IIB 113th CONGRESS 1st Session H. R. 2719 IN THE SENATE OF THE UNITED STATES December 9, 2013 Received; read twice and referred to the Committee on Commerce, Science, and Transportation AN ACT To require the Transportation Security Administration to implement best practices and improve transparency with regard to technology acquisition programs, and for other purposes.

1. Short title This Act may be cited as the Transportation Security Acquisition Reform Act . 2. Findings Congress finds the following: (1) The Transportation Security Administration (in this Act referred to as TSA ) does not consistently implement Department of Homeland Security policies and Government best practices for acquisition and procurement. (2) TSA has not developed a multiyear technology investment plan. As a result, TSA has underutilized innovation opportunities within the private sector, including from small businesses. (3) Due in part to the deficiencies referred to in paragraphs (1) and (2), TSA has faced challenges in meeting key performance requirements for several major acquisitions and procurements, resulting in reduced security effectiveness and wasted expenditures. 3. Transportation security administration acquisition reform (a) In general Title XVI of the Homeland Security Act of 2002 (116 Stat. 2312) is amended to read as follows: XVI Transportation Security A General Provisions 1601. Definitions In this title: (1) Administration The term Administration means the Transportation Security Administration. (2) Administrator The term Administrator means the Administrator of the Transportation Security Administration. (3) Security-related technology The term security-related technology means any technology that assists the Administration in the prevention of, or defense against, threats to United States transportation systems, including threats to people, property, and information. B Transportation Security Administration Acquisition Improvements 1611. Multiyear technology investment plan (a) In general The Administrator— (1) not later than 180 days after the date of enactment of the Transportation Security Acquisition Reform Act, shall develop and transmit to Congress a strategic multiyear technology investment plan, which may include a classified addendum to report sensitive transportation security risks, technology vulnerabilities, or other sensitive security information; and (2) to the extent possible, shall publish such plan in an unclassified format within the public domain. (b) Consultation The Administrator shall develop the multiyear technology investment plan in consultation with the Under Secretary for Management, the Chief Information Officer, and the Under Secretary for Science and Technology. (c) Approval The Secretary must have approved the multiyear technology investment plan before it is published under subsection (a)(2). (d) Contents of plan The multiyear technology investment plan shall include the following: (1) An analysis of transportation security risks and the associated technology gaps, including consideration of the most recent Quadrennial Homeland Security Review under section 707. (2) A set of transportation security-related technology acquisition needs that— (A) is prioritized based on risk and gaps identified under paragraph (1); and (B) includes planned technology programs and projects with defined objectives, goals, and measures. (3) An analysis of current trends in domestic and international passenger travel. (4) An identification of currently deployed security-related technologies that are at or near the end of their lifecycle. (5) An identification of test, evaluation, modeling, and simulation capabilities that will be required to support the acquisition of the security-related technologies to meet those needs. (6) An identification of opportunities for public-private partnerships, small and disadvantaged company participation, intragovernment collaboration, university centers of excellence, and national laboratory technology transfer. (7) An identification of the Administration’s acquisition workforce needs that will be required for the management of planned security-related technology acquisitions, including consideration of leveraging acquisition expertise of other Federal agencies. (8) An identification of the security resources, including information security resources, that will be required to protect security-related technology from physical or cyber theft, diversion, sabotage, or attack. (9) An identification of initiatives to streamline the Administration’s acquisition process and provide greater predictability and clarity to small, medium, and large businesses, including the timeline for testing and evaluation. (e) Leveraging the private sector To the extent possible, and in a manner that is consistent with fair and equitable practices, the plan shall— (1) leverage emerging technology trends and research and development investment trends within the public and private sectors; (2) incorporate feedback and input received from the private sector through requests for information, industry days, and other innovative means consistent with the Federal Acquisition Regulation; and (3) leverage market research conducted by the Under Secretary for Science and Technology to identify technologies that exist or are in development that, with or without adaptation, could be utilized to meet mission needs. (f) Disclosure The Administrator shall include with the plan required under this section a list of any nongovernment persons that contributed to the writing of the plan. (g) Update and Report Once every 2 years after the initial strategic plan is transmitted to Congress, the Administrator shall transmit to Congress an update of the plan and a report on the extent to which each security-related technology acquired by the Administration since the last issuance or update of the plan is consistent with the planned technology programs and projects identified under subsection (d)(2) for that technology. 