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

Subtitle A--Acquisition Policy and Management

P. L. 111-

Joint Explanatory Statement of the Committees on Armed Services of the U. S. Senate and House of Representatives on H. R. 6523

From H. R. 6523

SEC. 805. ACQUISITION OF MAJOR AUTOMATED INFORMATION SYSTEM PROGRAMS.

(a) Program To Improve Information Technology Processes-

(1) IN GENERAL- Chapter 131 of title 10, United States Code, is amended by inserting after section 2223 the following new section:

`Sec. 2223a. Information technology acquisition planning and oversight requirements

`(a) Establishment of Program- The Secretary of Defense shall establish a program to improve the planning and oversight processes for the acquisition of major automated information systems by the Department of Defense.

`(b) Program Components- The program established under subsection (a) shall include--

`(1) a documented process for information technology acquisition planning, requirements development and management, project management and oversight, earned value management, and risk management;

`(2) the development of appropriate metrics that can be implemented and monitored on a real-time basis for performance measurement of--

`(A) processes and development status of investments in major automated information system programs;

`(B) continuous process improvement of such programs; and

`(C) achievement of program and investment outcomes;

`(3) a process to ensure that key program personnel have an appropriate level of experience, training, and education in the planning, acquisition, execution, management, and oversight of information technology systems;

`(4) a process to ensure sufficient resources and infrastructure capacity for test and evaluation of information technology systems;

`(5) a process to ensure that military departments and Defense Agencies adhere to established processes and requirements relating to the planning, acquisition, execution, management, and oversight of information technology programs and developments; and

`(6) a process under which an appropriate Department of Defense official may intervene or terminate the funding of an information technology investment if the investment is at risk of not achieving major project milestones.'.

(2) CLERICAL AMENDMENT- The table of sections at the beginning of chapter 131 of such title is amended by inserting after the item relating to section 2223 the following new item:

`2223a. Information technology acquisition planning and oversight requirements.'.

(b) Annual Report to Congress- Section 2445b(b) of title 10, United States Code, is amended by adding at the end the following new paragraphs:

`(5) For each major automated information system program for which such information has not been provided in a previous annual report--

`(A) a description of the business case analysis (if any) that has been prepared for the program and key functional requirements for the program;

`(B) a description of the analysis of alternatives conducted with regard to the program;

`(C) an assessment of the extent to which the program, or portions of the program, have technical requirements of sufficient clarity that the program, or portions of the program, may be feasibly procured under firm, fixed-price contracts;

`(D) the most recent independent cost estimate or cost analysis for the program provided by the Director of Cost Assessment and Program Evaluation in accordance with section 2334(a)(6) of this title;

`(E) a certification by a Department of Defense acquisition official with responsibility for the program that all technical and business requirements have been reviewed and validated to ensure alignment with the business case; and

`(F) an explanation of the basis for the certification described in subparagraph (E).

`(6) For each major automated information system program for which the information required under paragraph (5) has been provided in a previous annual report, a summary of any significant changes to the information previously provided.'.

From S. 3454, National Defense Authorization Act for Fiscal Year 2011

SEC. 812. ACQUISITION OF MAJOR AUTOMATED INFORMATION SYSTEM PROGRAMS.

(a) Program to Improve Information Technology Processes-

(1) IN GENERAL- Chapter 131 of title 10, United States Code, is amended by inserting after section 2223 the following new section:

`Sec. 2223a. Information technology acquisition planning and oversight requirements

`(a) Establishment of Program- The Secretary of Defense shall establish a program to improve the planning and oversight processes for the acquisition of major automated information systems by the Department of Defense.

`(b) Program Components- The program established under subsection (a) shall include--

`(1) a documented process for information technology acquisition planning, requirements development and management, project management and oversight, earned value management, and risk management;

`(2) the development of appropriate metrics that can be implemented and monitored on a real-time basis for performance measurement of--

`(A) processes and development status of investments in major automated information system programs;

`(B) continuous process improvement of the program; and

`(C) achievement of program and investment outcomes;

`(3) a process to ensure that key program personnel have an appropriate level of experience, training, and education in the planning, acquisition, execution, management, and oversight of information technology systems;

`(4) a process to ensure that military departments and defense agencies adhere to established processes and requirements relating to the planning, acquisition, execution, management, and oversight of information technology programs and developments; and

`(5) a process under which an appropriate Department of Defense official may intervene or terminate the funding of an information technology investment if the investment is at risk of not achieving major project milestones.'.

(2) CLERICAL AMENDMENT- The table of sections at the beginning of chapter 131 of such title is amended by inserting after the item relating to section 2223 the following new item:

`2223a. Information technology acquisition planning and oversight requirements.'.

(b) Annual Report to Congress- Section 2445b(b) of title 10, United States Code, is amended by adding at the end the following new paragraphs:

`(5) For each major automated information system program for which such information has not been provided in a previous annual report--

`(A) a description of the primary business case and key functional requirements for the program;

`(B) a description of the analysis of alternatives conducted with regard to the program;

`(C) an assessment of the extent to which the program, or portions of the program, have technical requirements of sufficient clarity that the program, or portions of the program, may be feasibly procured under firm, fixed-price contracts;

`(D) the most recent independent cost estimate or cost analysis for the program provided by the Director of Cost Assessment and Program Evaluation in accordance with section 2334(a)(6) of this title;

`(E) a certification by a Department of Defense acquisition official with responsibility for the program that all technical and business requirements have been reviewed and validated to ensure alignment with the business case; and

`(F) an explanation of the basis for the certification described in subparagraph (E).

`(6) For each major automated information system program for which the information required under paragraph (5) has been provided in a previous annual report, a summary of any significant changes to the information previously provided.'.

The Senate committee-reported bill contained a provision (sec. 812) that would codify planning and oversight requirements for major automated information system (MAIS) programs.

The House bill contained no similar provision.

The agreement includes the Senate provision with an amendment to ensure that resources and infrastructure for the test and evaluation of MAIS programs are appropriately addressed.

From S. Rpt. 111-201, to accompany S. 3454, NATIONAL DEFENSE AUTHORIZATION ACT FOR FISCAL YEAR 2011

Acquisition of major automated information system programs (sec. 812)

The committee recommends a provision that would require the Secretary of Defense to establish a program to improve the planning and oversight of the acquisition of major automated information systems by the Department of Defense. Section 804 of the National Defense Authorization Act for Fiscal Year 2010 (Public Law 111-84) required DOD to develop and implement a new acquisition process for information technology systems. The provision recommended by the committee would require that the new acquisition process specifically address the issues of planning, requirements development and management, project management and oversight, earned value management, and risk management. In addition, the Department would be required to develop metrics for measuring performance measurement and to ensure that key program personnel have an appropriate level of relevant experience, training, and education.