[Congressional Record Volume 160, Number 88 (Monday, June 9, 2014)]
[House]
[Pages H5139-H5148]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]
{time} 1815
DHS ACQUISITION ACCOUNTABILITY AND EFFICIENCY ACT
Mr. DUNCAN of South Carolina. Mr. Speaker, I move to suspend the
rules and pass the bill (H.R. 4228) to require the Department of
Homeland Security to improve discipline, accountability, and
transparency in acquisition program management, as amended.
The Clerk read the title of the bill.
The text of the bill is as follows:
H.R. 4228
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 ``DHS Acquisition
Accountability and Efficiency Act''.
SEC. 2. TABLE OF CONTENTS.
The table of contents for this Act is as follows:
Sec. 1. Short title.
Sec. 2. Table of contents.
Sec. 3. Findings.
Sec. 4. Definitions.
Sec. 5. Prohibition on additional authorization of appropriations.
TITLE I--ACQUISITION AUTHORITIES
Sec. 101. Acquisition authorities for Under Secretary for Management.
Sec. 102. Acquisition authorities for Chief Financial Officer.
Sec. 103. Acquisition authorities for Chief Information Officer.
Sec. 104. Chief Procurement Officer.
Sec. 105. Requirements to ensure greater accountability for acquisition
programs.
TITLE II--ACQUISITION PROGRAM MANAGEMENT DISCIPLINE
Sec. 201. Acquisition Review Board.
Sec. 202. Requirements to reduce duplication in acquisition programs.
Sec. 203. Government Accountability Office review of Board and of
requirements to reduce duplication in acquisition
programs.
Sec. 204. Excluded Party List System waivers.
Sec. 205. Inspector General oversight of suspension and debarment.
TITLE III--ACQUISITION PROGRAM MANAGEMENT ACCOUNTABILITY AND
TRANSPARENCY
Sec. 301. Congressional notification and other requirements for major
acquisition program breach.
Sec. 302. Multiyear acquisition strategy.
Sec. 303. Acquisition reports.
Sec. 304. Government Accountability Office review of multiyear
acquisition strategy.
Sec. 305. Office of Inspector General report.
SEC. 3. FINDINGS.
Congress finds the following:
(1) The Department of Homeland Security does not
consistently implement its policies and Government and
private sector best practices for acquisitions and
procurement.
(2) It is difficult to determine the cost of the
Department's major acquisition programs because the
Department has not provided consistent, comparable updates on
an annual basis. As of January 2014, the Department
identified over 80 major acquisition programs costing over
$300,000,000, and, based on 2011, estimates it plans to spend
about $170,000,000,000 in the future on major acquisition
programs.
(3) Since 2005, the Government Accountability Office has
placed Department acquisition management activities on its
``High-Risk List'', which identifies Government operations
that have greater susceptibility to fraud, waste, abuse, and
mismanagement or greater need for transformation to address
economy, efficiency, or effectiveness challenges.
(4) While the Department has taken actions to address some
high-risk acquisition program management issues, many
programs continue to experience challenges with funding
instability, workforce shortfalls, reliable cost estimates,
realistic schedules, agreed-upon baseline objectives, and
consistent and reliable data needed to accurately measure
program performance.
(5) Of the 77 Department major acquisition programs in
2011, the Government Accountability Office identified 42
programs that experienced cost growth, schedule slips, or
both. The Department reported that the magnitude of the cost
growth for 16 of the 42 programs, which increased from almost
$20,000,000,000 to over $50,000,000,000 in 2011, had an
aggregate increase of 166 percent.
(6) In 2012, the Government Accountability Office found
that only 20 of 63 programs had
[[Page H5140]]
Department-approved acquisition program baselines. The
Government Accountability Office also reported that the
Department planned to spend more than $105 billion on
programs lacking acquisition program baselines.
SEC. 4. DEFINITIONS.
(a) In General.--In this Act:
(1) Secretary.--The term ``Secretary'' means the Secretary
of Homeland Security.
(2) Department.--The term ``Department'' means the
Department of Homeland Security.
(3) Congressional homeland security committees.--The term
``congressional homeland security committees'' means--
(A) the Committee on Homeland Security of the House of
Representatives and the Committee on Homeland Security and
Governmental Affairs of the Senate; and
(B) the Committee on Appropriations of the House of
Representatives and of the Senate.
(b) Additional Definitions.--In this Act:
(1) Acquisition.--The term ``acquisition'' has the meaning
provided in section 131 of title 41, United States Code.
(2) Best practices.--The term ``best practices'', with
respect to acquisition, means a knowledge-based approach to
capability development that includes identifying and
validating needs; assessing alternatives to select the most
appropriate solution; clearly establishing well-defined
requirements; developing realistic cost assessments and
schedules; securing stable funding that matches resources to
requirements; demonstrating technology, design, and
manufacturing maturity; using milestones and exit criteria or
specific accomplishments that demonstrate progress; adopting
and executing standardized processes with known success
across programs; establishing an adequate workforce that is
qualified and sufficient to perform necessary functions; and
integrating these capabilities into the Department's mission
and business operations.
(c) Amendments to Definitions in Homeland Security Act of
2002.--Section 2 of the Homeland Security Act of 2002 is
amended--
(1) by striking ``In this Act,'' and inserting ``(a) In
General.--In this Act,'';
(2) in paragraph (2)--
(A) by inserting ``(A)'' after ``(2)''; and
(B) by adding at the end the following new subparagraph:
``(B) The term `congressional homeland security committees'
means--
``(i) the Committee on Homeland Security of the House of
Representatives and the Committee on Homeland Security and
Governmental Affairs of the Senate; and
``(ii) the Committee on Appropriations of the House of
Representatives and of the Senate, where appropriate.''; and
(3) by adding at the end the following new subsection:
``(b) Acquisition-Related Definitions.--In this Act, the
following definitions apply:
``(1) Acquisition.--The term `acquisition' has the meaning
provided in section 131 of title 41, United States Code.
``(2) Acquisition decision authority.--The term
`acquisition decision authority' means the authority, held by
the Secretary acting through the Deputy Secretary or Under
Secretary for Management--
``(A) to ensure compliance with Federal law, the Federal
Acquisition Regulation, and Department acquisition management
directives;
``(B) to review (including approving, halting, modifying,
or cancelling) an acquisition program through the life cycle
of the program;
``(C) to ensure that program managers have the resources
necessary to successfully execute an approved acquisition
program; and
``(D) to ensure good program management of cost, schedule,
risk, and system performance of the acquisition, including
assessing acquisition program baseline breaches and directing
any corrective action for such breaches.
``(3) Acquisition decision event.--The term `acquisition
decision event', with respect to an investment or acquisition
program, means a predetermined point within the acquisition
phases of the investment or acquisition program at which the
investment or acquisition program will undergo a review prior
to commencement of the next phase.
``(4) Acquisition decision memorandum.--The term
`acquisition decision memorandum', with respect to an
acquisition, means the official acquisition decision event
record that includes a documented record of decisions, exit
criteria, and assigned actions for the acquisition as
determined by the person exercising acquisition decision
authority for the acquisition.
``(5) Acquisition program baseline.--The term `acquisition
program baseline', with respect to an acquisition program,
means a summary of the cost, schedule, and performance
parameters, expressed in standard, measurable, quantitative
terms, which must be met in order to accomplish the goals of
the program.
``(6) Capability development plan.--The term `capability
development plan', with respect to a proposed acquisition,
means the document that the Acquisition Review Board approves
for the first acquisition decision event related to
validating the need of a proposed acquisition.
``(7) Component acquisition executive.--The term `Component
Acquisition Executive' means the senior acquisition official
within a Component who is designated in writing by the Under
Secretary for Management, in consultation with the Component
head, with authority and responsibility for leading a process
and staff to provide acquisition and program management
oversight, policy, and guidance to ensure that statutory,
regulatory, and higher level policy requirements are
fulfilled, including compliance with Federal law, the Federal
Acquisition Regulation, and Department acquisition management
directives established by the Under Secretary for Management.
``(8) Life cycle cost.--The term `life cycle cost', with
respect to an acquisition program, means all costs associated
with research, development, procurement, operation,
integrated logistics support, and disposal under the program,
including supporting infrastructure that plans, manages, and
executes the program over its full life, and costs of common
support items incurred as a result of the program.
``(9) Major acquisition program.--The term `major
acquisition program' means a Department acquisition program
that is estimated by the Secretary to require an eventual
total expenditure of at least $300,000,000 (based on fiscal
year 2014 constant dollars) over its life cycle cost.''.
SEC. 5. PROHIBITION ON ADDITIONAL AUTHORIZATION OF
APPROPRIATIONS.
