[House Report 114-425]
[From the U.S. Government Publishing Office]
114th Congress } { Report
HOUSE OF REPRESENTATIVES
2d Session } { 114-425
======================================================================
DHS ACQUISITION DOCUMENTATION INTEGRITY ACT OF 2016
_______
February 23, 2016.--Committed to the Committee of the Whole House on
the State of the Union and ordered to be printed
_______
Mr. McCaul, from the Committee on Homeland Security, submitted the
following
R E P O R T
[To accompany H.R. 4398]
[Including cost estimate of the Congressional Budget Office]
The Committee on Homeland Security, to whom was referred
the bill (H.R. 4398) to amend the Homeland Security Act of 2002
to provide for requirements relating to documentation for major
acquisition programs, and for other purposes, having considered
the same, report favorably thereon without amendment and
recommend that the bill do pass.
CONTENTS
Page
Purpose and Summary.............................................. 2
Background and Need for Legislation.............................. 2
Hearings......................................................... 2
Committee Consideration.......................................... 2
Committee Votes.................................................. 3
Committee Oversight Findings..................................... 3
New Budget Authority, Entitlement Authority, and Tax Expenditures 3
Congressional Budget Office Estimate............................. 3
Statement of General Performance Goals and Objectives............ 4
Duplicative Federal Programs..................................... 4
Congressional Earmarks, Limited Tax Benefits, and Limited Tariff
Benefits....................................................... 4
Federal Mandates Statement....................................... 4
Preemption Clarification......................................... 4
Disclosure of Directed Rule Makings.............................. 4
Advisory Committee Statement..................................... 5
Applicability to Legislative Branch.............................. 5
Section-by-Section Analysis of the Legislation................... 5
Changes in Existing Law Made by the Bill, as Reported............ 6
Purpose and Summary
The purpose of H.R. 4398 is to amend the Homeland Security
Act of 2002 to provide for requirements relating to
documentation for major acquisition programs, and for other
purposes.
Background and Need for Legislation
Management challenges have plagued the Department of
Homeland Security (DHS) since its inception. For example, every
two years, the Government Accountability Office (GAO)
identifies areas in the federal government that are ``high
risk'' due to their vulnerabilities to fraud, waste, abuse, and
mismanagement. For years, GAO has identified DHS's management
functions, which includes acquisition responsibilities, as high
risk. In GAO's 2015 high risk update, it was noted that
challenges remained and progress was needed ``to mitigate the
risks that management weaknesses posed to mission
accomplishment.''
Most of DHS's major acquisition programs continue to cost
more than expected, take longer to deploy than planned, or
deliver less capability than promised. In recent years, DHS has
issued a Departmental acquisition policy that reflects
important commercial best practices. However, DHS has not held
component heads and other senior DHS leaders to account for
fully implementing that policy.
This bill is based on text included in bipartisan
legislation, the DHS Headquarters Reform and Improvement Act
(H.R. 3572), introduced by Mr. McCaul and Mr. Thompson that
passed the House in October 2015. The DHS Acquisition
Documentation Integrity Act of 2016 (H.R. 4398) requires the
DHS Secretary, acting through the Under Secretary for
Management, to require relevant components to maintain specific
types of acquisition documentation. This bill codifies a narrow
set of authorities for the DHS Secretary to waive those
requirements in limited circumstances, which is similar to an
approach that exists within the Department of Defense (10
U.S.C. 2432(b)).
Hearings
The Committee did not hold any hearings on H.R. 4398,
however the Committee held the following oversight hearing:
On April 22, 2015, the Subcommittee on Oversight and
Management Efficiency held a hearing entitled ``Acquisition
Oversight: How Effectively Is DHS Safeguarding Taxpayer
Dollars?'' The Subcommittee received testimony from Ms. Michele
Mackin, Director, Acquisition and Sourcing Management, U.S.
Government Accountability Office; Hon. Chip Fulghum, Acting
Deputy Undersecretary for Management and Chief Financial
Officer, U.S. Department of Homeland Security; and Dr. Cedric
Sims, Partner, Evermay Consulting Group.
Committee Consideration
The Committee met on February 2, 2016, to consider H.R.
4398, and ordered the measure to be reported to the House with
a favorable recommendation, without amendment, by voice vote.
Committee Votes
Clause 3(b) of rule XIII of the Rules of the House of
Representatives requires the Committee to list the recorded
votes on the motion to report legislation and amendments
thereto.
No recorded votes were requested during consideration of
H.R. 4398.
Committee Oversight Findings
Pursuant to clause 3(c)(1) of rule XIII of the Rules of the
House of Representatives, the Committee has held oversight
hearings and made findings that are reflected in this report.
