[Congressional Record Volume 163, Number 48 (Monday, March 20, 2017)]
[House]
[Pages H2213-H2215]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




                REDUCING DHS ACQUISITION COST GROWTH ACT

  Mr. RUTHERFORD. Mr. Speaker, I move to suspend the rules and pass the 
bill (H.R. 1294) to amend the Homeland Security Act of 2002 to provide 
for congressional notification regarding major acquisition program 
breaches, and for other purposes.
  The Clerk read the title of the bill.
  The text of the bill is as follows:

                               H.R. 1294

       Be it enacted by the Senate and House of Representatives of 
     the United States of America in Congress assembled,

     SECTION 1. SHORT TITLE.

       This Act may be cited as the ``Reducing DHS Acquisition 
     Cost Growth Act''.

     SEC. 2. CONGRESSIONAL NOTIFICATION FOR MAJOR 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. 836. CONGRESSIONAL NOTIFICATION AND OTHER REQUIREMENTS 
                   FOR MAJOR ACQUISITION PROGRAM BREACH.

       ``(a) Requirements Within Department in Event of Breach.--
       ``(1) Notifications.--
       ``(A) Notification of breach.--If a breach occurs in a 
     major acquisition program, the program manager for such 
     program shall notify the Component Acquisition Executive for 
     such program, the head of the component concerned, the 
     Executive Director of the Program Accountability and Risk 
     Management division, the Under Secretary for Management, and 
     the Deputy Secretary not later than 30 calendar days after 
     such breach is identified.
       ``(B) Notification to secretary.--If a breach occurs in a 
     major acquisition program and such breach results in a cost 
     overrun greater than 15 percent, a schedule delay greater 
     than 180 days, or a failure to meet any of the performance 
     thresholds from the cost, schedule, or performance parameters 
     specified in the most recently approved acquisition program 
     baseline for such program, the Component Acquisition 
     Executive for such program shall notify the Secretary and the 
     Inspector General of the Department not later than five 
     business days after the Component Acquisition Executive for 
     such program, the head of the component concerned, the 
     Executive Director of the Program Accountability and Risk 
     Management Division, the Under Secretary for Management, and 
     the Deputy Secretary are notified of the breach pursuant to 
     subparagraph (A).
       ``(2) Remediation plan and root cause analysis.--
       ``(A) In general.--If a breach occurs in a major 
     acquisition program, the program manager for such program 
     shall submit to the head of the component concerned, the 
     Executive Director of the Program Accountability and Risk 
     Management division, and the Under Secretary for Management 
     in writing a remediation plan and root cause analysis 
     relating to such breach and program. Such plan and analysis 
     shall be submitted at a date established at the discretion of 
     the Under Secretary for Management.
       ``(B) Remediation plan.--The remediation plan required 
     under this subparagraph (A) shall--
       ``(i) explain the circumstances of the breach at issue;
       ``(ii) provide prior cost estimating information;
       ``(iii) include a root cause analysis that determines the 
     underlying cause or causes of shortcomings in cost, schedule, 
     or performance of the major acquisition program with respect 
     to which such breach has occurred, including the role, if 
     any, of--

       ``(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 to the scope of such program;
       ``(VI) inadequate program funding or changes in planned 
     out-year funding from one 5-year funding plan to the next 5-
     year funding plan as outlined in the Future Years Homeland 
     Security Program required under section 874;
       ``(VII) legislative, legal, or regulatory changes; or
       ``(VIII) inadequate program management personnel, including 
     lack of sufficient number of staff, training, credentials, 
     certifications, or use of best practices;

