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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. 872. AMENDMENTS TO THE ACQUISITION WORKFORCE DEMONSTRATION PROJECT.

(a) Codification Into Title 10-

(1) IN GENERAL- Chapter 87 of title 10, United States Code, is amended by inserting after section 1761 the following new section:

`Sec. 1762. Demonstration project relating to certain acquisition personnel management policies and procedures

`(a) Commencement- The Secretary of Defense is authorized to carry out a demonstration project, the purpose of which is to determine the feasibility or desirability of one or more proposals for improving the personnel management policies or procedures that apply with respect to the acquisition workforce of the Department of Defense and supporting personnel assigned to work directly with the acquisition workforce.

`(b) Terms and Conditions- (1) Except as otherwise provided in this subsection, any demonstration project described in subsection (a) shall be subject to section 4703 of title 5 and all other provisions of such title that apply with respect to any demonstration project under such section.

`(2) Subject to paragraph (3), in applying section 4703 of title 5 with respect to a demonstration project described in subsection (a)--

`(A) `180 days' in subsection (b)(4) of such section shall be deemed to read `120 days';

`(B) `90 days' in subsection (b)(6) of such section shall be deemed to read `30 days'; and

`(C) subsection (d)(1) of such section shall be disregarded.

`(3) Paragraph (2) shall not apply with respect to a demonstration project unless--

`(A) for each organization or team participating in the demonstration project--

`(i) at least one-third of the workforce participating in the demonstration project consists of members of the acquisition workforce; and

`(ii) at least two-thirds of the workforce participating in the demonstration project consists of members of the acquisition workforce and supporting personnel assigned to work directly with the acquisition workforce; and

`(B) the demonstration project commences before October 1, 2007.

`(c) Limitation on Number of Participants- The total number of persons who may participate in the demonstration project under this section may not exceed 120,000.

`(d) Effect of Reorganizations- The applicability of paragraph (2) of subsection (b) to an organization or team shall not terminate by reason that the organization or team, after having satisfied the conditions in paragraph (3) of such subsection when it began to participate in a demonstration project under this section, ceases to meet one or both of the conditions set forth in subparagraph (A) of such paragraph (3) as a result of a reorganization, restructuring, realignment, consolidation, or other organizational change.

`(e) Assessments- (1) The Secretary of Defense shall designate an independent organization to conduct two assessments of the acquisition workforce demonstration project described in subsection (a).

`(2) Each such assessment shall include the following:

`(A) A description of the workforce included in the project.

`(B) An explanation of the flexibilities used in the project to appoint individuals to the acquisition workforce and whether those appointments are based on competitive procedures and recognize veteran's preferences.

`(C) An explanation of the flexibilities used in the project to develop a performance appraisal system that recognizes excellence in performance and offers opportunities for improvement.

`(D) The steps taken to ensure that such system is fair and transparent for all employees in the project.

`(E) How the project allows the organization to better meet mission needs.

`(F) An analysis of how the flexibilities in subparagraphs (B) and (C) are used, and what barriers have been encountered that inhibit their use.

`(G) Whether there is a process for--

`(i) ensuring ongoing performance feedback and dialogue among supervisors, managers, and employees throughout the performance appraisal period; and

`(ii) setting timetables for performance appraisals.

`(H) The project's impact on career progression.

`(I) The project's appropriateness or inappropriateness in light of the complexities of the workforce affected.

`(J) The project's sufficiency in terms of providing protections for diversity in promotion and retention of personnel.

`(K) The adequacy of the training, policy guidelines, and other preparations afforded in connection with using the project.

`(L) Whether there is a process for ensuring employee involvement in the development and improvement of the project.

`(3) The first assessment under this subsection shall be completed not later than September 30, 2012. The second and final assessment shall be completed not later than September 30, 2016. The Secretary shall submit to the covered congressional committees a copy of each assessment within 30 days after receipt by the Secretary of the assessment.

`(f) Covered Congressional Committees- In this section, the term `covered congressional committees' means--

`(1) the Committees on Armed Services of the Senate and the House of Representatives;

`(2) the Committee on Homeland Security and Governmental Affairs of the Senate; and

`(3) the Committee on Oversight and Government Reform of the House of Representatives.

`(g) Termination of Authority- The authority to conduct a demonstration program under this section shall terminate on September 30, 2017.

`(h) Conversion- Within 6 months after the authority to conduct a demonstration project under this section is terminated as provided in subsection (g), employees in the project shall convert to the civilian personnel system created pursuant to section 9902 of title 5.'.

