[Congressional Bills 103th Congress]
[From the U.S. Government Publishing Office]
[S. 1598 Introduced in Senate (IS)]

103d CONGRESS
  1st Session
                                S. 1598

   To amend title 10, United States Code, to modernize Department of 
        Defense acquisition procedures, and for other purposes.


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

             October 28 (legislative day, October 13), 1993

  Mr. Roth (for himself, Mr. Cohen, and Mr. Grassley) introduced the 
 following bill; which was read twice and referred to the Committee on 
                             Armed Services

_______________________________________________________________________

                                 A BILL


 
   To amend title 10, United States Code, to modernize Department of 
        Defense acquisition procedures, 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 ``Department of Defense Acquisition 
Management Reform Act of 1993''.

SEC. 2. TABLE OF CONTENTS.

    The table of contents for this Act is as follows:

Sec. 1. Short title.
Sec. 2. Table of contents.
  TITLE I--REORGANIZATION AND REFORM OF THE DEFENSE ACQUISITION SYSTEM

   Subtitle A--Streamlining and Improvement of Acquisition Management

Sec. 101. Reorganization of acquisition authority.
Sec. 102. Phase funding and review of defense acquisition programs.
Sec. 103. Joint foreign products development.
                   Subtitle B--Transfer of Functions

Sec. 121. Transfers.
Sec. 122. Savings provisions.
               TITLE II--ACQUISITION MANAGEMENT POLICIES

Sec. 201. Acquisition performance goals.
Sec. 202. Implementation of defense acquisition workforce amendments.
Sec. 203. Enhanced encouragement of excellence in the defense 
                            acquisition workforce.
Sec. 204. Program management stability.
            TITLE III--CONTRACT FORMATION AND ADMINISTRATION

               Subtitle A--Performance Based Contracting

Sec. 301. Use of incentive contracts.
Sec. 302. Progress payments.
Sec. 303. Preference for certified contractors.
Sec. 304. Consideration of past performance and eligibility 
                            certification.
               Subtitle B--Efficient Contracting Process

Sec. 311. Simplified acquisition threshold.
Sec. 312. Procurement notice for certain contracts not in excess of the 
                            simplified acquisition threshold.
Sec. 313. Acquisition of commercial items and nondevelopmental items.
Sec. 314. Specifications and standards.
Sec. 315. Innovative procedures, techniques, and strategies.
Sec. 316. Process oriented contract administration.
                    Subtitle C--Procurement Protests

Sec. 321. Post-award debriefings.
Sec. 322. Comptroller General remedies.
                       Subtitle D--Other Matters

Sec. 331. Unification of procurement laws.
                    TITLE IV--CONFORMING AMENDMENTS

Sec. 401. Modification of the responsibility of the Comptroller of the 
                            Department of Defense for defense 
                            acquisition budgets.
Sec. 402. The defense acquisition work force.
Sec. 403. Procurement procedures generally.
Sec. 404. Research and development.
Sec. 405. Miscellaneous procurement provisions.
Sec. 406. Major defense acquisition programs.
Sec. 407. Service specific acquisition authority.
Sec. 408. Other laws.
                        TITLE V--EFFECTIVE DATES

Sec. 501. Effective dates.

  TITLE I--REORGANIZATION AND REFORM OF THE DEFENSE ACQUISITION SYSTEM

   Subtitle A--Streamlining and Improvement of Acquisition Management

SEC. 101. REORGANIZATION OF ACQUISITION AUTHORITY.

    (a) Under Secretary of Defense for Acquisition.--Section 133(b) of 
title 10, United States Code, is amended--
            (1) by redesignating paragraphs (3) and (4) as paragraphs 
        (4) and (5), respectively; and
            (2) by striking out paragraphs (1) and (2) and inserting in 
        lieu thereof the following:
            ``(1) prescribing policies for research, development, and 
        acquisition activities of the Department of Defense;
            ``(2) planning, programming, and overseeing the research, 
        development, and acquisition activities of the Department of 
        Defense;
            ``(3) assisting in the preparation and integration of 
        budgets for the research, development, and acquisition 
        activities of the Department of Defense, including assisting in 
        the planning, programming, and budgeting system with respect to 
        such activities;''.
    (b) Defense Research, Development, and Acquisition Agency.--(1) 
Part I of subtitle A of title 10, United States Code, is amended by 
inserting after chapter 9 the following new chapter:

  ``CHAPTER 10--DEFENSE RESEARCH, DEVELOPMENT, AND ACQUISITION AGENCY

``Sec.
``231. Establishment.
``232. Use of agency for all research, development, and acquisition 
                            activities.
``233. Duties.
``234. Program executive officers.
``235. Program managers.
``236. Functional analytical capability.
``Sec.  231. Establishment
    ``(a) Agency.--There is established a Defense Research, 
Development, and Acquisition Agency in the Department of Defense.
    ``(b) Director.--(1) The head of the agency is the Director of 
Defense Research, Development, and Acquisition who shall be appointed 
by the Under Secretary of Defense for Acquisition from among persons 
who are career professional employees in the acquisition workforce of 
the Department of Defense.
    ``(2) A member of the armed forces, while serving as the Director, 
holds the grade of general or, in the case of an officer of the Navy, 
admiral. A civilian, while serving as the Director, holds an equivalent 
civilian grade.
    ``(c) Chief of Engineering and Analysis.--(1) In the Defense 
Research, Development, and Acquisition Agency there is a Chief of 
Engineering and Analysis who shall be appointed by the Director from 
among the career professional employees in the acquisition workforce of 
the Department of Defense.
    ``(2) The Director shall evaluate the performance of the Chief of 
Engineering and Analysis. The Director may not delegate the performance 
of the evaluation responsibility.
    ``(3) The Chief of Engineering and Analysis shall be the senior 
technical adviser for the Defense Research, Development, and 
Acquisition Agency.
``Sec.  232. Use of agency for all research, development, and 
              acquisition activities
    ``Subject to sections 3013(h), 5013(h), 8013(h) of this title, the 
Director shall conduct the research, development, and acquisition 
activities of the Department of Defense, including the activities of 
the research, development, and engineering centers of the Department of 
Defense.
``Sec.  233. Duties
    ``The responsibilities of the Under Secretary of Defense for 
Acquisition that are to be performed by the Defense Research, 
Development, and Acquisition Agency include the following:
            ``(1) Planning, programming, and carrying out the research, 
        development, and acquisition activities of the Department of 
        Defense.
            ``(2) Advising the Secretary of Defense and the Secretaries 
        of the military departments regarding the preparation and 
        integration of the budgets for the research, development, and 
        acquisition activities of the Department of Defense.
            ``(3) Identifying and informing operational commanders 
        regarding alternative technology solutions to fulfill emerging 
        requirements.
            ``(4) Ensuring that the acquisition plan for each 
        acquisition program realistically reflects the budget and 
        related decisions made for that program.
            ``(5) Conducting research on management techniques as well 
        as on individual systems.
``Sec. 234. Program executive officers
    ``(a) Selection and Evaluation.--The program executive officers of 
the Defense Research, Development, and Acquisition Agency shall be 
selected and evaluated by the Director.
    ``(b) Duties.--The duties of a program executive officer are as 
follows:
            ``(1) To manage acquisition programs assigned to the 
        program executive officer.
            ``(2) To manage related technical support resources.
            ``(3) To establish and conduct integrated decision team 
        meetings.
            ``(4) To provide technological advice (including advice 
        regarding costs, schedule, and performance data relating to 
        alternative technological approaches for fulfilling emerging 
        requirements) to users of program products and to the officials 
        within the Department of Defense who plan, program, and budget 
        for the acquisition programs assigned to the program executive 
        officer.
    ``(c) Organization of Personnel.--The program executive officers 
shall be organized on the basis of unique mission areas or, in the case 
of programs for systems specifically relating to certain classes of 
targets, on the basis of target classes. No program executive officer 
may be organized with other program executive officers on both bases. 
The Secretary of Defense shall identify the mission areas or target 
classes on the basis of which program executive officers may be 
organized.
    ``(d) Acquisition Life-Cycle Management.--The responsibilities of a 
program executive officer for a weapon acquisition program shall cover 
the entire life cycle of the program.
    ``(e) User and Operator Interaction.--(1) The Chairman of the Joint 
Chiefs of Staff, in consultation with the Under Secretary of Defense 
for Acquisition, shall prescribe policies and procedures for the 
interaction of the commanders of the unified and specified combatant 
commands with program executive officers regarding the initiation and 
conduct of weapon acquisition programs. The policies and procedures 
shall include provisions for enabling such commands to perform 
operational and acceptance testing of weapons acquired pursuant to such 
programs.
    ``(2) The Comptroller of the Department of Defense, in consultation 
with the Under Secretary of Defense for Acquisition and the Secretaries 
of the military departments, shall prescribe policies and procedures 
for the interaction between the commanders of the unified and specified 
combatant commands and the program executive officers regarding funding 
for weapon acquisition programs.
``Sec.  235. Program managers
    ``(a) Selection and Evaluation.--Each program manager of the 
Defense Research, Development, and Acquisition Agency shall be selected 
and evaluated by the Director and a program executive officer and shall 
report directly to the program executive officer having primary 
responsibility for the system being acquired under the program.
    ``(b) Duties.--A program manager is responsible for the routine 
management of a research, development, and acquisition program, 
including the obtaining of necessary logistical support and support 
services for that program.
    ``(c) Relationship to Program Executive Officers.--The management 
functions of a program manager should not duplicate the management 
functions of a program executive officer.
``Sec.  236. Functional analytical capability
    ``(a) Responsibility of Chief of Engineering and Analysis.--The 
Chief of Engineering and Analysis shall be responsible for ensuring 
that each of the functional analytical capabilities provided to the 
Director, acquisition program executive officers, and acquisition 
program managers in connection with acquisition programs of the 
Department of Defense is the most advanced capability of its type.
    ``(b) Functional Analytical Capabilities.--The functional 
analytical capabilities referred to in subsection (a) are as follows:
            ``(1) Cost and affordability analysis.
            ``(2) Logistics and support analysis.
            ``(3) Reliability and maintainability analysis.
            ``(4) Producibility analysis.
            ``(5) Environmental analysis.
            ``(6) Configuration management.
            ``(7) Warfighting and battlefield performance and utility 
        analysis.
            ``(8) System engineering.
            ``(9) Any other analytical capability that may be necessary 
        for ensuring the timeliness, performance, and affordability of 
        acquisition programs.''.
    (2) The tables of chapters at the beginning of subtitle A of title 
10, United States Code, and at the beginning of part I of such 
subtitle, are amended by inserting after the item relating to chapter 9 
the following new item:

