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cipline among the Components of the Department, 
including in working together and in preventing 
overlap and duplication. 
(2) An assessment of the effectiveness of the 
Department in instilling program management dis-
cipline. 
(3) A statement of how regularly each major 
acquisition program is reviewed by the Board, how 
often the Board stops major acquisition programs 
from moving forward in the phases of the acquisition 
life cycle process, and the number of major acquisi-
tion programs that have been halted because of 
problems with operational effectiveness, schedule 
delays, or cost overruns. 
(c) REPORT REQUIRED.—The Comptroller General 
shall submit to the congressional homeland security com-
mittees a report on the review required by this section not 
later than one year after the date of the enactment of this 
Act. The report shall be submitted in unclassified form 
but may include a classified annex. 
SEC. 204. EXCLUDED PARTY LIST SYSTEM WAIVERS. 
The Secretary of Homeland Security shall provide no-
tification to the congressional homeland security commit-
tees within five days after the issuance of a waiver by the 
Secretary of Federal requirements that an agency not en-
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gage in business with a contractor in the Excluded Party 
List System (or successor system) as maintained by the 
General Services Administration and an explanation for 
a finding by the Secretary that a compelling reason exists 
for this action. 
SEC. 205. INSPECTOR GENERAL OVERSIGHT OF SUSPEN-
SION AND DEBARMENT. 
The Inspector General of the Department of Home-
land Security— 
(1) may audit decisions about grant and pro-
curement awards to identify instances where a con-
tract or grant was improperly awarded to a sus-
pended or debarred entity and whether corrective ac-
tions were taken to prevent recurrence; and 
(2) shall review the suspension and debarment 
program throughout the Department of Homeland 
Security to assess whether suspension and debar-
ment criteria are consistently applied throughout the 
Department and whether disparities exist in the ap-
plication of such criteria, particularly with respect to 
business size and categories. 
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TITLE 
III—ACQUISITION 
PRO-
GRAM 
MANAGEMENT 
AC-
COUNTABILITY AND TRANS-
PARENCY 
SEC. 301. CONGRESSIONAL NOTIFICATION AND OTHER RE-
QUIREMENTS FOR MAJOR ACQUISITION PRO-
GRAM BREACH. 
(a) IN GENERAL.—Subtitle D of title VIII of the 
Homeland Security Act of 2002 (6 U.S.C. 391 et seq.) 
is further amended by adding at the end the following new 
section: 
‘‘SEC. 838. CONGRESSIONAL NOTIFICATION AND OTHER RE-
QUIREMENTS FOR MAJOR ACQUISITION PRO-
GRAM BREACH. 
‘‘(a) BREACH DEFINED.—The term ‘breach’, with re-
spect to a major acquisition program, means a failure to 
meet any cost, schedule, or performance parameter speci-
fied in the acquisition program baseline. 
‘‘(b) REQUIREMENTS
WITHIN
DEPARTMENT
IF 
BREACH OCCURS.— 
‘‘(1) NOTIFICATIONS.— 
‘‘(A) 
NOTIFICATION
OF
POTENTIAL 
BREACH.—If a major acquisition program has a 
potential for a future breach, as determined by 
the program manager for that program, the 
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program manager shall notify the person exer-
cising acquisition decision authority for the pro-
gram. 
‘‘(B) 
NOTIFICATION
OF
ACTUAL 
BREACH.—If an actual breach occurs in a 
major acquisition program, the program man-
ager for that program shall notify the head of 
the Component concerned, the Component Ac-
quisition Executive for the program, the Execu-
tive Director referred to in section 709(b) of 
this Act, the Under Secretary for Management, 
and the Deputy Secretary. 
‘‘(C) NOTIFICATION TO SECRETARY.—If a 
major acquisition program has an actual breach 
with a cost overrun greater than 20 percent or 
a schedule delay greater than 12 months from 
the costs or schedule set forth in the acquisition 
program baseline for the program, the Sec-
retary and the Inspector General of the Depart-
ment shall be notified not later than five busi-
ness days after the actual breach is identified. 
‘‘(2) REMEDIATION
PLAN
AND
ROOT
CAUSE 
ANALYSIS.— 
‘‘(A) IN GENERAL.—In the case of an ac-
tual breach with a cost overrun greater than 15 
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percent or a schedule delay greater than 180 
days from the costs or schedule set forth in the 
acquisition program baseline, a remediation 
plan and root cause analysis is required, and 
the Under Secretary for Management or his 
designee shall establish a date for submission 
within the Department of a breach remediation 
plan and root cause analysis in accordance with 
this subsection. 