New Budget Authority, Entitlement Authority, and Tax Expenditures
In compliance with clause 3(c)(2) of rule XIII of the Rules
of the House of Representatives, the Committee finds that H.R.
4398, the DHS Acquisition Documentation Integrity Act of 2016,
would result in no new or increased budget authority,
entitlement authority, or tax expenditures or revenues.
Congressional Budget Office Estimate
The Committee adopts as its own the cost estimate prepared
by the Director of the Congressional Budget Office pursuant to
section 402 of the Congressional Budget Act of 1974.
U.S. Congress,
Congressional Budget Office,
Washington, DC, February 17, 2016.
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. 4398, the DHS
Acquisition Documentation Integrity Act of 2016.
If you wish further details on this estimate, we will be
pleased to provide them. The CBO staff contact is Mark
Grabowicz.
Sincerely,
Keith Hall.
Enclosure.
H.R. 4398--DHS Acquisition Documentation Integrity Act of 2016
H.R. 4398 would direct the Department of Homeland Security
(DHS) to prepare cost estimates and schedules for its major
acquisition programs and to maintain complete and accurate
documentation of such projects. The bill's requirements are
largely consistent with existing DHS procurement policies.
Therefore, CBO estimates that implementing H.R. 4398 would cost
less than $500,000 annually; such spending would be subject to
the availability of appropriated funds.
Because enacting the legislation would not affect direct
spending or revenues, pay-as-you-go procedures do not apply.
CBO estimates that enacting H.R. 4398 would not increase net
direct spending or on-budget deficits in any of the four
consecutive 10-year periods beginning in 2027.
H.R. 4398 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 H. Samuel Papenfuss, Deputy
Assistant Director for Budget Analysis.
Statement of General Performance Goals and Objectives
Pursuant to clause 3(c)(4) of rule XIII of the Rules of the
House of Representatives, H.R. 4398 contains the following
general performance goals and objectives, including outcome
related goals and objectives authorized.
This bill requires relevant components to maintain specific
types of acquisition documentation that is complete, accurate,
timely, and valid. The heads of DHS components shall submit
required information as part of an annual comprehensive report
on the status of the Department's acquisitions.
Duplicative Federal Programs
Pursuant to clause 3(c) of rule XIII, the Committee finds
that H.R. 4398 does not contain any provision that establishes
or reauthorizes a program known to be duplicative of another
Federal program.
Congressional Earmarks, Limited Tax Benefits, and Limited Tariff
Benefits
In compliance with rule XXI of the Rules of the House of
Representatives, this bill, as reported, contains no
congressional earmarks, limited tax benefits, or limited tariff
benefits as defined in clause 9(e), 9(f), or 9(g) of the rule
XXI.
Federal Mandates Statement
The Committee adopts as its own the estimate of Federal
mandates prepared by the Director of the Congressional Budget
Office pursuant to section 423 of the Unfunded Mandates Reform
Act.
Preemption Clarification
In compliance with section 423 of the Congressional Budget
Act of 1974, requiring the report of any Committee on a bill or
joint resolution to include a statement on the extent to which
the bill or joint resolution is intended to preempt State,
local, or Tribal law, the Committee finds that H.R. 4398 does
not preempt any State, local, or Tribal law.
Disclosure of Directed Rule Makings
The Committee estimates that H.R. 4398 would require no
directed rule makings.
Advisory Committee Statement
No advisory committees within the meaning of section 5(b)
of the Federal Advisory Committee Act were created by this
legislation.
Applicability to Legislative Branch
The Committee finds that the legislation does not relate to
the terms and conditions of employment or access to public
services or accommodations within the meaning of section
102(b)(3) of the Congressional Accountability Act.
Section-by-Section Analysis of the Legislation
Section 1. Short title
This section provides that this bill may be cited as the
``DHS Acquisition Documentation Integrity Act of 2016''.
Section 2. Department of Homeland Security Acquisition Documentation
Subsection (a)--In General.
This subsection inserts a new section in the Homeland
Security Act of 2002, entitled ``Sec. 708. Acquisition
Documentation'' containing the following:
Subsection (a)--In general
This subsection compels the Secretary of Homeland Security,
acting through the Under Secretary for Management, to require
relevant components to maintain specific types of acquisition
documentation that is complete, accurate, timely, and valid.
Specifically, component heads must maintain documentation that,
at a minimum, includes: (1) information regarding operational
requirements; (2) a complete life-cycle cost estimate; (3) a
verification of the life-cycle cost estimate against
independent cost estimates; (4) a cost-benefit analysis; and
(5) a schedule. The component heads are also required to submit
certain documentation to the DHS Secretary for inclusion in an
annual comprehensive report on the status of the Department's
acquisitions.
