[Congressional Record Volume 163, Number 58 (Tuesday, April 4, 2017)]
[Senate]
[Pages S2427-S2430]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]
STATEMENTS ON INTRODUCED BILLS AND JOINT RESOLUTIONS
By Mr. DAINES (for himself and Mrs. McCaskill):
S. 886. A bill to amend the Homeland Security Act of 2002 to
establish an Acquisition Review Board in the Department of Homeland
Security, and for other purposes; to the Committee on Homeland Security
and Governmental Affairs.
Mr. DAINES. Mr. President, the Department of Homeland Security, DHS,
is tasked with keeping Americans safe in the homeland. To carry out
this mission, DHS spends over $7 billion on acquisition programs
annually. DHS and its agencies are held to a high standard for keeping
our Nation safe. We also must hold it to a high standard of fiscal
responsibility. DHS must be good stewards of taxpayer resources.
DHS's acquisition process has long faced problems resulting in waste,
delays, and under delivery of performance objectives. Since the
inception of DHS, the Government Accountability Office, GAO, has
highlighted challenges and offered recommendations to improve the
acquisition process. There has been progress; however, there continues
to be room for improvement. According to a GAO report released today,
DHS's acquisition process remains a high-risk issue, susceptible to
cost overruns and schedules delays. These issues reduce buying power
and force security employees to wait for new capabilities. This is not
fair to those on the front lines tasked with keeping us safe and it is
not fair to the American taxpayers.
I spent 28 years in the private sector. I know when tough business
decisions need to be made, you convene a board that brings with it a
breadth of experience and a deep understanding of strategic objectives
and goals.
That is why I am introducing the OHS Acquisition Review Board Act of
2017. This legislation will create a review board within the Department
to strengthen accountability and uniformity across all agencies and the
entire acquisition process, ensure long term strategic objectives are
met, and ensure the use of industry-proven best practices.
I thank Senator McCaskill for being an original cosponsor of this
bill and Representatives Thomas Garrett and Michael McCaul for leading
introduction of companion legislation in the House of Representatives.
I ask my Senate colleagues to join us in support of this important
legislation.
Mr. President, I ask unanimous consent that the text of the bill be
printed in the Record.
There being no objection, the text of the bill was ordered to be
printed in the Record, as follows:
S. 886
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 Review Board
Act of 2017''.
SEC. 2. 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:
``SEC. 836. ACQUISITION REVIEW BOARD.
``(a) Definitions.--In this section:
``(1) Acquisition.--The term `acquisition' has the meaning
given the term 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 to--
``(A) ensure compliance with Federal law, the Federal
Acquisition Regulation, and Department acquisition management
directives;
``(B) review (including approving, pausing, modifying, or
cancelling) an acquisition program through the life cycle of
the program;
``(C) ensure that acquisition program managers have the
resources necessary to successfully execute an approved
acquisition program;
``(D) ensure good acquisition program management of cost,
schedule, risk, and system performance of the acquisition
program at issue, including assessing acquisition program
baseline breaches and directing any corrective action for
such breaches; and
``(E) ensure that acquisition program managers, on an
ongoing basis, monitor cost, schedule, and performance
against established baselines and use tools to assess risks
to an acquisition program at all phases of the life cycle of
such program to avoid and mitigate acquisition program
baseline breaches.
``(3) Acquisition decision event.--The term `acquisition
decision event', with respect to an acquisition program,
means a predetermined point within each of the acquisition
phases at which the acquisition decision authority determines
whether the acquisition program shall proceed to the next
acquisition 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.--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.
``(6) 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.
``(7) 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 mission and business
operations of the Department.
``(8) Board.--The term `Board' means the Acquisition Review
Board required to be established under subsection (b).
``(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 not less than $300,000,000 (based on
fiscal year 2017 constant dollars) over the life cycle cost
of the acquisition program.
``(b) Establishment of Board.--The Secretary shall
establish an Acquisition Review Board to--
``(1) strengthen accountability and uniformity within the
Department acquisition review process;
``(2) review major acquisition programs; and
``(3) review the use of best practices.
``(c) Composition.--
``(1) Chairperson.--The Under Secretary for Management
shall serve as chairperson of the Board.
``(2) Other members.--The Secretary shall ensure
participation by other relevant Department officials,
including not fewer than 2 component heads or their
designees, as permanent members of the Board.