``10. Defense Research, Development, and Acquisition Agency.     231''.
    (c) Limitation of Procurement Authority of Military Departments.--
(1) Section 3013 of title 10, United States Code, is amended--
            (A) in subsection (b)--
                    (i) by striking out ``and subject to the provisions 
                of chapter 6'' and inserting in lieu thereof ``, 
                subject to the provisions of chapter 6, and subject to 
                subsection (h),''; and
                    (ii) in paragraph (4), by striking out ``(including 
                research and development)''; and
            (B) by adding at the end the following new subsection:
    ``(h)(1) The Secretary of the Army shall be responsible for 
procurements of property and services, and may exercise authority to 
conduct such procurements, only to the extent that the Secretary of 
Defense determines necessary for the sustainment of operations of the 
Army. The Secretary of Defense shall prescribe in regulations the 
extent of the responsibility and authority of the Secretary of the Army 
for procurements of property and services.
    ``(2) In conducting a procurement in accordance with paragraph (1), 
the Secretary of the Army shall be subject to the same laws as are 
applicable to acquisitions conducted by the Secretary of Defense.''.
    (2) Section 5013 of title 10, United States Code, is amended--
            (A) in subsection (b)--
                    (i) by striking out ``and subject to the provisions 
                of chapter 6'' and inserting in lieu thereof ``, 
                subject to the provisions of chapter 6, and subject to 
                subsection (h),''; and
                    (ii) in paragraph (4), by striking out ``(including 
                research and development)''; and
            (B) by adding at the end the following new subsection:
    ``(h)(1) The Secretary of the Navy shall be responsible for 
procurements of property and services, and may exercise authority to 
conduct such procurements, only to the extent that the Secretary of 
Defense determines necessary for the sustainment of operations of the 
Navy. The Secretary of Defense shall prescribe in regulations the 
extent of the responsibility and authority of the Secretary of the Navy 
for procurements of property and services.
    ``(2) In conducting a procurement in accordance with paragraph (1), 
the Secretary of the Navy shall be subject to the same laws as are 
applicable to acquisitions conducted by the Secretary of Defense.''.
    (3) Section 8013 of title 10, United States Code, is amended--
            (A) in subsection (b)--
                    (i) by striking out ``and subject to the provisions 
                of chapter 6'' and inserting in lieu thereof ``, 
                subject to the provisions of chapter 6, and subject to 
                subsection (h),''; and
                    (ii) in paragraph (4), by striking out ``(including 
                research and development)''; and
            (B) by adding at the end the following new subsection:
    ``(h)(1) The Secretary of the Air Force shall be responsible for 
procurements of property and services, and may exercise authority to 
conduct such procurements, only to the extent that the Secretary of 
Defense determines necessary for the sustainment of operations of the 
Air Force. The Secretary of Defense shall prescribe in regulations the 
extent of the responsibility and authority of the Secretary of the Air 
Force for procurements of property and services.
    ``(2) In conducting a procurement in accordance with paragraph (1), 
the Secretary of the Air Force shall be subject to the same laws as are 
applicable to acquisitions conducted by the Secretary of Defense.''.
    (4) Section 2302(1) of title 10, United States Code, is amended by 
striking out ``the Secretary of the Army, the Secretary of the Navy, 
the Secretary of the Air Force,''.

SEC. 102. PHASE FUNDING AND REVIEW OF DEFENSE ACQUISITION PROGRAMS.

    (a) In General.--Chapter 131 of title 10, United States Code, is 
amended by adding at the end the following new section:
``Sec. 2219. Results oriented acquisition program cycle
    ``The Secretary of Defense shall define in regulations a simplified 
acquisition program cycle that is results-oriented and consists of the 
following phases:
            ``(1) The integrated decision team meeting which--
                    ``(A) may be requested by a potential user of the 
                system or component to be acquired, the head of a 
                laboratory, or a program office on such bases as the 
                emergence of a new military requirement, cost savings 
                opportunity, or new technology opportunity;
                    ``(B) shall be conducted by a program executive 
                officer; and
                    ``(C) shall usually be completed within 1 to 3 
                months.
            ``(2) The prototype development and testing phase which--
                    ``(A) shall include operational tests and concerns 
                relating to manufacturing operations and life cycle 
                support;
                    ``(B) shall usually be completed within 6 to 36 
                months; and
                    ``(C) shall produce sufficient numbers of 
                prototypes to assess operational utility.
            ``(3) Product integration, development, and testing which--
                    ``(A) includes full-scale development, operational 
                testing, and integration of components; and
                    ``(B) shall usually be completed within 1 to 5 
                years.
            ``(4) Production, integration into existing systems, or 
        production and integration into existing systems.
``Sec. 2220. Funding for results oriented acquisition program cycle
    ``(a) Program Phase Details To Be Submitted to Congress.--Before 
initial funding is made available for a phase of the acquisition 
program cycle of an acquisition program which requires Congressional 
Authorization of appropriations, the Secretary of Defense shall submit 
to Congress information about the objectives and plans for the conduct 
of that phase and the funding requirements for the entire phase. The 
Secretary shall include in such information objective, quantifiable 
criteria for assessing the extent to which the stated objectives and 
goals are achieved.
    ``(b) Full Phase Funding.--(1) In authorizing appropriations for an 
acquisition program that requires Congressional Authorization, Congress 
shall provide in an Act authorizing appropriations for the Department 
of Defense an authorization of appropriations for a phase of the 
acquisition program in a single amount that is sufficient for carrying 
out that phase. Such an authorization of appropriations shall be stated 
in the Act as a specific item.
    ``(2) In each Act making appropriations for the Department of 
Defense Congress shall specify the phase of each such acquisition 
program of the department for which an appropriation is made and the 
amount of the appropriation for the phase of that program.
``Sec. 2221. Major program decision
    ``(a) Single Major Decision Point.--The acquisition program 
approval process within the Department of Defense shall have one major 
decision point which shall occur for an acquisition program before that 
program proceeds into product integration and development.
    ``(b) Determinations at Decision Point.--At the major decision 
point for an acquisition program, the Under Secretary of Defense for 
Acquisition in consultation with the Vice Chairman Joint Chief of Staff 
shall--
            ``(1) review the program;
            ``(2) determine whether the program should continue to be 
        carried out beyond product integration and development; and
            ``(3) decide whether--
                    ``(A) to commit to further development;
                    ``(B) to require further prototyping; or
                    ``(C) to terminate the program.
    ``(c) Considerations.--In the review of an acquisition program, the 
Under Secretary shall consider the potential benefits, affordability, 
needs, and risks of the program.''.
    (b) Clerical Amendment.--The table of sections at the beginning of 
chapter 131 of title 10, United States Code, is amended by adding at 
the end the following new items:

``2219. Results oriented acquisition program cycle.
``2220. Funding for results oriented acquisition program cycle.
``2221. Major program decision.''.

SEC. 103. JOINT FOREIGN PRODUCTS DEVELOPMENT.

    Section 153 of title 10, United States Code, is amended by adding 
at the end the following new subsection:
    ``(c) Recommendations for Joint Development of Foreign Products.--
The Chairman of the Joint Chiefs of Staff, in consultation with the 
commanders of the unified and specified combatant commands, shall make 
recommendations to the Under Secretary of Defense for Acquisition 
regarding the desirability of joint development by the United States 
and one or more foreign countries of systems proposed to be developed, 
or under development, by such foreign country or foreign countries.''.

                   Subtitle B--Transfer of Functions

SEC. 121. TRANSFERS.

    (a) Military Departments.--Except as provided in subsection (c), 
all research, development, and acquisition functions of the Secretaries 
of the military departments are transferred to the Secretary of 
Defense.
    (b) Procurement Agencies, Commands, and Offices.--Except as 
provided in subsection (c), there is transferred to the Defense 
Research, Development, and Acquisition Agency referred to in section 
231(a) of title 10, United States Code (as added by section 101), all 
functions of the following organizations:
            (1) The Defense Logistics Agency.
            (2) The Advanced Research Projects Agency.
            (3) The following procurement commands of the Army:
                    (A) The Army Materiel Command.
                    (B) The Army Information Systems Command.
                    (C) The Army Strategic Defense Command.
            (4) The following procurement commands of the Navy and 
        Marine Corps:
                    (A) The Navy weapons systems commands.
                    (B) The Navy Strategic Systems Program Office.
                    (C) The Marine Corps Research, Development and 
                Acquisition Command.
            (5) The Air Force Materiel Command.
            (6) Any successor organization to any agency, command, or 
        office named in paragraphs (1) through (5).
            (7) Each agency or command within the Department of Defense 
        not referred to in paragraphs (1) through (6) that, on the day 
        before the effective date of this title, has as a primary 
        mission or function the performance of a research, development, 
        or acquisition function of the Department of Defense.
    (c) Functions Not Transferred.--(1) The following functions of the 
Secretaries of the military departments are not transferred to the 
Secretary of Defense:
            (A) Functions that relate to planning, programming, and 
        budgeting.
            (B) Functions to be performed by the Secretary of a 
        military department pursuant to section 3013(h), 5013(h), or 
        8013(h) of title 10, United States Code, as added by section 
        101(c).
    (2) To the extent prescribed by the Secretary of Defense, functions 
referred to in paragraph (1)(B) that are performed by an organization 
referred to in subsection (b) need not be transferred in accordance 
with that subsection.
    (d) Termination of Organization.--The Secretary of Defense shall 
terminate each organization from which all of its functions are 
transferred under subsection (b).

SEC. 122. SAVINGS PROVISIONS.

    (a) Regulations, Instruments, Rights, and Privileges.--All rules, 
regulations, contracts, orders, determinations, permits, certificates, 
licenses, grants, and privileges--
            (1) which have been issued, made, granted, or allowed to 
        become effective by the Secretary or other officer or employee 
        of a military department, the head of a Defense Agency of the 
        Department of Defense, or by a court of competent jurisdiction, 
        in connection with any research, development, or acquisition 
        activity of a military department or Defense Agency, and
            (2) which are in effect on the effective date of this 
        title,
shall continue in effect according to their terms until modified, 
terminated, superseded, set aside, or revoked in accordance with law by 
the Secretary of Defense, the Under Secretary of Defense for 
Acquisition, or another authorized official, by a court of competent 
jurisdiction, or by operation of law.
    (b) Proceedings and Applications.--(1)(A) The provisions of this 
subtitle shall not affect any proceeding, including any proceeding 
involving a claim or application, in connection with any acquisition 
activity of a military department or a Defense Agency of the Department 
of Defense that is pending before that military department or Defense 
Agency on the effective date of this title.
    (B) Orders may be issued in any such proceeding, appeals may be 
taken therefrom, and payments may be made pursuant to such orders, as 
if this Act had not been enacted. An order issued in any such 
proceeding shall continue in effect until modified, terminated, 
superseded, or revoked by the Secretary of Defense or the Under 
Secretary of Defense for Acquisition, by a court of competent 
jurisdiction, or by operation of law.
    (C) Nothing in this paragraph prohibits the discontinuance or 
modification of any such proceeding under the same terms and conditions 
and to the same extent that such proceeding could have been 
discontinued or modified if this Act had not been enacted.
    (2) The Secretary of Defense may prescribe regulations providing 
for the orderly transfer of proceedings continued under paragraph (1) 
to the Secretary of Defense or to the Under Secretary of Defense for 
Acquisition.