No additional funds are authorized to be appropriated to
carry out this Act and the amendments made by this Act. This
Act and such amendments shall be carried out using amounts
otherwise available for such purposes.
TITLE I--ACQUISITION AUTHORITIES
SEC. 101. ACQUISITION AUTHORITIES FOR UNDER SECRETARY FOR
MANAGEMENT.
Section 701 of the Homeland Security Act of 2002 (6 U.S.C.
341) is amended--
(1) in subsection (a)(2), by striking ``Procurement'' and
inserting ``Acquisition and procurement''; and
(2) by adding at the end the following:
``(d) Acquisition and Related Responsibilities.--
``(1) In general.--Notwithstanding section 1702(b) of title
41, United States Code, the Under Secretary for Management is
the Chief Acquisition Officer of the Department. As Chief
Acquisition Officer, the Under Secretary shall have the
authority and perform the functions as specified in section
1702(b) of such title, and perform all other functions and
responsibilities delegated by the Secretary or described in
this subsection.
``(2) Duties and responsibilities.--In addition to the
authority and functions specified in section 1702(b) of title
41, United States Code, the duties and responsibilities of
the Under Secretary for Management related to acquisition
include the following:
``(A) Advising the Secretary regarding acquisition
management activities, taking into account risks of failure
to achieve cost, schedule, or performance parameters, to
ensure that the Department achieves its mission through the
adoption of widely accepted program management best practices
and standards.
``(B) Exercising the acquisition decision authority to
approve, halt, modify (including the rescission of approvals
of program milestones), or cancel major acquisition programs,
unless the Under Secretary delegates the authority to a
Component Acquisition Executive pursuant to paragraph (3).
``(C) Establishing policies for acquisition that implement
an approach that takes into account risks of failure to
achieve cost, schedule, or performance parameters that all
Components of the Department shall comply with, including
outlining relevant authorities for program managers to
effectively manage acquisition programs.
``(D) Ensuring that each major acquisition program has a
Department-approved acquisition program baseline.
``(E) Ensuring that the heads of Components and Component
Acquisition Executives comply with Federal law, the Federal
Acquisition Regulation, and Department acquisition management
directives.
``(F) Ensuring that grants and financial assistance are
provided only to individuals and organizations that are not
suspended or debarred.
``(G) Distributing guidance throughout the Department to
ensure that contractors involved in acquisitions,
particularly companies that access the Department's
information systems and technologies, adhere to internal
cybersecurity policies established by the Department of
Homeland Security.
``(3) Delegation of acquisition decision authority.--
``(A) Level 3 acquisitions.--The Under Secretary for
Management may delegate acquisition decision authority in
writing to the relevant Component Acquisition Executive for
an acquisition program that has a life cycle cost estimate of
less than $300,000,000.
``(B) Level 2 acquisitions.--The Under Secretary for
Management may delegate acquisition decision authority in
writing to the relevant Component Acquisition Executive for a
major acquisition program that has a life cycle cost estimate
of at least $300,000,000 but not more than $1,000,000,000 if
all of the following requirements are met:
``(i) The Component concerned possesses working policies,
processes, and procedures that are consistent with
Department-level acquisition policy.
[[Page H5141]]
``(ii) The Component Acquisition Executive has adequate,
experienced, dedicated program management professional staff
commensurate with the size of the delegated portfolio.
``(iii) Each major acquisition program concerned has
written documentation showing that it has a Department-
approved acquisition program baseline and it is meeting
agreed-upon cost, schedule, and performance thresholds.
``(4) Excluded parties list system consultation.--The Under
Secretary for Management shall require that all Department
contracting and procurement officials consult the Excluded
Parties List System (or successor system) as maintained by
the General Services Administration prior to awarding a
contract or grant or entering into other transactions to
ascertain whether the selected contractor is excluded from
receiving Federal contracts, certain subcontracts, and
certain types of Federal financial and non-financial
assistance and benefits.
``(5) Relationship to under secretary for science and
technology.--Nothing in this subsection shall diminish the
authority granted to the Under Secretary for Science and
Technology under this Act. The Under Secretary for Management
and the Under Secretary for Science and Technology shall
cooperate in matters related to the coordination of
acquisitions across the Department so that investments of the
Directorate of Science and Technology can support current and
future requirements of the Components.''.
SEC. 102. ACQUISITION AUTHORITIES FOR CHIEF FINANCIAL
OFFICER.
Section 702 of the Homeland Security Act of 2002 (6 U.S.C.
342) is amended by adding at the end of subsection (b)(2) the
following new subparagraph:
``(J) Notwithstanding section 902 of title 31, United
States Code, provide leadership over financial management
policy and programs for the Department as they relate to the
Department's acquisitions programs, in consultation with the
Under Secretary for Management.''.
SEC. 103. ACQUISITION AUTHORITIES FOR CHIEF INFORMATION
OFFICER.
Section 703 of the Homeland Security Act of 2002 (6 U.S.C.
343) is amended by adding at the end the following new
subsection:
``(c) Acquisition Responsibilities.--Notwithstanding
section 11315 of title 40, United States Code, the
acquisition responsibilities of the Chief Information
Officer, in consultation with the Under Secretary for
Management, shall include the following:
``(1) Serve as the lead technical authority for information
technology programs and establish departmental information
technology priorities, policies, processes, standards,
guidelines, and procedures.
``(2) Oversee the management of the Homeland Security
Enterprise Architecture and ensure that, before each
acquisition decision event, approved information technology
acquisitions comply with departmental information technology
management processes, technical requirements, and the
Homeland Security Enterprise Architecture, and in any case in
which information technology acquisitions do not comply with
Departmental management directives, make recommendations to
the Acquisition Review Board regarding such noncompliance.
``(3) Be responsible for providing recommendations to the
Acquisition Review Board established in section 836 of this
Act on information technology programs, and be responsible
for developing information technology acquisition strategic
guidance.''.
SEC. 104. CHIEF PROCUREMENT OFFICER.
(a) In General.--Title VII of the Homeland Security Act of
2002 (6 U.S.C. 341 et seq.) is amended by adding at the end
the following new section:
``SEC. 708. CHIEF PROCUREMENT OFFICER.
``(a) In General.--There is a Chief Procurement Officer of
the Department, who shall report directly to the Under
Secretary for Management. The Chief Procurement Officer is
the senior procurement executive for purposes of section
1702(c) of title 41, United States Code, and shall perform
procurement functions as specified in such section. The Chief
Procurement Officer also shall perform other functions and
responsibilities set forth in this section and as may be
assigned by the Under Secretary for Management.
``(b) Responsibilities.--The Chief Procurement Officer
shall--
``(1) exercise leadership and authority to the extent
delegated by the Under Secretary for Management over the
Department procurement function;
``(2) issue acquisition regulations and policies;
``(3) account for the integrity, performance, and oversight
of Department procurement and contracting functions and be
responsible for ensuring that a procurement's contracting
strategy and plans are consistent with the intent and
direction of the Acquisition Review Board established in
section 836 of this Act;
``(4) serve as the Department's business advisor and main
liaison to industry on procurement-related issues by
providing advice on industry engagement, acquisition policy,
oversight of the procurement function, and development of the
acquisition workforce;
``(5) oversee a centralized certification and training
program, in consultation with the Under Secretary for
Management, for the entire Department acquisition workforce
while using, to the greatest extent practicable, best
practices and acquisitions training opportunities already in
existence within the Federal Government, the private sector,
or universities and colleges, as appropriate, and including
training on how best to identify actions that warrant
referrals for suspension or debarment;
``(6) delegate or retain contracting authority, as
appropriate, except as provided in section 701(d)(3) of this
Act;
``(7) participate in the selection, and periodic
performance review, of the head of each contracting activity
within the Department;
``(8) collect baseline data and establish performance
measures on the impact of strategic sourcing initiatives on
the private sector, including, in particular, small
businesses; and
``(9) ensure that a fair proportion (as defined pursuant to
the Small Business Act (15 U.S.C. 631 et seq.)) of Federal
contract and subcontract dollars are awarded to small
businesses, maximize opportunities for small business
participation, and ensure, to the extent practicable, small
businesses that achieve qualified vendor status for security-
related technologies are provided an opportunity to compete
for contracts for such technology.''.
(b) Clerical Amendment.--The table of contents in section
1(b) of the Homeland Security Act of 2002 (6 U.S.C. 101 et
seq.) is amended by adding after the item relating to section
707 the following new item:
``Sec. 708. Chief Procurement Officer.''.
SEC. 105. REQUIREMENTS TO ENSURE GREATER ACCOUNTABILITY FOR
ACQUISITION PROGRAMS.