‘‘(B) REMEDIATION
PLAN.—The remedi-
ation plan required under this subsection shall 
be submitted in writing to the head of the Com-
ponent concerned, the Executive Director re-
ferred to in section 709(b) of this Act, and the 
Under Secretary for Management. The plan 
shall— 
‘‘(i) explain the circumstances of the 
breach; 
‘‘(ii) provide prior cost estimating in-
formation; 
‘‘(iii) propose corrective action to con-
trol cost growth, schedule delays, or per-
formance issues; 
‘‘(iv) in coordination with Component 
Acquisition Executive, discuss all options 
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considered, including the estimated impact 
on cost, schedule, or performance of the 
program if no changes are made to current 
requirements, the estimated cost of the 
program if requirements are modified, and 
the extent to which funding from other 
programs will need to be reduced to cover 
the cost growth of the program; and 
‘‘(v) explain the rationale for why the 
proposed corrective action is recommended. 
‘‘(C) ROOT
CAUSE
ANALYSIS.—The root 
cause analysis required under this subsection 
shall determine the underlying cause or causes 
of shortcomings in cost, schedule, or perform-
ance of the program, including the role, if any, 
of the following: 
‘‘(i) Unrealistic performance expecta-
tions. 
‘‘(ii) Unrealistic baseline estimates for 
cost or schedule or changes in program re-
quirements. 
‘‘(iii) Immature technologies or exces-
sive manufacturing or integration risk. 
‘‘(iv) Unanticipated design, engineer-
ing, manufacturing, or technology integra-
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tion issues arising during program per-
formance. 
‘‘(v) Changes in procurement quan-
tities. 
‘‘(vi) Inadequate program funding or 
changes in planned out-year funding from 
one five-year funding plan to the next five- 
year funding plan as outlined in the Fu-
ture Years Homeland Security Program 
required under section 874 of this Act. 
‘‘(vii) Legislative, legal, or regulatory 
changes. 
‘‘(viii) Inadequate program manage-
ment personnel, including lack of training, 
credentials, certifications, or use of best 
practices. 
‘‘(3) CORRECTION
OF
BREACH.—The Under 
Secretary for Management or his designee shall es-
tablish a date for submission within the Department 
of a program of corrective action that ensures that 
one of the following actions has occurred: 
‘‘(A) The breach has been corrected and 
the program is again in compliance with the 
original acquisition program baseline param-
eters. 
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‘‘(B) A revised acquisition program base-
line has been approved. 
‘‘(C) The program has been halted or can-
celled. 
‘‘(c) REQUIREMENTS RELATING TO CONGRESSIONAL 
NOTIFICATION IF BREACH OCCURS.— 
‘‘(1) NOTIFICATION TO CONGRESS.—If a notifi-
cation is made under subsection (b)(1)(B) for a 
breach in a major acquisition program with a cost 
overrun greater than 15 percent or a schedule delay 
greater than 180 days from the costs or schedule set 
forth in the acquisition program baseline, or with an 
anticipated failure for any key performance thresh-
old or parameter specified in the acquisition pro-
gram baseline, the Under Secretary for Management 
shall notify the congressional homeland security 
committees of the breach in the next quarterly Com-
prehensive Acquisition Status Report after the 
Under Secretary for Management receives the notifi-
cation from the program manager under subsection 
(b)(1)(B). 
‘‘(2) SUBSTANTIAL
VARIANCES
IN
COSTS
OR 
SCHEDULE.—If a likely cost overrun is greater than 
20 percent or a likely delay is greater than 12 
months from the costs and schedule set forth in the 
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acquisition program baseline for a major acquisition 
program, the Under Secretary for Management shall 
include in the notification required in (c)(1) a writ-
ten certification, with supporting explanation, that— 
‘‘(A) the acquisition is essential to the ac-
complishment of the Department’s mission; 
‘‘(B) there are no alternatives to such ca-
pability or asset 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 the ac-
quisition program is adequate to manage and 
control performance, cost, and schedule. 
‘‘(3) SUBMISSIONS
TO
CONGRESS.—Not later 
than 30 calendar days after submission to such com-
mittees of a breach notification under paragraph (1) 
of this section for a major acquisition program, the 
Under Secretary for Management shall submit to 
such committees the following: 
‘‘(A) A copy of the remediation plan and 
the root cause analysis prepared under sub-
section (b)(2) for the program. 
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‘‘(B) A statement describing the corrective 
action or actions that have occurred pursuant 
to subsection (b)(3) for the program, with a 
justification for the action or actions. 
