Title: Reducing DHS Acquisition Cost Growth Act
Policy area: Government Operations and Politics

Summary:
Reducing DHS Acquisition Cost Growth Act
This bill amends the Homeland Security Act of 2002 to require the program manager of a major acquisition program (a Department of Homeland Security [DHS] acquisition program estimated to require an eventual total expenditure of at least $300 million over its life cycle cost) to notify the program's Component Acquisition Executive (CAE) (the senior acquisition official within a DHS component designated to lead a process and staff to provide acquisition and program management oversight, policy, and guidance to ensure that statutory, regulatory, and higher level policy requirements are fulfilled), the head of the component concerned, the Executive Director of the Program Accountability and Risk Management division, the Under Secretary for Management, and the Deputy Secretary of DHS within 30 days after any breach in such program is identified.
If such a breach results in a cost overrun greater than 15%, a schedule delay greater than 180 days, or a failure to meet any performance thresholds from the cost, schedule, or performance parameters specified in the most recently approved acquisition program baseline for such a program, the CAE must notify the DHS Secretary and Inspector General within five business days after such other officials are notified of the breach.
If such a breach occurs, the program manager for such program shall submit to the component head, the Executive Director, and the Under Secretary in writing a remediation plan and root cause analysis. The Under Secretary shall review each remediation plan and may approve it or provide an alternative proposed corrective action.
The Under Secretary shall notify the congressional homeland security committees of such breach. If a likely cost overrun is greater than 20% or a likely delay is greater than 12 months from the costs and schedule specified in the baseline, the Under Secretary shall include in such notification a written certification that:

[Congressional Bills 115th Congress]
[From the U.S. Government Publishing Office]
[S. 906 Introduced in Senate (IS)]

<DOC>






115th CONGRESS
  1st Session
                                 S. 906

To amend the Homeland Security Act of 2002 to provide for congressional 
  notification regarding major acquisition program breaches, and for 
                            other purposes.


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

                             April 7, 2017

 Mrs. McCaskill (for herself and Mr. Daines) introduced the following 
 bill; which was read twice and referred to the Committee on Homeland 
                   Security and Governmental Affairs

_______________________________________________________________________

                                 A BILL


 
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 Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Reducing DHS Acquisition Cost Growth 
Act''.

SEC. 2. CONGRESSIONAL NOTIFICATION FOR MAJOR ACQUISITION PROGRAMS.

    (a) In General.--Subtitle D of title VIII of the Homeland Security 
Act of 2002 (6 U.S.C. 391 et seq.) is amended by adding at the end the 
following:

``SEC. 836. CONGRESSIONAL NOTIFICATION AND OTHER REQUIREMENTS FOR MAJOR 
              ACQUISITION PROGRAM BREACH.

