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TITLE VIII--ACQUISITION POLICY, ACQUISITION MANAGEMENT, AND RELATED MATTERS

Subtitle C--Provisions Relating to Major Defense Acquisition Programs

P. L. 114-

House Conference Report. 114-270

(a) In general.—Section 2430 of title 10, United States Code, is amended by adding at the end the following new subsection:

“(d) (1) The milestone decision authority for a major defense acquisition program reaching Milestone A after October 1, 2016, shall be the service acquisition executive of the military department that is managing the program, unless the Secretary of Defense designates, under paragraph (2), another official to serve as the milestone decision authority.

“(2) The Secretary of Defense may designate an alternate milestone decision authority for a program with respect to which—

“(A) the Secretary determines that the program is addressing a joint requirement;

“(B) the Secretary determines that the program is best managed by a Defense Agency;

“(C) the program has incurred a unit cost increase greater than the significant cost threshold or critical cost threshold under section 2433 of this title;

“(D) the program is critical to a major interagency requirement or technology development effort, or has significant international partner involvement; or

“(E) the Secretary determines that an alternate official serving as the milestone decision authority will best provide for the program to achieve desired cost, schedule, and performance outcomes.

“(3) (A) After designating an alternate milestone decision authority under paragraph (2) for a program, the Secretary of Defense may revert the position of milestone decision authority for the program back to the service acquisition executive upon request of the Secretary of the military department concerned. A decision on the request shall be made within 180 days after receipt of the request from the Secretary of the military department concerned.

“(B) If the Secretary of Defense denies the request for reversion of the milestone decision authority back to the service acquisition executive, the Secretary shall report to the congressional defense committees on the basis of the Secretary’s decision that an alternate official serving as milestone decision authority will best provide for the program to achieve desired cost, schedule, and performance outcomes. No such reversion is authorized after a program has incurred a unit cost increase greater than the significant cost threshold or critical cost threshold under section 2433 of this title, except in exceptional circumstances.

“(4) (A) For each major defense acquisition program, the Secretary of the military department concerned and the Chief of the armed force concerned shall, in each Selected Acquisition Report required under section 2432 of this title, certify that program requirements are stable and funding is adequate to meet cost, schedule, and performance objectives for the program and identify and report to the congressional defense committees on any increased risk to the program since the last report.

“(B) The Secretary of Defense shall review the acquisition oversight process for major defense acquisition programs and shall limit outside requirements for documentation to an absolute minimum on those programs where the service acquisition executive of the military department that is managing the program is the milestone decision authority and ensure that any policies, procedures, and activities related to oversight efforts conducted outside of the military departments with regard to major defense acquisition programs shall be implemented in a manner that does not unnecessarily increase program costs or impede program schedules.”.

(b) Conforming amendment.—Section 133(b)(5) of such title is amended by inserting before the period at the end the following: “, except that the Under Secretary shall exercise advisory authority, subject to the authority, direction, and control of the Secretary of Defense, over service acquisition programs for which the service acquisition executive is the milestone decision authority”.

(c) Implementation.—

(1) IMPLEMENTATION PLAN.—Not later than 180 days after the date of the enactment of this Act, the Secretary of Defense shall submit to the congressional defense committees a plan for implementing subsection (d) of section 2430 of title 10, United States Code, as added by subsection (a) of this section.

(2) GUIDANCE.—The Deputy Chief Management Officer of the Department of Defense, in consultation with the Under Secretary of Defense for Acquisition, Technology, and Logistics and the service acquisition executives, shall issue guidance to ensure that by not later than October 1, 2016, the acquisition policy, guidance, and practices of the Department of Defense conform to the requirements of subsection (d) of section 2430 of title 10, United States Code, as added by subsection (a) of this section. The guidance shall be designed to ensure a streamlined decisionmaking and approval process and to minimize any information requests, consistent with the requirement of paragraph (4)(A) of such subsection (d).

(3) EFFECTIVE DATE.—The amendments made by subsections (a) and (b) shall take effect on October 1, 2016.

The House bill contained no similar provision.

The House recedes with an amendment that would clarify that the provision would apply to new programs reaching milestone A after October 1, 2016; modify certain certification requirements; and require the Secretary of Defense to review the acquisition oversight process for major defense acquisition programs and limit outside requirements for documentation to an absolute minimum on those service managed programs. The conferees note that the Under Secretary of Defense for Acquisition, Technology, and Logistics should only exercise advisory authority, subject to the overall authority, direction, and control of the Secretary of Defense, over service acquisition programs for which the service acquisition executive is the milestone decision authority.

Senate Report 114-49 to accompany S. 1376 as it was reported out of the Senate Armed Services Committee.

Designation of milestone decision authority (sec. 843)

The committee recommends a provision that would amend section 2430 of title 10, United States Code, to designate the service acquisition executives as the milestone decision authority for major acquisition programs managed by the military services. The Secretary of Defense may designate an alternative milestone decision authority for joint programs, programs managed by defense agencies and other specific cases. The committee is concerned about the amount of time it takes to conduct multiple, duplicative reviews within the Office of the Secretary of Defense and the services.

This provision would decentralize decision making authority for milestone decisions to the services for service-unique programs and would limit the documentation and approvals that would be required for these programs outside of the services to a minimum. The provision would authorize that if a program managed by the services breaches thresholds in the Nunn-McCurdy Act, section 2433 of title 10, United States Code, or has failed to develop an acquisition program baseline within 2 years of program initiation, the Secretary of Defense revoke service milestone decision authority for the program. The Secretary should then consider either terminating the program or managing the program centrally from the Office of the Secretary of Defense.

The provision would clarify that for service programs where the service acquisition executive is the milestone decision authority the Undersecretary of Defense for Acquisition, Logistics and Technology would only exercise advisory authority. The provision would also require that the service secretaries and service chiefs certify in each Selected Acquisition Report that program requirements are stable and funding is adequate to meet cost, schedule and performance objectives for each major defense acquisition program. It is the committee's expectation that the service chiefs and the service secretaries will take all necessary action to ensure that service programs are managed in a way that limits cost, schedule and performance issues and are fully budgeted and have stable requirements.

The transfer of milestone decision authority to the services for applicable defense programs would become effective on October 1, 2016. Prior to the effective date, the Deputy Chief Management Officer shall issue guidance to ensure that acquisition policy, guidance and practices would support a streamlined decision making and approval process that minimizes information requests as required by this provision. Not later than 180 days after the enactment of this Act, the Secretary of Defense shall submit to the congressional defense committees a plan to implement the Undersecretary of Defense for Acquisition, Technology and Logistics advisory authority for service acquisition programs.