neering from across the Department’’ after 
‘‘programs’’. 
(2) Section 2334(a)(6)(A)(i) of such title is 
amended by striking ‘‘any certification under’’ and 
inserting ‘‘any decision to grant milestone approval 
pursuant to’’. 
SEC. 824. STREAMLINING OF REQUIREMENTS RELATING TO 
DEFENSE BUSINESS SYSTEMS. 
(a) IN GENERAL.— 
(1) REVISION.—Section 2222 of title 10, 
United States Code, is amended to read as follows: 
‘‘§ 2222. Defense business systems: business process 
reengineering; 
enterprise 
architecture; 
management 
‘‘(a) DEFENSE BUSINESS SYSTEMS GENERALLY.— 
The Secretary of Defense shall ensure that each covered 
defense business system developed, deployed, and operated 
by the Department of Defense— 
‘‘(1) supports efficient business processes that 
have been reviewed, and as appropriate revised, 
through business process reengineering; 
‘‘(2) is integrated into a comprehensive defense 
business enterprise architecture; and 
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‘‘(3) is managed in a manner that provides visi-
bility into, and traceability of, expenditures for the 
system. 
‘‘(b) ISSUANCE OF GUIDANCE.— 
‘‘(1) SECRETARY
OF
DEFENSE
GUIDANCE.— 
The Secretary shall issue guidance to provide for the 
coordination of, and decision making for, the plan-
ning, programming, and control of investments in 
covered defense business systems. 
‘‘(2) SUPPORTING
GUIDANCE.—The Secretary 
shall direct the Deputy Chief Management Officer of 
the Department of Defense, the Under Secretary of 
Defense for Acquisition, Technology, and Logistics, 
the Chief Information Officer, and the Chief Man-
agement Officer of each of the military departments 
to issue and maintain supporting guidance, as ap-
propriate, for the guidance of the Secretary issued 
under paragraph (1). 
‘‘(c) GUIDANCE ELEMENTS.—The guidance issued 
pursuant to subsection (b)(1) shall include the following 
elements: 
‘‘(1) Policy to ensure that the business proc-
esses of the Department of Defense are continuously 
evolved to— 
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‘‘(A) implement the most streamlined and 
efficient business process practicable; and 
‘‘(B) enable the use of commercial off-the- 
shelf business systems with the fewest changes 
necessary to accommodate requirements and 
interfaces that are unique to the Department of 
Defense. 
‘‘(2) A process to establish requirements for 
covered defense business systems. 
‘‘(3) Mechanisms for the planning and control 
of investments in covered defense business systems, 
including a process for the collection and review of 
programming and budgeting information for covered 
defense business systems. 
‘‘(4) Policy requiring the periodic review of cov-
ered defense business systems that have been fully 
deployed, by portfolio, to ensure that investments in 
such portfolios are appropriate. 
‘‘(d) DEFENSE BUSINESS ENTERPRISE ARCHITEC-
TURE.— 
‘‘(1) BLUEPRINT.—The Secretary, working 
through the Deputy Chief Management Officer of 
the Department of Defense, shall develop and main-
tain a blueprint to guide the development of inte-
grated business processes within the Department of 
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Defense Such blueprint shall be known as the ‘de-
fense business enterprise architecture’. 
‘‘(2) PURPOSE.—The defense business enter-
prise architecture shall be sufficiently defined to ef-
fectively guide implementation of interoperable de-
fense business system solutions and shall be con-
sistent with the policies and procedures established 
by the Director of the Office of Management and 
Budget. 
‘‘(3) ELEMENTS.—The defense business enter-
prise architecture shall— 
‘‘(A) include policies, procedures, business 
data standards, business performance measures, 
and business information requirements that 
apply uniformly throughout the Department of 
Defense; and 
‘‘(B) enable the Department of Defense 
to— 
‘‘(i) comply with all applicable law, in-
cluding Federal accounting, financial man-
agement, and reporting requirements; 
‘‘(ii) 
routinely 
produce 
verifiable, 
timely, accurate, and reliable business and 
financial information for management pur-
poses; and 
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‘‘(iii) integrate budget, accounting, 
and program information and systems. 
