IIB 
115TH CONGRESS 
1ST SESSION H. R. 1294 
IN THE SENATE OF THE UNITED STATES 
MARCH 21, 2017 
Received; read twice and referred to the Committee on Homeland Security and 
Governmental Affairs 
AN ACT 
To amend the Homeland Security Act of 2002 to provide 
for congressional notification regarding major acquisition 
program breaches, and for other purposes. 
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled, 
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SECTION 1. SHORT TITLE. 
This Act may be cited as the ‘‘Reducing DHS Acqui-
sition Cost Growth Act’’. 
SEC. 2. CONGRESSIONAL NOTIFICATION FOR MAJOR AC-
QUISITION PROGRAMS. 
(a) IN GENERAL.—Subtitle D of title VIII of the 
Homeland Security Act of 2002 (6 U.S.C. 391 et seq.) 
is further amended by adding at the end the following new 
section: 
‘‘SEC. 836. CONGRESSIONAL NOTIFICATION AND OTHER RE-
QUIREMENTS FOR MAJOR ACQUISITION PRO-
GRAM BREACH. 
‘‘(a) REQUIREMENTS
WITHIN
DEPARTMENT
IN 
EVENT OF BREACH.— 
‘‘(1) NOTIFICATIONS.— 
‘‘(A) NOTIFICATION
OF
BREACH.—If a 
breach occurs in a major acquisition program, 
the program manager for such program shall 
notify the Component Acquisition Executive for 
such program, the head of the component con-
cerned, the Executive Director of the Program 
Accountability and Risk Management division, 
the Under Secretary for Management, and the 
Deputy Secretary not later than 30 calendar 
days after such breach is identified. 
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‘‘(B) NOTIFICATION TO SECRETARY.—If a 
breach occurs in a major acquisition program 
and such breach results in a cost overrun great-
er than 15 percent, a schedule delay greater 
than 180 days, or a failure to meet any of the 
performance thresholds from the cost, schedule, 
or performance parameters specified in the 
most recently approved acquisition program 
baseline for such program, the Component Ac-
quisition Executive for such program shall no-
tify the Secretary and the Inspector General of 
the Department not later than five business 
days after the Component Acquisition Executive 
for such program, the head of the component 
concerned, the Executive Director of the Pro-
gram Accountability and Risk Management Di-
vision, the Under Secretary for Management, 
and the Deputy Secretary are notified of the 
breach pursuant to subparagraph (A). 
‘‘(2) REMEDIATION
PLAN
AND
ROOT
CAUSE 
ANALYSIS.— 
‘‘(A) IN GENERAL.—If a breach occurs in 
a major acquisition program, the program man-
ager for such program shall submit to the head 
of the component concerned, the Executive Di-
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rector of the Program Accountability and Risk 
Management division, and the Under Secretary 
for Management in writing a remediation plan 
and root cause analysis relating to such breach 
and program. Such plan and analysis shall be 
submitted at a date established at the discretion 
of the Under Secretary for Management. 
‘‘(B) REMEDIATION
PLAN.—The remedi-
ation plan required under this subparagraph 
(A) shall— 
‘‘(i) explain the circumstances of the 
breach at issue; 
‘‘(ii) provide prior cost estimating in-
formation; 
‘‘(iii) include a root cause analysis 
that determines the underlying cause or 
causes of shortcomings in cost, schedule, 
or performance of the major acquisition 
program with respect to which such breach 
has occurred, including the role, if any, 
of— 
‘‘(I) unrealistic performance ex-
pectations; 
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‘‘(II) unrealistic baseline esti-
mates for cost or schedule or changes 
in program requirements; 
‘‘(III) immature technologies or 
excessive manufacturing or integra-
tion risk; 
‘‘(IV) unanticipated design, engi-
neering, manufacturing, or technology 
integration issues arising during pro-
gram performance; 
‘‘(V) changes to the scope of such 
program; 
‘‘(VI) inadequate program fund-
ing or changes in planned out-year 
funding from one 5-year funding plan 
to the next 5-year funding plan as 
outlined in the Future Years Home-
land Security Program required under 
section 874; 
‘‘(VII) legislative, legal, or regu-
latory changes; or 
‘‘(VIII) 
inadequate 
program 
management personnel, including lack 
of sufficient number of staff, training, 
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credentials, certifications, or use of 
best practices; 
‘‘(iv) propose corrective action to ad-
dress cost growth, schedule delays, or per-
formance issues; 
‘‘(v) explain the rationale for why a 
proposed corrective action is recommended; 
and 
‘‘(vi) in coordination with the Compo-
nent Acquisition Executive for such pro-
gram, discuss all options considered, in-
cluding the estimated impact on cost, 
schedule, or performance of such program 
if no changes are made to current require-
ments, the estimated cost of such program 
if requirements are modified, and the ex-
tent to which funding from other programs 
will need to be reduced to cover the cost 
growth of such program. 
‘‘(3) REVIEW OF CORRECTIVE ACTIONS.— 
‘‘(A) IN GENERAL.—The Under Secretary 
for Management shall review the remediation 
plan required under paragraph (2). The Under 
Secretary may approve such plan or provide an 
alternative proposed corrective action within 30 
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days of the submission of such plan under such 
paragraph. 
‘‘(B) SUBMISSION
TO
CONGRESS.—Not 
later than 30 days after the review required 
under subparagraph (A) is completed, the 
Under Secretary for Management shall submit 
to the congressional homeland security commit-
tees the following: 
‘‘(i) A copy of the remediation plan 
and the root cause analysis required under 
paragraph (2). 
