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

Subtitle F — Improve Acquisition Act

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. 871. ACQUISITION WORKFORCE EXCELLENCE.

(a) Acquisition Workforce Excellence- Subchapter I of chapter 87 of title 10, United States Code, is amended by inserting after section 1701 the following new section:

`Sec. 1701a. Management for acquisition workforce excellence

`(a) Purpose- The purpose of this chapter is to require the Department of Defense to develop and manage a highly skilled professional acquisition workforce--

`(1) in which excellence and contribution to mission is rewarded;

`(2) which has the technical expertise and business skills to ensure the Department receives the best value for the expenditure of public resources;

`(3) which serves as a model for performance management of employees of the Department; and

`(4) which is managed in a manner that complements and reinforces the management of the defense acquisition system pursuant to chapter 149 of this title.

`(b) Performance Management- In order to achieve the purpose set forth in subsection (a), the Secretary of Defense shall--

`(1) use the full authorities provided in subsections (a) through (d) of section 9902 of title 5, including flexibilities related to performance management and hiring and to training of managers;

`(2) require managers to develop performance plans for individual members of the acquisition workforce in order to give members an understanding of how their performance contributes to their organization's mission and the success of the defense acquisition system (as defined in section 2545 of this title);

`(3) to the extent appropriate, use the lessons learned from the acquisition demonstration project carried out under section 1762 of this title related to contribution-based compensation and appraisal, and how those lessons may be applied within the General Schedule system;

`(4) develop attractive career paths;

`(5) encourage continuing education and training;

`(6) develop appropriate procedures for warnings during performance evaluations for members of the acquisition workforce who consistently fail to meet performance standards;

`(7) take full advantage of the Defense Civilian Leadership Program established under section 1112 of the National Defense Authorization Act for Fiscal Year 2010 (Public Law 111-84; 123 Stat. 2496; 10 U.S.C. 1580 note prec.);

`(8) use the authorities for highly qualified experts under section 9903 of title 5, to hire experts who are skilled acquisition professionals to--

`(A) serve in leadership positions within the acquisition workforce to strengthen management and oversight;

`(B) provide mentors to advise individuals within the acquisition workforce on their career paths and opportunities to advance and excel within the acquisition workforce; and

`(C) assist with the design of education and training courses and the training of individuals in the acquisition workforce; and

`(9) use the authorities for expedited security clearance processing pursuant to section 1564 of this title.

`(c) Negotiations- Any action taken by the Secretary under this section, or to implement this section, shall be subject to the requirements of chapter 71 of title 5.

`(d) Regulations- Any rules or regulations prescribed pursuant to this section shall be deemed an agency rule or regulation under section 7117(a)(2) of title 5, and shall not be deemed a Government-wide rule or regulation under section 7117(a)(1) of such title.'.

(b) Clerical Amendment- The table of sections at the beginning of such subchapter is amended by inserting after the item relating to section 1701 the following new item:

`1701a. Management for acquisition workforce excellence.'.

From H.R. 5136:  National Defense Authorization Act for Fiscal Year 2011

SEC. 201. ACQUISITION WORKFORCE EXCELLENCE.

(a) In General-

(1) ACQUISITION WORKFORCE EXCELLENCE- Subchapter I of chapter 87 of title 10, United States Code, is amended by inserting after section 1701 the following new section:

`Sec. 1701a. Management for acquisition workforce excellence

`(a) Purpose- The purpose of this chapter is to require the Department of Defense to develop and manage a highly skilled professional acquisition workforce--

`(1) in which excellence and contribution to mission is rewarded;

`(2) which has the technical expertise and business skills to ensure the Department receives the best value for the expenditure of public resources;

`(3) which serves as a model for performance management of employees of the Department; and

`(4) which is managed in a manner that complements and reinforces the performance management of the defense acquisition system pursuant to chapter 149 of this title.

