means industrial 

17 sectors in which the Department of Defense spends 

18 more than $500,000,000 annually. 

19 SEC. 402. COMMERCIAL PRICING ANALYSIS. 

20 Section 803(c) of the Strom Thurmond National De21 fense Authorization Act for Fiscal Year 1999 (Public Law 

22 105–261; 10 U.S.C. 2306a note) is amended to read as fol23 lows: 

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


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

2 implement procedures that, to the maximum extent 

3 practicable, provide for the collection and analysis of 

4 information on price trends for categories of exempt 

5 commercial items described in paragraph (2). 

6 ‘‘(2) A category of exempt commercial items re7 ferred to in paragraph (1) consists of exempt commer8 cial items that are in a single Federal Supply Group 

9 or Federal Supply Class, are provided by a single 

10 contractor, or are otherwise logically grouped for the 

11 purpose of analyzing information on price trends. 

12 ‘‘(3) The analysis of information on price trends 

13 under paragraph (1) shall include, in any category in 

14 which significant escalation in prices is identified, a 

15 more detailed examination of the causes of escalation 

16 for such prices within the category and whether such 

17 price escalation is consistent across the Department of 

18 Defense. 

19 ‘‘(4) The head of a Department of Defense agency 

20 or the Secretary of a military department shall take 

21 appropriate action to address any unjustified esca22 lation in prices being paid for items procured by that 

23 agency or military department as identified in an 

24 analysis conducted pursuant to paragraph (1). 


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

2 Secretary of Defense shall submit to the Committee on 

3 Armed Services of the Senate and the Committee on 

4 Armed Services of the House of Representatives a re5 port on the analyses of price trends that were con6 ducted for categories of exempt commercial items dur7 ing the preceding fiscal year under the procedures 

8 prescribed pursuant to paragraph (1). The report 

9 shall include a description of the actions taken to 

10 identify and address any unjustified price escalation 

11 for the categories of items. 

12 ‘‘(6) This subsection shall not be in effect on and 

13 after April 1, 2013.’’. 

14 SEC. 403. CONTRACTOR AND GRANTEE DISCLOSURE OF DE15 LINQUENT FEDERAL TAX DEBTS. 

16 (a) REQUIREMENT.— 

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

18 States Code, is amended by adding at the end of sub19 chapter II the following new section: 

20 ‘‘§ 3720F. Contractor and grantee disclosure of delin21 quent Federal tax debts 

22 ‘‘(a) REQUIREMENT RELATING TO CONTRACTS.—The 

23 head of any executive agency that issues an invitation for 

24 bids or a request for proposals for a contract in an amount 

25 greater than the simplified acquisition threshold shall reVerDate Nov 24 2008 21:26 Apr 23, 2010 Jkt 089200 PO 00000 Frm 00063 Fmt 6652 Sfmt 6203 E:\BILLS\H5013.RH H5013

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1 quire each person that submits a bid or proposal to submit 

2 with the bid or proposal a form— 

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

4 seriously delinquent tax debt; and 

5 ‘‘(2) authorizing the Secretary of the Treasury to 

6 disclose to the head of the agency information strictly 

7 limited to verifying whether the person has a seri8 ously delinquent tax debt. 

9 ‘‘(b) REQUIREMENT RELATING TO GRANTS.—The head 

10 of any executive agency that offers a grant in excess of an 

11 amount equal to the simplified acquisition threshold may 

12 not award such grant to any person unless such person sub13 mits with the application for such grant a form— 

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

15 seriously delinquent tax debt; and 

16 ‘‘(2) authorizing the Secretary of the Treasury to 

17 disclose to the head of the executive agency informa18 tion strictly limited to verifying whether the person 

19 has a seriously delinquent tax debt. 

20 ‘‘(c) FORM FOR RELEASE OF INFORMATION.—The Sec21 retary of the Treasury shall make available to all executive 

22 agencies a standard form for the certification and author23 ization described in subsections (a) and (b). 