               TITLE II--ACQUISITION MANAGEMENT POLICIES

SEC. 201. ACQUISITION PERFORMANCE GOALS.

    (a) Policy Goals.--It is the policy of Congress that, on and after 
January 1, 2000--
            (1) the Department of Defense should achieve, on average, 
        90 percent of the cost and schedule goals established for the 
        research and development programs and acquisition programs of 
        the Department of Defense; and
            (2) the average period necessary for converting an emerging 
        technology into initial operational capability for the 
        Department of Defense should not exceed 8 years.
    (b) Implementation.--Whenever it is necessary in order to implement 
the policy set out in subsection (a)(1), the Secretary of Defense 
should--
            (1) identify and consider for termination research and 
        development programs and acquisition programs of the Department 
        of Defense that are not achieving the cost, performance, and 
        schedule goals of the programs taking into consideration--
                    (A) the needs of the Department known as of the 
                time of the consideration of such programs for 
                termination;
                    (B) the state of the technology or technologies 
                relevant to the programs and to the needs of the 
                Department;
                    (C) the estimated costs and projected schedules 
                necessary for the completion of such programs; and
                    (D) other pertinent information; and
            (2) identify existing and potential research and 
        development programs and acquisition programs that are suitable 
        alternatives for programs considered for termination pursuant 
        to paragraph (1).
    (c) Responsibility for Departmental Oversight of Cost, Performance, 
and Schedule Goals.--(1) Chapter 131 of title 10, United States Code, 
as amended by section 102(a), is further amended by adding at the end 
the following new section:
``Sec. 2222. Responsibility for departmental oversight of cost, 
              performance, and schedule goals of acquisition programs
    ``(a) Cost Goals.--The Comptroller of the Department of Defense 
shall evaluate the cost goals proposed for each phase of an acquisition 
program of the Department of Defense.
    ``(b) Performance and Schedule Goals.--The Joint Chiefs of Staff 
shall approve or define the performance and schedule goals for 
acquisition programs of the Department of Defense. The Joint Chiefs of 
Staff shall approve the performance goals for acquisition programs on 
the basis of cost, schedule, performance, and risk.''.
    (2) Clerical Amendment.--The table of sections at the beginning of 
chapter 131 of title 10, United States Code, as amended by section 
102(b), is further amended by adding at the end the following new item:

``2222. Responsibility for departmental oversight of cost, performance, 
                            and schedule goals of acquisition 
                            programs.''.
    (d) Report Requirement.--The Secretary of Defense shall include in 
the annual report submitted to Congress pursuant to section 113(c) of 
title 10, United States Code, an assessment of the progress made in 
implementing the policies set out in subsection (a) and shall include 
any actions taken or considered in accordance with subsection (b).

SEC. 202. IMPLEMENTATION OF DEFENSE ACQUISITION WORKFORCE AMENDMENTS.

    The Congress--
            (1) urges the Secretary of Defense to expedite the 
        implementation of the provisions of chapter 87 of title 10, 
        United States Code, relating to the acquisition workforce of 
        the Department of Defense; and
            (2) reemphasizes the importance of ensuring that the 
        acquisition workforce is educated and trained in accordance 
        with the standards set out in the provisions of such chapter.

SEC. 203. ENHANCED ENCOURAGEMENT OF EXCELLENCE IN THE DEFENSE 
              ACQUISITION WORKFORCE.

    (a) Enhanced System of Incentives and Adverse Actions.--(1) The 
Secretary shall review the incentives and personnel actions available 
to the Secretary for encouraging excellence in the acquisition 
workforce of the Department of Defense and, to the maximum extent 
practicable, provide an enhanced system of incentives for the 
encouragement of excellence in such workforce.
    (2) The Secretary shall specifically consider whether action should 
be taken under section 1736 of title 10, United States Code (as added 
by subsection (b)), in the case of acquisition program executive 
officers and acquisition program managers.
    (3) The Secretary shall prescribe in regulations a system of 
incentives for encouraging professional excellence among the functional 
analysts (referred to in section 2286 of title 10, United States Code, 
as added by section 101) in the acquisition workforce.
    (b) Enhanced Grades of Certain Acquisition Managers.--(1) 
Subchapter III of chapter 87 of title 10, United States Code, is 
amended--
            (A) by redesignating sections 1736 and 1737 as sections 
        1737 and 1738, respectively; and
            (B) by inserting after section 1735 the following new 
        section 1736:
``Sec. 1736. Grade of certain acquisition managers
    ``(a) Program Executive Officer.--(1)(A) Subject to subparagraph 
(B), the position of acquisition program executive officer carries the 
grade of brigadier general, rear admiral (lower half), major general, 
or rear admiral, as the Secretary of Defense determines appropriate.
    ``(B) The President may designate a position of acquisition program 
executive officer as a position of importance and responsibility to 
carry the grade of lieutenant general or vice admiral under section 
601(a) of this title.
    ``(C) The President or the Secretary of Defense may designate a 
position of acquisition program executive officer to carry a grade 
above brigadier general or rear admiral (lower half) only when the 
President or Secretary, as the case may be, determines that the member 
serving in that position has performed the duties of the position of an 
acquisition program executive officer with distinction.
    ``(2) Notwithstanding any other provision of law (other than a 
provision of law limiting the number of positions or personnel in a 
certain grade), the Secretary of Defense may fix the civilian grade of 
a position of acquisition program executive officer at a civilian 
equivalent of a grade referred to in paragraph (1). The Secretary shall 
fix the civilian grade for the position of a particular employee at a 
grade above the civilian equivalent of brigadier general or rear 
admiral (lower half) only if the Secretary determines that the employee 
serving in that position has performed the duties of the position of an 
acquisition program executive officer with distinction.
    ``(b) Acquisition Program Manager.--(1)(A) The position of 
acquisition program manager carries the grade of colonel, brigadier 
general, or major general, or, in the case of the Navy, captain, rear 
admiral (lower half), or rear admiral, as the Secretary of Defense 
determines appropriate.
    ``(B) The Secretary of Defense may designate a position of 
acquisition program manager to carry a grade above colonel or (in the 
case of the Navy) captain only when the Secretary determines that the 
member serving in that position has performed the duties of the 
position of an acquisition program manager with distinction.
    ``(2) Notwithstanding any other provision of law (other than a 
provision of law limiting the number of positions or personnel in a 
certain grade), the Secretary of Defense may fix the civilian grade of 
the position of civilian acquisition program manager at a civilian 
equivalent of a grade referred to in paragraph (1). The Secretary shall 
fix the civilian grade for the position of a particular employee at a 
grade above the civilian equivalent of colonel or (in the case of the 
Navy) captain only if the Secretary determines that the employee 
serving in that position has performed the duties of the position of an 
acquisition program executive officer with distinction.''.
    (2) The table of sections at the beginning of such subchapter is 
amended by striking out the items relating to sections 1736 and 1737 
and inserting in lieu thereof the following:

``1736. Grade of certain acquisition managers.
``1737. Applicability.
``1738. Definitions and general provisions.''.
    (c) Pay for Performance in Acquisition Positions.--(1) Subchapter 
II of chapter 87 of title 10, United States Code, is amended--
            (A) by redesignating sections 1725 as 1726; and
            (B) by inserting after section 1724 the following new 
        section 1725:
``Sec. 1725. Pay for performance
    ``(a) Pay Rates.--(1) The Secretary of Defense may provide for the 
pay rate of an employee in an acquisition position within the 
Department of Defense to be based, to an appropriate extent, on 
specific criteria that relates the pay rate of such employee to the 
employee's contribution to the achievement of the policy goals set 
forth in section 201 of the Department of Defense Acquisition 
Management Reform Act of 1993.
    ``(2) A pay rate established pursuant to paragraph (1) for an 
employee in a position referred to in that subsection may not exceed 
the lesser of--
            ``(A) the amount equal to 130 percent of the maximum pay 
        rate prescribed under law (other than paragraph (1)) for the 
        grade or other pay level of that position; or
            ``(B) the rate of basic pay payable for level V of the 
        Executive Schedule.
    ``(b) Relationship of Personnel Budget to Achievement of Goals.--
The Secretary of Defense, in approving or formulating the personnel 
budget of a military department or Defense Agency for a fiscal year, 
shall consider whether increased funding is appropriate on the basis of 
the achievement by the military department or Defense Agency of the 
schedule, performance, and cost goals for acquisition programs of the 
Department of Defense referred to in section 201 of the Department of 
Defense Acquisition Management Reform Act of 1993.''.
    (2) The table of sections at the beginning of such subchapter is 
amended by striking out the item relating to section 1725 and inserting 
in lieu thereof the following:

``1725. Pay for performance.
``1726. Office of Personnel Management approval.''.

SEC. 204. PROGRAM MANAGEMENT STABILITY.