`(b) Performance Management- In order to achieve the purpose set forth in subsection (a), the Secretary of Defense shall--

`(1) use the full authorities provided in subsections (a) through (d) of section 9902 of title 5, including flexibilities related to performance management and hiring and to training of managers;

`(2) require managers to develop performance plans for individual members of the acquisition workforce in order to give members an understanding of how their performance contributes to their organization's mission and the success of the defense acquisition system (as defined in section 2545 of this title);

`(3) to the extent appropriate, use the lessons learned from the acquisition demonstration project carried out under section 1762 of this title related to contribution-based compensation and appraisal, and how those lessons may be applied within the General Schedule system;

`(4) develop attractive career paths;

`(5) encourage continuing education and training;

`(6) develop appropriate procedures for warnings during performance evaluations and due process for members of the acquisition workforce who consistently fail to meet performance standards;

`(7) take full advantage of the Defense Civilian Leadership Program established under section 1112 of the National Defense Authorization Act for Fiscal Year 2010 (Public Law 111-84; 123 Stat. 2496; 10 U.S.C. 1580 note prec.);

`(8) use the authorities for highly qualified experts under section 9903 of title 5, to hire experts who are skilled acquisition professionals to--

`(A) serve in leadership positions within the acquisition workforce to strengthen management and oversight;

`(B) provide mentors to advise individuals within the acquisition workforce on their career paths and opportunities to advance and excel within the acquisition workforce; and

`(C) assist with the design of education and training courses and the training of individuals in the acquisition workforce; and

`(9) use the authorities for expedited security clearance processing pursuant to section 1564 of this title.

`(c) Negotiations- Any action taken by the Secretary under this section, or to implement this section, shall be subject to the requirements of chapter 71 of title 5.

`(d) Regulations- Any rules or regulations prescribed pursuant to this section shall be deemed an agency rule or regulation under section 7117(a)(2) of title 5, and shall not be deemed a Government-wide rule or regulation under section 7117(a)(1) of such title.'.

(2) CLERICAL AMENDMENT- The table of sections at the beginning of such subchapter is amended by inserting after the item relating to section 1701 the following new item:

`1701a. Management for acquisition workforce excellence.'.

(b) Authority to Appoint Highly Qualified Experts on Part-time Basis- Section 9903(b)(1) of title 5, United States Code, is amended by inserting `, on a full-time or part-time basis,' after `positions in the Department of Defense' the first place it appears.

From H. R. 5013:  Implementing Management for Performance and Related Reforms to Obtain Value in Every Acquisition Act of 2010

SEC. 201. ACQUISITION WORKFORCE EXCELLENCE.

(a) In General-

(1) ACQUISITION WORKFORCE EXCELLENCE- Subchapter I of chapter 87 of title 10, United States Code, is amended by inserting after section 1701 the following new section:

`Sec. 1701a. Management for acquisition workforce excellence

`(a) Purpose- The purpose of this chapter is to require the Department of Defense to develop and manage a highly skilled professional acquisition workforce--

`(1) in which excellence and contribution to mission is rewarded;

`(2) which has the technical expertise and business skills to ensure the Department receives the best value for the expenditure of public resources;

`(3) which serves as a model for performance management of employees of the Department; and

`(4) which is managed in a manner that complements and reinforces the performance management of the defense acquisition system pursuant to chapter 149 of this title.

`(b) Performance Management- In order to achieve the purpose set forth in subsection (a), the Secretary of Defense shall--

`(1) use the full authorities provided in subsections (a) through (d) of section 9902 of title 5, including flexibilities related to performance management and hiring and to training of managers;

`(2) require managers to develop performance plans for individual members of the acquisition workforce in order to give members an understanding of how their performance contributes to their organization's mission and the success of the defense acquisition system (as defined in section 2545 of this title);

`(3) to the extent appropriate, use the lessons learned from the acquisition demonstration project carried out under section 1762 of this title related to contribution-based compensation and appraisal, and how those lessons may be applied within the General Schedule system;

`(4) develop attractive career paths;

`(5) encourage continuing education and training;

`(6) develop appropriate procedures for warnings during performance evaluations and due process for members of the acquisition workforce who consistently fail to meet performance standards;

`(7) take full advantage of the Defense Civilian Leadership Program established under section 1112 of the National Defense Authorization Act for Fiscal Year 2010 (Public Law 111-84; 123 Stat. 2496; 10 U.S.C. 1580 note prec.);

`(8) use the authorities for highly qualified experts under section 9903 of title 5, to hire experts who are skilled acquisition professionals to--

`(A) serve in leadership positions within the acquisition workforce to strengthen management and oversight;

`(B) provide mentors to advise individuals within the acquisition workforce on their career paths and opportunities to advance and excel within the acquisition workforce; and

`(C) assist with the design of education and training courses and the training of individuals in the acquisition workforce; and

`(9) use the authorities for expedited security clearance processing pursuant to section 1564 of this title.