‘‘(d) ADDITIONAL ACTIONS IF BREACH OCCURS.— 
‘‘(1) 
PROHIBITION
ON
OBLIGATION
OF 
FUNDS.—During the 90-day period following sub-
mission under subsection (c)(3) of a remediation 
plan, root cause analysis, and statement of corrective 
actions with respect to a major acquisition program, 
the Under Secretary for Management shall submit a 
certification described in paragraph (2) of this sub-
section to the congressional homeland security com-
mittees. If the Under Secretary for Management 
does not submit such certification by the end of such 
90-day period, then funds appropriated to the major 
acquisition program shall not be obligated until the 
Under Secretary for Management submits such cer-
tification. 
‘‘(2) CERTIFICATION.—For purposes of para-
graph (1), the certification described in this para-
graph is a certification that— 
‘‘(A) the Department has adjusted or re-
structured the program in a manner that ad-
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dresses the root cause or causes of the cost 
growth in the program; and 
‘‘(B) the Department has conducted a 
thorough review of the breached program’s ac-
quisition decision event approvals and the cur-
rent acquisition decision event approval for the 
breached program has been adjusted as nec-
essary to account for the restructured pro-
gram.’’. 
(b) CLERICAL AMENDMENT.—The table of contents 
in section 1(b) of the Homeland Security Act of 2002 (6 
U.S.C. 101 et seq.) is further amended by adding after 
the item relating to section 837 the following new item: 
‘‘Sec. 838. Congressional notification and other requirements for major acquisi-
tion program breach.’’. 
SEC. 302. MULTIYEAR ACQUISITION STRATEGY. 
(a) IN GENERAL.— 
(1) AMENDMENT.—Subtitle D of title VIII of 
the Homeland Security Act of 2002 (6 U.S.C. 391 
et seq.) is further amended by adding at the end the 
following new section: 
‘‘SEC. 839. MULTIYEAR ACQUISITION STRATEGY. 
‘‘(a) MULTIYEAR
ACQUISITION
STRATEGY
RE-
QUIRED.—Not later than one year after the date of the 
enactment of this section, the Secretary shall submit to 
the appropriate homeland security committees a multiyear 
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acquisition strategy to guide the overall direction of the 
acquisitions of the Department while allowing flexibility 
to deal with ever-changing threats and risks and to help 
industry better understand, plan, and align resources to 
meet the future acquisition needs of the Department. The 
strategy shall be updated and included in each Future 
Years Homeland Security Program required under section 
874 of this Act. 
‘‘(b) CONSULTATION.—In developing the strategy, 
the Secretary shall consult with others as the Secretary 
deems appropriate, including headquarters, Components, 
employees in the field, and when appropriate, individuals 
from industry and the academic community. 
‘‘(c) FORM OF STRATEGY.—The report shall be sub-
mitted in unclassified form but may include a classified 
annex for any sensitive or classified information if nec-
essary. The Department also shall publish the plan in an 
unclassified format that is publicly available. 
‘‘(d) CONTENTS OF STRATEGY.—The strategy shall 
include the following: 
‘‘(1) PRIORITIZED LIST.—A systematic and in-
tegrated prioritized list developed by the Under Sec-
retary for Management or his designee in coordina-
tion with all of the Component Acquisition Execu-
tives of Department major acquisition programs that 
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Department and Component acquisition investments 
seek to address, that includes the expected security 
and economic benefit of the program or system and 
an analysis of how the security and economic benefit 
derived from the program or system will be meas-
ured. 
‘‘(2) INVENTORY.—A plan to develop a reliable 
Department-wide inventory of investments and real 
property assets to help the Department plan, budg-
et, schedule, and acquire upgrades of its systems 
and equipment and plan for the acquisition and 
management of future systems and equipment. 
‘‘(3) FUNDING GAPS.—A plan to address fund-
ing gaps between funding requirements for major ac-
quisition programs and known available resources in-
cluding, to the maximum extent practicable, ways of 
leveraging best practices to identify and eliminate 
overpayment for items to prevent wasteful pur-
chasing, achieve the greatest level of efficiency and 
cost savings by rationalizing purchases, aligning 
pricing for similar items, and utilizing purchase tim-
ing and economies of scale. 
‘‘(4) IDENTIFICATION
OF
CAPABILITIES.—An 
identification of test, evaluation, modeling, and sim-
ulation capabilities that will be required to support 
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the acquisition of the technologies to meet the needs 
of the plan and ways to leverage to the greatest ex-
tent possible the emerging technology trends and re-
search and development trends within the public and 
private sectors and an identification of ways to en-
sure that the appropriate technology is acquired and 
integrated into the Department’s operating doctrine 
and procured in ways that improve mission perform-
ance. 