(a) In General.--Title VII of the Homeland Security Act of
2002 (6 U.S.C. 341 et seq.) is further amended by adding at
the end the following new section:
``SEC. 709. REQUIREMENTS TO ENSURE GREATER ACCOUNTABILITY FOR
ACQUISITION PROGRAMS.
``(a) Requirement To Establish Mechanism.--Within the
Management Directorate, the Under Secretary for Management
shall establish a mechanism to prioritize improving the
accountability, standardization, and transparency of major
acquisition programs of the Department in order to increase
opportunities for effectiveness and efficiencies and to serve
as the central oversight function of all Department
acquisition programs.
``(b) Responsibilities of Executive Director.--The Under
Secretary for Management shall designate an Executive
Director to oversee the requirement under subsection (a). The
Executive Director shall report directly to the Under
Secretary and shall carry out the following responsibilities:
``(1) Monitor the performance of Department acquisition
programs regularly between acquisition decision events to
identify problems with cost, performance, or schedule that
Components may need to address to prevent cost overruns,
performance issues, or schedule delays.
``(2) Assist the Chief Acquisition Officer in managing the
Department's acquisition portfolio.
``(3) Conduct oversight of individual acquisition programs
to implement Department acquisition program policy,
procedures, and guidance with a priority on ensuring the data
it collects and maintains from its Components is accurate and
reliable.
``(4) Serve as the focal point within the Department for
policy, process, and procedure regarding life cycle cost
estimating and analysis.
``(5) Serve as the focal point and coordinator for the
acquisition life cycle review process and as the executive
secretariat for the Acquisition Review Board established
under section 836 of this Act.
``(6) Advise the persons having acquisition decision
authority in making acquisition decisions consistent with all
applicable laws and in establishing clear lines of authority,
accountability, and responsibility for acquisition
decisionmaking within the Department.
``(7) Engage in the strategic planning and performance
evaluation process required under section 306 of title 5,
United States Code, and sections 1105(a)(28), 1115, 1116, and
9703 of title 31, United States Code, by supporting the Chief
Procurement Officer in developing strategies and specific
plans for hiring, training, and professional development in
order to rectify any deficiency within the Department's
acquisition workforce.
``(8) Oversee the Component Acquisition Executive structure
to ensure it has sufficient capabilities and complies with
Department policies.
``(9) Develop standardized certification standards in
consultation with the Component Acquisition Executives for
all acquisition program managers.
``(10) In the event that a program manager's certification
or actions need review for purposes of promotion or removal,
provide input, in consultation with the relevant Component
Acquisition Executive, into the relevant program manager's
performance evaluation, and report positive or negative
experiences to the relevant certifying authority.
``(11) Provide technical support and assistance to
Department acquisitions and acquisition personnel in
conjunction with the Chief Procurement Officer.
``(12) Prepare the Department's Comprehensive Acquisition
Status Report, as required by the Department of Homeland
Security Appropriations Act, 2013 (division D of Public Law
113-6; 127 Stat. 343) and section
[[Page H5142]]
840 of this Act, and make such report available to
congressional homeland security committees.
``(13) Prepare the Department's Quarterly Program
Accountability Report as required by section 840 of this Act,
and make such report available to the congressional homeland
security committees.
``(c) Responsibilities of Components.--Each head of a
Component shall comply with Federal law, the Federal
Acquisition Regulation, and Department acquisition management
directives established by the Under Secretary for Management.
For each major acquisition program, each head of a Component
shall--
``(1) establish a complete life cycle cost estimate with
supporting documentation, including an acquisition program
baseline;
``(2) verify each life cycle cost estimate against
independent cost estimates, and reconcile any differences;
``(3) complete a cost-benefit analysis with supporting
documentation;
``(4) develop and maintain a schedule that is consistent
with scheduling best practices as identified by the
Comptroller General of the United States, including, in
appropriate cases, an integrated master schedule; and
``(5) ensure that all acquisition program information
provided by the Component is complete, accurate, timely, and
valid.''.
(b) Clerical Amendment.--The table of contents in section
1(b) of the Homeland Security Act of 2002 (6 U.S.C. 101 et
seq.) is further amended by adding after the item relating to
section 708 the following new item:
``Sec. 709. Requirements to ensure greater accountability for
acquisition programs.''.
TITLE II--ACQUISITION PROGRAM MANAGEMENT DISCIPLINE
SEC. 201. ACQUISITION REVIEW BOARD.
(a) In General.--Subtitle D of title VIII of the Homeland
Security Act of 2002 (6 U.S.C. 391 et seq.) is amended by
adding at the end the following new section:
``SEC. 836. ACQUISITION REVIEW BOARD.
``(a) In General.--The Secretary shall establish an
Acquisition Review Board (in this section referred to as the
`Board') to strengthen accountability and uniformity within
the Department acquisition review process, review major
acquisition programs, and review the use of best practices.
``(b) Composition.--The Deputy Secretary or Under Secretary
for Management shall serve as chair of the Board. The
Secretary shall also ensure participation by other relevant
Department officials, including at least two Component heads
or their designees, as permanent members of the Board.
``(c) Meetings.--The Board shall meet every time a major
acquisition program needs authorization to proceed from
acquisition decision events through the acquisition life
cycle and to consider any major acquisition program in breach
as necessary. The Board may also be convened for non-major
acquisitions that are deemed high-risk by the Executive
Director referred to in section 709(b) of this Act. The Board
shall also meet regularly for purposes of ensuring all
acquisitions processes proceed in a timely fashion to achieve
mission readiness.
``(d) Responsibilities.--The responsibilities of the Board
are as follows:
``(1) Determine whether a proposed acquisition has met the
requirements of key phases of the acquisition life cycle
framework and is able to proceed to the next phase and
eventual full production and deployment.
``(2) Oversee executable business strategy, resources,
management, accountability, and alignment to strategic
initiatives.
``(3) Support the person with acquisition decision
authority for an acquisition in determining the appropriate
direction for the acquisition at key acquisition decision
events.
``(4) Conduct systematic reviews of acquisitions to ensure
that they are progressing in compliance with the approved
documents for their current acquisition phase.
``(5) Validate the acquisition documents of each major
acquisition program, including the acquisition program
baseline, to ensure the reliability of underlying data.
``(6) Ensure that practices are adopted and implemented to
require consideration of trade-offs among cost, schedule, and
performance objectives as part of the process for developing
requirements for major acquisition programs prior to the
initiation of the capability development plan, second
acquisition decision event, including, at a minimum, the
following practices:
``(A) Department officials responsible for acquisition,
budget, and cost estimating functions are provided with the
appropriate opportunity to develop estimates and raise cost
and schedule matters before performance objectives are
established for capabilities when feasible.
``(B) Full consideration of possible trade-offs among cost,
schedule, and performance objectives for each alternative is
considered.
``(e) Acquisition Program Baseline Report Requirement.--If
the person exercising acquisition decision authority over a
major acquisition program approves the program to proceed
beyond the acquisition decision event requiring a capability
development plan before it has a Department-approved
acquisition program baseline, then the Under Secretary for
Management shall create and approve an acquisition program
baseline report on the decision, and the Secretary shall--
``(1) within seven days after an acquisition decision
memorandum is signed, notify in writing the congressional
homeland security committees of such decision; and
``(2) within 60 days after the acquisition decision
memorandum is signed, submit a report to such committees
stating the rationale for the decision and a plan of action
to require an acquisition program baseline for the program.
``(f) Best Practices Defined.--In this section, the term
`best practices' has the meaning provided in section 4(b) of
the DHS Acquisition Accountability and Efficiency Act.''.
(b) Clerical Amendment.--The table of contents in section
1(b) of the Homeland Security Act of 2002 (6 U.S.C. 101 et
seq.) is further amended by adding after the item relating to
section 835 the following new item:
``Sec. 836. Acquisition Review Board.''.
SEC. 202. REQUIREMENTS TO REDUCE DUPLICATION IN ACQUISITION
PROGRAMS.
(a) In General.--Subtitle D of title VIII of the Homeland
Security Act of 2002 (6 U.S.C. 391 et seq.) is further
amended by adding at the end the following new section:
``SEC. 837. REQUIREMENTS TO REDUCE DUPLICATION IN ACQUISITION
PROGRAMS.
``(a) Requirement To Establish Policies.--In an effort to
reduce duplication and inefficiency for all Department
investments, including major acquisition programs, the Deputy
Secretary, in consultation with the Under Secretary for
Management, shall establish Department-wide policies to
integrate all phases of the investment life cycle and help
the Department identify, validate, and prioritize standards
for common Component requirements for major acquisition
program requirements in order to increase opportunities for
effectiveness and efficiencies. The policies shall also
include strategic alternatives for developing and
facilitating a Department Component-driven requirements
process that includes oversight of a development test and
evaluation capability; identification of priority gaps and
overlaps in Department capability needs; and provision of
feasible technical alternatives, including innovative
commercially available alternatives, to meet capability
needs.