    (a) Assignment Period for Program Managers.--Section 1734 of title 
10, United States Code, is amended--
            (1) in subsection (b)--
                    (A) in paragraph (1)--
                            (i) by striking out ``the major milestone'' 
                        in subparagraph (A) and all that follows 
                        through the semicolon in such subparagraph and 
                        inserting in lieu thereof ``a phase in the 
                        acquisition program cycle;''; and
                            (ii) by striking out the second sentence 
                        and inserting in lieu thereof the following:
``Except as provided in subsection (c), a person in the position of 
program manager or deputy program manager may not be reassigned from 
such position before completion of a phase in the acquisition program 
cycle.''; and
                    (B) in paragraph (2)--
                            (i) in the first sentence, by striking out 
                        ``the first major milestone'' and all that 
                        follows in the first sentence and inserting in 
                        lieu thereof ``a phase of the acquisition 
                        program cycle.''; and
                            (ii) in the second sentence, by striking 
                        out ``Secretary concerned under subsection 
                        (d)'' and inserting in lieu thereof ``Secretary 
                        of Defense under subsection (c)''; and
            (2) by striking out subsection (c).
    (b) Waiver Authority.--Such section is further amended by striking 
out subsection (d) and inserting in lieu thereof the following:
    ``(c) Waiver of Assignment Period.--(1) With respect to a person 
assigned to a critical acquisition position, the Secretary of Defense 
may waive the prohibition on reassignment of that person (in subsection 
(a)(1) or (b)(1)) and the service obligation in an agreement executed 
by that person (under subsection (a)(2) or (b)(2)), but only in 
exceptional circumstances (specified in regulations prescribed by the 
Secretary) in which a waiver is necessary.
    ``(2) The Director of Acquisition Education, Training, and Career 
Development shall maintain a written record of the rationale for each 
waiver granted under this subsection.''.
    (c) Conforming Amendments and Definition.--Such section is further 
amended--
            (1) by redesignating subsection (e) as subsection (d) and--
                    (A) in paragraph (1) of such subsection, by 
                striking out ``a program manager, after completion of a 
                major program milestone, whichever is longer'' in the 
                first sentence and inserting in lieu thereof ``a 
                program manager or deputy program manager, after 
                completion of a phase of the acquisition program 
                cycle''; and
                    (B) in paragraph (2) of such subsection, by 
                striking out ``of the department concerned'' in the 
                first sentence;
            (2) by redesignating subsection (f) as subsection (e); and
            (3) by striking out subsections (g) and (h) and inserting 
        in lieu thereof the following:
    ``(f) In this section, the term `phase of an acquisition program 
cycle' shall have the meaning given such term in the regulations 
prescribed pursuant to section 2219(b) of this title.''.

            TITLE III--CONTRACT FORMATION AND ADMINISTRATION

               Subtitle A--Performance Based Contracting

SEC. 301. USE OF INCENTIVE CONTRACTS.

    Section 2306(c) of title 10, United States Code, is amended to read 
as follows:
    ``(c) The program executive officer of an acquisition program may 
determine the type of contract to be used when entering into a contract 
under the program. The program executive officer shall use an incentive 
type contract unless the program executive officer determines that such 
a contract would inhibit achievement of acquisition performance 
goals.''.

SEC. 302. PROGRESS PAYMENTS.

    Section 2307 of title 10, United States Code, is amended--
            (1) by redesignating subsections (b), (c), (d), and (e) as 
        subsections (c), (d), (e), and (f), respectively; and
            (2) by inserting after subsection (a) the following new 
        subsection (b):
    ``(b) Payments under subsection (a) may be made on any of the 
following bases:
            ``(1) Performance measured by statistical process controls.
            ``(2) Event accomplishment.
            ``(3) Other quantifiable measures of results.''.

SEC. 303. PREFERENCE FOR CERTIFIED CONTRACTORS.

    (a) Performance Certification System.--Chapter 137 of title 10, 
United States Code is amended by inserting after section 2319 the 
following new section:
``Sec. 2319a. Contractor performance certification system
    ``(a) Certification Authorized.--The Secretary of Defense may 
establish a contractor certification system for the procurement of 
particular property or services that are procured by the Department of 
Defense on a repetitive basis. Under the system, the Secretary shall 
use competitive procedures to certify contractors as eligible for 
contracts to furnish such property or services. The Secretary shall 
award certifications on the basis of the relative efficiency and 
effectiveness of the business practices, level of quality, and 
demonstrated contract performance of the responding contractors with 
regard to the particular property or services.
    ``(b) Procurement From Certified Contractors.--The head of an 
agency within the Department of Defense may enter into a contract for a 
procurement of property or services referred to in subsection (a) on 
the basis of a competition among contractors certified with respect to 
such property or services pursuant to that subsection.
    ``(c) Termination of Certification.--The Secretary--
            ``(1) may provide for the termination of a certification 
        awarded a contractor under this section upon the expiration of 
        a period specified by the Secretary; and
            ``(2) may revoke a certification awarded a contractor under 
        this section upon a determination that the quality of 
        performance of the contractor does not meet standards applied 
        by the Secretary as of the time of the revocation decision.''.
    (b) Clerical Amendment.--The table of sections at the beginning of 
such chapter is amended by inserting after the item relating to section 
2319 the following:

``2319a. Contractor performance certification system.''.

SEC. 304. CONSIDERATION OF PAST PERFORMANCE AND ELIGIBILITY 
              CERTIFICATION.

    Section 2305 of title 10, United States Code, is amended--
            (1) in subsection (a)(2)(A)(i)--
                    (A) by striking out ``(including price)'' and 
                inserting in lieu thereof ``(including price, past 
                contract performance of the offeror, and any 
                certification of the offeror under section 2319a of 
                this title)''; and
                    (B) by striking out ``cost- or price-related 
                factors, and noncost- or nonprice-related factors'' and 
                inserting in lieu thereof the following: ``cost-related 
                or price-related factors, past contract performance of 
                the offeror, any certification of the offeror under 
                section 2319a of this title, and other noncost-related 
                or price-related factors'';
            (2) in subsection (b)--
                    (A) in paragraph (3), by striking out ``and the 
                other price-related factors included in the 
                solicitation'' in the second sentence and inserting in 
                lieu thereof ``, the other price-related factors 
                included in the solicitation, the past contract 
                performance (if any) of the offerors, and any 
                certification of offerors under section 2319a of this 
                title''; and
                    (B) in paragraph (4)(B), by striking out ``and the 
                other factors included in the solicitation'' in the 
                first sentence and inserting in lieu thereof ``, the 
                past contract performance (if any) of the offerors, any 
                certification of offerors under section 2319a of this 
                title, and the other factors included in the 
                solicitation'';
            (3) in subsection (c)(1), by inserting ``past performance 
        of the offerors, any certification of offerors under section 
        2319a of this title,'' after ``(considering quality, price, 
        delivery,''; and
            (4) by adding at the end the following new subsection:
    ``(e) The Secretary of Defense shall maintain a contractor 
performance data base. The Secretary shall include in the data base 
information on the history of the performance of each contractor under 
Department of Defense contracts and, for each such contract performed 
by the contractor, a technical evaluation of the contractor's 
performance prepared by the acquisition program manager responsible for 
the contract. The Secretary shall make information in the data base 
available to acquisition program executive officers and acquisition 
program managers of the Department of Defense.''.

               Subtitle B--Efficient Contracting Process

SEC. 311. SIMPLIFIED ACQUISITION THRESHOLD.

    (a) Simplified Contracting for Contracts Not Exceeding $100,000.--
Section 2302(7) of title 10, United States Code, is amended to read as 
follows:
            ``(7) The term `simplified acquisition threshold' means 
        $100,000.''.
    (b) Simplified Acquisition Procedures.--Section 2304(g) of title 
10, United States Code, is amended--
            (1) in paragraph (1), by striking out ``small purchases of 
        property and services'' and inserting in lieu thereof 
        ``purchases of property and services not in excess of the 
        simplified acquisition threshold'';
            (2) by striking out paragraph (2);
            (3) by redesignating paragraphs (3) and (4) as paragraphs 
        (2) and (3), respectively;
            (4) in paragraph (2), as so redesignated--
                    (A) by striking out ``small purchase threshold'' 
                and inserting in lieu thereof ``simplified acquisition 
                threshold''; and
                    (B) by striking out ``small purchase procedures'' 
                and inserting in lieu thereof ``simplified 
                procedures''; and
            (5) in paragraph (3), as redesignated by paragraph (3), by 
        striking out ``small purchase procedures'' and inserting in 
        lieu thereof ``simplified procedures''.
    (c) Reservation for Small Businesses.--Section 2304(g) of such 
title, as amended by subsection (b), is further amended by adding at 
the end the following new paragraph (4):
    ``(4) The Secretary of Defense shall reserve for small businesses 
contracts that are awarded under procedures authorized by paragraph (1) 
if there are at least two small businesses that compete for such 
contracts. In using such procedures, for awarding contracts to small 
businesses or otherwise, the Secretary shall promote competition to the 
maximum extent practicable.''.
    (d) Conforming Amendments.--Title 10, United States Code, is 
amended as follows:
            (1) Section 2304(j)(3)(A) is amended by striking out 
        ``small purchase threshold'' and inserting in lieu thereof 
        ``simplified acquisition threshold''.
            (2) Section 2305(a)(2) is amended by striking out ``small 
        purchases)'' in the matter above subparagraph (A) and inserting 
        in lieu thereof ``purchases not in excess of the simplified 
        acquisition threshold)''.
            (3) Section 2306(e)(2)(A) is amended by striking out 
        ``small purchase threshold'' and inserting in lieu thereof 
        ``simplified acquisition threshold''.
            (4) Subsection (e) of section 2307, as redesignated by 
        section 302(c), is amended by striking out paragraph (3) and 
        inserting in lieu thereof the following:
    ``(3) This subsection applies to a contract for an amount equal to 
or greater than the simplified acquisition threshold.''.
            (5) Section 2326(g)(1)(B) is amended by striking out 
        ``small purchase threshold'' and inserting in lieu thereof 
        ``simplified acquisition threshold''.
            (6) Section 2393(d) is amended in the second sentence by 
        striking out ``above the small purchase amount established in 
        section 2304(g) of this title'' and inserting in lieu thereof 
        ``in excess of the simplified acquisition threshold (as defined 
        in section 2302(7) of this title)''.
            (7) Section 2397(a)(1) is amended by striking out ``small 
        purchase threshold'' and inserting in lieu thereof ``simplified 
        acquisition threshold''.
            (8) Section 2410i(b)(1) is amended by striking out ``small 
        purchase threshold (as defined in section 4(11) of the Office 
        of Federal Procurement Policy Act (41 U.S.C. 403(11)))'' and 
        inserting in lieu thereof ``simplified acquisition threshold 
        (as defined in section 2302(7) of this title)''.
    (e) Davis-Bacon--(1) In General.--The first section of the Act of 
March 3, 1931 (40 U.S.C. 276a), commonly referred to as the ``Davis-
Bacon Act'', is amended in subsection (a) by striking out ``$2,000'' 
and inserting in lieu thereof ``the simplified acquisition threshold 
(as defined in section 4(11) of the Office of Federal Procurement 
Policy Act (41 U.S.C. 403(11)))''.
    (2) Related Regulations.--Section 2 of the Act of June 13, 1934 (40 
U.S.C. 276c) is amended--
            (A) by inserting after ``engaged'' the following: ``under 
        contracts in excess of the simplified acquisition threshold''; 
        and
            (B) by adding at the end the following: ``In this section, 
        the term `simplified acquisition threshold' has the meaning 
        given such term in section 4(11) of the Office of Federal 
        Procurement Policy Act (41 U.S.C. 403(11)).''.
    (f) Service Contract Act.--(1) In General.--Section 2(a) of the 
Service Contract Act of 1965 (41 U.S.C. 351(a)) is amended by striking 
out ``$2,500'' and inserting in lieu thereof ``the simplified 
acquisition threshold''
    (2) Section 8 of such Act (41 U.S.C. 357) is amended by adding at 
the end the following:
    ``(e) The term `simplified acquisition threshold' has the meaning 
given such term in section 4(11) of the Office of Federal Procurement 
Policy Act (41 U.S.C. 403(11)).''.