‘‘(5) FOCUS ON FLEXIBLE SOLUTIONS.—An as-
sessment of ways the Department can improve its 
ability to test and acquire innovative solutions to 
allow needed incentives and protections for appro-
priate risk-taking in order to meet its acquisition 
needs with resiliency, agility, and responsiveness to 
assure the Nation’s homeland security and facilitate 
trade. 
‘‘(6) FOCUS
ON
INCENTIVES
TO
SAVE
TAX-
PAYER DOLLARS.—An assessment of ways the De-
partment can develop incentives for program man-
agers and senior Department acquisition officials to 
prevent cost overruns, avoid schedule delays, and 
achieve cost savings in major acquisition programs. 
‘‘(7) FOCUS ON ADDRESSING DELAYS AND BID 
PROTESTS.—An assessment of ways the Department 
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can improve the acquisition process to minimize cost 
overruns in requirements development, procurement 
announcements, requests for proposals, evaluation of 
proposals, protests of decisions and awards and 
through the use of best practices as defined in sec-
tion 4(b) of the DHS Acquisition Accountability and 
Efficiency Act and lessons learned by the Depart-
ment and other Federal agencies. 
‘‘(8) FOCUS
ON
IMPROVING
OUTREACH.—An 
identification and assessment of ways to increase op-
portunities for communication and collaboration with 
industry, small and disadvantaged businesses, intra- 
government entities, university centers of excellence, 
accredited certification and standards development 
organizations, and national laboratories to ensure 
that the Department understands the market for 
technologies, products, and innovation that is avail-
able to meet its mission needs to inform the require-
ments-setting process and before engaging in an ac-
quisition, including— 
‘‘(A) methods designed especially to engage 
small and disadvantaged businesses and a cost- 
benefit analysis of the tradeoffs that small and 
disadvantaged businesses provide, barriers to 
entry for small and disadvantaged businesses, 
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and unique requirements for small and dis-
advantaged businesses; and 
‘‘(B) within the Department Vendor Com-
munication Plan and Market Research Guide, 
instructions for interaction by program man-
agers with such entities to prevent misinter-
pretation of acquisition regulations and to per-
mit freedom within legal and ethical boundaries 
for program managers to interact with such 
businesses with transparency. 
‘‘(9) COMPETITION.—A plan regarding competi-
tion as described in subsection (e). 
‘‘(10) ACQUISITION WORKFORCE.—A plan re-
garding the Department acquisition workforce as de-
scribed in subsection (f). 
‘‘(11) FEASIBILITY OF WORKFORCE DEVELOP-
MENT
FUND
PILOT
PROGRAM.—An assessment of 
the feasibility of conducting a pilot program to es-
tablish an acquisition workforce development fund as 
described in subsection (g). 
‘‘(e) COMPETITION PLAN.—The strategy shall also 
include a plan (referred to in subsection (d)(9)) that shall 
address actions to ensure competition, or the option of 
competition, for major acquisition programs. The plan 
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may include assessments of the following measures in ap-
propriate cases if such measures are cost effective: 
‘‘(1) Competitive prototyping. 
‘‘(2) Dual-sourcing. 
‘‘(3) Unbundling of contracts. 
‘‘(4) Funding of next-generation prototype sys-
tems or subsystems. 
‘‘(5) Use of modular, open architectures to en-
able competition for upgrades. 
‘‘(6) Acquisition of complete technical data 
packages. 
‘‘(7) Periodic competitions for subsystem up-
grades. 
‘‘(8) Licensing of additional suppliers, including 
small businesses. 
‘‘(9) Periodic system or program reviews to ad-
dress long-term competitive effects of program deci-
sions. 
‘‘(f) ACQUISITION WORKFORCE PLAN.— 
‘‘(1) ACQUISITION WORKFORCE.—The strategy 
shall also include a plan (referred to in subsection 
(d)(10)) to address Department acquisition work-
force accountability and talent management that 
identifies the acquisition workforce needs of each 
Component performing acquisition functions and de-
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velops options for filling those needs with qualified 
individuals, including a cost-benefit analysis of con-
tracting for acquisition assistance. 