(2) CLERICAL AMENDMENT- The table of sections at the beginning of subchapter V of chapter 87 of title 10, United States Code, is amended by inserting after the item relating to section 1761 the following new item:

`1762. Demonstration project relating to certain acquisition personnel management policies and procedures.'.

(b) Conforming Repeal- Section 4308 of the National Defense Authorization Act for Fiscal Year 1996 (Public Law 104-106; 10 U.S.C. 1701 note) is repealed.

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

SEC. 202. AMENDMENTS TO THE ACQUISITION WORKFORCE DEMONSTRATION PROJECT.

(a) Codification Into Title 10-

(1) IN GENERAL- Chapter 87 of title 10, United States Code, is amended by inserting after section 1761 the following new section:

`Sec. 1762. Demonstration project relating to certain acquisition personnel management policies and procedures

`(a) Commencement- The Secretary of Defense is encouraged to carry out a demonstration project, the purpose of which is to determine the feasibility or desirability of one or more proposals for improving the personnel management policies or procedures that apply with respect to the acquisition workforce of the Department of Defense and supporting personnel assigned to work directly with the acquisition workforce.

`(b) Terms and Conditions- (1) Except as otherwise provided in this subsection, any demonstration project described in subsection (a) shall be subject to section 4703 of title 5 and all other provisions of such title that apply with respect to any demonstration project under such section.

`(2) Subject to paragraph (3), in applying section 4703 of title 5 with respect to a demonstration project described in subsection (a)--

`(A) `180 days' in subsection (b)(4) of such section shall be deemed to read `120 days';

`(B) `90 days' in subsection (b)(6) of such section shall be deemed to read `30 days'; and

`(C) subsection (d)(1) of such section shall be disregarded.

`(3) Paragraph (2) shall not apply with respect to a demonstration project unless--

`(A) for each organization or team participating in the demonstration project--

`(i) at least one-third of the workforce participating in the demonstration project consists of members of the acquisition workforce; and

`(ii) at least two-thirds of the workforce participating in the demonstration project consists of members of the acquisition workforce and supporting personnel assigned to work directly with the acquisition workforce; and

`(B) the demonstration project commences before October 1, 2007.

`(c) Limitation on Number of Participants- The total number of persons who may participate in the demonstration project under this section may not exceed 120,000.

`(d) Effect of Reorganizations- The applicability of paragraph (2) of subsection (b) to an organization or team shall not terminate by reason that the organization or team, after having satisfied the conditions in paragraph (3) of such subsection when it began to participate in a demonstration project under this section, ceases to meet one or both of the conditions set forth in subparagraph (A) of such paragraph (3) as a result of a reorganization, restructuring, realignment, consolidation, or other organizational change.

`(e) Assessment- (1) The Secretary of Defense shall designate an independent organization to review the acquisition workforce demonstration project described in subsection (a).

`(2) Such assessment shall include:

`(A) A description of the workforce included in the project.

`(B) An explanation of the flexibilities used in the project to appoint individuals to the acquisition workforce and whether those appointments are based on competitive procedures and recognize veteran's preferences.

`(C) An explanation of the flexibilities used in the project to develop a performance appraisal system that recognizes excellence in performance and offers opportunities for improvement.

`(D) The steps taken to ensure that such system is fair and transparent for all employees in the project.

`(E) How the project allows the organization to better meet mission needs.

`(F) An analysis of how the flexibilities in subparagraphs (B) and (C) are used, and what barriers have been encountered that inhibit their use.

`(G) Whether there is a process for--

`(i) ensuring ongoing performance feedback and dialogue among supervisors, managers, and employees throughout the performance appraisal period; and

`(ii) setting timetables for performance appraisals.

`(H) The project's impact on career progression.

`(I) The project's appropriateness or inappropriateness in light of the complexities of the workforce affected.

`(J) The project's sufficiency in terms of providing protections for diversity in promotion and retention of personnel.

`(K) The adequacy of the training, policy guidelines, and other preparations afforded in connection with using the project.

`(L) Whether there is a process for ensuring employee involvement in the development and improvement of the project.

`(3) The first such assessment under this subsection shall be completed not later than September 30, 2011, and subsequent assessments shall be completed every two years thereafter until the termination of the project. The Secretary shall submit to the covered congressional committees a copy of the assessment within 30 days after receipt by the Secretary of the assessment.