``(b) Mechanisms To Carry Out Requirement.--The Deputy
Secretary, in consultation with the Under Secretary for
Management, shall coordinate the actions necessary to carry
out subsection (a), using such mechanisms as considered
necessary by the Secretary to help the Department reduce
duplication and inefficiency for all Department investments,
including major acquisition programs.
``(c) Coordination.--In coordinating the actions necessary
to carry out subsection (a), the Deputy Secretary shall
consult with the Under Secretary for Management, Component
Acquisition Executives, and any other Department officials,
including the Under Secretary for Science and Technology or
his designee, with specific knowledge of Department or
Component acquisition capabilities to prevent unnecessary
duplication of requirements.
``(d) Advisors.--The Deputy Secretary, in consultation with
the Under Secretary for Management, shall seek and consider
input within legal and ethical boundaries from members of
Federal, State, local, and tribal governments, nonprofit
organizations, and the private sector, as appropriate, on
matters within their authority and expertise in carrying out
the Department's mission.
``(e) Meetings.--The Deputy Secretary, in consultation with
the Under Secretary for Management, shall meet at least
quarterly and communicate with Components often to ensure
that Components do not overlap or duplicate spending or
priorities on major investments and acquisition programs
within their areas of responsibility.
``(f) Responsibilities.--In carrying out this section, the
responsibilities of the Deputy Secretary are as follows:
``(1) To review and validate the requirements documents of
major investments and acquisition programs prior to
acquisition decision events of the investments or programs.
``(2) To ensure the requirements and scope of a major
investment or acquisition program are stable, measurable,
achievable, at an acceptable risk level, and match the
resources planned to be available.
``(3) Before any entity of the Department issues a
solicitation for a new contract, coordinate with other
Department entities as appropriate to prevent duplication and
inefficiency and--
``(A) to implement portfolio reviews to identify common
mission requirements and crosscutting opportunities among
Components to harmonize investments and requirements and
prevent overlap and duplication among Components; and
``(B) to the extent practicable, to standardize equipment
purchases, streamline the acquisition process, improve
efficiencies, and conduct best practices for strategic
sourcing.
``(4) To ensure program managers of major investments and
acquisition programs conduct analyses, giving particular
attention to factors such as cost, schedule, risk,
performance, and operational efficiency in order to determine
that programs work as intended within cost and budget
expectations.
``(5) To propose schedules for delivery of the operational
capability needed to meet each Department investment and
major acquisition program.
``(g) Best Practices Defined.--In this section, the term
`best practices' has the meaning provided in section 4(b) of
the DHS Acquisition Accountability and Efficiency Act.''.
[[Page H5143]]
(b) Clerical Amendment.--The table of contents in section
1(b) of the Homeland Security Act of 2002 (6 U.S.C. 101 et
seq.) is further amended by adding after the item relating to
section 836 the following new item:
``Sec. 837. Requirements to reduce duplication in acquisition
programs.''.
SEC. 203. GOVERNMENT ACCOUNTABILITY OFFICE REVIEW OF BOARD
AND OF REQUIREMENTS TO REDUCE DUPLICATION IN
ACQUISITION PROGRAMS.
(a) Review Required.--The Comptroller General of the United
States shall conduct a review of the effectiveness of the
Acquisition Review Board established under section 836 of the
Homeland Security Act of 2002 (as added by section 201) and
the requirements to reduce duplication in acquisition
programs established under section 837 of such Act (as added
by section 202) in improving the Department's acquisition
management process.
(b) Scope of Report.--The review shall include the
following:
(1) An assessment of the effectiveness of the Department in
increasing program management oversight, best practices and
standards, and discipline among the Components of the
Department, including in working together and in preventing
overlap and duplication.
(2) An assessment of the effectiveness of the Department in
instilling program management discipline.
(3) A statement of how regularly each major acquisition
program is reviewed by the Board, how often the Board stops
major acquisition programs from moving forward in the phases
of the acquisition life cycle process, and the number of
major acquisition programs that have been halted because of
problems with operational effectiveness, schedule delays, or
cost overruns.
(c) Report Required.--The Comptroller General shall submit
to the congressional homeland security committees a report on
the review required by this section not later than one year
after the date of the enactment of this Act. The report shall
be submitted in unclassified form but may include a
classified annex.
SEC. 204. EXCLUDED PARTY LIST SYSTEM WAIVERS.
The Secretary of Homeland Security shall provide
notification to the congressional homeland security
committees within five days after the issuance of a waiver by
the Secretary of Federal requirements that an agency not
engage in business with a contractor in the Excluded Party
List System (or successor system) as maintained by the
General Services Administration and an explanation for a
finding by the Secretary that a compelling reason exists for
this action.
SEC. 205. INSPECTOR GENERAL OVERSIGHT OF SUSPENSION AND
DEBARMENT.
The Inspector General of the Department of Homeland
Security--
(1) may audit decisions about grant and procurement awards
to identify instances where a contract or grant was
improperly awarded to a suspended or debarred entity and
whether corrective actions were taken to prevent recurrence;
and
(2) shall review the suspension and debarment program
throughout the Department of Homeland Security to assess
whether suspension and debarment criteria are consistently
applied throughout the Department and whether disparities
exist in the application of such criteria, particularly with
respect to business size and categories.
TITLE III--ACQUISITION PROGRAM MANAGEMENT ACCOUNTABILITY AND
TRANSPARENCY
SEC. 301. CONGRESSIONAL NOTIFICATION AND OTHER REQUIREMENTS
FOR MAJOR ACQUISITION PROGRAM BREACH.
(a) In General.--Subtitle D of title VIII of the Homeland
Security Act of 2002 (6 U.S.C. 391 et seq.) is further
amended by adding at the end the following new section:
``SEC. 838. CONGRESSIONAL NOTIFICATION AND OTHER REQUIREMENTS
FOR MAJOR ACQUISITION PROGRAM BREACH.
``(a) Breach Defined.--The term `breach', with respect to a
major acquisition program, means a failure to meet any cost,
schedule, or performance parameter specified in the
acquisition program baseline.
``(b) Requirements Within Department if Breach Occurs.--
``(1) Notifications.--
``(A) Notification of potential breach.--If a major
acquisition program has a potential for a future breach, as
determined by the program manager for that program, the
program manager shall notify the person exercising
acquisition decision authority for the program.
``(B) Notification of actual breach.--If an actual breach
occurs in a major acquisition program, the program manager
for that program shall notify the head of the Component
concerned, the Component Acquisition Executive for the
program, the Executive Director referred to in section 709(b)
of this Act, the Under Secretary for Management, and the
Deputy Secretary.
``(C) Notification to secretary.--If a major acquisition
program has an actual breach with a cost overrun greater than
20 percent or a schedule delay greater than 12 months from
the costs or schedule set forth in the acquisition program
baseline for the program, the Secretary and the Inspector
General of the Department shall be notified not later than
five business days after the actual breach is identified.
``(2) Remediation plan and root cause analysis.--
``(A) In general.--In the case of an actual breach with a
cost overrun greater than 15 percent or a schedule delay
greater than 180 days from the costs or schedule set forth in
the acquisition program baseline, a remediation plan and root
cause analysis is required, and the Under Secretary for
Management or his designee shall establish a date for
submission within the Department of a breach remediation plan
and root cause analysis in accordance with this subsection.
``(B) Remediation plan.--The remediation plan required
under this subsection shall be submitted in writing to the
head of the Component concerned, the Executive Director
referred to in section 709(b) of this Act, and the Under
Secretary for Management. The plan shall--
``(i) explain the circumstances of the breach;
``(ii) provide prior cost estimating information;
``(iii) propose corrective action to control cost growth,
schedule delays, or performance issues;
``(iv) in coordination with Component Acquisition
Executive, discuss all options considered, including the
estimated impact on cost, schedule, or performance of the
program if no changes are made to current requirements, the
estimated cost of the program if requirements are modified,
and the extent to which funding from other programs will need
to be reduced to cover the cost growth of the program; and
``(v) explain the rationale for why the proposed corrective
action is recommended.
``(C) Root cause analysis.--The root cause analysis
required under this subsection shall determine the underlying
cause or causes of shortcomings in cost, schedule, or
performance of the program, including the role, if any, of
the following:
``(i) Unrealistic performance expectations.