Subsection (b)--Waiver
This subsection codifies a narrow set of authorities for
the DHS Secretary to waive the documentation requirement under
subsection (a)(3), a similar approach to the acquisition-
management and reporting activities in the Department of
Defense. Specifically, the Secretary may waive documentation
requirements if a program has not: (1) entered full-rate
production; (2) established a reasonable cost estimate; or (3)
had a fully defined system configuration. Additionally, the
requirement may be waived if the program is not a ``capital
asset,'' as defined by the Office of Management and Budget.
Subsection (c)--Congressional oversight
This subsection requires the DHS Secretary to submit to the
House and Senate homeland security committees, as part of the
annual budget process, information on the circumstances
surrounding any waivers issued under subsection (b) in the
prior fiscal year. The Secretary must include information on:
(1) the grounds for issuing a waiver for a program; (2) the
projected cost of such program; (3) the proportion of the total
annual acquisition budget attributed to such program; and (4)
information on the significance of such program to support the
Department's mission.
Subsection (d)--Major acquisition program defined
This subsection defines ``major acquisition program'' as an
acquisition program that is estimated to require at least $300
million over its life cycle.
Subsection (b)--Clerical Amendment.
This subsection makes clerical corrections to the Homeland
Security Act of 2002 by inserting the section header in the
table of contents at the appropriate place.
Changes in Existing Law Made by the Bill, as Reported
In compliance with clause 3(e) of rule XIII of the Rules of
the House of Representatives, changes in existing law made by
the bill, as reported, are shown as follows (new matter is
printed in italic and existing law in which no change is
proposed is shown in roman):
HOMELAND SECURITY ACT OF 2002
SECTION 1. SHORT TITLE; TABLE OF CONTENTS.
(a) Short Title.--This Act may be cited as the ``Homeland
Security Act of 2002''.
(b) Table of Contents.--The table of contents for this Act is
as follows:
* * * * * * *
TITLE VII--MANAGEMENT
* * * * * * *
Sec. 708. Acquisition documentation.
* * * * * * *
TITLE VII--MANAGEMENT
* * * * * * *
SEC. 708. ACQUISITION DOCUMENTATION.
(a) In General.--For each major acquisition program, the
Secretary, acting through the Under Secretary for Management,
shall require the head of a relevant component or office to--
(1) maintain acquisition documentation that is
complete, accurate, timely, and valid and that
includes, at a minimum--
(A) operational requirements that are
validated consistent with Departmental policy
and changes to those requirements, as
appropriate;
(B) a complete lifecycle cost estimate with
supporting documentation;
(C) verification of the lifecycle cost
estimate against independent cost estimates,
and reconciliation of any differences;
(D) a cost-benefit analysis with supporting
documentation; and
(E) a schedule, including, as appropriate, an
integrated master schedule;
(2) prepare cost estimates and schedules for major
acquisition programs, as required under subparagraphs
(B) and (E), in a manner consistent with best practices
as identified by the Comptroller General of the United
States; and
(3) submit certain acquisition documentation to the
Secretary to produce an annual comprehensive report on
the status of departmental acquisitions for submission
to Congress.
(b) Waiver.--On a case-by-case basis, the Secretary may waive
the requirement under paragraph (3) of subsection (a) for a
fiscal year if either--
(1) the program has not--
(A) entered the full rate production phase in
the acquisition lifecycle;
(B) had a reasonable cost estimate
established; and
(C) had a system configuration defined fully;
or
(2) the program does not meet the definition of
capital asset, as such term is defined by the Director
of the Office of Management and Budget.
(c) Congressional Oversight.--At the same time the
President's budget is submitted for a fiscal year under section
1105(a) of title 31, United States Code, the Secretary shall
make information available, as applicable, to the Committee on
Homeland Security of the House of Representatives and the
Committee on Homeland Security and Governmental Affairs of the
Senate information on the requirement under subsection (a) in
the prior fiscal year that includes the following specific
information regarding each program for which the Secretary has
issued a waiver under subsection (b):
(1) The grounds for granting a waiver for that
program.
(2) The projected cost of that program.
(3) The proportion of a component's or office's
annual acquisition budget attributed to that program,
as available.
(4) Information on the significance of the program
with respect to the component's operations and
execution of its mission.
(d) Major Acquisition Program Defined.--In this section, 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 2016 constant dollars) over its lifecycle
cost.
* * * * * * *
[all]