`(c) Negotiations- Any action taken by the Secretary under this section, or to implement this section, shall be subject to the requirements of chapter 71 of title 5.

`(d) Regulations- Any rules or regulations prescribed pursuant to this section shall be deemed an agency rule or regulation under section 7117(a)(2) of title 5, and shall not be deemed a Government-wide rule or regulation under section 7117(a)(1) of such title.'.

(2) CLERICAL AMENDMENT- The table of sections at the beginning of such subchapter is amended by inserting after the item relating to section 1701 the following new item:

`1701a. Management for acquisition workforce excellence.'.

(b) Authority to Appoint Highly Qualified Experts on Part-time Basis- Section 9903(b)(1) of title 5, United States Code, is amended by inserting `, on a full-time or part-time basis,' after `positions in the Department of Defense' the first place it appears.

The House bill contained a provision (sec. 201 of division D) that would require the Department of Defense to use existing workforce authorities to build the capabilities and skills of 78 the acquisition workforce.

The Senate committee-reported bill contained no similar provision.

The agreement includes the House provision with a technical amendment.

From H. Rpt. 111-465, accompanying  H. R. 5013: Implementing Management for Performance and Related Reforms to Obtain Value in Every Acquisition Act of 2010

SECTION 201--ACQUISITION WORKFORCE EXCELLENCE

This section would amend title 10, United States Code by inserting a new section 1701a, that would require the Department of Defense (DOD) to develop and manage a highly skilled professional acquisition workforce. This section would implement the recommendations of the Panel on Defense Acquisition Reform by authorizing the Secretary of Defense to develop a system focused on rewarding, when appropriate, the acquisition workforce for its excellence and contribution to mission, ensuring that the technical expertise and business skills needed to obtain best value are resident within the workforce, and managing the workforce in a manner that complements and reinforces the performance management of the defense acquisition system pursuant to section 101 of this Act.

This section would require the Department of Defense to use several existing authorities. The committee notes that the most significant of these authorities are the flexibilities provided pursuant to section 9902 of title 5, United States Code, related to performance management, hiring, and training of managers within the General Schedule (GS) system. The committee further notes that the defense acquisition demonstration project, which is extended for an additional five years elsewhere under this Act, may provide some important lessons for the Department's efforts to develop a DOD-wide performance management program within the GS system. This section also would direct the Secretary of Defense to require managers to develop individual performance plans for members of the acquisition workforce as well as appropriate procedures for due process for members of the acquisition workforce who consistently fail to meet performance standards. This section also would authorize additional actions to be taken to restore the focus on professionalizing the acquisition workforce through the development of attractive career paths, encouraging continuing education and training, and utilizing the Defense Civilian Leadership Program established under section 1112 of the National Defense Authorization Act for Fiscal Year 2010 (Public Law 111-84). In order to facilitate the hiring for positions within the acquisition workforce, this section would allow the use of expedited security clearance processing as authorized pursuant to section 1564 of title 10, United States Code.

The committee recognizes that while the Department is aggressively moving forward with hiring new personnel within the acquisition workforce, there still may be a significant gap in personnel with relevant knowledge and experience. Therefore, this section would provide the Department with greater authority to hire highly qualified experts, pursuant to section 9903 of title 5, United States Code, for temporary leadership roles in critical positions, providing mentors to advise employees on their career paths and opportunities to advance and excel in the acquisition profession, and assist with the design of education and training programs for the acquisition workforce. This section would clarify that highly qualified experts hired by the Department could be hired on a part-time basis.

Finally, actions taken under this section would be subject to the requirements of chapter 71 of title 5, United States Code, and would be deemed an agency rule or regulation under section 7177(a)(2) of title 5, United States Code.