``(ii) Unrealistic baseline estimates for cost or schedule
or changes in program requirements.
``(iii) Immature technologies or excessive manufacturing or
integration risk.
``(iv) Unanticipated design, engineering, manufacturing, or
technology integration issues arising during program
performance.
``(v) Changes in procurement quantities.
``(vi) Inadequate program funding or changes in planned
out-year funding from one five-year funding plan to the next
five-year funding plan as outlined in the Future Years
Homeland Security Program required under section 874 of this
Act.
``(vii) Legislative, legal, or regulatory changes.
``(viii) Inadequate program management personnel, including
lack of training, credentials, certifications, or use of best
practices.
``(3) Correction of breach.--The Under Secretary for
Management or his designee shall establish a date for
submission within the Department of a program of corrective
action that ensures that one of the following actions has
occurred:
``(A) The breach has been corrected and the program is
again in compliance with the original acquisition program
baseline parameters.
``(B) A revised acquisition program baseline has been
approved.
``(C) The program has been halted or cancelled.
``(c) Requirements Relating to Congressional Notification
if Breach Occurs.--
``(1) Notification to congress.--If a notification is made
under subsection (b)(1)(B) for a breach in a major
acquisition program with a cost overrun greater than 15
percent or a schedule delay greater than 180 days from the
costs or schedule set forth in the acquisition program
baseline, or with an anticipated failure for any key
performance threshold or parameter specified in the
acquisition program baseline, the Under Secretary for
Management shall notify the congressional homeland security
committees of the breach in the next quarterly Comprehensive
Acquisition Status Report after the Under Secretary for
Management receives the notification from the program manager
under subsection (b)(1)(B).
``(2) Substantial variances in costs or schedule.--If a
likely cost overrun is greater than 20 percent or a likely
delay is greater than 12 months from the costs and schedule
set forth in the acquisition program baseline for a major
acquisition program, the Under Secretary for Management shall
include in the notification required in (c)(1) a written
certification, with supporting explanation, that--
``(A) the acquisition is essential to the accomplishment of
the Department's mission;
``(B) there are no alternatives to such capability or asset
that will provide equal or greater capability in both a more
cost-effective and timely manner;
``(C) the new acquisition schedule and estimates for total
acquisition cost are reasonable; and
``(D) the management structure for the acquisition program
is adequate to manage and control performance, cost, and
schedule.
``(3) Submissions to congress.--Not later than 30 calendar
days after submission to such committees of a breach
notification under paragraph (1) of this section for a major
acquisition program, the Under Secretary for Management shall
submit to such committees the following:
[[Page H5144]]
``(A) A copy of the remediation plan and the root cause
analysis prepared under subsection (b)(2) for the program.
``(B) A statement describing the corrective action or
actions that have occurred pursuant to subsection (b)(3) for
the program, with a justification for the action or actions.
``(d) Additional Actions if Breach Occurs.--
``(1) Prohibition on obligation of funds.--During the 90-
day period following submission under subsection (c)(3) of a
remediation plan, root cause analysis, and statement of
corrective actions with respect to a major acquisition
program, the Under Secretary for Management shall submit a
certification described in paragraph (2) of this subsection
to the congressional homeland security committees. If the
Under Secretary for Management does not submit such
certification by the end of such 90-day period, then funds
appropriated to the major acquisition program shall not be
obligated until the Under Secretary for Management submits
such certification.
``(2) Certification.--For purposes of paragraph (1), the
certification described in this paragraph is a certification
that--
``(A) the Department has adjusted or restructured the
program in a manner that addresses the root cause or causes
of the cost growth in the program; and
``(B) the Department has conducted a thorough review of the
breached program's acquisition decision event approvals and
the current acquisition decision event approval for the
breached program has been adjusted as necessary to account
for the restructured program.''.
(b) Clerical Amendment.--The table of contents in section
1(b) of the Homeland Security Act of 2002 (6 U.S.C. 101 et
seq.) is further amended by adding after the item relating to
section 837 the following new item:
``Sec. 838. Congressional notification and other requirements for major
acquisition program breach.''.
SEC. 302. MULTIYEAR ACQUISITION STRATEGY.
(a) In General.--
(1) Amendment.--Subtitle D of title VIII of the Homeland
Security Act of 2002 (6 U.S.C. 391 et seq.) is further
amended by adding at the end the following new section:
``SEC. 839. MULTIYEAR ACQUISITION STRATEGY.
``(a) Multiyear Acquisition Strategy Required.--Not later
than one year after the date of the enactment of this
section, the Secretary shall submit to the appropriate
homeland security committees a multiyear acquisition strategy
to guide the overall direction of the acquisitions of the
Department while allowing flexibility to deal with ever-
changing threats and risks and to help industry better
understand, plan, and align resources to meet the future
acquisition needs of the Department. The strategy shall be
updated and included in each Future Years Homeland Security
Program required under section 874 of this Act.
``(b) Consultation.--In developing the strategy, the
Secretary shall consult with others as the Secretary deems
appropriate, including headquarters, Components, employees in
the field, and when appropriate, individuals from industry
and the academic community.
``(c) Form of Strategy.--The report shall be submitted in
unclassified form but may include a classified annex for any
sensitive or classified information if necessary. The
Department also shall publish the plan in an unclassified
format that is publicly available.
``(d) Contents of Strategy.--The strategy shall include the
following:
``(1) Prioritized list.--A systematic and integrated
prioritized list developed by the Under Secretary for
Management or his designee in coordination with all of the
Component Acquisition Executives of Department major
acquisition programs that Department and Component
acquisition investments seek to address, that includes the
expected security and economic benefit of the program or
system and an analysis of how the security and economic
benefit derived from the program or system will be measured.
``(2) Inventory.--A plan to develop a reliable Department-
wide inventory of investments and real property assets to
help the Department plan, budget, schedule, and acquire
upgrades of its systems and equipment and plan for the
acquisition and management of future systems and equipment.
``(3) Funding gaps.--A plan to address funding gaps between
funding requirements for major acquisition programs and known
available resources including, to the maximum extent
practicable, ways of leveraging best practices to identify
and eliminate overpayment for items to prevent wasteful
purchasing, achieve the greatest level of efficiency and cost
savings by rationalizing purchases, aligning pricing for
similar items, and utilizing purchase timing and economies of
scale.
``(4) Identification of capabilities.--An identification of
test, evaluation, modeling, and simulation capabilities that
will be required to support the acquisition of the
technologies to meet the needs of the plan and ways to
leverage to the greatest extent possible the emerging
technology trends and research and development trends within
the public and private sectors and an identification of ways
to ensure that the appropriate technology is acquired and
integrated into the Department's operating doctrine and
procured in ways that improve mission performance.
``(5) Focus on flexible solutions.--An assessment of ways
the Department can improve its ability to test and acquire
innovative solutions to allow needed incentives and
protections for appropriate risk-taking in order to meet its
acquisition needs with resiliency, agility, and
responsiveness to assure the Nation's homeland security and
facilitate trade.
``(6) Focus on incentives to save taxpayer dollars.--An
assessment of ways the Department can develop incentives for
program managers and senior Department acquisition officials
to prevent cost overruns, avoid schedule delays, and achieve
cost savings in major acquisition programs.
``(7) Focus on addressing delays and bid protests.--An
assessment of ways the Department can improve the acquisition
process to minimize cost overruns in requirements
development, procurement announcements, requests for
proposals, evaluation of proposals, protests of decisions and
awards and through the use of best practices as defined in
section 4(b) of the DHS Acquisition Accountability and
Efficiency Act and lessons learned by the Department and
other Federal agencies.
``(8) Focus on improving outreach.--An identification and
assessment of ways to increase opportunities for
communication and collaboration with industry, small and
disadvantaged businesses, intra-government entities,
university centers of excellence, accredited certification
and standards development organizations, and national
laboratories to ensure that the Department understands the
market for technologies, products, and innovation that is
available to meet its mission needs to inform the
requirements-setting process and before engaging in an
acquisition, including--
``(A) methods designed especially to engage small and
disadvantaged businesses and a cost-benefit analysis of the
tradeoffs that small and disadvantaged businesses provide,
barriers to entry for small and disadvantaged businesses, and
unique requirements for small and disadvantaged businesses;
and
``(B) within the Department Vendor Communication Plan and
Market Research Guide, instructions for interaction by
program managers with such entities to prevent
misinterpretation of acquisition regulations and to permit
freedom within legal and ethical boundaries for program
managers to interact with such businesses with transparency.
``(9) Competition.--A plan regarding competition as
described in subsection (e).
``(10) Acquisition workforce.--A plan regarding the
Department acquisition workforce as described in subsection
(f).