SEC. 312. PROCUREMENT NOTICE FOR CERTAIN CONTRACTS NOT IN EXCESS OF THE 
              SIMPLIFIED ACQUISITION THRESHOLD.

    (a) Department of Defense Procurements.--(1) Chapter 137 of title 
10, United States Code, is amended by inserting after section 2304 the 
following new section:
``Sec. 2304a. Procurement Notice
    ``(a) In General.--The Secretary of Defense shall comply with the 
requirements of section 18 of the Office of Federal Procurement Policy 
Act (41 U.S.C. 416) in providing notice of procurements of the 
Department of Defense.
    ``(b) Other Notice.--The Secretary of Defense shall establish a 
system for providing widespread notice of Department of Defense 
procurements not required to be published in the Commerce Business 
Daily.''.
    (2) The table of sections at the beginning of such chapter is 
amended by inserting after the item relating to section 2304 the 
following:

``2304a. Procurement Notice.''.
    (b) Automated Notice and Offer Systems.--(1) The Secretary of 
Defense may make available solicitations and other notices of 
procurements by means of an automated system.
    (2) The Secretary shall implement a system for automated submission 
of offers and quotes for acquisitions of the Department of Defense. The 
system shall be accessible to commercial offerors, regardless of size, 
at minimal cost to the offerors and with minimal effort from the 
offerors.

SEC. 313. ACQUISITION OF COMMERCIAL ITEMS AND NONDEVELOPMENTAL ITEMS.

    (a) Preference.--Section 2325 of title 10, United States Code, is 
amended to read as follows:
``Sec. 2325. Acquisition of commercial items and nondevelopmental items
    ``(a) Limitation on Acquisition of Unique Items.--The Secretary of 
Defense may develop and acquire equipment or supplies other than 
commercial items or nondevelopmental items to meet requirements of the 
Department of Defense only if no such items are available to meet such 
requirements.
    ``(b) Flexible Acquisition Procedures.--(1) Notwithstanding any 
other provision of this chapter or of any other law, the Secretary may 
use flexible acquisition procedures for the acquisition of commercial 
items and nondevelopmental items.
    ``(2) The Secretary shall prescribe the flexible procedures 
authorized for use in acquisitions referred to in paragraph (1). Such 
procedures shall include--
            ``(A) procedures identical to the simplified procedures 
        prescribed pursuant to section 2304(g) of this title for 
        acquisitions not in excess of the simplified acquisition 
        threshold;
            ``(B) procedures involving a request for quotations and a 
        brief evaluation period; and
            ``(C) any other procedures that the Secretary considers 
        appropriate.
    ``(c) Defining Departmental Needs.--The Secretary of Defense shall 
ensure that, to the maximum extent practicable, requirements of the 
Department of Defense with respect to a procurement of equipment or 
supplies--
            ``(1) are stated in terms of--
                    ``(A) functions to be performed;
                    ``(B) performance required; or
                    ``(C) essential physical characteristics;
            ``(2) are defined so that commercial items or other 
        nondevelopmental items fulfill such requirements; and
            ``(3) are fulfilled through the procurement of commercial 
        items or other nondevelopmental items.
    ``(d) Implementation.--The Secretary shall ensure that procurement 
officials in the Department of Defense, to the maximum extent 
practicable--
            ``(1) acquire commercial items or other nondevelopmental 
        items to meet the needs of the department;
            ``(2) require prime contractors and subcontractors at all 
        levels under the department contracts to incorporate commercial 
        items or other nondevelopmental items as components of items 
        supplied to the Department of Defense;
            ``(3) modify requirements in appropriate cases to ensure 
        that the requirements can be met by commercial items or other 
        nondevelopmental items;
            ``(4) state specifications in terms that enable and 
        encourage bidders and offerors to supply commercial items or 
        other nondevelopmental items in response to Department of 
        Defense solicitations;
            ``(5) revise the department's procurement policies, 
        practices, and procedures not required by law to reduce any 
        impediments in those policies, practices, and procedures to the 
        acquisition of commercial items and other nondevelopmental 
        items; and
            ``(6) require training of appropriate personnel in the 
        acquisition of commercial items and other nondevelopmental 
        items.
    ``(e) Inapplicability of Cost Accounting Standards.--Subsections 
(f) and (h) of section 26 of the Office of Federal Procurement Policy 
Act (41 U.S.C. 422) do not apply to--
            ``(1) acquisitions of commercial items; and
            ``(2) acquisitions of nondevelopmental items described in 
        subsection (f)(2)(C) of this section.
    ``(f) Definitions.--In this section:
            ``(1) The term `commercial item' means--
                    ``(A) property, other than real property, that is 
                regularly used by the general public or by 
                nongovernmental entities in the course of normal 
                business operations for purposes other than 
                governmental purposes and--
                            ``(i) has been sold or licensed to the 
                        general public;
                            ``(ii) has not been sold or licensed to the 
                        general public but has been offered for sale or 
                        license to the general public; or
                            ``(iii) is not yet available in the 
                        commercial marketplace but will be made 
                        available for commercial delivery within a 
                        reasonable period;
                    ``(B) any property that, before undergoing minor 
                modifications to meet Government requirements or 
                modifications customary for that type of property in 
                the commercial marketplace, is a commercial item within 
                the meaning of subparagraph (A);
                    ``(C) any combination of items meeting the 
                requirements of subparagraph (A) or (B) that are of a 
                type customarily combined and sold in combination to 
                the general public; and
                    ``(D) installation services, maintenance services, 
                repair services, training services, and other services 
                if such services are procured for support of an item 
                referred to in subparagraph (A), (B), or (C) and if the 
                source of such services--
                            ``(i) offers such services to the general 
                        public and the Federal Government 
                        contemporaneously under similar terms and 
                        conditions; and
                            ``(ii) offers to use the same work force 
                        for providing the Federal Government with such 
                        services as the source uses for providing such 
                        services to the general public.
            ``(2) The term `nondevelopmental item' means--
                    ``(A) any commercial item;
                    ``(B) any previously developed item of supply that 
                is in use by a department or agency of the United 
                States, a State or local government, or a foreign 
                government with which the United States has a mutual 
                defense cooperation agreement;
                    ``(C) any item of supply described in subparagraph 
                (A) or (B) that requires only minor modification of the 
                type normally available in the commercial marketplace 
                in order to meet the requirements of the Department of 
                Defense; or
                    ``(D) any item of supply currently being produced 
                that does not meet the requirements of subparagraph 
                (A), (B), or (C) solely because the item--
                            ``(i) is not yet in use; or
                            ``(ii) is not yet available in the 
                        commercial marketplace.''.
    (b) Clerical Amendment.--The item relating to such section in the 
table of sections at the beginning of chapter 137 of such title is 
amended to read as follows:

``2325. Acquisition of commercial items and nondevelopmental items.''.

SEC. 314. SPECIFICATIONS AND STANDARDS.

    Section 2305(a)(1)(C) of title 10, United States Code, is amended 
in the second sentence by striking out ``Subject to such needs, 
specification may'' and inserting in lieu thereof the following: 
``Normally, the specifications shall be the specifications of 
commercial items or other nondevelopmental items (as defined in section 
2325 of this title). When such items cannot meet bona fide needs of the 
Department of Defense, specifications shall''.

SEC. 315. INNOVATIVE PROCEDURES, TECHNIQUES, AND STRATEGIES.

    The Secretary of Defense shall provide for use of innovative 
procedures, techniques, and strategies in acquisition programs of the 
Department of Defense in order to reduce the time necessary for 
defining requests for proposals and quotes and for selection of sources 
under such acquisition programs.

SEC. 316. PROCESS ORIENTED CONTRACT ADMINISTRATION.

    (a) Sense of Congress.--It is the sense of Congress that the 
Defense Logistics Agency should be commended for testing of process-
oriented contract administration services and that the continued 
testing of total quality management techniques by such agency should be 
encouraged.
    (b) Reporting Requirement.--The Secretary of Defense shall include 
in the annual report submitted to Congress under section 113(c) of 
title 10, United States Code, an assessment of the testing of process-
oriented contract administration services by the Defense Logistics 
Agency. The assessment shall include, among other matters considered 
appropriate by the Secretary, a discussion of the use of measures of 
performance and a discussion of the overall effectiveness of the 
program.

                    Subtitle C--Procurement Protests

SEC. 321. POST-AWARD DEBRIEFINGS.

    Section 2305(b) of title 10, United States Code, is amended--
            (1) by redesignating paragraph (5) as paragraph (6); and
            (2) by inserting after paragraph (4) the following new 
        paragraph (5):
    ``(5)(A) When a contract is awarded by an agency on the basis of 
competitive proposals, an unsuccessful offeror, upon written request 
received by the agency within 7 days after the date of contract award, 
shall be debriefed and furnished the basis for the selection decision 
and contract award. An employee of the agency shall debrief the offeror 
within 7 days after receipt of the request by the agency.
    ``(B) The debriefing shall provide the offeror with--
            ``(i) the agency's evaluation of the significant weak or 
        deficient factors in the offeror's offer;
            ``(ii) the overall evaluated cost of the offer of the 
        contractor awarded the contract and the overall evaluated cost 
        of the offer of the debriefed offeror;
            ``(iii) the overall ranking of all offers and the total 
        technical and cost scores of all offers;
            ``(iv) a summary of the rationale for the award;
            ``(v) in the case of a proposal that incorporates equipment 
        that is a commercial item, the make and model of the item 
        incorporated in the offer of the contractor awarded the 
        contract; and
            ``(vi) reasonable responses to questions posed by the 
        debriefed offeror as to whether source selection procedures set 
        forth in the solicitation, applicable regulations, and other 
        applicable authorities were followed by the agency.
    ``(C) The debriefing may not include point-by-point comparisons of 
the debriefed offeror's offer with other offers and may not disclose 
any information that is exempt from disclosure under section 552 of 
title 5, including information relating to--
            ``(i) trade secrets;
            ``(ii) privileged or confidential manufacturing processes 
        and techniques; and
            ``(iii) commercial and financial information that is 
        privileged or confidential, including cost breakdowns, profit, 
        indirect cost rates, and similar information.
    ``(D) Each solicitation for competitive proposals shall include a 
statement that information described in subparagraph (B) may be 
disclosed in post-award debriefings.
    ``(E) If, within one year after the date of the contract award and 
as a result of a successful procurement protest or otherwise, the 
agency seeks to fulfill the requirement under the contract either on 
the basis of a new solicitation of offers or on the basis of the best 
and final offers considered in the awarding of that contract, the 
agency shall provide each such offeror with--
            ``(i) all information provided in debriefings under this 
        paragraph regarding the offer of the contractor awarded the 
        contract; and
            ``(ii) all comparable information with respect to the 
        original offerors.
    ``(F) The contracting officer shall include a summary of the 
debriefing in the contract file.''.

