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

Subtitle A--Acquisition Policy and Management

P. L. 112-

House Conference Report 112-705

SEC. 806. EXTENSION OF AUTHORITY RELATING TO MANAGEMENT OF SUPPLY-CHAIN RISK.

(a) Extension- Section 806(g) of the Ike Skelton National Defense Authorization Act for Fiscal Year 2011 (Public Law 111-383; 124 Stat. 4262; 10 U.S.C. 2304 note) is amended by striking `the date that is three years after the date of the enactment of this Act' and inserting `September 30, 2018'.

(b) Verification of Effective Implementation- Section 806 of such Act is further amended by adding at the end the following new subsection:

`(h) Verification of Effective Implementation-

`(1) CRITERIA AND DATA COLLECTION TO MEASURE EFFECTIVENESS- The Secretary of Defense shall--

`(A) establish criteria for measuring the effectiveness of the authority provided by this section; and

`(B) collect data to evaluate the implementation of this section using such criteria.

`(2) REPORTS- The Secretary shall submit to the appropriate congressional committees--

`(A) not later than March 1, 2013, a report on the criteria established under paragraph (1)(A); and

`(B) not later than January 1, 2017, a report on the effectiveness of the implementation of this section, based on data collected under paragraph (1)(B).'.

(c) Technical Amendment- Section 806(f)(2) of such Act is amended by striking `that awarded' and inserting `that are awarded'.

Extension of authority relating to management of supply-chain risk (sec. 806)

The Senate amendment contained a provision (sec. 826) that would extend to January 1, 2016, the pilot authority under section 806 of the Ike Skelton National Defense Authorization Act for Fiscal Year 2011 (Public Law 111-383).

The House bill contained no similar provision.

The House recedes with an amendment that would extend the authority to September 30, 2018, and require the Department of Defense to develop criteria for evaluating the effectiveness of the program, assess the program on the basis of such criteria, and report to the congressional defense committees on the results.

Senate Report 112-173

Extension of pilot program on management of supply-chain risk (sec. 826)

The committee recommends a provision that would extend for 2 years the pilot authority for the Department of Defense (DOD) to manage supply-chain risk under section 806 of the Ike Skelton National Defense Authorization Act for Fiscal Year 2011 (Public Law 111-383).

The committee is aware that DOD has performed a number of exercises to develop effective supply-chain risk management strategies and that lessons learned from these exercises will be incorporated into implementing guidance that is expected to be issued this summer. The committee understands the complexity of these issues, but is disappointed by the projected 18-month delay in the issuance of this guidance.

The committee urges DOD to issue guidance and begin the implementation of section 806 as soon as possible, so that this authority can be used as intended, to reduce supply-chain risk in the acquisition of sensitive information technology systems that are incorporated into intelligence or cryptologic systems, are used in command and control of military forces, or form an integral part of a weapon system.

 

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