``(d) Meetings.--
``(1) Regular meetings.--The Board shall meet regularly for
purposes of ensuring all acquisitions processes proceed in a
timely fashion to achieve mission readiness.
``(2) Other meetings.--The Board shall convene--
``(A) at the discretion of the Secretary; and
``(B) at any time--
``(i) a major acquisition program--
``(I) requires authorization to proceed from one
acquisition decision event to another throughout the
acquisition life cycle;
``(II) is in breach of the approved requirements of the
major acquisition program; or
``(III) requires additional review, as determined by the
Under Secretary for Management; or
``(ii) a non-major acquisition program requires review, as
determined by the Under Secretary for Management.
``(e) 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.
[[Page S2428]]
``(2) Oversee whether the business strategy, resources,
management, and accountability of a proposed acquisition is
executable and is aligned 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 the acquisitions are progressing in compliance with the
approved documents for their current acquisition phases.
``(5) Review the acquisition documents of each major
acquisition program, including the acquisition program
baseline and documentation reflecting consideration of
tradeoffs among cost, schedule, and performance objectives,
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 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 is given to possible trade-offs
among cost, schedule, and performance objectives for each
alternative.
``(f) Acquisition Program Baseline Report Requirement.--If
the person exercising acquisition decision authority over a
major acquisition program approves the major acquisition
program to proceed into the planning phase before the major
acquisition program has a Department-approved acquisition
program baseline--
``(1) the Under Secretary for Management shall create and
approve an acquisition program baseline report regarding such
approval; and
``(2) the Secretary shall--
``(A) not later than 7 days after the date on which the
acquisition decision memorandum is signed, notify in writing
the Committee on Homeland Security of the House of
Representatives and the Committee on Homeland Security and
Governmental Affairs of the Senate of the decision; and
``(B) not later than 60 days after the date on which the
acquisition decision memorandum is signed, submit to the
Committee on Homeland Security of the House of
Representatives and the Committee on Homeland Security and
Governmental Affairs of the Senate a report stating the
rationale for such decision and a plan of action to require
an acquisition program baseline for such program.
``(g) Report.--Not later than 1 year after the date of
enactment of this section and every year thereafter through
fiscal year 2022, the Under Secretary for Management shall
provide information to the Committee on Homeland Security of
the House of Representatives and the Committee on Homeland
Security and Governmental Affairs of the Senate on the
activities of the Board for the prior fiscal year that
includes information relating to the following:
``(1) For each meeting of the Board, any acquisition
decision memoranda.
``(2) Results of the systematic reviews conducted under
subsection (e)(4).
``(3) Results of acquisition document reviews required
under subsection (e)(5).
``(4) Activities to ensure that practices are adopted and
implemented throughout the Department under subsection
(e)(6).''.
(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 inserting after the item relating to
section 835 the following:
``Sec. 836. Acquisition Review Board.''.
______
By Mr. DAINES (for himself and Mrs. McCaskill):
S. 887. A bill to amend the Homeland Security Act of 2002 to require
a multiyear acquisition strategy for the Department of Homeland
Security, and for other purposes; to the Committee on Homeland Security
and Governmental Affairs.
Mr. DAINES. Mr. President, the Department of Homeland Security, DHS,
is tasked with keeping Americans safe in the homeland. To carry out
this mission, DHS spends over $7 billion on acquisition programs
annually. DHS and its agencies are held to a high standard for keeping
our Nation safe. We also must hold it to a high standard of fiscal
responsibility. DHS must be good stewards of taxpayer resources.
DHS's acquisition process has long faced problems resulting in waste,
delays, and under delivery of performance objectives. Since the
inception of DHS, the Government Accountability Office, GAO, has
highlighted challenges and offered recommendations to improve the
acquisition process. There has been progress; however, there continues
to be room for improvement. According to a GAO report release today,
DHS's acquisition process remains a high-risk issue, susceptible to
cost overruns and schedules delays. These issues reduce buying power
and force security employees to wait for new capabilities. This is not
fair to those on the frontlines tasked with keeping us safe, and it is
not fair to the American taxpayers.
