[House Report 116-96]
[From the U.S. Government Publishing Office]
116th Congress } { Report
HOUSE OF REPRESENTATIVES
1st Session } { 116-96
======================================================================
DHS ACQUISITION REVIEW BOARD ACT OF 2019
_______
May 30, 2019.--Committed to the Committee of the Whole House on the
State of the Union and ordered to be printed
_______
Mr. Thompson of Mississippi, from the Committee on Homeland Security,
submitted the following
R E P O R T
[To accompany H.R. 2609]
[Including cost estimate of the Congressional Budget Office]
The Committee on Homeland Security, to whom was referred
the bill (H.R. 2609) to amend the Homeland Security Act of 2002
to establish the Acquisition Review Board in the Department of
Homeland Security, 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.............................................. 1
Background and Need for Legislation.............................. 2
Hearings......................................................... 2
Committee Consideration.......................................... 3
Committee Votes.................................................. 3
Committee Oversight Findings..................................... 3
C.B.O. Estimate, New Budget Authority, Entitlement Authority, and
Tax Expenditures............................................... 3
Federal Mandates Statement....................................... 5
Statement of General Performance Goals and Objectives............ 5
Duplicative Federal Programs..................................... 5
Congressional Earmarks, Limited Tax Benefits, and Limited Tariff
Benefits....................................................... 5
Advisory Committee Statement.....................................
Applicability to Legislative Branch..............................
Section-by-Section Analysis of the Legislation................... 5
Changes in Existing Law Made by the Bill, as Reported............ 6
Purpose and Summary
H.R. 2609, the ``DHS Acquisition Review Board Act of 2019''
authorizes the Department of Homeland Security's (Department or
DHS) Acquisition Review Board (ARB) to ensure greater
accountability and uniformity within the components' major
acquisition programs--those with cost estimates greater than
$300 million. The ARB reviews the Department's major
acquisition programs for proper management, oversight,
accountability, and alignment with the Department's strategic
functions before authorizing advancement at key milestone
events.
Background and Need for Legislation
The Government Accountability Office (GAO) and the DHS
Office of Inspector General (OIG) have reported on the
longstanding challenges DHS faces in managing its major
acquisition programs, which cost the Department over $6 billion
each year. Since 2003, GAO has identified DHS' transformation
of 22 agencies into one Department, and the Department's
subsequent challenges with its management functions, as ``high
risk.'' In GAO's 2019 high risk update, GAO reported that DHS
continues to face challenges in funding its acquisition
portfolio. Specifically, only 10 of 24 major acquisition
programs with approved schedule and cost goals were on track to
meet those goals.
Additionally, in November 2018, the OIG reported that
acquisition program management continues to be one of the
Department's significant challenge areas. The OIG found that
DHS components have an ongoing tendency to acquire systems
before adequately defining requirements or developing
performance measures.
Hearings
The Committee did not hold a hearing on H.R. 2609 in the
116th Congress. However, the Committee held four hearings on
the Department's acquisition management during the 114th and
115th Congresses.
114th Congress
On February 26, 2015, the Subcommittee on Oversight and
Management Efficiency held a hearing entitled ``Assessing DHS's
Performance: Watchdog Recommendations to Improve Homeland
Security.'' The Subcommittee received testimony from The
Honorable John Roth, Inspector General, U.S. Department of
Homeland Security; Ms. Rebecca Gambler, Director, Homeland
Security and Justice, U.S. Government Accountability Office;
and Dr. Daniel M. Gerstein, Senior Policy Researcher, The RAND
Corporation.
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; The Honorable 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.
On September 18, 2015, the Subcommittee on Oversight and
Management Efficiency held a hearing entitled ``Making DHS More
Efficient: Industry Recommendations to Improve Homeland
Security.'' The Subcommittee received testimony from Mr. Marc
Pearl, President and Chief Executive Officer, Homeland Security
and Defense Business Counsel; Mr. Harry Totonis, Board
Director, Business Executives for National Security; and Ms.
Elaine Duke, Principal, Elaine Duke & Associates, LLC.
