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

Subtitle A--Acquisition Policy and Management

P. L. 114-

House Conference Report. 114-270

(1) IN GENERAL.—Chapter 149 of title 10, United States Code, is amended by inserting after section 2546 the following new section:

Ҥ 2546a. Customer-oriented acquisition system

“(a) Objective.—It shall be the objective of the defense acquisition system to meet the needs of its customers in the most cost-effective manner practicable. The acquisition policies, directives, and regulations of the Department of Defense shall be modified as necessary to ensure the development and implementation of a customer-oriented acquisition system.

“(b) Customer.—The customer of the defense acquisition system is the armed force that will have primary responsibility for fielding the system or systems acquired. The customer is represented with regard to a major defense acquisition program by the Secretary of the military department concerned and the Chief of the armed force concerned.

“(c) Role of customer.—The customer of a major defense acquisition program shall be responsible for balancing resources against priorities on the acquisition program and ensuring that appropriate trade-offs are made among cost, schedule, technical feasibility, and performance on a continuing basis throughout the life of the acquisition program.”.

(2) CLERICAL AMENDMENT.—The table of sections at the beginning of chapter 149 of such title is amended by inserting after the item relating to section 2546 the following new item:

“2546a. Customer-oriented acquisition system.”.

(b) Responsibilities of chiefs.—Section 2547(a) of title 10, United States Code, is amended—

(1) by redesignating paragraphs (2) through (6) as paragraphs (3) through (7), respectively;

(2) by inserting after paragraph (1) the following new paragraph:

“(2) Decisions regarding the balancing of resources and priorities, and associated trade-offs among cost, schedule, technical feasibility, and performance on major defense acquisition programs.”; and

(3) in paragraph (6), as redesignated by paragraph (1) of this subsection, by striking “The development” and inserting “The development and management”.

(c) Responsibilities of military deputies.—Section 908(d) of the National Defense Authorization Act for Fiscal Year 2008 (Public Law 110–181; 10 U.S.C. 2430 note) is amended to read as follows:

“(d) Duties of principal military deputies.—Each Principal Military Deputy to a service acquisition executive shall be responsible for—

“(1) keeping the Chief of Staff of the Armed Force concerned informed of the progress of major defense acquisition programs;

“(2) informing the Chief of Staff on a continuing basis of any developments on major defense acquisition programs, which may require new or revisited trade-offs among cost, schedule, technical feasibility, and performance, including—

“(A) significant cost growth or schedule slippage; and

“(B) requirements creep (as defined in section 2547(c)(1) of title 10, United States Code); and

“(3) ensuring that the views of the Chief of Staff on cost, schedule, technical feasibility, and performance trade-offs are strongly considered by program managers and program executive officers in all phases of the acquisition process.”.

(d) Conforming amendments.—

(1) JOINT REQUIREMENTS OVERSIGHT COUNCIL.—Section 181(d) of title 10, United States Code, is amended by adding at the end the following new paragraph:

“(3) The Council shall seek, and strongly consider, the views of the Chiefs of Staff of the armed forces, in their roles as customers of the acquisition system, on matters pertaining to trade-offs among cost, schedule, technical feasibility, and performance under subsection (b)(1)(C) and the balancing of resources with priorities pursuant to subsection (b)(3).”.

(2) MILESTONE A DECISIONS.—The Chief of the Armed Force concerned shall advise the milestone decision authority for a major defense acquisition program of the Chief’s views on cost, schedule, technical feasibility, and performance trade-offs that have been made with regard to the program, as provided in section 2366a(a)(2) of title 10, United States Code, as amended by section 823 of this Act, prior to a Milestone A decision on the program.

(3) MILESTONE B DECISIONS.—The Chief of the Armed Force concerned shall advise the milestone decision authority for a major defense acquisition program of the Chief’s views on cost, schedule, technical feasibility, and performance trade-offs that have been made with regard to the program, as provided in section 2366b(b)(3) of title 10, United States Code, as amended by section 824 of this Act, prior to a Milestone B decision on the program.

(4) DUTIES OF CHIEFS.—

(A) Section 3033(d)(5) of title 10, United States Code, is amended by striking “section 171” and inserting “sections 171 and 2547”.

(B) Section 5033(d)(5) of title 10, United States Code, is amended by striking “section 171” and inserting “sections 171 and 2547”.

(C) Section 5043(e)(5) of title 10, United States Code, is amended by striking “section 171” and inserting “sections 171 and 2547”.

(D) Section 8033(d)(5) of title 10, United States Code, is amended by striking “section 171” and inserting “sections 171 and 2547”.

The House bill had no similar provision.

The House recedes.

Senate Report 114-49 to accompany S. 1376 as it was reported out of the Senate Armed Services Committee.

Role of service chiefs in the acquisition process (sec. 801)

The committee recommends a provision that would amend section 2547 of title 10, United States Code, to enhance the role of the service chiefs in the defense acquisition process. This provision would reinforce the roles of the services chiefs in decisions regarding the balancing of resources and priorities, and associated trade-offs among cost, schedule, technical feasibility, and performance on major defense acquisition programs. The provision further defines the role of the principal military deputies to the service acquisition executive to inform the service chief concerned of acquisition issues related to cost, schedule, technical feasibility and performance of acquisition programs. The committee believes that the customer of the defense acquisition system is the military service that will have primary responsibility for fielding the system or systems acquired. This provision reinforces this concept and also outlines the responsibilities of the customer to ensure that acquisition systems are acquired and managed efficiently and effectively.