``(11) Feasibility of workforce development fund pilot
program.--An assessment of the feasibility of conducting a
pilot program to establish an acquisition workforce
development fund as described in subsection (g).
``(e) Competition Plan.--The strategy shall also include a
plan (referred to in subsection (d)(9)) that shall address
actions to ensure competition, or the option of competition,
for major acquisition programs. The plan may include
assessments of the following measures in appropriate cases if
such measures are cost effective:
``(1) Competitive prototyping.
``(2) Dual-sourcing.
``(3) Unbundling of contracts.
``(4) Funding of next-generation prototype systems or
subsystems.
``(5) Use of modular, open architectures to enable
competition for upgrades.
``(6) Acquisition of complete technical data packages.
``(7) Periodic competitions for subsystem upgrades.
``(8) Licensing of additional suppliers, including small
businesses.
``(9) Periodic system or program reviews to address long-
term competitive effects of program decisions.
``(f) Acquisition Workforce Plan.--
``(1) Acquisition workforce.--The strategy shall also
include a plan (referred to in subsection (d)(10)) to address
Department acquisition workforce accountability and talent
management that identifies the acquisition workforce needs of
each Component performing acquisition functions and develops
options for filling those needs with qualified individuals,
including a cost-benefit analysis of contracting for
acquisition assistance.
``(2) Additional matters covered.--The acquisition
workforce plan shall address ways to--
``(A) improve the recruitment, hiring, training, and
retention of Department acquisition workforce personnel,
including contracting officer's representatives, in order to
retain highly qualified individuals that have experience in
the acquisition life cycle, complex procurements, and
management of large programs;
``(B) empower program managers to have the authority to
manage their programs in an accountable and transparent
manner as they work with the acquisition workforce;
``(C) prevent duplication within Department acquisition
workforce training and certification requirements through
leveraging already-existing training within the Federal
Government, academic community, or private industry;
``(D) achieve integration and consistency with Government-
wide training and accreditation standards, acquisition
training tools, and training facilities;
``(E) designate the acquisition positions that will be
necessary to support the Department acquisition requirements,
including in the fields of--
[[Page H5145]]
``(i) program management;
``(ii) systems engineering;
``(iii) procurement, including contracting;
``(iv) test and evaluation;
``(v) life cycle logistics;
``(vi) cost estimating and program financial management;
and
``(vii) additional disciplines appropriate to Department
mission needs;
``(F) strengthen the performance of contracting officer's
representatives (as defined in Subpart 1.602-2 and Subpart
2.101 of the Federal Acquisition Regulation), including by--
``(i) assessing the extent to which contracting officer's
representatives are certified and receive training that is
appropriate;
``(ii) determining what training is most effective with
respect to the type and complexity of assignment; and
``(iii) implementing actions to improve training based on
such assessment; and
``(G) identify ways to increase training for relevant
investigators and auditors to examine fraud in major
acquisition programs, including identifying opportunities to
leverage existing Government and private sector resources in
coordination with the Inspector General of the Department.
``(g) Feasibility of Workforce Development Fund Pilot
Program.--The strategy shall also include an assessment
(referred to in subsection (d)(11)) of the feasibility of
conducting a pilot program to establish a Homeland Security
Acquisition Workforce Development Fund (in this subsection
referred to as the `Fund') to ensure the Department
acquisition workforce has the capacity, in both personnel and
skills, needed to properly perform its mission and ensure
that the Department receives the best value for the
expenditure of public resources. The assessment shall address
the following:
``(1) Ways to fund the Fund, including the use of direct
appropriations, or the credit, transfer, or deposit of
unobligated or unused funds from Department Components into
the Fund to remain available for obligation in the fiscal
year for which credited, transferred, or deposited and to
remain available for successive fiscal years.
``(2) Ways to reward the Department acquisition workforce
and program managers for good program management in
controlling cost growth, limiting schedule delays, and
ensuring operational effectiveness through providing a
percentage of the savings or general acquisition bonuses.
``(3) Guidance for the administration of the Fund that
includes provisions to do the following:
``(A) Describe the costs and benefits associated with the
use of direct appropriations or credit, transfer, or deposit
of unobligated or unused funds to finance the Fund.
``(B) Describe the manner and timing for applications for
amounts in the Fund to be submitted.
``(C) Explain the evaluation criteria to be used for
approving or prioritizing applications for amounts in the
Fund in any fiscal year.
``(D) Explain the mechanism to report to Congress on the
implementation of the Fund on an ongoing basis.
``(E) Detail measurable performance metrics to determine if
the Fund is meeting the objective to improve the acquisition
workforce and to achieve cost savings in acquisition
management.''.
(2) Clerical amendment.--The table of contents in section
1(b) of the Homeland Security Act of 2002 (6 U.S.C. 101 et
seq.) is further amended by adding after the item relating to
section 838 the following new item:
``Sec. 839. Multiyear acquisition strategy.''.
(b) Conforming Amendment to Future Years Homeland Security
Program.--Section 874(b) of the Homeland Security Act of 2002
(6 U.S.C. 454(b)) is amended--
(1) by striking ``and'' at the end of paragraph (2);
(2) by striking the period at the end of paragraph (3) and
inserting ``; and''; and
(3) by adding at the end the following new paragraph:
``(4) include the multiyear acquisition strategy required
under section 839 of this Act.''.
SEC. 303. ACQUISITION REPORTS.
(a) In General.--Subtitle D of title VIII of the Homeland
Security Act of 2002 (6 U.S.C. 391 et seq.) is further
amended by adding at the end the following new section:
``SEC. 840. ACQUISITION REPORTS.
``(a) Comprehensive Acquisition Status Report.--
``(1) In general.--The Under Secretary for Management each
year shall submit to the congressional homeland security
committees, at the same time as the President's budget is
submitted for a fiscal year under section 1105(a) of title
31, United States Code, a comprehensive acquisition status
report. The report shall include the following:
``(A) The information required under the heading `Office of
the Under Secretary for Management' under Title I of division
D of the Consolidated Appropriations Act, 2012 (Public Law
112-74) (as required under the Department of Homeland
Security Appropriations Act, 2013 (Public Law 113-6).
``(B) A listing of programs that have been cancelled,
modified, paused, or referred to the Under Secretary for
Management or Deputy Secretary for additional oversight or
action by the Board, Department Office of Inspector General,
or the Comptroller General.
``(C) A listing of established Executive Steering
Committees, which provide governance of a program or related
set of programs and lower-tiered oversight, and support
between acquisition decision events and Component reviews,
including the mission and membership for each.
``(2) Information for major acquisition programs.--For each
major acquisition program, the report shall include the
following:
``(A) A narrative description, including current gaps and
shortfalls, the capabilities to be fielded, and the number of
planned increments or units.
``(B) Acquisition Review Board (or other board designated
to review the acquisition) status of each acquisition,
including the current acquisition phase, the date of the last
review, and a listing of the required documents that have
been reviewed with the dates reviewed or approved.
``(C) The most current, approved acquisition program
baseline (including project schedules and events).
``(D) A comparison of the original acquisition program
baseline, the current acquisition program baseline, and the
current estimate.
``(E) Whether or not an independent verification and
validation has been implemented, with an explanation for the
decision and a summary of any findings.
``(F) A rating of cost risk, schedule risk, and technical
risk associated with the program (including narrative
descriptions and mitigation actions).
``(G) Contract status (including earned value management
data as applicable).
``(H) A lifecycle cost of the acquisition, and time basis
for the estimate.
``(3) Updates.--The Under Secretary shall submit quarterly
updates to such report not later than 45 days after the
completion of each quarter.
``(b) Quarterly Program Accountability Report.--The Under
Secretary for Management shall prepare a quarterly program
accountability report to meet the Department's mandate to
perform program health assessments and improve program
execution and governance. The report shall be submitted to
the congressional homeland security committees.''.
(b) Clerical Amendment.--The table of contents in section
1(b) of the Homeland Security Act of 2002 (6 U.S.C. 101 et
seq.) is further amended by adding after the item relating to
section 839 the following new item:
``Sec. 840. Acquisition reports.''.
SEC. 304. GOVERNMENT ACCOUNTABILITY OFFICE REVIEW OF
MULTIYEAR ACQUISITION STRATEGY.
(a) Review Required.--After submission to Congress of the
first multiyear acquisition strategy (pursuant to section 839
of the Homeland Security Act of 2002) after the date of the
enactment of this Act, the Comptroller General of the United
States shall conduct a review of the plan within 180 days to
analyze the viability of the plan's effectiveness in the
following:
(1) Complying with the requirements in section 839 of the
Homeland Security Act of 2002, as added by section 302 of
this Act.