115th Congress
On February 16, 2017, the Subcommittee on Oversight and
Management Efficiency held a hearing entitled ``Watchdog
Recommendations: A Better Way Ahead to Manage the Department of
Homeland Security.'' The Subcommittee received testimony from
The Honorable John Roth, Inspector General, U.S. Department of
Homeland Security, and Ms. Rebecca Gambler, Director, Homeland
Security and Justice, U.S. Government Accountability Office.
Committee Consideration
The Committee met on May 15, 2019, with a quorum being
present, to consider H.R. 2609 and ordered the measure to be
reported to the House with a favorable recommendation, without
amendment, by unanimous consent.
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. 2609.
Committee Oversight Findings
In compliance with clause 3(c)(1) of rule XIII of the Rules
of the House of Representatives, the Committee advises that the
findings and recommendations of the Committee, based on
oversight activities under clause 2(b)(1) of rule X of the
Rules of the House of Representatives, are incorporated in the
descriptive portions of this report.
Congressional Budget Office Estimate, New Budget Authority, Entitlement
Authority, and Tax Expenditures
With respect to the requirements of clause 3(c)(2) of rule
XIII of the Rules of the House of Representatives and section
308(a) of the Congressional Budget Act of 1974 and with respect
to requirements of clause (3)(c)(3) of rule XIII of the Rules
of the House of Representatives and section 402 of the
Congressional Budget Act of 1974, the Committee adopts as its
own the estimate of the estimate of new budget authority,
entitlement authority, or tax expenditures or revenues
contained in the cost estimate prepared by the Director of the
Congressional Budget Office.
U.S. Congress,
Congressional Budget Office,
Washington, DC, May 22, 2019.
Hon. Bennie G. Thompson,
Chairman, Committee on Homeland Security,
House of Representatives, Washington, DC.
Dear Mr. Chairman: The Congressional Budget Office has
prepared the enclosed cost estimate for Department of Homeland
Security Legislation.
If you wish further details on these estimates, we will be
pleased to provide them. The CBO staff contact is Mark
Grabowicz.
Sincerely,
Keith Hall,
Director.
Enclosure.
On May 15, the House Committee on Homeland Security ordered
reported the following bills:
H.R. 542, the Supporting Research and
Development for First Responders Act, which would
codify laboratory programs that currently exist at the
Department of Homeland Security (DHS);
H.R. 2589, the Unifying DHS Intelligence
Enterprise Act, which would direct DHS to manage and
provide guidance for the use of intelligence throughout
the department;
H.R.2590, the DHS Overseas Personnel
Enhancement Act of 2019, which would require DHS to
devise a plan to improve the effectiveness of
department personnel who are stationed at foreign
locations;
H.R. 2609, the DHS Acquisition Review Board
Act of 2019, which would direct the department to
establish a board to review major acquisition programs
and enhance accountability and uniformity in the review
process for DHS acquisitions; and
H.R. 2621, the Homeland Security Assessment
of Terrorists Use of Ghost Guns Act, which would
require DHS to evaluate the threat posed by firearms
without unique serial numbers.
DHS is currently carrying out activities similar to those
required by the bills listed above, and any new activities
required under the legislation would not require substantial
action by the department. Thus, CBO estimates that implementing
each bill would not significantly affect spending by DHS.
The CBO staff contact for these estimates is Mark
Grabowicz. The estimates were reviewed by H. Samuel Papenfuss,
Deputy Assistant Director for Budget Analysis.
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.
Duplicative Federal Programs
Pursuant to clause 3(c) of rule XIII, the Committee finds
that H.R. 2609 does not contain any provision that establishes
or reauthorizes a program known to be duplicative of another
Federal program.
Performance Goals and Objectives
The Committee states that pursuant to clause 3(c)(4) of
rule XIII of the Rules of the House of Representatives, H.R.
2609 would codify in law certain acquisition management
oversight mechanisms in the Department of Homeland Security.
Advisory on Earmarks
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(d), 9(e), or 9(f) of the rule
XXI.
Section-by-Section Analysis of the Legislation
Section 1. Short title
This section provides that this bill may be cited as the
``DHS Acquisition Review Board Act of 2019''.
Sec. 2. Acquisition Review Board
This section amends subtitle D of title VIII of the
Homeland Security Act of 2002 to codify the Acquisition Review
Board (ARB) and requires the ARB, chaired by the Under
Secretary for Management (USM), to meet regularly to review
major acquisition programs.