That is why I am introducing the DHS Multiyear Acquisition Strategy
Act of 2017. This legislation will require DHS to develop a multiyear
acquisition plan to guide the overall direction of the Department's
acquisitions, across all agencies, and include it annually in the
Department's budget request to Congress. It will create a
Departmentwide prioritized list of investment, to ensure limited
resources are being directed to the highest valued use.
This legislation will increase communication internal to DHS, as well
as with industry and with academia, to help identify current capability
gaps and future technological needs. It also includes private sector
principles, such as developing incentives for program managers to
exceed project cost, schedule, and capabilities goals. I have seen
these principles work during my 28-year private sector career, and it
is long past due that we apply them to government. We must move away
from the ``spend it or lose it'' mentality of government budgeting.
I thank Senator Claire McCaskill for being an original cosponsor of
this bill and Representatives Brian Fitzpatrick and Michael McCaul for
leading introduction of companion legislation in the House of
Representatives. I ask my Senate colleagues to join us in support of
this important legislation.
Mr. President, I ask unanimous consent that the text of the bill be
printed in the Record.
There being no objection, the text of the bill was ordered to be
printed in the Record, as follows:
S. 887
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 Multiyear Acquisition
Strategy Act of 2017''.
SEC. 2. MULTIYEAR ACQUISITION STRATEGY.
(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:
``SEC. 836. MULTIYEAR ACQUISITION STRATEGY.
``(a) Definitions.--In this section:
``(1) Acquisition.--The term `acquisition' has the meaning
given the term in section 131 of title 41, United States
Code.
``(2) Appropriate committees of congress.--The term
`appropriate committees of Congress' has the meaning given
the term in section 226(a).
``(3) Best practices.--The term `best practices', with
respect to acquisition, means--
``(A) a knowledge-based approach to capability development
that includes 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 mission and business
operations of the Department.
``(4) 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.
``(5) Major acquisition program.--The term `major
acquisition program' means an acquisition program of the
Department that is estimated by the Secretary to require an
eventual total expenditure of not less than $300,000,000
(based on fiscal year 2017 constant dollars) over the life
cycle cost of the program.
[[Page S2429]]
``(b) Multiyear Acquisition Strategy Required.--
``(1) In general.--Not later than 1 year after the date of
enactment of this section, the Secretary shall submit to the
appropriate committees of Congress and the Comptroller
General of the United States a multiyear acquisition strategy
to--
``(A) guide the overall direction of the acquisitions of
the Department while allowing flexibility to deal with ever-
changing threats and risks; and
``(B) help industry better understand, plan, and align
resources to meet the future acquisition needs of the
Department.
``(2) Updates.--The strategy required under paragraph (1)
shall be updated and included in each Future Years Homeland
Security Program required under section 874.
``(3) Form.--The Secretary shall--
``(A) submit the strategy required under paragraph (1) in
unclassified form, but may include a classified annex for any
sensitive or classified information if necessary; and
``(B) publish the strategy required under paragraph (1) in
an unclassified format that is publicly available.
``(c) Consultation.--In developing the strategy required
under subsection (b), the Secretary shall, as the Secretary
determines appropriate, consult with headquarters,
components, employees in the field, and individuals from
industry and the academic community.
``(d) Contents of Strategy.--The strategy required under
subsection (b) shall include the following:
``(1) Prioritized list.--A systematic and integrated
prioritized list developed by the Under Secretary for
Management in coordination with all of the Component
Acquisition Executives of major acquisition programs that
Department and component acquisition investments seek to
address, including the expected security and economic benefit
of the program or system that is the subject of acquisition
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--
``(A) plan, budget, schedule, and acquire upgrades of the
systems and equipment of the Department; and
``(B) 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--
``(A) prevent wasteful purchasing;
``(B) achieve the greatest level of efficiency and cost
savings by rationalizing purchases;
``(C) align pricing for similar items; and
``(D) utilize purchase timing and economies of scale.
``(4) Identification of capabilities.--An identification of
test, evaluation, modeling, and simulation capabilities that
will be required to--
``(A) support the acquisition of technologies to meet the
needs of the strategy;
``(B) leverage to the greatest extent possible emerging
technological trends and research and development trends
within the public and private sectors; and
``(C) identify ways to ensure that appropriate technology
is acquired and integrated into the operating doctrine of the
Department to improve mission performance.
