NDAA for Fiscal Year 2012

*How To Use the NDAA Pages*	Back to NDAA Contents
TITLE VIII--ACQUISITION POLICY, ACQUISITION MANAGEMENT, AND RELATED MATTERS Subtitle A--Acquisition Policy and Management
P. L. 113-291	Explanatory Statement, 12/4/14, H8671
SEC. 804. REPORT ON IMPLEMENTATION OF ACQUISITION PROCESS FOR INFORMATION TECHNOLOGY SYSTEMS. (a) In General- Not later than 180 days after the date of the enactment of this Act, the Under Secretary of Defense for Acquisition, Technology and Logistics shall submit to the congressional defense committees a report on the implementation of the acquisition process for information technology systems required by section 804 of the National Defense Authorization Act for Fiscal Year 2010 (Public Law 111-84; 123 Stat. 2402; 10 U.S.C. 2225 note). (b) Elements- The report required under subsection (a) shall, at a minimum, include the following elements: (1) The applicable regulations, instructions, or policies implementing the acquisition process. (2) With respect to the criteria established for such process in section 804(a) of such Act-- (A) an explanation for any criteria not yet implemented; (B) a schedule for the implementation of any criteria not yet implemented; and (C) an explanation for any proposed deviation from the criteria. (3) Identification of any categories of information technology acquisitions to which the acquisition process will not apply. (4) Recommendations for any legislation that may be required to implement the remaining criteria of the acquisition process.	Report on implementation of acquisition process for information technology systems (sec. 804) The Senate committee-reported bill contained a provision (sec. 805) that would require the Under Secretary of Defense (Acquisition, Technology, & Logistics) to submit a report to the congressional defense committees on the implementation of the acquisition process for information technology detailing the applicable implementing regulations, instructions, or policies. The report shall also explain any legislative criteria not yet implemented and a schedule for implementing such criteria along with any proposed deviations. The House bill contained no similar provision. The agreement includes the Senate provision. We are concerned with the Department of Defense's (DOD) ability to effectively acquire information technology (IT) resources. We believe that part of the challenge that DOD faces is in its reliance on processes that are too heavily focused on the acquisition of militarily unique hardware systems. We recognize that the paradigm for IT acquisition is rooted more firmly in the commercial marketplace. As a consumer of commercially developed solutions, rather than a generator of unique requirements, DOD follows commercial trends more often than it leads them. Unfortunately, we believe that DOD has not done enough to come to terms with this trend, choosing instead to act as though it has the same power to influence computing and electronics markets as it did for most of the 20th century. Though numerous studies have indicated a need to change acquisition processes within DOD to adjust to the reality of 21st century commercial IT markets, DOD has made little progress. Ideas such as agile development, the use of clear requirements tied to software development timelines, rethinking the processes for capital planning and investment, and the application of system audits and risk management to enhance outcomes are prevalent within the commercial sector, but often face resistance and hostility from government program managers and contracting officers. Section 804 of the National Defense Authorization Act of Fiscal Year 2012 (Public Law 111-84) authorized DOD to implement a new acquisition process for IT systems, but to date, we have seen little tangible action to take advantage of those new authorities. We believe that DOD needs to do more to show tangible progress in its efforts at improving IT acquisition, especially as software-intensive IT systems continue to become more prominent components of U.S. military capability. S. Rept. 113-176 to accompany S. 2410 Report on implementation of acquisition process for information technology systems (sec. 805) In the last several decades, the commercial marketplace has developed a process of rapid innovation and technology refresh for information technologies that the Department of Defense (DOD) has tried to leverage but often failed due to a cumbersome acquisition process. In response, DOD has received new authorities from Congress and developed on its own significant policies and guidance for the development, acquisition, and integration of information technologies. Legislation that supports a new approach includes, but is not limited to: (1) The Federal Acquisition Streamlining Act of 1994 (P.L. 103-355), which encouraged executive agencies to seek and acquire commercial items or nondevelopmental items other than commercial items to address requirements; (2) The Clinger-Cohen Act of 1996 (P.L. 104-106; formerly the Information Technology Management Reform Act of 1996), which instituted a number of changes to acquisition practices emphasizing performance- and results-based management to enforce accountability for information resources; authorized the Administrator for Federal Procurement Policy to conduct a pilot program to test alternative approaches for information technology acquisition by executive agencies; and directed the Federal Acquisition Regulatory Council to ensure, to the maximum extent practicable, that information technology acquisition processes were simple, clear, and understandable and that such processes addressed risk management, incremental acquisitions, and timely incorporation of commercial information technology; and (3) Section 804 of the National Defense Authorization Act for Fiscal Year 2010 (P.L. 111-84), which directed the Secretary of Defense to develop and implement a new acquisition process for information technology systems. The process was to take a modular, open-systems approach and include early and continual involvement of the user, multiple, rapidly executed increments or releases of capability, and early, successive prototyping to support an evolutionary approach. The committee notes that the Department has issued guidance and policies to support and implement these authorities including, but not limited to: (1) The interim DOD Instruction 5000.02, on Operation of the Defense Acquisition System (dated November 25, 2013). This instruction specifically highlights the importance of compliance with the Clinger-Cohen Act of 1996 (P.L. 104-106); and (2) The Department's ongoing Better Buying Power initiative, which since 2010 has focused on providing greater efficiencies toward an affordable, value-added military capability to the warfighter. Among other areas, this initiative has concentrated on affordability, cost control throughout the product lifecycle, and incentivized productivity and innovation. From the nonexhaustive list of laws, policies, and guidance listed above, it is clear that both the legislative and the executive branches have recognized the benefits of agile, incremental acquisition of information technology. However, from the record of successful Major Automated Information Systems, it is less clear that the DOD has realized the benefits from these laws, policies, and guidance. The committee notes approvingly that the Under Secretary of Defense for Acquisition, Technology and Logistics (USD (AT&L)) has initiated a review of information technology acquisition policy as part of his broader effort to reform and streamline defense acquisition. As part of that process, the committee recommends a provision that requires the USD (AT&L) to submit a report to the congressional defense committees by July 31, 2014 on the implementation of the acquisition process for information technology detailing the applicable implementing regulations, instructions, or policies. The report shall also explain any legislative criteria not yet implemented and a schedule for implementing such criteria along with any proposed deviations.