Section 2 establishes responsibilities for the ARB which,
among other things, includes determining whether an acquisition
program has met requirements to proceed to the next key phase
of the acquisition life cycle. It also requires the ARB to
review key documents of each major acquisition, such as the
Acquisition Program Baseline (APB) that contains cost,
schedule, and performance requirements. This section also
requires the ARB to ensure practices are adopted to consider
trade-offs among cost, schedule, and performance objectives as
part of the process for developing program requirements.
Section 2 also contains reporting requirement. If the ARB
allows a major acquisition program to proceed without an APB,
the USM shall create a report on the approval and the Secretary
shall notify the House and Senate Committees on Homeland
Security and provide a justification for the decision. Further,
this section requires the USM to provide acquisition oversight
documentation to the House and Senate Committees on Homeland
Security to enhance congressional oversight of major
acquisition programs. For example, the USM must provide
acquisition decision memorandums for each ARB meeting held,
which provide key information on meeting participants,
outcomes, and the status of the program.
This section also includes relevant definitions related to
acquisition management.
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:
Sec. 1. Short title; table of contents.
* * * * * * *
TITLE VIII--COORDINATION WITH NON-FEDERAL ENTITIES; INSPECTOR GENERAL;
UNITED STATES SECRET SERVICE; COAST GUARD; GENERAL PROVISIONS
* * * * * * *
Subtitle D--Acquisitions
* * * * * * *
Sec. 835. Prohibition on contracts with corporate expatriates.
Sec. 836. Acquisition Review Board.
* * * * * * *
TITLE VIII--COORDINATION WITH NON-FEDERAL ENTITIES; INSPECTOR GENERAL;
UNITED STATES SECRET SERVICE; COAST GUARD; GENERAL PROVISIONS
* * * * * * *
Subtitle D--Acquisitions
* * * * * * *
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--
(1) strengthen accountability and uniformity within
the Department acquisition review process;
(2) review major acquisition programs; and
(3) review the use of best practices.
(b) Composition.--
(1) Chair.--The Under Secretary for Management shall
serve as chair of the Board.
(2) Participation.-- The Secretary shall ensure
participation by other relevant Department officials
with responsibilities related to acquisitions as
permanent members of the Board.
(3) Oversight.--The Under Secretary for Management
shall designate a full time employee of the Department
to oversee the operations of the Board.
(c) Meetings.--The Board shall meet regularly for purposes of
ensuring all acquisitions processes proceed in a timely fashion
to achieve mission readiness. The Board shall convene at the
Secretary's discretion and at any time--
(1) a major acquisition program--
(A) requires authorization to proceed from
one acquisition decision event to another
throughout the acquisition life cycle;
(B) is in breach of its approved
requirements; or
(C) requires additional review, as determined
by the Under Secretary for Management; or
(2) a non-major acquisition program requires review,
as determined by the Under Secretary for Management.
(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 whether a proposed acquisition's business
strategy, resources, management, and accountability 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 such acquisition at key
acquisition decision events.
(4) Conduct systematic reviews of acquisitions to
ensure that such 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.
(e) Acquisition Program Baseline Report Requirement.--If the
person exercising acquisition decision authority over a major
acquisition program approves such program to proceed into the
planning phase before such program has a Department-approved
acquisition program baseline, the Under Secretary for
Management shall create and approve an acquisition program
baseline report regarding such approval, and the Secretary
shall--
(1) within 7 days after an 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 such decision; and
(2) within 60 days after the acquisition decision
memorandum is signed, submit to such committees a
written explanation of the rationale for such decision
and a plan of action to address acquisition program
baseline requirements for such program.
(f) Report.--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 an annual basis through
fiscal year 2024 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
pursuant to paragraph (4) of subsection (d).
(3) Results of acquisition document reviews required
pursuant to paragraph (5) of subsection (d).
(4) Activities to ensure that practices are adopted
and implemented throughout the Department pursuant to
paragraph (6) of subsection (d).
(g) 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 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 such 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 such 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 such
acquisition, as determined by the person exercising
acquisition decision authority for such 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
Department's mission and business operations.
(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 2019 constant dollars) over its
life cycle cost.
* * * * * * *