1612. Acquisition justification and reports (a) Acquisition justification Before the Administration implements any security-related technology acquisition, the Administrator shall, in accordance with the Department’s policies and directives, conduct a comprehensive analysis to determine whether the acquisition is justified. The analysis shall include, but may not be limited to, the following: (1) An identification of the type and level of risk to transportation security that would be addressed by such technology acquisition. (2) An assessment of how the proposed acquisition aligns to the multiyear technology investment plan developed under section 1611. (3) A comparison of the total expected lifecycle cost against the total expected quantitative and qualitative benefits to transportation security. (4) An analysis of alternative security solutions to determine if the proposed technology acquisition is the most effective and cost-efficient solution based on cost-benefit considerations. (5) An evaluation of the privacy and civil liberties implications of the proposed acquisition, and a determination that the proposed acquisition is consistent with fair information practice principles issued by the Privacy Officer of the Department. To the extent practicable, the evaluation shall include consultation with organizations that advocate for the protection of privacy and civil liberties. (6) Confirmation that there are no significant risks to human health and safety posed by the proposed acquisition. (b) Reports and certification to congress (1) In general Not later than the end of the 30-day period preceding the award by the Administration of a contract for any security-related technology acquisition exceeding $30,000,000, the Administrator shall submit to the Committee on Homeland Security of the House of Representatives and the Committee on Commerce, Science, and Transportation of the Senate the results of the comprehensive acquisition analysis required under this section and a certification by the Administrator that the security benefits justify the contract cost. (2) Extension due to imminent terrorist threat If there is a known or suspected imminent threat to transportation security, the Administrator may reduce the 30-day period under paragraph (1) to 5 days in order to rapidly respond. (3) Notice to Congress The Administrator shall provide immediate notice of such imminent threat to the Committee on Homeland Security of the House of Representatives and the Committee on Commerce, Science, and Transportation of the Senate. 1613. Acquisition baseline establishment and reports (a) Baseline requirements (1) In general Before the Administration implements any security-related technology acquisition, the appropriate acquisition official of the Department shall establish and document a set of formal baseline requirements. (2) Contents The baseline requirements shall— (A) include the estimated costs (including lifecycle costs), schedule, and performance milestones for the planned duration of the acquisition; and (B) identify the acquisition risks and a plan for mitigating these risks. (3) Feasibility In establishing the performance milestones under paragraph (2), the appropriate acquisition official of the Department shall, to the extent possible and in consultation with the Under Secretary for Science and Technology, ensure that achieving these milestones is technologically feasible. (4) Test and evaluation plan The Administrator, in consultation with the Under Secretary for Science and Technology, shall develop a test and evaluation plan that, at a minimum, describes— (A) the activities that will be required to assess acquired technologies against the performance milestones established under paragraph (2); (B) the necessary and cost-effective combination of laboratory testing, field testing, modeling, simulation, and supporting analysis to ensure that such technologies meet the Administration’s mission needs; and (C) an efficient schedule to ensure that test and evaluation activities are completed without undue delay. (5) Verification and validation The appropriate acquisition official of the Department— (A) subject to subparagraph (B), shall utilize independent reviewers to verify and validate the performance milestones and cost estimates developed under paragraph (2) for a security-related technology that pursuant to section 1611(d)(2) has been identified as a high priority need in the most recent multiyear technology investment plan; and (B) shall ensure that the utilization of independent reviewers does not unduly delay the schedule of any acquisition. (6) Streamlining access for interested vendors The Administrator shall establish a streamlined process for an interested vendor of a security-related technology to request and receive appropriate access to the baseline requirements and test and evaluation plans that are necessary for the vendor to participate in the acquisitions process for such technology. (b) Review of baseline requirements and deviation; report to Congress (1) Review (A) In general The appropriate acquisition official of the Department shall review and assess each implemented acquisition to determine if the acquisition is meeting the baseline requirements established under subsection (a). (B) Test and evaluation assessment The review shall include an assessment of whether the planned testing and evaluation activities have been completed and the results of such testing and evaluation demonstrate that the performance milestones are technologically feasible. (2) Report (A) In general The Administrator shall report to the Committee on Homeland Security of the House of Representatives and the Committee on Commerce, Science, and Transportation of the Senate the results of any assessment that finds that— (i) the actual or planned costs exceed the baseline costs by more than 10 percent; (ii) the actual or planned schedule for delivery has been delayed by more than 180 days; or (iii) there is a failure to meet any performance milestone that directly impacts security effectiveness. (B) Cause The report shall include the cause for such excessive costs, delay, or failure, and a plan for corrective action. (C) Timeliness The report required under this section shall be provided to the Committee on Homeland Security of the House of Representatives and the Committee on Commerce, Science, and Transportation of the Senate no later than 30 days after identifying such excessive costs, delay, or failure. 