(2) Establishing clear connections between Department
objectives and acquisition priorities.
(3) Demonstrating that Department acquisition policy
reflects program management best practices and standards.
(4) Ensuring competition or the option of competition for
major acquisition programs.
(5) Considering potential cost savings through using
already-existing technologies when developing acquisition
program requirements.
(6) Preventing duplication within Department acquisition
workforce training requirements through leveraging already-
existing training within the Federal Government, academic
community, or private industry.
(7) Providing incentives for program managers to reduce
acquisition and procurement costs through the use of best
practices and disciplined program management.
(8) Assessing the feasibility of conducting a pilot program
to establish a Homeland Security Acquisition Workforce
Development Fund.
(b) Report Required.--The Comptroller General shall submit
to the congressional homeland security committees a report on
the review required by this section. The report shall be
submitted in unclassified form but may include a classified
annex.
SEC. 305. OFFICE OF INSPECTOR GENERAL REPORT.
(a) Review Required.--No later than 2 years following the
submission of the report submitted by the Comptroller General
of the United States as required by section 304, the
Department's Inspector General shall conduct a review of
whether the Department has complied with the multiyear
acquisition strategy (pursuant to section 839 of the Homeland
Security Act of 2002) and adhered to the strategies set forth
in the plan. The review shall also consider whether the
Department has complied with the requirements to provide the
Acquisition Review Board with a capability development plan
for each major acquisition program.
(b) Report Required.--The Inspector General shall submit to
the congressional homeland security committees a report of
the review required by this section. The report shall be
submitted in unclassified form but may include a classified
annex.
The SPEAKER pro tempore. Pursuant to the rule, the gentleman from
South Carolina (Mr. Duncan) and the gentleman from Arizona (Mr. Barber)
each will control 20 minutes.
[[Page H5146]]
The Chair recognizes the gentleman from South Carolina.
General Leave
Mr. DUNCAN of South Carolina. Mr. Speaker, I ask unanimous consent
that all Members have 5 legislative days in which to revise and extend
their remarks and include extraneous material on the bill under
consideration.
The SPEAKER pro tempore. Is there objection to the request of the
gentleman from South Carolina?
There was no objection.
Mr. DUNCAN of South Carolina. Mr. Speaker, I yield myself such time
as I may consume.
Mr. Speaker, I rise today in support of legislation to improve the
Department of Homeland Security's, DHS, acquisition management. In the
aftermath of the September 11 attacks, DHS was created to ensure such
an attack would never occur again; yet for much of its existence,
proper management has taken a back seat.
DHS is now the third largest Federal department with a budget
authority of almost $60 billion. A significant amount of the budget is
used to buy systems and programs used to secure our borders, protect
our shores, and scan people and cargo coming into the United States,
among other missions. Unfortunately, many of these major acquisition
programs cost more, are late, and do less than is expected.
For 9 years, the Government Accountability Office has been telling
the DHS in its high-risk list that its acquisition programs are highly
susceptible to fraud, waste, abuse, and mismanagement.
In addition, the DHS inspector general has identified acquisition
management as a major management challenge for DHS, and it audits have
found serious mismanagement in TSA body scanners and canine teams,
failures to improve radio systems, and waste in CBP and Coast Guard
helicopters.
Although DHS has taken steps to implement an acquisition policy with
elements of commercial best practices and put mechanisms in place to
review programs, it has routinely failed to hold programs accountable.
This must change. DHS cannot afford its major acquisition programs. In
a time of reduced budgets, DHS must make every dollar count.
Today's legislation, H.R. 4228, the DHS Acquisition Accountability
and Efficiency Act, follows consistent subcommittee oversight of DHS
acquisition issues. In the 112th Congress, the subcommittee published
an August 2012 report providing recommendations for DHS to correct
weaknesses in its acquisition and contracting practices. This report
went unheeded, and the weaknesses remain to this day.
In the 113th Congress, we have sent numerous letters to DHS and the
GAO requiring greater scrutiny on various acquisition programs, and in
September 2013, we held a hearing on ways that the DHS could use best
practices from the Defense Department and private sector to save
taxpayer dollars in acquisition management.
In view of these efforts, I am pleased that the bipartisan
cooperation that the ranking member and I have had in drafting H.R.
4228, and I am grateful for the strong support this bill has received.
I would also like to note letters of support from the Project
Management Institute, Security Industry Association, Professional
Services Council, TechAmerica, IT Alliance for Public Sector, and the
American Conservative Union. Business Executives for National Security
has also stated its support publicly.
This bill addresses DHS' acquisition problems in several ways. First,
it requires leadership accountability from the chief acquisition
officer and components in following Federal law, the Federal
Acquisition Regulation, and DHS acquisition management directives.
Second, it requires discipline. Every major acquisition program must
have an approved acquisition program baseline, an APB, which is a vital
document that DHS programs need to measure performance, manage cost
growth, and schedule slips; and the acquisition review board must
validate acquisition documents of programs.
Third, it provides clarity for American businesses by authorizing the
chief procurement officer to serve as the main liaison to industry and
oversee a certification and training program for DHS' acquisition
workforce; by requiring a multiyear acquisition strategy to guide the
direction of DHS acquisitions and help industry better understand,
plan, and align resources to meet future acquisition needs of DHS; and
by compelling DHS to address issues regarding bid protests.
Fourth, this bill increases transparency by requiring DHS to report
to Congress on programs that failed to meet cost, schedule, or
performance parameters specified in the APB and by instructing DHS to
eliminate unnecessary duplication and inefficiency.
I believe we have a precedent for such efforts under President Ronald
Reagan's leadership. In the 1980s, he worked with Congress to address
these types of issues in troubled defense programs, and I believe that
DHS needs similar leadership from today's President and Congress.
H.R. 4228 will not solve every acquisition problem that DHS has, but
it is a first step in forcing DHS to hold its acquisition programs
accountable. This bill will help find cost savings through better
management policies and strategies.
This is essential if our government is ever going to climb out of the
$17.5 trillion worth of debt. It starts one good decision at a time,
and DHS can make a difference by improving its acquisition management
and by thinking more strategically about its acquisition choices. The
American people deserve nothing less. I urge my colleagues to support
the bill.
I will insert in the Record the Congressional Budget Office cost
estimate.
U.S. Congress,
Congressional Budget Office,
Washington, DC, May 21, 2014.
Hon. Michael McCaul,
Chairman, Committee on Homeland Security, House of
Representatives, Washington, DC.
Dear Mr. Chairman: The Congressional Budget Office has
prepared the enclosed cost estimate for H.R. 4228, the DHS
Acquisition Accountability and Efficiency Act.
If you wish further details on this estimate, we will be
pleased to provide them. The CBO staff contact is Mark
Grabowicz.
Sincerely,
Douglas W. Elmendorf.
Enclosure.
H.R. 4228--DHS Acquisition Accountability and Efficiency Act
CBO estimates that implementing H.R. 4228 would cost $1
million in 2015 and less than $500,000 in each year
thereafter, subject to the availability of appropriated
funds. Enacting the legislation would not affect direct
spending or revenues; therefore, pay-as-you-go procedures do
not apply.
H.R. 4228 would direct the Department of Homeland Security
(DHS) to improve the accountability, transparency, and
efficiency of its major acquisition programs. The bill would
specify procedures for the department to follow if it fails
to meet timelines, cost estimates, or other performance
parameters for these programs. In addition, H.R. 4228 would
require DHS to prepare a comprehensive report each year on
the status of its acquisition program and would direct the
Government Accountability Office (GAO) and the DHS Inspector
General to review and report on certain issues related to
departmental acquisition policies.
Based on the cost of similar activities, CBO estimates that
the new DHS administrative procedures as well as additional
reviews and reports by GAO and DHS required by H.R. 4228
would cost $1 million in 2015 and less than $500,000 annually
thereafter, assuming availability of appropriated funds. CBO
expects that DHS will continue to seek to improve its
efficiency in acquiring goods and services under current law;
we have no basis for estimating any savings in procurement
costs that might occur as a result of the bill's directives
to the department.
H.R. 4228 contains no intergovernmental or private-sector
mandates as defined in the Unfunded Mandates Reform Act and
would impose no costs on state, local, or tribal governments.
The CBO staff contact for this estimate is Mark Grabowicz.
The estimate was approved by Theresa Gullo, Deputy Assistant
Director for Budget Analysis.
Mr. DUNCAN of South Carolina. I reserve the balance of my time.
Mr. BARBER. Mr. Speaker, I yield myself such time as I may consume.