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


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

2 binding agreement entered into by an executive agen3 cy for the purpose of obtaining property or services, 

4 but does not include— 

5 ‘‘(A) a contract for property or services that 

6 is intended to be entered into through the use of 

7 procedures other than competitive procedures by 

8 reason of section 2304(c)(2) of this title; or 

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

10 the agency as necessary to the national security 

11 of the United States. 

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

13 agency’ has the meaning given that term in section 

14 4(1) of the Office of Federal Procurement Policy Act 

15 (41 U.S.C. 403(1)). 

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

17 ‘‘(A) an individual; 

18 ‘‘(B) a partnership; and 

19 ‘‘(C) a corporation. 

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

21 term ‘seriously delinquent tax debt’— 

22 ‘‘(A) means any Federal tax liability— 

23 ‘‘(i) that exceeds $3,000; 

24 ‘‘(ii) that has been assessed by the Sec25 retary of the Treasury and not paid; and 


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1 ‘‘(iii) for which a notice of lien has 

2 been filed in public records; and 

3 ‘‘(B) does not include any Federal tax li4 ability— 

5 ‘‘(i) being paid in a timely manner 

6 under an offer-in-compromise or install7 ment agreement; 

8 ‘‘(ii) with respect to which collection 

9 due process proceedings are not completed; 

10 or 

11 ‘‘(iii) with respect to which collection 

12 due process proceedings are completed and 

13 no further payment is required. 

14 ‘‘(5) SIMPLIFIED ACQUISITION THRESHOLD.— 

15 The term ‘simplified acquisition threshold’ has the 

16 meaning given that term in section 4(11) of the Office 

17 of Federal Procurement Policy Act (41 U.S.C. 

18 403(11)). 

19 ‘‘(e) REGULATIONS.—The Administrator for Federal 

20 Procurement Policy, in consultation with the Secretary of 

21 the Treasury, shall promulgate regulations that— 

22 ‘‘(1) treat corporations and partnerships as hav23 ing a seriously delinquent tax debt if such corpora24 tion or partnership is controlled (directly or indiVerDate Nov 24 2008 21:26 Apr 23, 2010 Jkt 089200 PO 00000 Frm 00066 Fmt 6652 Sfmt 6203 E:\BILLS\H5013.RH H5013

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1 rectly) by persons who have a seriously delinquent tax 

2 debt; 

3 ‘‘(2) provide for the proper application of sub4 sections (a)(2) and (b)(2) in the case of corporations 

5 and partnerships; and 

6 ‘‘(3) provide for the proper application of sub7 section (a) to first-tier subcontractors that are identi8 fied in a bid or proposal and are a significant part 

9 of a bid or proposal team.’’. 

10 (2) CLERICAL AMENDMENT.—The table of sec11 tions at the beginning of chapter 37 of such title is 

12 amended by adding after the item relating to section 

13 3720E the following new item: 

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

14 (b) REVISION OF FEDERAL ACQUISITION REGULA15 TION.—Not later than 90 days after the final promulgation 

16 of regulations under section 3720F(e) of title 31, United 

17 States Code, as added by subsection (a), the Federal Acqui18 sition Regulation shall be revised to incorporate the require19 ments of section 3720F of such title. 

20 SEC. 404. INDEPENDENCE OF CONTRACT AUDITS AND BUSI21 NESS SYSTEM REVIEWS. 

22 (a) DEFENSE CONTRACT AUDIT AGENCY GENERAL

23 COUNSEL.— 


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1 (1) IN GENERAL.—Subchapter II of chapter 8 of 

2 title 10, United States Code, is amended by adding 

3 at the end the following new section: 

4 ‘‘§ 204. Defense Contract Audit Agency general counsel 

5 ‘‘(a) GENERAL COUNSEL.—The Director of the Defense 

6 Contract Audit Agency shall appoint a General Counsel of 

7 the Defense Contract Audit Agency. 

8 ‘‘(b) DUTIES.—(1) The General Counsel shall perform 

9 such functions as the Director may prescribe and shall serve 

10 at the discretion of the Director. 

11 ‘‘(2) Notwithstanding section 140(b) of this title, the 

12 General Counsel shall be the chief legal officer of the Defense 

13 Contract Audit Agency. 

14 ‘‘(3) The Defense Contract Audit Agency shall be the 

15 exclusive legal client of the General Counsel. 