SEC. 322. COMPTROLLER GENERAL REMEDIES.

    (a) Periods for Certain Actions.--Section 3554 of title 31, United 
States Code, is amended--
            (1) by adding at the end of subsection (b) the following 
        new paragraph:
    ``(3) If, pursuant to paragraph (1)(B), the Comptroller General 
recommends that a Federal agency recompete a contract immediately, the 
Federal agency shall carry out that recommendation.''; and
            (2) in subsection (c), striking out paragraph (1) and 
        inserting in lieu thereof the following:
    ``(1) If the Comptroller General determines that a solicitation for 
a contract or a proposed award of a contract does not comply with a 
statute or regulation, the Comptroller General may declare an 
appropriate interested party to be entitled to any of the following:
            ``(A) Damages.
            ``(B) The costs of filing and pursuing the protest, 
        including reasonable attorneys' fees.
            ``(C) The costs of bid and proposal preparation.''.

                       Subtitle D--Other Matters

SEC. 331. UNIFICATION OF PROCUREMENT LAWS.

    The Administrator for Federal Procurement Policy shall submit to 
Congress proposed legislation that--
            (1) unifies the procurement laws applicable to the 
        Department of Defense, the Coast Guard, and the National 
        Aeronautics and Space Administration with the procurement laws 
        applicable to the other departments and agencies of the Federal 
        Government; and
            (2) applies to all departments and agencies of the Federal 
        Government the policies, authorities, procedures, requirements, 
        limitations, and restrictions set forth in the provisions of 
        titles I through III of this Act and in the amendments made by 
        such provisions.

                    TITLE IV--CONFORMING AMENDMENTS

SEC. 401. MODIFICATION OF THE RESPONSIBILITY OF THE COMPTROLLER OF THE 
              DEPARTMENT OF DEFENSE FOR DEFENSE ACQUISITION BUDGETS.

    Section 137(c) of title 10, United States Code, is amended in each 
of paragraphs (2), (3), and (4), by inserting after the paragraph 
designation the following: ``subject to section 133(b) of this 
title,''.

SEC. 402. THE DEFENSE ACQUISITION WORK FORCE.

    (a) General Authorities and Responsibilities.--(1)(A) Sections 
1704, 1705, and 1707 of title 10, United States Code, are repealed.
    (B) The table of sections at the beginning of subchapter I of 
chapter 87 of such title is amended by striking out the items relating 
to sections 1704 through 1707 and inserting in lieu thereof the 
following:

``1704. Acquisition career program boards.''.
    (2) Section 1706 of title 10, United States Code, is amended--
            (A) in the section heading by striking out ``Sec. 1706'' 
        and inserting in lieu thereof ``Sec. 1704'';
            (B) by striking out subsection (a) and inserting in lieu 
        thereof the following:
    ``(a) Establishment.--The Under Secretary of Defense for 
Acquisition shall establish an acquisition career program board to 
advise the Under Secretary in managing the accession, training, 
education, and career development of military and civilian personnel in 
the acquisition workforce and in selecting individuals for the 
Acquisition Corps under section 1731 of this title.'';
            (C) in subsection (b)--
                    (i) in the first sentence, by striking out ``Each'' 
                and inserting in lieu thereof ``The''; and
                    (ii) in the second sentence, by striking out 
                ``service acquisition executive'' and inserting in lieu 
                thereof ``Under Secretary''; and
            (D) in subsection (c)--
                    (i) by striking out ``Secretary of a military 
                department'' and inserting in lieu thereof ``Under 
                Secretary''; and
                    (ii) by striking out ``in the department''.
    (b) Defense Acquisition Positions.--(1) Section 1722 of title 10, 
United States Code, is amended--
            (A) in subsection (g), by striking out ``Secretary of each 
        military department, acting through the service acquisition 
        executive for that department,'' and inserting in lieu thereof 
        ``Secretary of Defense''; and
            (B) in subsection (h), by striking out ``or the Secretary 
        of a military department (as applicable)''.
    (2) Section 1724(d) of such title is amended in the first 
sentence--
            (A) by striking out ``a military department'' and inserting 
        in lieu thereof ``the Department of Defense''; and
            (B) by striking out ``of that military department''.
    (c) Acquisition Corps.--(1) Section 1731 of title 10, United States 
Code, is amended--
            (A) by striking out subsection (a) and inserting in lieu 
        thereof the following:
    ``(a) Acquisition Corps.--The Secretary of Defense shall establish 
a Department of Defense Acquisition Corps.''; and
            (B) in subsection (b), by striking out ``an Acquisition 
        Corps'' and inserting in lieu thereof ``the Acquisition 
        Corps''.
    (2) Section 1732 of such title is amended--
            (A) in subsection (b)--
                    (i) in paragraph (2)(A)(ii), by striking out ``of 
                the employing military department''; and
                    (ii) in paragraph (4), by striking out ``or the 
                Secretary of the military department concerned''; and
            (B) in subsection (d)--
                    (i) by striking out ``of a military department'' in 
                the first sentence of paragraph (1) and in paragraph 
                (2); and
                    (ii) by striking out ``of that military 
                department'' in the first sentence of paragraph (1).
    (3) Section 1733(a) of such title is amended by striking out ``an 
Acquisition Corps'' and inserting in lieu thereof ``the Acquisition 
Corps''.
    (4) Section 1734(a) of such title is amended--
                    (A) in paragraph (1)--
                            (i) in the first sentence, by striking out 
                        ``Secretary of each military department, acting 
                        through the service acquisition executive for 
                        that department,'' and inserting in lieu 
                        thereof ``Secretary of Defense, acting through 
                        the Under Secretary of Defense for 
                        Acquisition,''; and
                            (ii) in the second sentence, by striking 
                        out ``concerned''; and
                    (B) in paragraph (2), by striking out ``concerned'' 
                in the second sentence.
    (5) Section 1738 of title 10, United States Code (as redesignated 
by section 203(b)(1)(A)), is amended--
            (A) in subsection (a)--
                    (i) in paragraph (1), by striking out ``an 
                Acquisition Corps'' and inserting in lieu thereof ``the 
                Acquisition Corps''; and
                    (ii) in paragraph (5), by striking out ``, 
                serving'' and all that follows through ``Department of 
                Defense''; and
            (B) by striking out subsection (c) and inserting in lieu 
        thereof the following:
    ``(c) Waiver.--(1) The Secretary of Defense may waive, on a case-
by-case basis, the requirements established under this subchapter with 
respect to the assignment of an individual to a particular critical 
acquisition position. Such a waiver may be granted only if unusual 
circumstances justify the waiver or if the Secretary determines that 
the individual's qualifications obviate the need for meeting the 
education, training, and experience requirements established under this 
subchapter.
    ``(2) The Secretary shall act through the Under Secretary of 
Defense for Acquisition in exercising the authority provided in 
paragraph (1). The authority to grant waivers under this subsection may 
be delegated by the Under Secretary only to the Director of Acquisition 
Education, Training, and Career Development.''.
    (d) Education and Training.--(1) Section 1741(c) of title 10, 
United States Code, is amended to read as follows:
    ``(c) Programs.--The Under Secretary shall establish and implement 
the education and training programs authorized by this subchapter.''.
    (2) Section 1742 of such title is amended by striking out ``require 
that each military department''.
    (3) Section 1743 of such title is amended in the first sentence by 
striking out ``require that the Secretary of each military 
department''.
    (e) General Management.--(1) Section 1761(a) of title 10, United 
States Code, is amended by striking out ``prescribe regulations to 
ensure that the military departments and Defense Agencies''.
    (2) Section 1762(c) of such title is amended--
            (A) by striking out the parenthetical material in the 
        matter above paragraph (1); and
            (B) in paragraph (4)(A), by striking out ``an acquisition 
        corps'' and inserting in lieu thereof ``the Acquisition 
        Corps''.
    (3) Section 1763 of such title is amended by striking out the 
second sentence.

SEC. 403. PROCUREMENT PROCEDURES GENERALLY.