`(f) Covered Congressional Committees- In this section, the term `covered congressional committees' means--

`(1) the Committees on Armed Services of the Senate and the House of Representatives;

`(2) the Committee on Homeland Security and Governmental Affairs of the Senate; and

`(3) the Committee on Oversight and Government Reform of the House of Representatives.

`(g) Termination of Authority- The authority to conduct a demonstration program under this section shall terminate on September 30, 2017.

`(h) Conversion- Within 6 months after the authority to conduct a demonstration project under this section is terminated as provided in subsection (g), employees in the project shall convert to the civilian personnel system created pursuant to section 9902 of title 5.'.

(2) CLERICAL AMENDMENT- The table of sections at the beginning of subchapter V of chapter 87 of title 10, United States Code, is amended by inserting after the item relating to section 1761 the following new item:

`1762. Demonstration project relating to certain acquisition personnel management policies and procedures.'.

(b) Conforming Repeal- Section 4308 of the National Defense Authorization Act for Fiscal Year 1996 (Public Law 104-106; 10 U.S.C. 1701 note) is repealed.

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

SEC. 202. AMENDMENTS TO THE ACQUISITION WORKFORCE DEMONSTRATION PROJECT.

(a) Codification Into Title 10-

(1) IN GENERAL- Chapter 87 of title 10, United States Code, is amended by inserting after section 1761 the following new section:

`Sec. 1762. Demonstration project relating to certain acquisition personnel management policies and procedures

`(a) Commencement- The Secretary of Defense is encouraged to carry out a demonstration project, the purpose of which is to determine the feasibility or desirability of one or more proposals for improving the personnel management policies or procedures that apply with respect to the acquisition workforce of the Department of Defense and supporting personnel assigned to work directly with the acquisition workforce.

`(b) Terms and Conditions- (1) Except as otherwise provided in this subsection, any demonstration project described in subsection (a) shall be subject to section 4703 of title 5 and all other provisions of such title that apply with respect to any demonstration project under such section.

`(2) Subject to paragraph (3), in applying section 4703 of title 5 with respect to a demonstration project described in subsection (a)--

`(A) `180 days' in subsection (b)(4) of such section shall be deemed to read `120 days';

`(B) `90 days' in subsection (b)(6) of such section shall be deemed to read `30 days'; and

`(C) subsection (d)(1) of such section shall be disregarded.

`(3) Paragraph (2) shall not apply with respect to a demonstration project unless--

`(A) for each organization or team participating in the demonstration project--

`(i) at least one-third of the workforce participating in the demonstration project consists of members of the acquisition workforce; and

`(ii) at least two-thirds of the workforce participating in the demonstration project consists of members of the acquisition workforce and supporting personnel assigned to work directly with the acquisition workforce; and

`(B) the demonstration project commences before October 1, 2007.

`(c) Limitation on Number of Participants- The total number of persons who may participate in the demonstration project under this section may not exceed 120,000.

`(d) Effect of Reorganizations- The applicability of paragraph (2) of subsection (b) to an organization or team shall not terminate by reason that the organization or team, after having satisfied the conditions in paragraph (3) of such subsection when it began to participate in a demonstration project under this section, ceases to meet one or both of the conditions set forth in subparagraph (A) of such paragraph (3) as a result of a reorganization, restructuring, realignment, consolidation, or other organizational change.

`(e) Assessment- (1) The Secretary of Defense shall designate an independent organization to review the acquisition workforce demonstration project described in subsection (a).

`(2) Such assessment shall include:

`(A) A description of the workforce included in the project.

`(B) An explanation of the flexibilities used in the project to appoint individuals to the acquisition workforce and whether those appointments are based on competitive procedures and recognize veteran's preferences.

`(C) An explanation of the flexibilities used in the project to develop a performance appraisal system that recognizes excellence in performance and offers opportunities for improvement.

`(D) The steps taken to ensure that such system is fair and transparent for all employees in the project.

`(E) How the project allows the organization to better meet mission needs.

`(F) An analysis of how the flexibilities in subparagraphs (B) and (C) are used, and what barriers have been encountered that inhibit their use.

`(G) Whether there is a process for--

`(i) ensuring ongoing performance feedback and dialogue among supervisors, managers, and employees throughout the performance appraisal period; and

`(ii) setting timetables for performance appraisals.

`(H) The project's impact on career progression.

`(I) The project's appropriateness or inappropriateness in light of the complexities of the workforce affected.

`(J) The project's sufficiency in terms of providing protections for diversity in promotion and retention of personnel.