       ``(iv) propose corrective action to address cost growth, 
     schedule delays, or performance issues;
       ``(v) explain the rationale for why a proposed corrective 
     action is recommended; and
       ``(vi) in coordination with the Component Acquisition 
     Executive for such program, discuss all options considered, 
     including the estimated impact on cost, schedule, or 
     performance of such program if no changes are made to current 
     requirements, the estimated cost of such 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 such program.
       ``(3) Review of corrective actions.--
       ``(A) In general.--The Under Secretary for Management shall 
     review the remediation plan required under paragraph (2). The 
     Under Secretary may approve such plan or provide an 
     alternative proposed corrective action within 30 days of the 
     submission of such plan under such paragraph.
       ``(B) Submission to congress.--Not later than 30 days after 
     the review required under subparagraph (A) is completed, the 
     Under Secretary for Management shall submit to the 
     congressional homeland security committees the following:
       ``(i) A copy of the remediation plan and the root cause 
     analysis required under paragraph (2).
       ``(ii) A statement describing the corrective action or 
     actions that have occurred pursuant to paragraph (2)(b)(iv) 
     for the major acquisition program at issue, with a 
     justification for such action or actions.
       ``(b) Requirements Relating to Congressional Notification 
     if Breach Occurs.--
       ``(1) Notification to congress.--If a notification to the 
     Secretary is made under subsection (a)(1)(B) relating to a 
     breach in a major acquisition program, the Under Secretary 
     for Management shall notify the congressional homeland 
     security committees of such breach in the next quarterly 
     Comprehensive Acquisition Status Report, as required by title 
     I of division D of the Consolidated Appropriations Act, 2016, 
     (Public Law

[[Page H2214]]

     114-113) following receipt by the Under Secretary of 
     notification under such subsection.
       ``(2) Significant 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 
     specified in the acquisition program baseline for a major 
     acquisition program, the Under Secretary for Management shall 
     include in the notification required in paragraph (1) a 
     written certification, with supporting explanation, that--
       ``(A) such program is essential to the accomplishment of 
     the Department's mission;
       ``(B) there are no alternatives to the capability or asset 
     provided by such program 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 such program is adequate 
     to manage and control cost, schedule, and performance.
       ``(c) Definitions.--In this section:
       ``(1) Acquisition.--The term `acquisition' has the meaning 
     given such term in section 131 of title 41, United States 
     Code.
       ``(2) Acquisition program.--The term `acquisition program' 
     means the process by which the Department acquires, with any 
     appropriated amounts, by contract for purchase or lease, 
     property or services (including construction) that support 
     the missions and goals of the Department.
       ``(3) 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 
     such program.
       ``(4) Best practices.--The term `best practices', with 
     respect to acquisition, means a knowledge-based approach to 
     capability development that includes--
       ``(A) identifying and validating needs;
       ``(B) assessing alternatives to select the most appropriate 
     solution;
       ``(C) clearly establishing well-defined requirements;
       ``(D) developing realistic cost assessments and schedules;
       ``(E) securing stable funding that matches resources to 
     requirements;
       ``(F) demonstrating technology, design, and manufacturing 
     maturity;
       ``(G) using milestones and exit criteria or specific 
     accomplishments that demonstrate progress;
       ``(H) adopting and executing standardized processes with 
     known success across programs;
       ``(I) establishing an adequate workforce that is qualified 
     and sufficient to perform necessary functions; and
       ``(J) integrating the capabilities described in 
     subparagraphs (A) through (I) into the Department's mission 
     and business operations.
       ``(5) Breach.--The term `breach', with respect to a major 
     acquisition program, means a failure to meet any cost, 
     schedule, or performance threshold specified in the most 
     recently approved acquisition program baseline.
       ``(6) 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.
       ``(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) 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 2017 constant dollars) over its life cycle cost.''.
       (b) Clerical Amendment.--The table of contents in section 
     1(b) of the Homeland Security Act of 2002 is amended by 
     inserting after the item relating to section 835 the 
     following new item:

``Sec. 836. Congressional notification and other requirements for major 
              acquisition program breach.''.

  The SPEAKER pro tempore. Pursuant to the rule, the gentleman from 
Florida (Mr. Rutherford) and the gentlewoman from New York (Miss Rice) 
each will control 20 minutes.