    ``(a) Definitions.--In this section:
            ``(1) Acquisition.--The term `acquisition' has the meaning 
        given the term in section 131 of title 41, United States Code.
            ``(2) Acquisition program.--The term `acquisition program' 
        means the process by which the Department acquires, with any 
        appropriated amounts, by contract for purchase or lease, 
        property or services (including construction) that support the 
        missions 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, expressed in standard, measurable, quantitative 
        terms, which shall be met in order to accomplish the goals of 
        the program.
            ``(4) Appropriate committees of congress.--The term 
        `appropriate committees of Congress' has the meaning given the 
        term in section 226(a).
            ``(5) Best practices.--The term `best practices', with 
        respect to acquisition, means a knowledge-based approach to 
        capability development that includes--
                    ``(A) identifying and validating needs;
                    ``(B) assessing alternatives to select the most 
                appropriate solution;
                    ``(C) clearly establishing well-defined 
                requirements;
                    ``(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 necessary 
                functions; and
                    ``(J) integrating the capabilities described in 
                subparagraphs (A) through (I) into the mission and 
                business operations of the Department.
            ``(6) 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.
            ``(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 ensure that statutory, 
        regulatory, and higher level policy requirements are fulfilled, 
        including compliance with Federal law, the Federal Acquisition 
        Regulation, and Department acquisition management directives 
        established by the Under Secretary for Management.
            ``(8) Major acquisition program.--The term `major 
        acquisition program' means an acquisition program of the 
        Department that is estimated by the Secretary to require an 
        eventual total expenditure of at least $300,000,000 (based on 
        fiscal year 2017 constant dollars) over the life cycle cost of 
        the program.
    ``(b) 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 
                the program shall notify the Component Acquisition 
                Executive for the program, the head of the component 
                concerned, 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 the date on which the 
                breach is identified.
                    ``(B) Notification to secretary.--If a breach 
                occurs in a major acquisition program and the breach 
                results in a cost overrun greater 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 
                the program, the Component Acquisition Executive for 
                the program shall notify the Secretary and the 
                Inspector General of the Department not later than 5 
                business days after the date on which the Component 
                Acquisition Executive for the program, the head of the 
                component concerned, the Executive Director of the 
                Program Accountability and Risk Management Division, 
                the Under Secretary for Management, and the Deputy 
                Secretary are notified of the breach under subparagraph 
                (A).
            ``(2) Remediation plan and root cause analysis.--
                    ``(A) In general.--If a breach occurs in a major 
                acquisition program, the program manager for the 
                program shall submit in writing to the head of the 
                component concerned, the Executive Director of the 
                Program Accountability and Risk Management division, 
                and the Under Secretary for Management, at a date 
                established by the Under Secretary for Management, a 
                remediation plan and root cause analysis relating to 
                the breach and program.
                    ``(B) Remediation plan.--The remediation plan 
                required under subparagraph (A) shall--
                            ``(i) explain the circumstances of the 
                        breach at issue;
                            ``(ii) provide prior cost estimating 
                        information;
                            ``(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 the breach has occurred, including the 
                        role, if any, of--
                                    ``(I) unrealistic performance 
                                expectations;
                                    ``(II) unrealistic baseline 
                                estimates for cost or schedule or 
                                changes in program requirements;
                                    ``(III) immature technologies or 
                                excessive manufacturing or integration 
                                risk;
                                    ``(IV) unanticipated design, 
                                engineering, manufacturing, or 
                                technology integration issues arising 
                                during program performance;
                                    ``(V) changes to the scope of the 
                                program;
                                    ``(VI) inadequate program funding 
                                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 Homeland Security 
                                Program required under section 874;
                                    ``(VII) legislative, legal, or 
                                regulatory changes; or
                                    ``(VIII) inadequate program 
                                management personnel, including lack of 
                                sufficient number of staff, training, 
                                credentials, certifications, or use of 
                                best practices;
                            ``(iv) propose corrective action to address 
                        cost growth, schedule delays, or performance 
                        issues;
                            ``(v) explain the rationale for why a 
                        proposed corrective action is recommended; and
                            ``(vi) in coordination with the Component 
                        Acquisition Executive for the program, discuss 
                        all options considered, including--
                                    ``(I) the estimated impact on cost, 
                                schedule, or performance of the program 
                                if no changes are made to current 
                                requirements;
                                    ``(II) the estimated cost of the 
                                program if requirements are modified; 
                                and
                                    ``(III) the extent to which funding 
                                from other programs will need to be 
                                reduced to cover the cost growth of the 
                                program.
            ``(3) Review of corrective actions.--
                    ``(A) In general.--The Under Secretary for 
                Management--
                            ``(i) shall review each remediation plan 
                        required under paragraph (2); and
                            ``(ii) not later than 30 days after 
                        submission of a remediation plan under 
                        paragraph (2), may approve the plan or provide 
                        an alternative proposed corrective action.
                    ``(B) Submission to congress.--Not later than 30 
                days after the date on which the Under Secretary for 
                Management completes a review of a remediation plan 
                under subparagraph (A), the Under Secretary for 
                Management shall submit to the appropriate committees 
                of Congress--
                            ``(i) a copy of the remediation plan; and
                            ``(ii) a statement describing the 
                        corrective action or actions that have occurred 
                        pursuant to paragraph (2)(B)(iv) for the major 
                        acquisition program at issue, with a 
                        justification for each action.
    ``(c) Requirements Relating to Congressional Notification if Breach 
Occurs.--
            ``(1) Notification to congress.--If a notification to the 
        Secretary is made under subsection (b)(1)(B) relating to a 
        breach in a major acquisition program, the Under Secretary for 
        Management shall notify the appropriate committees of Congress 
        of the breach in the next quarterly Comprehensive Acquisition 
        Status Report, as required in the matter under the heading 
        `Office of the Under Secretary for Management' in title I of 
        division F of the Consolidated Appropriations Act of 2016 
        (Public Law 114-113; 129 Stat. 2493), after receipt by the 
        Under Secretary for Management of notification under that 
        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) the program is essential to the 
                accomplishment of the mission of the Department;
                    ``(B) there are no alternatives to the capability 
                or asset provided by the program that will provide 
                equal or greater capability in a more cost-effective 
                and timely manner;
                    ``(C) the new acquisition schedule and estimates 
                for total acquisition cost are reasonable; and
                    ``(D) the management structure for the program is 
                adequate to manage and control cost, schedule, and 
                performance.''.
    (b) Clerical Amendment.--The table of contents in section 1(b) of 
the Homeland Security Act of 2002 (Public Law 107-296; 116 Stat. 2135) 
is amended by inserting after the item relating to section 835 the 
following:

``Sec. 836. Congressional notification and other requirements for major 
                            acquisition program breach.''.
                                 <all>