    Chapter 137 of title 10, United States Code, is amended as follows:
            (1) Section 2305(d) is amended--
                    (A) in the first sentence of paragraph (1)(A), by 
                striking out ``shall ensure that,'' and all that 
                follows through ``the head of an agency'' and inserting 
                in lieu thereof ``, in preparing a solicitation for the 
                award of a development contract for a major system, 
                shall'';
                    (B) in the first sentence of paragraph (2)(A), by 
                striking out ``shall ensure that,'' and all that 
                follows through ``the head of an agency'' and inserting 
                in lieu thereof ``, in preparing a solicitation for the 
                award of a production contract for a major system, 
                shall'';
                    (C) by striking out ``the head of the agency'' each 
                place it appears and inserting in lieu thereof ``the 
                Secretary''; and
                    (D) by striking out ``the head of an agency'' each 
                place it appears and inserting in lieu thereof ``the 
                Secretary of Defense''.
            (2) Section 2306(h) is amended--
                    (A) in paragraph (1), by striking out ``the head of 
                an agency'' in the matter above subparagraph (A) and 
                inserting in lieu thereof ``the Secretary of Defense'';
                    (B) in paragraph (2)(D), by striking out ``agencies 
                in'' in the matter above clause (i);
                    (C) in paragraph (3), by striking out ``the head of 
                the agency concerned'' and inserting in lieu thereof 
                ``the Secretary of Defense'';
                    (D) by striking out paragraph (7);
                    (E) in paragraph (10), by striking out ``instruct 
                the Secretary of the military department concerned 
                to''; and
                    (F) by redesignating paragraphs (8), (9), (10), and 
                (11) as paragraphs (7), (8), (9), and (10), 
                respectively.
            (3) Section 2307(e)(7) is amended by striking out the 
        second sentence.
            (4) Section 2311 is amended--
                    (A) by striking out ``Except as provided in'' and 
                inserting in lieu thereof ``(a) Except as provided in 
                subsection (b) and''; and
                    (B) by adding at the end the following new 
                subsection:
    ``(b) The Secretary of Defense may delegate any authority of the 
Secretary under this chapter only to--
            ``(1) the Deputy Secretary of Defense, who may successively 
        delegate such authority only to the Under Secretary of Defense 
        for Acquisition;
            ``(2) the Under Secretary of Defense for Acquisition; or
            ``(3) any acquisition program executive officer or 
        acquisition program manager of the Defense Research, 
        Development, and Acquisition Agency.''.
            (5) Section 2318 is amended--
                    (A) in subsection (a), by striking out ``Defense 
                Logistics Agency'' each place it appears and inserting 
                in lieu thereof ``Defense Research, Development, and 
                Acquisition Agency''; and
                    (B) in subsection (c), by striking out ``Each 
                advocate for competition of an agency'' and inserting 
                in lieu thereof ``The advocate for competition''.
            (6) Section 2320(b) is amended--
                    (A) in the matter above paragraph (1), by striking 
                out ``an agency named in section 2303 of this title'' 
                and inserting in lieu thereof ``the Department of 
                Defense''; and
                    (B) in paragraph (9), by striking out ``the head of 
                the agency to withhold'' and inserting in lieu thereof 
                ``the withholding of''.
            (7) Section 2324 is amended--
                    (A) in subsection (e)--
                            (i) in paragraph (2)(C), by striking out 
                        ``head of the agency awarding the contract'' 
                        and inserting in lieu thereof ``Secretary''; 
                        and
                            (ii) in paragraph (3)--
                                    (I) in subparagraph (A), by 
                                striking out the matter above clause 
                                (i) and inserting in lieu thereof the 
                                following:
    ``(A) Pursuant to regulations prescribed by the Secretary and 
subject to the availability of appropriations, the Secretary may waive 
the application of the provisions of paragraphs (1)(M) and (1)(N) to a 
covered contract (other than a contract to which paragraph (2) applies) 
if the Secretary determines that--'';
                                    (II) by striking out ``head of an 
                                agency'' each place it appears in 
                                subparagraphs (B) and (C); and
                                    (III) in subparagraph (B)(ii), by 
                                striking out ``head of the agency will 
                                consider granting such waiver, and, if 
                                the agency head'' and inserting in lieu 
                                thereof ``Secretary will consider 
                                granting such waiver, and, if the 
                                Secretary'';
                    (B) in subsection (h)(2), by striking out ``or the 
                Secretary of the military department concerned''; and
                    (C) in subsection (k)(4)--
                            (i) by striking out ``the head of the 
                        agency that awarded the covered contract'' and 
                        inserting in lieu thereof ``the Secretary of 
                        Defense'';
                            (ii) by striking out ``the agency head'' 
                        and inserting in lieu thereof ``the 
                        Secretary'';
                            (iii) by striking out ``such agency head'' 
                        and inserting in lieu thereof ``the 
                        Secretary''; and
                            (iv) in clause (B), by striking out 
                        ``agency'' and inserting in lieu thereof 
                        ``Department of Defense''.
            (8) Section 2326 is amended--
                    (A) by striking out ``head of an agency'' each 
                place it appears and inserting in lieu thereof 
                ``Secretary of Defense'';
                    (B) by striking out ``head of the agency'' each 
                place it appears and inserting in lieu thereof 
                ``Secretary of Defense''; and
                    (C) in subsection (a), by striking out ``military 
                department concerned'' and inserting in lieu thereof 
                ``Department of Defense''.
            (9) Section 2327 is amended--
                    (A) in subsection (a), by striking out ``The head 
                of an agency'' and inserting in lieu thereof ``The 
                Secretary of Defense'';
                    (B) in subsection (b), by striking out ``the head 
                of an agency'' and inserting in lieu thereof ``the 
                Secretary of Defense'';
                    (C) in subsection (c)(1)--
                            (i) by striking out ``the head of an 
                        agency'' each place it appears and inserting in 
                        lieu thereof ``the Secretary''; and
                            (ii) by striking out ``such head of an 
                        agency'' each place it appears and inserting in 
                        lieu thereof ``the Secretary'';
                    (D) in subsection (c)(2), by striking out ``Upon 
                the request of the head of an agency, the'' and 
                inserting in lieu thereof ``The''; and
                    (E) in subsection (d)--
                            (i) by striking out ``(1)''; and
                            (ii) by striking out paragraph (2).
            (10) Section 2329 is amended--
                    (A) in subsection (a), by striking out the second 
                sentence;
                    (B) in subsection (b), by striking out ``the 
                Secretary of a military department'' and inserting in 
                lieu thereof ``the Secretary of Defense'';
                    (C) in subsection (c)--
                            (i) by striking out ``the Secretary 
                        concerned'' each place it appears and inserting 
                        in lieu thereof ``the Secretary of Defense''; 
                        and
                            (ii) by striking out the second sentence of 
                        paragraph (3).

SEC. 404. RESEARCH AND DEVELOPMENT.

    Chapter 139 of title 10, United States Code, is amended as follows:
            (1) Section 2352(a) is amended in the matter above 
        paragraph (1)--
                    (A) by striking out ``The Secretary of a military 
                department'' and inserting in lieu thereof ``The 
                Secretary of Defense''; and
                    (B) by striking out ``of that military 
                department''.
            (2) Section 2353 is amended--
                    (A) in the first sentence of subsection (a)--
                            (i) by striking out ``contract of a 
                        military department'' and inserting in lieu 
                        thereof ``Department of Defense contract''; and
                            (ii) by striking out ``the Secretary of the 
                        military department concerned'' and inserting 
                        in lieu thereof ``the Secretary of Defense''; 
                        and
                    (B) in subsection (b)(3), by striking out ``the 
                Secretary concerned'' and inserting in lieu thereof 
                ``the Secretary of Defense''.
            (3) Section 2354 is amended--
                    (A) in subsection (a), by striking out ``the 
                Secretary of the military department concerned, any 
                contract of a military department'' and inserting in 
                lieu thereof ``the Secretary of Defense, any contract 
                of the Department of Defense'';
                    (B) in subsection (c)--
                            (i) by striking out ``the Secretary of the 
                        department concerned'' and inserting in lieu 
                        thereof ``the Secretary of Defense''; and
                            (ii) by striking out ``of his department''; 
                        and
                    (C) in subsection (d), by striking out ``the 
                Secretary concerned'' and inserting in lieu thereof 
                ``the Secretary of Defense''.
            (4) Section 2355 is amended--
                    (A) by striking out ``Secretary of each military 
                department'' and all that follows through ``Comptroller 
                General,'' and inserting in lieu thereof ``Secretary of 
                Defense, with the approval of the Comptroller General, 
                may''; and
                    (B) by striking out ``his department''.
            (5) Section 2356(a) is amended to read as follows:
    ``(a)(1) Except as provided in paragraph (2), the Secretary of 
Defense may delegate any authority under section 1584, 2353, 2354, 
2355, or 2358 of this title to--
            ``(A) the Deputy Secretary of Defense, who may successively 
        delegate such authority only to the Under Secretary of Defense 
        for Acquisition;
            ``(B) the Under Secretary of Defense for Acquisition; or
            ``(C) any employee of the Defense Research, Development, 
        and Acquisition Agency.
    ``(2) The authority of the Secretary under section 2353(b)(3) of 
this title may not be delegated to a person described in paragraph 
(1)(C).''.
            (6) Section 2367(c) is amended to read as follows:
    ``(c) Funds appropriated to the Department of Defense may not be 
obligated or expended for purposes of operating a federally funded 
research center that was not in existence before June 2, 1986, until--
            ``(1) the Secretary of Defense submits to Congress a report 
        with respect to such center that describes the purpose, 
        mission, and general scope of effort of the center; and
            ``(2) 60 days elapse after the date on which such report is 
        received by Congress.''.
            (7) Section 2369 is amended--
                    (A) in subsection (a), by striking out ``a program 
                for the supervision and coordination of'' and inserting 
                in lieu thereof ``and conduct appropriate''; and
                    (B) by striking out subsection (b) and inserting in 
                lieu thereof the following:
    ``(b) Purpose of Product Evaluation.--The purpose of each product 
evaluation activity established under subsection (a) is to evaluate 
products developed by private industry independent of any contract or 
other arrangement with the United States in order to determine the 
utility of such products in the Department of Defense.''.
            (8) Subsections (a) and (g) of section 2371 are amended by 
        striking out ``in carrying out advanced research projects 
        through the Defense Advanced Research Projects Agency, and the 
        Secretary of each military department,''.

SEC. 405. MISCELLANEOUS PROCUREMENT PROVISIONS.

