II 118th CONGRESS 1st Session S. 2040 IN THE SENATE OF THE UNITED STATES June 15, 2023 Mr. Braun (for himself and Mr. Manchin ) introduced the following bill; which was read twice and referred to the Committee on Armed Services A BILL To reinstate the position of Chief Management Officer of the Department of Defense, and for other purposes.

1. Short title This Act may be cited as the Pentagon Management Oversight Act of 2023 . 2. Reinstatement of position of Chief Management Officer of Department of Defense (a) Reinstatement of position (1) In general Chapter 4 of title 10, United States Code, is amended by inserting after the item relating to section 132 the following new item: 132a. Chief Management Officer (a) Appointment and qualifications (1) There is a Chief Management Officer of the Department of Defense, appointed from civilian life by the President, by and with the advice and consent of the Senate. (2) The Chief Management Officer shall be appointed from among persons who have an extensive management or business background and experience with managing large or complex organizations. A person may not be appointed as Chief Management Officer within seven years after relief from active duty as a commissioned officer of a regular component of an armed force. (b) Responsibilities Subject to the authority, direction, and control of the Secretary of Defense and the Deputy Secretary of Defense, the Chief Management Officer shall perform such duties and exercise such powers as the Secretary or the Deputy Secretary may prescribe, including the following: (1) Serving as the chief management officer of the Department of Defense with the mission of managing enterprise business operations and shared services of the Department of Defense. (2) Serving as the principal advisor to the Secretary and the Deputy Secretary on establishing policies for, and directing, all enterprise business operations of the Department, including planning and processes, business transformation, and performance measurement and management activities and programs, including the allocation of resources for enterprise business operations and unifying business management efforts across the Department. (3) Exercising authority, direction, and control over the Defense Agencies and Department of Defense Field Activities providing shared business services for the Department. (4) Authority to direct the Secretaries of the military departments and the heads of all other elements of the Department with regard to matters for which the Chief Management Officer has responsibility under this section. (5) Serving as the official with principal responsibility in the Department for minimizing the duplication of efforts, maximizing efficiency and effectiveness, and establishing metrics for performance among and for all organizations and elements of the Department. (c) Budget authority (1) (A) Beginning in fiscal year 2025, the Secretary of Defense, acting through the Under Secretary of Defense (Comptroller), shall require the head of each Defense Agency and Department of Defense Field Activity (other than such agencies and activities that are under the direction of the Director of National Intelligence or are elements of the intelligence community) to transmit the proposed budget of such Agency or Activity for enterprise business operations for a fiscal year, and for the period covered by the future-years defense program submitted to Congress under section 221 of this title for that fiscal year, to the Chief Management Officer for review under subparagraph (B) at the same time the proposed budget is submitted to the Under Secretary of Defense (Comptroller). (B) The Chief Management Officer shall review each proposed budget transmitted under subparagraph (A) and, not later than January 31 of the year preceding the fiscal year for which the budget is proposed, shall submit to the Secretary a report containing the comments of the Chief Management Officer with respect to all such proposed budgets, together with the certification of the Chief Management Officer regarding whether each such proposed budget achieves the required level of efficiency and effectiveness for enterprise business operations, consistent with guidance for budget review established by the Chief Management Officer. (C) Not later than March 31 each year, the Secretary shall submit to Congress a report that includes the following: (i) Each proposed budget for the enterprise business operations of a Defense Agency or Department of Defense Field Activity that was transmitted to the Chief Management Officer under subparagraph (A). (ii) Identification of each proposed budget contained in the most recent report submitted under subparagraph (B) that the Chief Management Officer did not certify as achieving the required level of efficiency and effectiveness for enterprise business operations. (iii) A discussion of the actions that the Secretary proposes to take, together with any recommended legislation that the Secretary considers appropriate, to address inadequate levels of efficiency and effectiveness for enterprise business operations achieved by the proposed budgets identified in the report. (iv) Any additional comments that the Secretary considers appropriate regarding inadequate levels of efficiency and effectiveness for enterprise business operations achieved by the proposed budgets. (2) Nothing in this subsection shall be construed to modify or interfere with the budget-related responsibilities of the Director of National Intelligence. (d) Precedence The Chief Management Officer takes precedence in the Department of Defense after the Secretary of Defense and the Deputy Secretary of Defense. (e) Enterprise business operation defined In this section, the term enterprise business operations means those activities that constitute the cross-cutting business operations used by multiple components of the Department of Defense, but not those activities that are directly tied to a single military department or Department of Defense component. The term includes business-support functions designated by the Secretary of Defense or the Deputy Secretary of Defense for purposes of this section, such as aspects of financial management, healthcare, acquisition and procurement, supply chain and logistics, certain information technology, real property, and human resources operations. . (2) Clerical amendment The table of sections at the beginning of chapter 4 of such title is amended by inserting after the item relating to section 132 the following new item: 132a. Chief Management Officer. . (b) Management and oversight of defense business systems Section 2222 of such title is amended— (1) in subsection (c)(2), by striking the Chief Information Officer of the Department of Defense and inserting the Chief Management Officer of the Department of Defense ; (2) in subsection (e)— (A) in paragraph (1), by striking the Chief Information Officer and inserting the Chief Management Officer ; and (B) in paragraph (6)— (i) in subparagraph (A), in the matter preceding clause (i)— (I) in the first sentence, by striking The Chief Information Officer of the Department of Defense, in coordination with the Chief Data and Artificial Intelligence Officer, and inserting The Chief Management Officer of the Department of Defense ; and (II) in the second sentence, by striking the Chief Information Officer shall and inserting the Chief Management Officer shall ; and (ii) in subparagraph (B), in the matter preceding clause (i), by striking The Chief Information Officer and inserting The Chief Management Officer ; (3) in subsection (f)(1), in the second sentence, by inserting the Chief Management Officer and after chaired by ; (4) in subsection (g)(2), by striking the Chief Information Officer of the Department of Defense each place it appears and inserting the Chief Management Officer of the Department of Defense ; and (5) in subsection (i)(5)(B), by striking the Chief Information Officer and inserting the Chief Management Officer . (c) Conforming amendment Section 131(b) of title 10, United States Code, is amended by inserting after paragraph (1) the following new paragraph (2): (2) The Chief Management Officer of the Department of Defense. . (d) Guidance required Not later than 30 days after the date of the enactment of this Act, the Secretary of Defense shall— (1) issue guidance to clearly delineate the authorities and responsibilities of the Chief Management Officer of the Department of Defense; and (2) provide a charter for the position of the Chief Management Officer to fully vest the authority of the Chief Management Officer within the Department of Defense. (e) Report on effect of lapse in management oversight on defense business systems (1) In general Not later than 180 days after the date of the enactment of this Act, the Deputy Secretary of Defense shall submit to the congressional defense committees a report on the effect on defense business systems of the abolishment of the position of Chief Management Officer and the failure to reassign the responsibilities of the Chief Management Officer with respect to defense business systems for two years. (2) Defense business system defined In this subsection, the term defense business system has the meaning given that term in section 2222(i) of title 10, United States Code.