[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.

           *       *       *       *       *       *       *


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