‘‘(4) INTEGRATION INTO INFORMATION TECH-
NOLOGY ARCHITECTURE.—The defense business en-
terprise architecture shall integrate into an informa-
tion technology enterprise architecture, developed by 
the Chief Information Officer of the Department of 
Defense, which describes a target business systems 
computing environment for each of the major busi-
ness processes conducted by the Department of De-
fense. 
‘‘(e) DEFENSE BUSINESS COUNCIL.— 
‘‘(1) REQUIREMENT FOR COUNCIL.—The Sec-
retary shall establish a Defense Business Council to 
provide advice to the Secretary on developing the de-
fense business enterprise architecture, reengineering 
the Department’s business processes, and require-
ments for defense business systems. The Council 
shall be chaired by the Deputy Chief Management 
Officer and the Chief Information Officer of the De-
partment of Defense. 
‘‘(2) MEMBERSHIP.—The membership of the 
Council shall include the following: 
‘‘(A) The Chief Management Officers of 
the military departments, or their designees. 
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‘‘(B) The following officials of the Depart-
ment of Defense, or their designees: 
‘‘(i) The Under Secretary of Defense 
for Acquisition, Technology, and Logistics 
with respect to acquisition, logistics, and 
installations management processes. 
‘‘(ii) The Under Secretary of Defense 
(Comptroller) with respect to financial 
management and planning and budgeting 
processes. 
‘‘(iii) The Under Secretary of Defense 
for Personnel and Readiness with respect 
to human resources management proc-
esses. 
‘‘(f) APPROVALS REQUIRED FOR DEVELOPMENT.— 
‘‘(1) INITIAL APPROVAL REQUIRED.—The Sec-
retary shall ensure that a covered defense business 
system program cannot proceed into development 
(or, if no development is required, into production or 
fielding) unless the appropriate approval official (as 
specified in paragraph (2)) has determined that the 
covered defense business system concerned— 
‘‘(A) supports a business process that has 
been, or is being as a result of the acquisition 
program, reengineered to be as streamlined and 
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efficient as practicable consistent with the guid-
ance issued pursuant to subsection (b), includ-
ing business process mapping; 
‘‘(B) is in compliance with the defense 
business enterprise architecture developed pur-
suant to subsection (d) or will be in compliance 
as a result of modifications planned; 
‘‘(C) has valid, achievable requirements; 
and 
‘‘(D) is in compliance with the Depart-
ment’s auditability requirements. 
‘‘(2) APPROPRIATE OFFICIAL.—For purposes of 
paragraph (1), the appropriate approval official with 
respect to a covered defense business system is the 
following: 
‘‘(A) In the case of a system of a military 
department, the Chief Management Officer of 
that military department. 
‘‘(B) In the case of a system of a Defense 
Agency or Defense Field Activity or a system 
that will support the business process of more 
than one military department or Defense Agen-
cy or Defense Field Activity, the Deputy Chief 
Management Officer of the Department of De-
fense. 
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‘‘(C) In the case of any system, such offi-
cial other than the applicable official under sub-
paragraph (A) or (B) as the Secretary des-
ignates for such purpose. 
‘‘(3) ANNUAL CERTIFICATION.—For any fiscal 
year in which funds are expended for development 
pursuant to a covered defense business system pro-
gram, the Defense Business Council shall review the 
system and certify (or decline to certify as the case 
may be) that it continues to satisfy the requirements 
of paragraph (1). If the Council determines that cer-
tification cannot be granted, the chairman of the 
Council shall notify the Appropriate Approving Offi-
cial and the acquisition Milestone Decision Authority 
for the program and provide a recommendation for 
corrective action. 
‘‘(4) OBLIGATION OF FUNDS IN VIOLATION OF 
REQUIREMENTS.—The obligation of Department of 
Defense funds for a covered defense business system 
program that has not been certified in accordance 
with paragraph (3) is a violation of section 
1341(a)(1)(A) of title 31. 
‘‘(g) RESPONSIBILITY OF MILESTONE DECISION AU-
THORITY.—The Secretary shall ensure that, as part of the 
defense acquisition system, the requirements of this sec-
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tion are fully addressed by the Milestone Decision Author-
ity for a covered defense business system program as ac-
quisition process approvals are considered for such system. 