                             General Leave

  Mr. RUTHERFORD. Mr. Speaker, I ask unanimous consent that all Members 
have 5 legislative days within which to revise and extend their remarks 
and include extraneous materials in the Record on the bill under 
consideration.
  The SPEAKER pro tempore. Is there objection to the request of the 
gentleman from Florida?
  There was no objection.
  Mr. RUTHERFORD. Mr. Speaker, I yield myself such time as I may 
consume.
  Mr. Speaker, I rise in strong support of H.R. 1294, the Reducing DHS 
Acquisition Cost Growth Act.
  The Department of Homeland Security, DHS, spends over $7 billion, 
annually, on major acquisition programs. These programs secure our 
borders, protect our shores, safeguard our airports, and defend our 
cyber networks, among other critical missions. Unfortunately, the 
Government Accountability Office has reported that DHS acquisition 
management is on its high-risk list, since 2003, of areas most 
susceptible to waste, fraud, abuse, and mismanagement. Recent watchdog 
reports have revealed alarming findings regarding DHS' acquisition 
efforts.
  For example, in just 2016 alone, 8 out of 25 major acquisition 
programs experienced cost growth, schedule slips, or both. These 
program cost estimates increased by $1.7 billion, and their schedules 
slipped by an average of 11 months. Given the enormous threats that are 
facing our homeland, it is unacceptable to make our frontline operators 
wait for the tools that they need to secure the homeland.
  My bill will require much-needed oversight of DHS' acquisition 
programs to safeguard tax dollars and hold program managers 
accountable. When programs incur significant cost, schedule, or 
requirement problems, my bill requires that DHS leadership be informed. 
These programs will be required to put a remediation plan in place that 
corrects the problem and also analyzes the root causes of why the 
problems occurred in the first place.
  The Homeland Security Committee in Congress must also be informed of 
such significant problems. No longer will the people's representatives 
in Congress be kept in the dark. These requirements are similar to 
those used in the Department of Defense and will help DHS better 
safeguard tax dollars and more effectively secure our homeland.
  Mr. Speaker, I urge all Members to join me in supporting this bill, 
and I reserve the balance of my time.
  Miss RICE of New York. Mr. Speaker, I yield myself such time as I may 
consume.
  Mr. Speaker, I rise in support of H.R. 1294, the Reducing DHS 
Acquisition Cost Growth Act. Since the Department began its operations 
in 2002, it has spent tens of billions of dollars to procure goods, 
services, and supplies in support of DHS' national security efforts. 
The agency's major acquisitions investments, those that cost at least 
$300 million, represent a significant portion of such purchasing.
  The Department has worked to improve its acquisition programs in 
recent years, but DHS still struggles when it comes to major 
acquisitions. Take, for example, the SBInet--a southwest border 
infrastructure project--that ballooned in cost to about $1 billion 
before it was canceled in 2011, after GAO found that it was 
ineffective.
  More recently, there is the case of the Electronic Immigration 
System, an automated immigration benefits processing system. According 
to the Department's inspector general, this U.S. citizenship 
immigration services program is now on course to be completed 4 years 
later than originally estimated and at a cost of $1 billion more than 
estimated.
  The importance and complexity of DHS' mission demands effective 
oversight of the Department's investments, particularly its major 
acquisitions. H.R. 1294 seeks to ensure greater congressional oversight 
of such acquisition programs by requiring the Department to report to 
Congress when cost, schedule, and performance requirements are not met. 
Additionally, when such requirements are not met, this bill requires 
DHS to provide Congress with an analysis explaining the root cause of 
the failures as well as a remediation plan to mitigate the problems.
  The Committee on Homeland Security unanimously approved this measure 
earlier this month, and similar language was approved by the House in 
October 2015 as a part of comprehensive DHS acquisition legislation.

[[Page H2215]]

  I commend my colleague from Florida for his work on this bill.
  Mr. Speaker, effective oversight of the Department's acquisitions 
programs is essential to ensuring optimal program performance. Given 
DHS' limited budgetary resources and the gravity of its mission, it is 
critically important that DHS get its major acquisitions right. 
Enacting this legislation would require a greater level of 
accountability from DHS and give Congress a greater level of oversight 
to intercede before programs go off the rails.
  Mr. Speaker, I urge support of H.R. 1294, and I yield back the 
balance of my time.
  Mr. RUTHERFORD. Mr. Speaker, once again, I just urge my colleagues to 
support H.R. 1294.
  Mr. Speaker, I yield back the balance of my time.
  The SPEAKER pro tempore (Mr. Emmer). The question is on the motion 
offered by the gentleman from Florida (Mr. Rutherford) that the House 
suspend the rules and pass the bill, H.R. 1294.
  The question was taken.
  The SPEAKER pro tempore. In the opinion of the Chair, two-thirds 
being in the affirmative, the ayes have it.
  Mr. RUTHERFORD. Mr. Speaker, on that I demand the yeas and nays.
  The yeas and nays were ordered.
  The SPEAKER pro tempore. Pursuant to clause 8 of rule XX, further 
proceedings on this motion will be postponed.

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