I rise in support of H.R. 4228, the DHS Acquisition Accountability
and Efficiency Act, and I urge the House to pass the bill. As an
original cosponsor of this legislation, I was very pleased to work with
my colleague, Congressman Jeff Duncan, who chairs our Oversight
Subcommittee, and I fully support the legislation as yet another
product of collaboration between Republicans and Democrats on our
committee to ensure that the Department of Homeland Security succeeds
in streamlining its acquisitions management process.
[[Page H5147]]
As the ranking member of the House Homeland Security Committee,
Subcommittee on Oversight and Management Efficiency, I am absolutely
committed to saving taxpayer money and working to ensure that the
Department of Homeland Security eliminates waste, fraud, and abuse. We
must be good stewards of the taxpayers' money, and we must require the
departments to be the same.
As a Representative whose district covers 83 miles of Arizona border
with Mexico, I have seen firsthand the failures of the Department of
Homeland Security's acquisition processes, and the need for an
effective and efficient process that gets resources to the agents and
other DHS employees on the ground.
They need them to secure our borders, our ports of entry, and our
Nation. In my district, we have witnessed for far too long many
acquisitions that did not stand up to scrutiny, cost overruns, and
money spent in excessive ways that did not meet the end goal.
If enacted, H.R. 4228 will give the Department the tools to bring
greater transparency, accountability, and consistency to the
Department's acquisition process.
The Department expends almost one-quarter of its overall budget to
purchase goods and services, with a total of $12.2 billion spent in
fiscal year 2013 on 85,000 acquisitions. Thus far, in fiscal year 2014,
the Department has allocated upwards of $4 billion on 27,000
transactions, with more expenditures to come.
Since January 2003, the Government Accountability Office has included
the Department on its high-risk list due to its task of integrating 22
legacy agencies into one entity. It is still, obviously, a work in
progress. In its 2013 high-risk update, the GAO cited the Department
for its failure to adequately overhaul its management challenges,
including its acquisition process.
Inefficient management practices and procedures hurt the Department's
ability to effectively and efficiently achieve its mission and keep
America safe. In spite of the Department's agreement with the
Government Accountability Office's findings, the Department has yet to
fully improve its management functions, and as a result, the Department
remains on the high-risk list.
According to the GAO, the Department's acquisitions costs increased
from $19.7 billion in 2008 to $52.2 billion in 2011, representing an
increase of 166 percent in 16 major acquisitions programs.
In response, H.R. 4228 will assist the Department in better managing
its acquisitions management process by directing individual component
agencies to follow the Department's rules for acquisitions and assure
that resources are spent as intended.
This legislation also will address the Department's ongoing
management challenges by implementing a process to alert Congress
should programs begin to veer over budget and off schedule.
H.R. 4228 will make sure that, for the first time, the Department as
a whole takes part in the acquisition review board process, a process
that brings officials from across the entire Department together to
monitor Department acquisitions.
It will help DHS in achieving another needed reform, the need for a
stable, well-trained acquisitions workforce across all component
agencies.
Furthermore, H.R. 4228 will ensure that small businesses are able to
fairly compete for contracting opportunities. Making the Department of
Homeland Security's acquisitions process more efficient and effective
will absolutely save taxpayers money and allow the Department to more
effectively accomplish its mission of protecting the Nation.
I urge my colleagues to support this bipartisan piece of legislation.
I reserve the balance of my time.
Mr. DUNCAN of South Carolina. Mr. Speaker, I thank the ranking member
for all of his efforts to help get this bill passed out of committee.
It was a truly bipartisan effort. I know he was rushed to get here from
a flight from Arizona, but I am glad he was able to participate today.
Mr. Speaker, I yield such time as he may consume to the gentleman
from Texas (Mr. Carter), the chairman of the Homeland Security
Appropriations Subcommittee.
Mr. CARTER. I thank the gentleman for yielding.
Mr. Speaker, as cosponsor of this bill and chairman of the
Appropriations Committee Subcommittee on Homeland Security, I rise in
strong support of H.R. 4228.
Over this past year, I have aggressively called for a reform agenda
to address the evolving needs of DHS. This bill tackles one of the most
urgent, the need to reform DHS acquisitions. These reforms are much
needed and long overdue. I sincerely appreciate Chairman McCaul's and
subcommittee Chairman Duncan's collaboration on this effort.
I urge a ``yes'' vote.
Mr. BARBER. Mr. Speaker, I yield myself such time as I may consume.
A lot is said over and over again about how Congress cannot find
common ground. With this piece of legislation, we truly have shown that
is possible. In fact, I would go on to say, Mr. Speaker, that our
committee works in a very bipartisan manner. I am proud to be a member
of a collaborative group who are interested in securing the homeland.
I was very pleased to work with Chairman Duncan, who chairs the House
Oversight and Management Subcommittee, on this very important piece of
legislation. In order for the Department of Homeland Security to better
achieve its mission of securing our Nation, it must have efficient and
effective management practices in place, and this legislation gives the
Department the tools needed to bring greater transparency,
accountability, and consistency to its acquisition process and to make
sure that it reports accurately and timely to Congress on its progress.
Mr. Speaker, I urge my colleagues to support this bill.
I yield back the balance of my time.
Mr. DUNCAN of South Carolina. Mr. Speaker, I yield myself such time
as he may consume to the gentleman from Montana (Mr. Daines).
{time} 1830
Mr. DAINES. Mr. Speaker, I rise in support of H.R. 4228, the DHS
Acquisition Accountability and Efficiency Act.
As the vice chairman of the Oversight and Management Efficiency
Subcommittee, I am proud to join Chairman Duncan in sponsoring this
most important legislation, which works to improve efficiency at DHS
and improve accountability to hardworking American taxpayers.
The DHS acquisition process has long faced problems resulting in
waste, delays, and mismanaged taxpayer dollars. This is simply
unacceptable. American taxpayers deserve better from their government.
Through increased accountability, transparency, and improved
collaboration with the private sector, this bill works to address these
problems and bring accountability to DHS.
This legislation adopts commonsense, private sector principles, like
developing incentives for program managers and senior Department
acquisition officials to prevent cost overruns, avoid scheduled delays,
and achieve cost savings in major acquisition programs.
It is long past time we move away from the government agency ``spend
it or lose it'' budgeting tactic. This legislation could serve as a
pilot program for adopting this principle across other agencies.
I urge a ``yes'' vote.
Mr. DUNCAN of South Carolina. Mr. Speaker, I don't have any further
speakers. I want to urge the adoption of this bipartisan bill to
provide the necessary reforms to DHS' acquisition process.
I yield back the balance of my time.
Mr. McCAUL. Mr. Speaker, I rise in support of H.R. 4228, the ``DHS
Acquisition Accountability and Efficiency Act,'' which was developed
and introduced by the gentleman from South Carolina, the Chairman of
the Subcommittee on Oversight & Management Efficiency, Jeff Duncan.
Since its inception, DHS has faced significant management challenges
and the Government Accountability Office continues to include DHS
management on its ``High Risk List'' of areas vulnerable to waste,
fraud, abuse, and mismanagement.
Over the course of several years, the Committee on Homeland Security
has conducted extensive oversight of DHS management and acquisition
practices. At the start of the Congress, the Committee pledged to
manage
[[Page H5148]]
DHS with a business-model approach and we are.
Last year, the House passed H.R. 2719, the ``Transportation Security
Acquisition Reform Act'' to improve TSA technology acquisition programs
and today's bill builds upon that effort with cost savings through
better management policies and strategies across the Department. While
I'm encouraged by a recent memo from Secretary Johnson to his DHS
leadership team calling for greater component agency collaboration and
accountability, more work is still needed.
H.R. 4228 safeguards taxpayer dollars, increases accountability for
DHS's big-ticket acquisition purchases, and takes important steps to
improve communication with industry to ensure DHS is fully leveraging
the private sector to protect the homeland.
I appreciate the hard work of my colleagues on the Committee and I'd
like to especially thank the gentleman from South Carolina, Mr. Duncan,
and the gentleman from Arizona, Mr. Barber for the bipartisan approach
that they took in crafting this important piece of legislation, and the
collaborative, deliberative process they followed to bring it to the
floor.
There are many more opportunities for cost savings at DHS and through
continued oversight, investigations and legislation, my Committee will
continue to find them and present solutions. Taxpayers deserve no less.
I urge all my colleagues to join us in passing this vital piece of
legislation that will further protect our Nation and the American
taxpayer.
The SPEAKER pro tempore. The question is on the motion offered by the
gentleman from Texas (Mr. Smith) that the House suspend the rules and
pass the bill, H.R. 4228, as amended.
The question was taken; and (two-thirds being in the affirmative) the
rules were suspended and the bill, as amended, was passed.
A motion to reconsider was laid on the table.
____________________