`(K) The adequacy of the training, policy guidelines, and other preparations afforded in connection with using the project.

`(L) Whether there is a process for ensuring employee involvement in the development and improvement of the project.

`(3) The first such assessment under this subsection shall be completed not later than September 30, 2011, and subsequent assessments shall be completed every two years thereafter until the termination of the project. The Secretary shall submit to the covered congressional committees a copy of the assessment within 30 days after receipt by the Secretary of the assessment.

`(f) Covered Congressional Committees- In this section, the term `covered congressional committees' means--

`(1) the Committees on Armed Services of the Senate and the House of Representatives;

`(2) the Committee on Homeland Security and Governmental Affairs of the Senate; and

`(3) the Committee on Oversight and Government Reform of the House of Representatives.

`(g) Termination of Authority- The authority to conduct a demonstration program under this section shall terminate on September 30, 2017.

`(h) Conversion- Within six months after the authority to conduct a demonstration project under this section is terminated as provided in subsection (g), employees in the project shall convert to the civilian personnel system created pursuant to section 9902 of title 5.'.

(2) CLERICAL AMENDMENT- The table of sections at the beginning of subchapter V of chapter 87 of title 10, United States Code, is amended by inserting after the item relating to section 1761 the following new item:

`1762. Demonstration project relating to certain acquisition personnel management policies and procedures.'.

(b) Conforming Repeal- Section 4308 of the National Defense Authorization Act for Fiscal Year 1996 (Public Law 104-106; 10 U.S.C. 1701 note) is repealed.

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

SEC. 851. EXTENSION OF ACQUISITION WORKFORCE PERSONNEL MANAGEMENT DEMONSTRATION PROGRAM.

Section 4308(f) of the National Defense Authorization Act for Fiscal Year 1996 (10 U.S.C. 1701 note) is amended by striking `September 30, 2012' and inserting `September 30, 2017'.

The House bill contained a provision (sec. 202 of division D) that would codify the acquisition workforce demonstration project established pursuant to section 4308 of the National Defense Authorization Act for Fiscal Year 1996 (Public Law 104- 108), and extend the demonstration project to 2017.

The Senate committee-reported bill contained a provision (sec. 851) that would extend the demonstration project to 2017.

The agreement includes the House provision with a clarifying 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 202--AMENDMENTS TO THE ACQUISITION WORKFORCE DEMONSTRATION PROJECT

This section would amend title 10, United States Code, by inserting a new section 1762 that would codify the authority for the Department of Defense Acquisition Workforce Demonstration (DAWD) Project, which originally was established pursuant to section 4303 of the National Defense Authorization Act for Fiscal Year 1996 (Public Law 104-106). The original authority was to expire on September 30, 2012. The committee recognizes that the organizations that had transitioned to the DAWD project had limited experience with the project before they were converted to the National Security Personnel System (NSPS). Now that the authority for NSPS has been repealed, pursuant to section 1113 of the National Defense Authorization Act for Fiscal Year 2010 (Public Law 111-84), those organizations that had been in the DAWD project previously will be converted back to the project. However, the committee is aware of the stress that may be imposed on the personnel system and the individual employees if they were converted from NSPS back to the DAWD project and, within less than two years, converted to the General Schedule (GS) system. Therefore, this section would extend the authority for the project to September 30, 2017; within six months after the authority terminates, all employees within the acquisition demonstration project must be transferred to the performance management system, under the GS system, that is being developed pursuant to section 9902 of title 5, United States Code. This is intended to provide a more orderly transition for the affected employees. However, the committee intends that the extension of this authority is only for those organizations that had fully implemented a defense acquisition workforce demonstration project, pursuant to Office of Personnel Management regulations, including the issuance of a Federal Register notice that such project would be initiated.

This section also would require the Secretary of Defense to undertake an independent assessment of the project to capture the lessons learned from it and the adequacy of the project in establishing career paths, promoting training, and protecting diversity in promotion. A copy of the assessment would be provided to the Senate Committee on Armed Services, the House Committee on Armed Services, the Senate Committee on Homeland Security and Governmental Affairs, and the House Committee on Oversight and Government Reform beginning in 2011, and every two years thereafter, until the termination of the DAWD project.

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

Extension of acquisition workforce personnel management demonstration program (sec. 851)

The committee recommends a provision that would extend through September 30, 2017, the acquisition workforce personnel management demonstration program authorized by section 4308 of the National Defense Authorization Act for Fiscal Year 1996 (Public Law 104-106).