1614. Inventory utilization (a) In general Before the procurement of additional quantities of equipment to fulfill a mission need, the Administrator shall, to the extent practicable, utilize any existing units in the Administration’s inventory to meet that need. (b) Tracking of inventory (1) Location The Administrator shall establish a process for tracking the location of security-related equipment in such inventory. (2) Utilization The Administrator shall— (A) establish a process for tracking the utilization status of security-related technology in such inventory; and (B) implement internal controls to ensure accurate data on security-related technology utilization. (3) Quantity The Administrator shall establish a process for tracking the quantity of security-related equipment in such inventory. (c) Logistics management (1) In general The Administrator shall establish logistics principles for managing inventory in an effective and efficient manner. (2) Limitation on just-in-time logistics The Administrator may not use just-in-time logistics if doing so would— (A) inhibit necessary planning for large-scale delivery of equipment to airports or other facilities; or (B) unduly diminish surge capacity for response to a terrorist threat. 1615. Small business contracting goals Not later than 90 days after the date of enactment of the Transportation Security Acquisition Reform Act , and annually thereafter, the Administrator shall submit to the Committee on Homeland Security of the House of Representatives and the Committee on Commerce, Science, and Transportation of the Senate a report that includes the following: (1) A restatement of the Administration’s published goals for contracting with small businesses, including small and disadvantaged businesses, and the Administration’s performance record with respect to meeting those goals during the preceding fiscal year. (2) If such goals were not met, or the Administration's performance was below the published goals of the Department, an itemized list of challenges, including deviations from the Administration’s subcontracting plans and the extent to which contract bundling was a factor, that contributed to the level of performance during the preceding fiscal year. (3) An action plan, with benchmarks, for addressing each of the challenges identified in paragraph (2), prepared after consultation with the Secretary of Defense and the heads of Federal departments and agencies that achieved their published goals for prime contracting with small and minority owned businesses, including small and disadvantaged businesses, in prior fiscal years, to identify policies and procedures that could be incorporated at the Administration in furtherance of achieving the Administration’s published goal for such contracting. (4) The status of implementing such action plan that was developed in the preceding fiscal year in accordance with paragraph (3). 1616. Consistency with the Federal Acquisition Regulation and departmental policies and directives The Administrator shall execute responsibilities set forth in this subtitle in a manner consistent with, and not duplicative of, the Federal Acquisition Regulation and the Department’s policies and directives. . (b) Clerical amendment The table of contents in section 1(b) of such Act is amended by striking the items relating to title XVI and inserting the following: Title XVI—Transportation Security Subtitle A—General Provisions Sec. 1601. Definitions. Subtitle B—Transportation Security Administration Acquisition Improvements Sec. 1611. Multiyear technology investment plan. Sec. 1612. Acquisition justification and reports. Sec. 1613. Acquisition baseline establishment and reports. Sec. 1614. Inventory utilization. Sec. 1615. Small business contracting goals. Sec. 1616. Consistency with the Federal Acquisition Regulation and departmental policies and directives. . (c) Prior amendments not affected This section shall not be construed to affect any amendment made by title XVI of such Act as in effect before the date of enactment of this Act. 4. Government Accountability Office reports (a) Implementation of previous recommendations Not later than 1 year after the date of enactment of this Act, the Comptroller General of the United States shall assess and report to Congress on implementation by the Transportation Security Administration of recommendations regarding the acquisition of technology that were made by the Government Accountability Office before the date of enactment of this Act. (b) Implementation of subtitle B of title XVI Not later than 1 year after the date of enactment of this Act and 3 years thereafter, the Comptroller General of the United States shall evaluate and report to Congress the Transportation Security Administration’s progress in implementing subtitle B of title XVI of the Homeland Security Act of 2002 (116 Stat. 2312), as amended by this Act (including provisions added to such subtitle after the date of enactment of this Act), including any efficiencies, cost savings, or delays that have resulted from such implementation. 5. Report on feasibility of inventory tracking Not later than 90 days after the date of enactment of this Act, the Administrator of the Transportation Security Administration shall report to Congress on the feasibility of tracking transportation security-related technology of the Administration through automated information and data capture technologies. 6. Government Accountability Office review of TSA’s test and evaluation process Not later than 1 year after the date of the enactment of this Act, the Comptroller General of the United States shall evaluate and report to Congress on the Transportation Security Administration’s testing and evaluation activities related to security-related technologies. The report shall include— (1) information on the extent to which — (A) the execution of such testing and evaluation activities is aligned, temporally and otherwise, with the Administration’s acquisition needs, planned procurements, and acquistions for technology programs and projects; and (B) the extent to which security-related technologies that have been tested, evaluated, and certified for use by the Administration are not procured by the Administration, including information about why that occurs; and (2) recommendations to— (A) improve the efficiency and efficacy of such testing and evaluation activities; and (B) better align such testing and evaluation with the acquisitions process. 7. No additional authorization of appropriations No additional funds are authorized to be appropriated to carry out this Act and the amendments made by this Act, and this Act and such amendments shall be carried out using amounts otherwise available for such purpose.

Passed the House of Representatives December 3, 2013. Karen L. Haas, Clerk