Title: Reducing Costs of DHS Acquisitions Act
Policy area: Government Operations and Politics

Summary:
Reducing Costs of DHS Acquisitions Act
This bill requires notification of the Management Directorate of the Department of Homeland Security (DHS) and Congress if a major acquisition program of DHS fails to satisfy any approved cost, schedule, or performance threshold. Major acquisition program means (1) a capital asset, service, or hybrid acquisition program that is estimated by DHS to require an eventual total expenditure of at least $300 million over the life-cycle cost of the program; or (2) an acquisition program identified as a program of special interest.
If such a failure occurs, or is expected to occur, the bill requires a remediation plan and root cause analysis. The Management Directorate must review such plan and either approve it for continuation or provide an alternative proposed corrective action.

[Congressional Bills 117th Congress]
[From the U.S. Government Publishing Office]
[H.R. 6861 Introduced in House (IH)]

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117th CONGRESS
  2d Session
                                H. R. 6861

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


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                           February 28, 2022

    Mr. Clyde (for himself, Mr. Katko, Mr. Guest, Mr. LaMalfa, Mrs. 
  Harshbarger, and Mr. Higgins of Louisiana) introduced the following 
     bill; which was referred to the Committee on Homeland Security

_______________________________________________________________________

                                 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 Costs of DHS Acquisitions 
Act''.

SEC. 2. CONGRESSIONAL NOTIFICATION FOR MAJOR ACQUISITION PROGRAM 
              BREACH.

    (a) Definitions.--
            (1) In general.--Subtitle D of title VIII of the Homeland 
        Security Act of 2002 (6 U.S.C. 391 et seq.) is amended by 
        inserting before section 831 the following new section:

``SEC. 830. DEFINITIONS.

    ``In this subtitle:
            ``(1) Acquisition.--The term `acquisition' has the meaning 
        given such term in section 131 of title 41, United States Code.
            ``(2) Acquisition decision authority.--The term 
        `acquisition decision authority' means the authority, in 
        addition to the authorities and functions specified in 
        subsection (b) of section 1702 of title 41, United States Code, 
        held by the Secretary acting through the Under Secretary for 
        Management to--
                    ``(A) ensure compliance with Federal law, the 
                Federal Acquisition Regulation, and Department 
                acquisition management directives;
                    ``(B) review (including approving, pausing, 
                modifying, or canceling) an acquisition program 
                throughout the life-cycle of such program;
                    ``(C) ensure that acquisition program managers have 
                the resources necessary to successfully execute an 
                approved acquisition program;
                    ``(D) ensure appropriate acquisition program 
                management of cost, schedule, risk, and system or 
                service performance of the acquisition program at 
                issue, including assessing acquisition program baseline 
                breaches and directing any corrective action for such 
                breaches;
                    ``(E) ensure that acquisition program managers, on 
                an ongoing basis, monitor cost, schedule, and 
                performance against established baselines and use tools 
                to assess risks to an acquisition program at all phases 
                of the life-cycle of such program; and
                    ``(F) establish policies and procedures for major 
                acquisition programs of the Department.
            ``(3) Acquisition decision memorandum.--The term 
        `acquisition decision memorandum', with respect to an 
        acquisition, means the official documented record of decisions, 
        including the rationale for such decisions and any assigned 
        actions for such acquisition, as determined by the individual 
        exercising acquisition decision authority for such acquisition.
            ``(4) Acquisition program.--The term `acquisition program' 
        means the conceptualization, initiation, design, development, 
        test, contracting, production, deployment, logistics support, 
        modification, or disposal of systems, supplies, or services 
        (including construction) to satisfy the Department's needs.
            ``(5) Acquisition program baseline.--The term `acquisition 
        program baseline', with respect to an acquisition program, 
        means the cost, schedule, and performance parameters, expressed 
        in standard, measurable, quantitative terms, which shall be 
        satisfied to accomplish the goals of such program.
            ``(6) Appropriate committees of congress.--The term 
        `appropriate committees of Congress' means--
                    ``(A) the Committee on Homeland Security and the 
                Committee on Appropriations of the House of 
                Representatives and the Committee on Homeland Security 
                and Governmental Affairs and the Committee on 
                Appropriations of the Senate; and
                    ``(B) in the case of notice or a report relating to 
                the Coast Guard or the Transportation Security 
                Administration, the committees specified in 
                subparagraph (A) and the Committee on Transportation 
                and Infrastructure of the House of Representatives and 
                the Committee on Commerce, Science, and Transportation 
                of the Senate.
            ``(7) Breach.--The term `breach', with respect to a major 
        acquisition program, means a failure to satisfy any cost, 
        schedule, or performance threshold specified in the most 
        recently approved acquisition program baseline.
            ``(8) Chief acquisition officer.--The term `Chief 
        Acquisition Officer' means the Chief Acquisition Officer 
        pursuant to section 1702 of title 41, United States Code.
            ``(9) 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.
            ``(10) Life-cycle cost.--The term `life-cycle cost' means 
        the total ownership cost of an acquisition, including all 
        relevant costs related to acquiring, deploying, operating, 
        maintaining, supporting, and (if applicable) disposing of the 
        system, project, or product at issue over a specified period of 
        time.
            ``(11) Major acquisition program.--The term `major 
        acquisition program' means a Department capital asset, service, 
        or hybrid acquisition program that is estimated by the 
        Secretary to require an eventual total expenditure of at least 
        $300,000,000 (based on fiscal year 2022 constant dollars) over 
        the life-cycle cost of the program, or an acquisition program 
        identified by the Chief Acquisition Officer as a program of 
        special interest.''.
            (2) Clerical amendment.--The table of contents in section 
        1(b) of the Homeland Security Act of 2002 is amended by 
        inserting before the item relating to section 831 the following 
        new item:

``Sec. 830. Definitions.''.
    (b) Congressional Notification for Major Acquisition Program 
Breach.--
            (1) 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 new section:

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

    ``(a) Notifications Within Department in Event of Breach.--
            ``(1) Notification of breach.--If a breach occurs, or is 
        expected to occur, 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 
        concerned, and the Executive Director of the Program 
        Accountability and Risk Management office in writing not later 
        than 30 calendar days after the date on which such breach is 
        identified.
            ``(2) Notification to under secretary.--Not later than five 
        business days after receipt of a notification pursuant to 
        paragraph (1), the Component Acquisition Executive for the 
        major acquisition program at issue shall notify the Under 
        Secretary for Management in writing of the breach that is the 
        subject of such notification.
            ``(3) Pausing activities.--Upon notification to the Under 
        Secretary under paragraph (2), the major acquisition program 
        that is the subject of the breach at issue shall pause all 
        activities relating to such program except those activities 
        necessary to develop the remediation plan required under 
        subsection (b) until the Under Secretary for Management 
        approves such plan or provides alternative corrective actions 
        for such program pursuant to subsection (c).
    ``(b) Notification to Congress in Event of Breach.--Not later than 
30 days after the date on which a notification to the Under Secretary 
for Management is made under subsection (a)(1) relating to a breach in 
a major acquisition program, the Under Secretary shall notify in 
writing the appropriate committees of Congress of such breach.
    ``(c) Remediation Plan and Root Cause Analysis.--
            ``(1) In general.--If a breach occurs, or is expected to 
        occur, in a major acquisition program, the program manager for 
        such program shall, in coordination with the Component 
        Acquisition Executive for such program, submit in writing to 
        the head of the component concerned, the Executive Director of 
        the Program Accountability and Risk Management office, and the 
        Under Secretary for Management, at a date established by the 
        Under Secretary, a remediation plan and root cause analysis 
        relating to such breach and program.
            ``(2) Remediation plan.--The remediation plan required 
        under subparagraph (A) shall--
                    ``(A) explain the circumstances of the breach at 
                issue;
                    ``(B) provide prior cost estimating information;
                    ``(C) include a root cause analysis that determines 
                the underlying cause or causes of such breach, 
                including--
                            ``(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) 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 Future Years Homeland 
                        Security Program required under section 874;
                            ``(vi) legislative, legal, or regulatory 
                        changes;
                            ``(vii) inadequate program management 
                        personnel, including lack of sufficient number 
                        of staff, training, credentials, or 
                        certifications; or
                            ``(viii) inadequate assessment or 
                        mitigation of program risk;
                    ``(C) propose corrective action to address the 
                underlying cause or causes of the breach identified 
                pursuant to subparagraph (C);
                    ``(D) explain the rationale for why a proposed 
                corrective action is recommended compared to other 
                options considered; and
                    ``(E) identify the estimated impact on program 
                cost, schedule, or performance goals of implementing 
                such proposed corrective action, and the extent to 
                which funding from other acquisition programs would 
                need to be reduced to cover the cost growth of the 
                major acquisition program at issue.
    ``(d) Review of Remediation Plans.--
            ``(1) In general.--Not later than 30 days after the date on 
        which the Under Secretary for Management receives a remediation 
        plan pursuant to subsection (c)(1), the Under Secretary shall 
        review such plan and either approve such plan for continuation 
        or provide an alternative proposed corrective action, including 
        cancelling the major acquisition program at issue.
            ``(2) Documentation.--
                    ``(A) Acquisition decision memorandum.--The Under 
                Secretary for Management shall document the review 
                under paragraph (1) in an acquisition decision 
                memorandum.
                    ``(B) Program continuation approval.--If the Under 
                Secretary for Management approves a major acquisition 
                program pursuant to paragraph (1) for continuation or 
                alternate proposed corrective action rather than 
                cancellation, the Under Secretary shall certify in the 
                acquisition decision memorandum required under 
                subparagraph (A) that--
                            ``(i) such program is essential to the 
                        mission of the Department;
                            ``(ii) there are no alternatives to the 
                        capability or asset provided by such program 
                        that will provide equal or greater capability 
                        in a more cost-effective and timely manner;
                            ``(iii) the estimated impact on program 
                        cost, schedule, or performance goals are 
                        reasonable of continuing or implementing the 
                        alternative proposed corrective action, as the 
                        case may be; and
                            ``(iv) the management structure for such 
                        program is adequate to manage and control cost, 
                        schedule, or performance.
            ``(3) 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 paragraph (1), the Under 
        Secretary shall submit to the appropriate committees of 
        Congress--
                    ``(A) a copy of such remediation plan; and
                    ``(B) a statement describing the corrective action 
                or actions in such remediation plan in accordance with 
                such paragraph for the major acquisition program at 
                issue, with a justification for each such action in 
                accordance with paragraph (2).''.
            (2) 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 
                            acquisition program breach.''.
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