16 ‘‘(c) OFFICE OF THE GENERAL COUNSEL.—There is 

17 established an Office of the General Counsel within the De18 fense Contract Audit Agency. The Director may appoint to 

19 the Office to serve as staff of the General Counsel such legal 

20 counsel as the Director determines is appropriate.’’. 

21 (2) CLERICAL AMENDMENT.—The table of sec22 tions at the beginning of subchapter II of chapter 8 

23 of such title is amended by adding at the end the fol24 lowing new item: 

‘‘204. Defense Contract Audit Agency general counsel.’’. 

25 (b) CRITERIA FOR BUSINESS SYSTEM REVIEWS.— 


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1 (1) IN GENERAL.—Chapter 131 of title 10, 

2 United States Code, is amended by inserting after sec3 tion 2222 the following new section: 

4 ‘‘§ 2222a. Criteria for business system reviews 

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

6 The Secretary of Defense shall ensure that any contractor 

7 business system review carried out by a military depart8 ment, a Defense Agency, or a Department of Defense Field 

9 Activity— 

10 ‘‘(1) complies with generally accepted govern11 ment auditing standards issued by the Comptroller 

12 General; 

13 ‘‘(2) is performed by an audit team that does not 

14 engage in any other official activity (audit-related or 

15 otherwise) involving the contractor concerned; 

16 ‘‘(3) is performed in a time and manner con17 sistent with a documented assessment of the risk to 

18 the Federal Government; and 

19 ‘‘(4) involves testing on a representative sample 

20 of transactions sufficient to fully examine the integ21 rity of the contractor business system concerned. 

22 ‘‘(b) CONTRACTOR BUSINESS SYSTEM REVIEW DE23 FINED.—In this section, the term ‘contractor business sys24 tem review’ means an audit of policies, procedures, and inVerDate Nov 24 2008 21:26 Apr 23, 2010 Jkt 089200 PO 00000 Frm 00069 Fmt 6652 Sfmt 6203 E:\BILLS\H5013.RH H5013

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1 ternal controls relating to accounting and management sys2 tems of a contractor.’’. 

3 (2) CLERICAL AMENDMENT.—The table of sec4 tions at the beginning of chapter 131 of such title is 

5 amended by inserting after the item relating to sec6 tion 2222 the following new item: 

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

7 (c) CONTRACT AUDIT GUIDANCE.—Not later than 180 

8 days after the date of the enactment of this Act, the Sec9 retary of Defense shall issue guidance relating to contract 

10 audits carried out by a military department, a defense 

11 agency, or a Department of Defense field activity that are 

12 not contractor business system reviews, as described under 

13 section 2222a of title 10, United States Code, that— 

14 (1) requires that such audits comply with gen15 erally accepted government auditing standards issued 

16 by the Comptroller General and are performed in a 

17 time and manner consistent with a documented as18 sessment of risk to the Federal Government; 

19 (2) establishes guidelines for discussions of the 

20 scope of the audit with the contractor concerned that 

21 ensure that such scope is not improperly influenced 

22 by the contractor; 

23 (3) provides for withholding of contract pay24 ments when necessary to compel the submission of 

25 documentation from the contractor; and 


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1 (4) requires that the results of contract audits 

2 performed on behalf of an agency of the Department 

3 of Defense be shared with other Federal agencies upon 

4 request, without reimbursement. 

5 (d) EFFECTIVE DATES.— 

6 (1) SECTION 204.—Section 204 of title 10, 

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

8 take effect on the date of the enactment of this Act. 

9 (2) SECTION 2222A.—Section 2222a of title 10, 

10 United States Code, as added by subsection (b), shall 

11 take effect 180 days after the date of the enactment of 

12 this Act. 

13 SEC. 405. BLUE RIBBON PANEL ON ELIMINATING BARRIERS 

14 TO CONTRACTING WITH THE DEPARTMENT 

15 OF DEFENSE. 

16 (a) REQUIREMENT TO ESTABLISH.—The Secretary of 

17 Defense shall establish a panel consisting of owners of large 

18 and small businesses that are not traditional defense sup19 pliers, for purposes of creating a set of recommendations 

20 on eliminating barriers to contracting with the Department 

21 of Defense and its defense supply centers. 