‘‘(h) ANNUAL REPORT.—Not later than March 15 of 
each year from 2016 through 2020, the Secretary shall 
submit to the congressional defense committees a report 
on activities of the Department of Defense pursuant to 
this section. Each report shall include the following: 
‘‘(1) A description of actions taken and planned 
with respect to the guidance required by subsection 
(b) and the defense business enterprise architecture 
developed pursuant to subsection (d). 
‘‘(2) A description of actions taken and planned 
for the reengineering of business processes by the 
Defense Business Council established pursuant to 
subsection (e). 
‘‘(3) A summary of covered defense business 
system funding and covered defense business sys-
tems approved pursuant to subsection (f). 
‘‘(4) Identification of any covered defense busi-
ness system program that during the preceding fis-
cal year was reviewed and not approved pursuant to 
subsection (f) and the reasons for the lack of ap-
proval. 
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‘‘(5) Identification of any covered defense busi-
ness system program that during the preceding fis-
cal year failed to achieve initial operational capa-
bility within five years of when the program received 
Milestone B approval. 
‘‘(6) For any program identified under para-
graph (5), a description of the plan to address the 
issues which caused the failure. 
‘‘(7) A discussion of specific improvements in 
business operations and cost savings resulting from 
successful covered defense business systems pro-
grams. 
‘‘(8) A copy of the most recent report of the 
Chief Management Officer of each military depart-
ment on implementation of business transformation 
initiatives by such military department in accordance 
with section 908 of the Duncan Hunter National 
Defense Authorization Act for Fiscal Year 2009 
(Public Law 110–417; 122 Stat. 4569; 10 U.S.C. 
2222 note). 
‘‘(i) DEFINITIONS.—In this section: 
‘‘(1)(A) DEFENSE
BUSINESS
SYSTEM.—The 
term ‘defense business system’ means an informa-
tion system that is operated by, for, or on behalf of 
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the Department of Defense, including any of the fol-
lowing: 
‘‘(i) A financial system. 
‘‘(ii) A financial data feeder system. 
‘‘(iii) A contracting system. 
‘‘(iv) A logistics system. 
‘‘(v) A planning and budgeting system. 
‘‘(vi) An installations management system. 
‘‘(vii) A human resources management sys-
tem. 
‘‘(viii) A training and readiness system. 
‘‘(B) The term does not include— 
‘‘(i) a national security system; or 
‘‘(ii) an information system used exclu-
sively by and within the defense commissary 
system or the exchange system or other instru-
mentality of the Department of Defense con-
ducted for the morale, welfare, and recreation 
of members of the armed forces using non-
appropriated funds. 
‘‘(2) COVERED DEFENSE BUSINESS SYSTEM.— 
The term ‘covered defense business system’ means a 
defense business system that is expected to have a 
total amount of budget authority over the period of 
the current future-years defense program submitted 
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to Congress under section 221 of this title, in excess 
of the threshold established for the use of special 
simplified acquisition procedures pursuant to section 
2304(g)(1)(B) of this title. 
‘‘(3) COVERED
DEFENSE
BUSINESS
SYSTEM 
PROGRAM.—The term ‘covered defense business sys-
tem program’ means a defense acquisition program 
to develop and field a covered defense business sys-
tem or an increment of a covered defense business 
system. 
‘‘(4) ENTERPRISE ARCHITECTURE.—The term 
‘enterprise architecture’ has the meaning given that 
term in section 3601(4) of title 44. 
‘‘(5) INFORMATION SYSTEM.—The term ‘infor-
mation system’ has the meaning given that term in 
section 11101 of title 40. 
‘‘(6) NATIONAL SECURITY SYSTEM.—The term 
‘national security system’ has the meaning given 
that term in section 3542(b)(2) of title 44. 
‘‘(7) MILESTONE DECISION AUTHORITY.—The 
term ‘Milestone Decision Authority’, with respect to 
a defense acquisition program, means the individual 
within the Department of Defense designated with 
the responsibility to grant milestone approvals for 
that program. 
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