    Chapter 141 of title 10, United States Code, is amended as follows:
            (1) Section 2381 is amended--
                    (A) in subsection (a)--
                            (i) by striking out ``The Secretary of a 
                        military department'' and inserting in lieu 
                        thereof ``The Secretary of Defense''; and
                            (ii) by striking out ``that department'' in 
                        paragraph (1) and inserting in lieu thereof 
                        ``the Department of Defense''; and
                    (B) in subsection (b)--
                            (i) in the matter above paragraph (1), by 
                        striking out ``the Secretary concerned'' and 
                        inserting in lieu thereof ``the Secretary of 
                        Defense''; and
                            (ii) in paragraph (2), by striking out 
                        ``military department concerned'' and inserting 
                        in lieu thereof ``Department of Defense''.
            (2) Section 2385 is amended by striking out ``a military 
        department'' and inserting in lieu thereof ``the Department of 
        Defense''.
            (3) Section 2386 is amended by striking out ``a military 
        department'' and inserting in lieu thereof ``the Department of 
        Defense''.
            (4) Section 2388(a) is amended by striking out ``The 
        Secretary of a military department'' and inserting in lieu 
        thereof ``The Secretary of Defense''.
            (5) Section 2393 is amended--
                    (A) in subsection (a)--
                            (i) by striking out ``the Secretary of a 
                        military department'' in paragraph (1) and 
                        inserting in lieu thereof ``the Secretary of 
                        Defense''; and
                            (ii) by striking out ``the Secretary 
                        concerned'' in paragraph (2) and inserting in 
                        lieu thereof ``the Secretary of Defense''; and
                    (B) in subsection (b), by striking out ``the 
                Secretary concerned'' and inserting in lieu thereof 
                ``the Secretary of Defense''.
            (6) Section 2394 is amended--
                    (A) in subsection (a), by striking out ``the 
                Secretary of a military department'' and inserting in 
                lieu thereof ``the Secretary of Defense'';
                    (B) by striking out subsection (b); and
                    (C) by redesignating subsection (c) as subsection 
                (b).
            (7) Section 2394a is amended--
                    (A) in subsection (a)--
                            (i) by striking out ``Secretary of a 
                        military department'' and inserting in lieu 
                        thereof ``Secretary of Defense''; and
                            (ii) by striking out ``military department 
                        under his jurisdiction'' and inserting in lieu 
                        thereof ``Department of Defense''; and
                    (B) in subsection (b), by striking out the second 
                sentence.
            (8) Section 2401(a) is amended by striking out ``The 
        Secretary of a military department'' both places it appears and 
        inserting in lieu thereof ``The Secretary of Defense''.
            (9) Section 2403 is amended--
                    (A) in subsection (a), by striking out paragraph 
                (8);
                    (B) in subsection (b), by striking out ``the head 
                of an agency'' in the matter above paragraph (1) and 
                inserting in lieu thereof ``the Secretary of Defense'';
                    (C) in subsections (c), (f), and (g), by striking 
                out ``head of the agency concerned'' each place it 
                appears and inserting in lieu thereof ``Secretary of 
                Defense'';
                    (D) in subsection (d)--
                            (i) by inserting ``(1)'' after the 
                        subsection designation;
                            (ii) by redesignating paragraphs (1) and 
                        (2) as subparagraphs (A) and (B), respectively;
                            (iii) by striking out the second sentence; 
                        and
                            (iv) by adding at the end the following new 
                        paragraph:
    ``(2) The Secretary may delegate authority under this subsection 
only to the Under Secretary of Defense for Acquisition.''; and
                    (E) in subsection (h)--
                            (i) by striking out ``(1)''; and
                            (ii) by striking out paragraph (2).
            (10) Section 2405(a) is amended by striking out ``The 
        Secretary of a military department'' and inserting in lieu 
        thereof ``The Secretary of Defense''.
            (11) Section 2406 is amended--
                    (A) in subsection (a)--
                            (i) by striking out ``head of an agency'' 
                        and inserting in lieu thereof ``Secretary of 
                        Defense'';
                            (ii) by striking out ``with that agency''; 
                        and
                            (iii) by striking out ``head of the 
                        agency'' each place it appears and inserting in 
                        lieu thereof ``Secretary''; and
                    (B) in subsection (f)--
                            (i) by striking out paragraph (1);
                            (ii) by redesignating paragraphs (2), (3), 
                        and (4) as paragraphs (1), (2), and (3), 
                        respectively;
                            (iii) by striking out ``2432(a)'' and 
                        inserting in lieu thereof ``2430'' in paragraph 
                        (1) (as redesignated by clause (ii)); and
                            (iv) by striking out ``the head of an 
                        agency'' and inserting in lieu thereof ``the 
                        Secretary of Defense'' in paragraph (3) (as 
                        redesignated by clause (ii)).
            (12) Section 2411(3) is amended by striking out ``Director 
        of the Defense Logistics Agency'' and inserting in lieu thereof 
        ``Under Secretary of Defense for Acquisition''.

SEC. 406. MAJOR DEFENSE ACQUISITION PROGRAMS.

    Chapter 144 of title 10, United States Code, is amended as follows:
            (1) Section 2433 is amended--
                    (A) by striking out ``service acquisition executive 
                designated by the Secretary concerned'' each place it 
                appears and inserting in lieu thereof ``Under Secretary 
                of Defense for Acquisition'';
                    (B) in subsection (c)(2), by striking out ``such 
                service acquisition executive'' each place it appears 
                and inserting in lieu thereof ``the Under Secretary of 
                Defense for Acquisition'';
                    (C) in subsection (d)--
                            (i) by striking out ``the service 
                        acquisition executive'' in paragraphs (1) and 
                        (2) and inserting in lieu thereof ``the Under 
                        Secretary''; and
                            (ii) in paragraph (3), by striking out 
                        ``If, based upon the service acquisition 
                        executive's determination, the Secretary 
                        concerned'' and inserting in lieu thereof ``If 
                        the Under Secretary of Defense for 
                        Acquisition''; and
                    (D) in subsection (e)--
                            (i) in paragraph (1)(A), by striking out 
                        ``Secretary concerned'' and inserting in lieu 
                        thereof ``Under Secretary of Defense for 
                        Acquisition'';
                            (ii) in paragraph (1)(B), by striking out 
                        ``Secretary'' and inserting in lieu thereof 
                        ``Under Secretary'';
                            (iii) in paragraph (2), by striking out 
                        ``(as determined by the Secretary'' in the 
                        matter above subparagraph (A) and inserting in 
                        lieu thereof ``(as determined by the Under 
                        Secretary''; and
                            (iv) in paragraph (3), by striking out ``by 
                        the Secretary'' both places it appears in the 
                        first sentence and inserting in lieu thereof 
                        ``by the Under Secretary''.
            (2) Section 2434(b)(1) is amended by striking out ``the 
        military department,'' and all that follows and inserting in 
        lieu thereof ``Department of Defense.''.
            (3) Section 2435 is amended--
                    (A) in subsection (a)(1), by striking out the 
                matter above subparagraph (A) and inserting in lieu 
                thereof the following:
    ``(a) Baseline Description Requirement.--(1) The Under Secretary of 
Defense for Acquisition shall establish a baseline description for each 
major defense acquisition program--''; and
                    (B) in subsection (b)--
                            (i) in paragraph (1), by striking out 
                        ``Secretary of the military department 
                        concerned and to the service acquisition 
                        executive designated by such Secretary'' and 
                        inserting in lieu thereof ``Under Secretary of 
                        Defense for Acquisition''; and
                            (ii) in paragraph (2), in the matter above 
                        subparagraph (A)--
                                    (I) by striking out ``The Secretary 
                                of the military department concerned'' 
                                and inserting in lieu thereof ``The 
                                Under Secretary of Defense for 
                                Acquisition''; and
                                    (II) by striking out ``180
                                days--'' and all that follows and 
                                inserting in lieu thereof the 
                                following: ``180 days, establish a 
                                review panel to review such program and 
                                to submit to the Under Secretary a 
                                report on the results of such review 
                                within 45 days after the date on which 
                                the program deviation report is 
                                submitted under paragraph (1).''.
            (4) Section 2436 is amended--
                    (A) in subsection (a)--
                            (i) by striking out ``, through the 
                        Secretaries of the military departments,''; and
                            (ii) by striking out ``senior procurement 
                        executive of the military department 
                        concerned'' and inserting in lieu thereof 
                        ``Under Secretary of Defense for Acquisition'';
                    (B) in subsection (b)--
                            (i) by striking out ``Secretary of a 
                        military department'' and inserting in lieu 
                        thereof ``Secretary''; and
                            (ii) by striking out ``under the 
                        jurisdiction of the Secretary'';
                    (C) in subsection (c)--
                            (i) in paragraph (1), by striking out 
                        ``Secretary concerned'' and inserting in lieu 
                        thereof ``Under Secretary of Defense for 
                        Acquisition''; and
                            (ii) in paragraph (3), by striking out 
                        ``senior procurement executive'' and all that 
                        follows and inserting in lieu thereof ``Under 
                        Secretary.''; and
                    (D) in subsection (d), by striking out ``the senior 
                procurement executive of the military department 
                concerned, with the approval of''.
            (5)(A) Section 2437 is repealed.
            (B) The table of sections at the beginning of chapter 144 
        is amended by striking out the item relating to section 2437.

SEC. 407. SERVICE SPECIFIC ACQUISITION AUTHORITY.

    (a) Army.--Part IV of subtitle B of title 10, United States Code, 
is amended in sections 4501(c), 4502(a), 4503, 4504, 4505, 4506, 4507, 
4508(a), 4531, 4532(a), 4533, 4535, 4537, 4538, 4540(a), and 4542 (each 
place it appears) by striking out ``Secretary of the Army'' and 
inserting in lieu thereof ``Secretary of Defense''.
    (b) Navy.--Part IV of subtitle C of such title is amended as 
follows:
            (1) In sections 7201, 7203(a), 7210(a), 7212(a), 7213, 
        7229, 7299a (each place it appears), 7301(a), 7309(e), 7311(a), 
        7311(b), 7312 (each place it appears), 7314, 7341(a), 7342(b), 
        7345(a), 7361 (each place it appears), 7362, 7364, 7365, and 
        7521, strike out ``Secretary of the Navy'' and insert in lieu 
        thereof ``Secretary of Defense''.
            (2) Section 7203 is amended--
                    (A) in subsection (a), by striking out ``(a)''; and
                    (B) by striking out subsection (b).
            (3) Section 7210 is amended--
                    (A) in subsection (a), by striking out ``(a)''; and
                    (B) by striking out subsection (b).
            (4) Section 7310(a) is amended by striking out ``Navy'' the 
        first place it appears in the second sentence and inserting in 
        lieu thereof ``Secretary of Defense''.
            (5) Section 7311(a)(1) is amended by striking out ``Navy'' 
        the first place it appears and inserting in lieu thereof 
        ``Secretary of Defense''.
            (6) Section 7314(2) is amended by striking out ``Navy'' and 
        inserting in lieu thereof ``Department of Defense''.
            (7) Section 7363 is amended in the first sentence--
                    (A) by striking out ``Department of the Navy'' and 
                inserting in lieu thereof ``Secretary of Defense''; and
                    (B) by striking out ``Secretary'' and inserting in 
                lieu thereof ``Secretary of Defense''.
            (8) Section 7521 is amended by striking out ``contract made 
        by the Department of the Navy'' in the first sentence and 
        inserting in lieu thereof ``contract entered into for the 
        Department of the Navy''.
            (9) Section 7522 is amended by striking out ``Secretary of 
        the Navy'' and all that follows through ``chiefs of bureaus'' 
        and inserting in lieu thereof ``Secretary of Defense''.
    (c) Air Force.--Part IV of subtitle D of such title is amended in 
sections 9501(c), 9502(a), 9503, 9504, 9505, 9506, 9507, 9511(11), 
9531, 9532, 9535, 9537, 9538(a), and 9540(a) by striking out 
``Secretary of the Air Force'' and inserting in lieu thereof 
``Secretary of Defense''.

SEC. 408. OTHER LAWS.

    In any other provision of law providing authority for the Secretary 
of a military department or the head of a Defense Agency of the 
Department of Defense to perform a research, development, or 
acquisition function of the Department of Defense, the reference to 
that official shall be deemed to refer to the Secretary of Defense. 
That function shall be performed as provided in section 133(b) of title 
10, United States Code (as amended by section 101(a)), and section 232 
of such title (as added by section 101(b)).

                        TITLE V--EFFECTIVE DATES

SEC. 501. EFFECTIVE DATES.

    (a) Titles I and III.--Titles I, III, and IV, section 204, and the 
amendments made by such titles and section shall take effect on October 
1, 1994.
    (b) Title II.--Title II, except section 204, shall take effect on 
the date of the enactment of this Act.

                                 <all>

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