``(5) Focus on flexible solutions.--An assessment of ways
the Department can improve the ability of the Department to
test and acquire innovative solutions to allow needed
incentives and protections for appropriate risk-taking in
order to meet the acquisition needs of the Department with
resiliency, agility, and responsiveness to assure 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 acquisition officials of the
Department to--
``(A) prevent cost overruns;
``(B) avoid schedule delays; and
``(C) 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--
``(A) requirements development;
``(B) procurement announcements;
``(C) requests for proposals;
``(D) evaluations of proposals;
``(E) protests of decisions and awards; and
``(F) the use of best practices.
``(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 the mission needs of the Department and to
inform the requirements-setting process of the Department
before engaging in an acquisition, including--
``(A) methods designed especially to engage small and
disadvantaged businesses, a cost-benefit analysis of the
tradeoffs that small and disadvantaged businesses provide,
information relating to barriers to entry for small and
disadvantaged businesses, and information relating to unique
requirements for small and disadvantaged businesses; and
``(B) within the Department Vendor Communication Plan and
Market Research Guide, instructions for interaction by
acquisition program managers with those entities to--
``(i) prevent misinterpretation of acquisition regulations;
and
``(ii) permit, within legal and ethical boundaries,
interacting with those entities with transparency.
``(9) Competition.--A plan regarding competition under
subsection (e).
``(10) Acquisition workforce.--A plan regarding the
Department acquisition workforce under subsection (f).
``(e) Competition Plan.--The strategy required under
subsection (b) shall include a plan to address actions to
ensure competition, or the option of competition, for major
acquisition programs, which may include assessments of the
following measures in appropriate cases if the 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 required under
subsection (b) shall include a plan to address Department
acquisition workforce accountability and talent management
that--
``(A) identifies the acquisition workforce needs of each
component performing acquisition functions; and
``(B) 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 under this subsection shall address ways to--
``(A) improve the recruitment, hiring, training, and
retention of Department acquisition workforce personnel,
including contracting officers' representatives, in order to
retain highly qualified individuals who 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 such managers work with the acquisition workforce;
``(C) prevent duplication within Department acquisition
workforce training and certification requirements through
leveraging 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 acquisition requirements of the
Department, including in the fields of--
``(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 the mission
needs of the Department;
``(F) strengthen the performance of contracting officers'
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 those representatives
are certified and receive training that is appropriate;
``(ii) assessing what training is most effective with
respect to the type and complexity of assignment; and
``(iii) implementing actions to improve training based on
those assessments; and
``(G) identify ways to increase training for relevant
investigators and auditors of the Department to examine fraud
in major acquisition programs, including identifying
opportunities to leverage existing Federal Government and
private sector resources in coordination with the Inspector
General of the Department.''.
(b) Clerical Amendment.--The table of contents in section
1(b) of the Homeland Security Act of 2002 (Public Law 107-
296; 116 Stat. 2135) is amended by inserting after the item
relating to section 835 the following:
``Sec. 836. Multiyear acquisition strategy.''.
SEC. 3. GOVERNMENT ACCOUNTABILITY OFFICE REVIEW OF MULTIYEAR
ACQUISITION STRATEGY.
(a) Definitions.--In this section--
(1) the terms ``acquisition'', ``best practices'', and
``major acquisition program'' have the meanings given those
terms in section 836 of the Homeland Security Act of 2002, as
added by section 2 of this Act; and
[[Page S2430]]
(2) the term ``Department'' means the Department of
Homeland Security.
(b) Review.--Not later than 180 days after the date on
which the Secretary of Homeland Security submits the first
multiyear acquisition strategy required under section 836 of
the Homeland Security Act of 2002, as added by section 2 of
this Act, after the date of enactment of this Act, the
Comptroller General of the United States shall conduct a
review of the strategy and analyze the viability of the
effectiveness of the strategy in--
(1) complying with the requirements of such section 836;
(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
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; and
(7) providing incentives for acquisition program managers
to reduce acquisition and procurement costs through the use
of best practices and disciplined program management.
(c) Report.--The Comptroller General of the United States
shall submit to the Committee on Homeland Security and
Governmental Affairs and the Committee on Appropriations of
the Senate and the Committee on Homeland Security and the
Committee on Appropriations of the House of Representatives a
report on the review conducted under subsection (b), which
shall be submitted in unclassified form but may include a
classified annex.
____________________