‘‘(ii) A statement describing the cor-
rective action or actions that have occurred 
pursuant to paragraph (2)(b)(iv) for the 
major acquisition program at issue, with a 
justification for such action or actions. 
‘‘(b) REQUIREMENTS RELATING TO CONGRESSIONAL 
NOTIFICATION IF BREACH OCCURS.— 
‘‘(1) NOTIFICATION TO CONGRESS.—If a notifi-
cation to the Secretary is made under subsection 
(a)(1)(B) relating to a breach in a major acquisition 
program, the Under Secretary for Management shall 
notify the congressional homeland security commit-
tees of such breach in the next quarterly Com-
prehensive Acquisition Status Report, as required by 
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title I of division D of the Consolidated Appropria-
tions Act, 2016, (Public Law 114–113) following re-
ceipt by the Under Secretary of notification under 
such subsection. 
‘‘(2) SIGNIFICANT
VARIANCES
IN
COSTS
OR 
SCHEDULE.—If a likely cost overrun is greater than 
20 percent or a likely delay is greater than 12 
months from the costs and schedule specified in the 
acquisition program baseline for a major acquisition 
program, the Under Secretary for Management shall 
include in the notification required in paragraph (1) 
a written certification, with supporting explanation, 
that— 
‘‘(A) such program is essential to the ac-
complishment of the Department’s mission; 
‘‘(B) there are no alternatives to the capa-
bility or asset provided by such program that 
will provide equal or greater capability in both 
a more cost-effective and timely manner; 
‘‘(C) the new acquisition schedule and esti-
mates for total acquisition cost are reasonable; 
and 
‘‘(D) the management structure for such 
program is adequate to manage and control 
cost, schedule, and performance. 
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‘‘(c) DEFINITIONS.—In this section: 
‘‘(1) ACQUISITION.—The term ‘acquisition’ has 
the meaning given such term in section 131 of title 
41, United States Code. 
‘‘(2) ACQUISITION PROGRAM.—The term ‘acqui-
sition program’ means the process by which the De-
partment acquires, with any appropriated amounts, 
by contract for purchase or lease, property or serv-
ices (including construction) that support the mis-
sions and goals of the Department. 
‘‘(3) ACQUISITION
PROGRAM
BASELINE.—The 
term ‘acquisition program baseline’, with respect to 
an acquisition program, means a summary of the 
cost, schedule, and performance parameters, ex-
pressed in standard, measurable, quantitative terms, 
which must be met in order to accomplish the goals 
of such program. 
‘‘(4) BEST PRACTICES.—The term ‘best prac-
tices’, with respect to acquisition, means a knowl-
edge-based approach to capability development that 
includes— 
‘‘(A) identifying and validating needs; 
‘‘(B) assessing alternatives to select the 
most appropriate solution; 
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‘‘(C) clearly establishing well-defined re-
quirements; 
‘‘(D) developing realistic cost assessments 
and schedules; 
‘‘(E) securing stable funding that matches 
resources to requirements; 
‘‘(F) demonstrating technology, design, 
and manufacturing maturity; 
‘‘(G) using milestones and exit criteria or 
specific 
accomplishments 
that 
demonstrate 
progress; 
‘‘(H) adopting and executing standardized 
processes with known success across programs; 
‘‘(I) establishing an adequate workforce 
that is qualified and sufficient to perform nec-
essary functions; and 
‘‘(J) integrating the capabilities described 
in subparagraphs (A) through (I) into the De-
partment’s mission and business operations. 
‘‘(5) BREACH.—The term ‘breach’, with respect 
to a major acquisition program, means a failure to 
meet any cost, schedule, or performance threshold 
specified in the most recently approved acquisition 
program baseline. 
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‘‘(6) CONGRESSIONAL
HOMELAND
SECURITY 
COMMITTEES.—The term ‘congressional homeland 
security committees’ means— 
‘‘(A) the Committee on Homeland Security 
of the House of Representatives and the Com-
mittee on Homeland Security and Govern-
mental Affairs of the Senate; and 
‘‘(B) the Committee on Appropriations of 
the House of Representatives and of the Sen-
ate. 
‘‘(7) COMPONENT ACQUISITION EXECUTIVE.— 
The term ‘Component Acquisition Executive’ means 
the senior acquisition official within a component 
who is designated in writing by the Under Secretary 
for Management, in consultation with the component 
head, with authority and responsibility for leading a 
process and staff to provide acquisition and program 
management oversight, policy, and guidance to en-
sure that statutory, regulatory, and higher level pol-
icy requirements are fulfilled, including compliance 
with Federal law, the Federal Acquisition Regula-
tion, and Department acquisition management direc-
tives established by the Under Secretary for Man-
agement. 
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‘‘(8) MAJOR ACQUISITION PROGRAM.—The term 
‘major acquisition program’ means a Department 
acquisition program that is estimated by the Sec-
retary to require an eventual total expenditure of at 
least $300,000,000 (based on fiscal year 2017 con-
stant dollars) over its life cycle cost.’’. 
(b) CLERICAL AMENDMENT.—The table of contents 
in section 1(b) of the Homeland Security Act of 2002 is 
amended by inserting after the item relating to section 
835 the following new item: 
‘‘Sec. 836. Congressional notification and other requirements for major acquisi-
tion program breach.’’. 
Passed the House of Representatives March 20, 
2017. 
Attest: 
KAREN L. HAAS, 
Clerk. 
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