‘‘(2) ADDITIONAL
MATTERS
COVERED.—The 
acquisition workforce plan shall address ways to— 
‘‘(A) improve the recruitment, hiring, 
training, and retention of Department acquisi-
tion workforce personnel, including contracting 
officer’s representatives, in order to retain high-
ly qualified individuals that have experience in 
the acquisition life cycle, complex procurements, 
and management of large programs; 
‘‘(B) empower program managers to have 
the authority to manage their programs in an 
accountable and transparent manner as they 
work with the acquisition workforce; 
‘‘(C) prevent duplication within Depart-
ment acquisition workforce training and certifi-
cation requirements through leveraging already- 
existing training within the Federal Govern-
ment, academic community, or private industry; 
‘‘(D) achieve integration and consistency 
with Government-wide training and accredita-
tion standards, acquisition training tools, and 
training facilities; 
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‘‘(E) designate the acquisition positions 
that will be necessary to support the Depart-
ment acquisition requirements, including in the 
fields of— 
‘‘(i) program management; 
‘‘(ii) systems engineering; 
‘‘(iii) procurement, including con-
tracting; 
‘‘(iv) test and evaluation; 
‘‘(v) life cycle logistics; 
‘‘(vi) cost estimating and program fi-
nancial management; and 
‘‘(vii) additional disciplines appro-
priate to Department mission needs; 
‘‘(F) strengthen the performance of con-
tracting officer’s representatives (as defined in 
Subpart 1.602-2 and Subpart 2.101 of the Fed-
eral Acquisition Regulation), including by— 
‘‘(i) assessing the extent to which con-
tracting officer’s representatives are cer-
tified and receive training that is appro-
priate; 
‘‘(ii) determining what training is 
most effective with respect to the type and 
complexity of assignment; and 
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‘‘(iii) implementing actions to improve 
training based on such assessment; and 
‘‘(G) identify ways to increase training for 
relevant investigators and auditors to examine 
fraud in major acquisition programs, including 
identifying opportunities to leverage existing 
Government and private sector resources in co-
ordination with the Inspector General of the 
Department. 
‘‘(g) FEASIBILITY OF WORKFORCE DEVELOPMENT 
FUND PILOT PROGRAM.—The strategy shall also include 
an assessment (referred to in subsection (d)(11)) of the 
feasibility of conducting a pilot program to establish a 
Homeland Security Acquisition Workforce Development 
Fund (in this subsection referred to as the ‘Fund’) to en-
sure the Department acquisition workforce has the capac-
ity, in both personnel and skills, needed to properly per-
form its mission and ensure that the Department receives 
the best value for the expenditure of public resources. The 
assessment shall address the following: 
‘‘(1) Ways to fund the Fund, including the use 
of direct appropriations, or the credit, transfer, or 
deposit of unobligated or unused funds from Depart-
ment Components into the Fund to remain available 
for obligation in the fiscal year for which credited, 
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transferred, or deposited and to remain available for 
successive fiscal years. 
‘‘(2) Ways to reward the Department acquisi-
tion workforce and program managers for good pro-
gram management in controlling cost growth, lim-
iting schedule delays, and ensuring operational effec-
tiveness through providing a percentage of the sav-
ings or general acquisition bonuses. 
‘‘(3) Guidance for the administration of the 
Fund that includes provisions to do the following: 
‘‘(A) Describe the costs and benefits asso-
ciated with the use of direct appropriations or 
credit, transfer, or deposit of unobligated or un-
used funds to finance the Fund. 
‘‘(B) Describe the manner and timing for 
applications for amounts in the Fund to be sub-
mitted. 
‘‘(C) Explain the evaluation criteria to be 
used for approving or prioritizing applications 
for amounts in the Fund in any fiscal year. 
‘‘(D) Explain the mechanism to report to 
Congress on the implementation of the Fund on 
an ongoing basis. 
‘‘(E) 
Detail 
measurable 
performance 
metrics to determine if the Fund is meeting the 
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objective to improve the acquisition workforce 
and to achieve cost savings in acquisition man-
agement.’’. 
(2) CLERICAL AMENDMENT.—The table of con-
tents in section 1(b) of the Homeland Security Act 
of 2002 (6 U.S.C. 101 et seq.) is further amended 
by adding after the item relating to section 838 the 
following new item: 
‘‘Sec. 839. Multiyear acquisition strategy.’’. 
(b) CONFORMING AMENDMENT TO FUTURE YEARS 
HOMELAND SECURITY PROGRAM.—Section 874(b) of the 
Homeland Security Act of 2002 (6 U.S.C. 454(b)) is 
amended— 
(1) by striking ‘‘and’’ at the end of paragraph 
(2); 
(2) by striking the period at the end of para-
graph (3) and inserting ‘‘; and’’; and 
(3) by adding at the end the following new 
paragraph: 
‘‘(4) include the multiyear acquisition strategy 
required under section 839 of this Act.’’. 
SEC. 303. ACQUISITION REPORTS. 
(a) IN GENERAL.—Subtitle D of title VIII of the 
Homeland Security Act of 2002 (6 U.S.C. 391 et seq.) 
is further amended by adding at the end the following new 
section: 
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