22 (b) MEMBERS.—The panel shall consist of nine mem23 bers, of whom— 

24 (1) three shall be appointed by the Secretary of 

25 the Army; 


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1 (2) three shall be appointed by the Secretary of 

2 the Navy; and 

3 (3) three shall be appointed by the Secretary of 

4 the Air Force. 

5 (c) APPOINTMENT DEADLINE.—Members shall be ap6 pointed to the panel not later than 180 days after the date 

7 of the enactment of this Act. 

8 (d) DUTIES.—The panel shall be responsible for devel9 oping a set of recommendations on eliminating barriers to 

10 contracting with the Department of Defense and its defense 

11 supply centers. 

12 (e) REPORT.—Not later than one year after the date 

13 of the enactment of this Act, the panel shall submit to Con14 gress a report containing its recommendations. 

15 SEC. 406. INCLUSION OF THE PROVIDERS OF SERVICES AND 

16 INFORMATION TECHNOLOGY IN THE NA17 TIONAL TECHNOLOGY AND INDUSTRIAL 

18 BASE. 

19 (a) REVISED DEFINITIONS.—Section 2500 of title 10, 

20 United States Code, is amended— 

21 (1) in paragraph (1), by striking ‘‘or mainte22 nance’’ and inserting ‘‘integration, services, or infor23 mation technology’’; 


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1 (2) in paragraph (4), by striking ‘‘or produc2 tion’’ and inserting ‘‘production, integration, services, 

3 or information technology’’; 

4 (3) in paragraph (9)(A), by striking ‘‘and man5 ufacturing’’ and inserting ‘‘manufacturing, integra6 tion, services, and information technology’’; and 

7 (4) by adding at the end the following new para8 graph: 

9 ‘‘(15) The term ‘integration’ means the process of 

10 providing systems engineering and technical direction 

11 for a system for the purpose of achieving capabilities 

12 that satisfy contract requirements.’’. 

13 (b) REVISED OBJECTIVES.—Section 2501(a) of such 

14 title is amended— 

15 (1) in paragraph (1), by striking ‘‘Supplying 

16 and equipping’’ and inserting ‘‘Supplying, equip17 ping, and supporting’’; 

18 (2) in paragraph (2), by striking ‘‘and logistics 

19 for’’ and inserting ‘‘logistics, and other activities in 

20 support of’’; 

21 (3) in paragraph (4), by striking ‘‘and produce’’ 

22 and inserting ‘‘, produce, and support’’; and 

23 (4) by redesignating paragraph (6) as para24 graph (8) and inserting after paragraph (5) the fol25 lowing new paragraphs: 


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1 ‘‘(6) Providing for the generation of services ca2 pabilities that are not core functions of the armed 

3 forces and that are critical to military operations 

4 within the national technology and industrial base. 

5 ‘‘(7) Providing for the development, production, 

6 and integration of information technology within the 

7 national technology and industrial base.’’. 

8 (c) REVISED ASSESSMENTS.—Section 2505(b)(4) of 

9 such title is amended by inserting after ‘‘of this title)’’ the 

10 following ‘‘or major automated information systems (as de11 fined in section 2445a of this title)’’. 

12 (d) REVISED POLICY GUIDANCE.—Section 2506(a) of 

13 such title is amended by striking ‘‘budget allocation, weap14 ons’’ and inserting ‘‘strategy, management, budget alloca15 tion,’’. 


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srobinson on DSKHWCL6B1PROD with BILLS
Union Calendar No. 266 

111TH CONGRESS 

2D SESSION H. R. 5013 

[Report No. 111–465, Part I] 

A BILL 

To amend title 10, United States Code, to provide 

quisition system, and for other purposes. for performance management of the defense acAPRIL 23, 2010 

Reported from the Committee on Armed Services with an 

amendment 

APRIL 23, 2010 

Committee on Oversight and Government Reform disprinted House on the State of the Union and ordered to be charged; committed to the Committee of the Whole 


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