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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) Revised guidance required.—Not later than 180 days after the date of the enactment of this Act, the Secretary of Defense shall revise Department of Defense guidance for major defense acquisition programs to address the tenure and accountability of program managers for the program execution period of major defense acquisition programs.

(b) Program execution period.—For purposes of this section, the term “program execution period”, with respect to a major defense acquisition program, means the period beginning with Milestone B approval (or Key Decision Point B approval in the case of a space program) and ending with declaration of initial operational capability.

(c) Responsibilities.—The revised guidance required by subsection (a) shall—

(1) require the program manager for the program execution period of a major defense acquisition program to enter into a performance agreement with the manager’s immediate supervisor for such program within six months of assignment, that—

(A) establishes expected parameters for the cost, schedule, and performance of the program consistent with the business case for the program;

(B) provides the commitment of the supervisor to provide the level of funding and resources required to meet such parameters; and

(C) provides the assurance of the program manager that such parameters are achievable and that the program manager will be accountable for meeting such parameters; and

(2) provide the program manager with the authority to—

(A) consult on the addition of new program requirements that would be inconsistent with the parameters established in the performance agreement entered into pursuant to paragraph (1);

(B) recommend trade-offs between cost, schedule, and performance, provided that such trade-offs are consistent with the parameters established in the performance agreement entered into pursuant to paragraph (1); and

(C) develop such interim goals and milestones as may be required to achieve the parameters established in the performance agreement entered into pursuant to paragraph (1).

(d) Qualifications, resources, and tenure.—The Secretary shall ensure that each program manager for the program execution period of a defense acquisition program—

(1) has the appropriate management, engineering, technical, and financial expertise needed to meet the responsibilities assigned pursuant to subsection (c);

(2) is provided the resources and support (including systems engineering expertise, cost estimating expertise, and software development expertise) needed to meet such responsibilities; and

(3) is assigned to the program manager position for such program during the program execution period, unless removed for cause or due to exceptional circumstances.

(e) Waiver authority.—The immediate supervisor of a program manager for a major defense acquisition program may waive the requirement in paragraph (3) of subsection (d) upon a determination that the program execution period will take so long that it would not be appropriate for a single individual to serve as program manager for the entire program execution period.

The House bill contained no similar a provision.

The House recedes with an amendment to clarify the elements of the guidance to be issued as a result of the provision.

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

Tenure and accountability of program managers for program execution periods (sec. 847)

The committee recommends a provision that would address the tenure and accountability of program managers for the program execution period of defense acquisition programs. The provision would require each such program manager to enter into a performance agreement with the milestone decision authority (MDA) that establishes the expected parameters of performance, including the commitment of the MDA that adequate funding and resources are available and will be provided, and assurance of the program manager that the parameters are achievable. The provision would also require that program managers be given authority comparable to the authority given to private sector program managers and that they be assigned to a program until the delivery of the first production units, with a narrow waiver authority. Past concerns that military program managers' careers would be limited by longer program manager tenures is addressed by provisions that would modify military personnel authorities in this Act.