SEC. 883. Streamlining of requirements
relating to defense business systems.
(a) In general.—
(1) REVISION.—Section 2222 of title
10, United States Code, is amended to read as follows:
Ҥ 2222. Defense business systems:
business process reengineering; enterprise architecture;
management
“(a) Defense Business Processes
Generally.—The Secretary of Defense shall ensure that defense
business processes are reviewed, and as appropriate revised,
through business process reengineering to match best commercial
practices, to the maximum extent practicable, so as to minimize
customization of commercial business systems.
“(b) Defense business systems generally.—The Secretary of
Defense shall ensure that each covered defense business system
developed, deployed, and operated by the Department of Defense—
“(1) supports efficient business
processes that have been reviewed, and as appropriate revised,
through business process reengineering;
“(2) is integrated into a comprehensive defense business
enterprise architecture;
“(3) is managed in a manner that provides visibility into, and
traceability of, expenditures for the system; and
“(4) uses an acquisition and sustainment strategy that
prioritizes the use of commercial software and business
practices.
“(c) Issuance of guidance.—
“(1) SECRETARY OF DEFENSE
GUIDANCE.—The Secretary shall issue guidance to provide for
the coordination of, and decision making for, the planning,
programming, and control of investments in covered defense
business systems.
“(2) SUPPORTING GUIDANCE.—The Secretary shall direct the
Deputy Chief Management Officer of the Department of Defense,
the Under Secretary of Defense for Acquisition, Technology,
and Logistics, the Chief Information Officer, and the Chief
Management Officer of each of the military departments to
issue and maintain supporting guidance, as appropriate and
within their respective areas of responsibility, for the
guidance of the Secretary issued under paragraph (1).
“(d) Guidance elements.—The guidance
issued under subsection (c)(1) shall include the following
elements:
“(1) Policy to ensure that the
business processes of the Department of Defense are
continuously reviewed and revised—
“(A) to implement the most
streamlined and efficient business processes practicable;
and
“(B) eliminate or reduce the need to tailor commercial
off-the-shelf systems to meet or incorporate requirements or
interfaces that are unique to the Department of Defense.
“(2) A process to establish
requirements for covered defense business systems.
“(3) Mechanisms for the planning and control of investments in
covered defense business systems, including a process for the
collection and review of programming and budgeting information
for covered defense business systems.
“(4) Policy requiring the periodic review of covered defense
business systems that have been fully deployed, by portfolio,
to ensure that investments in such portfolios are appropriate.
“(5) Policy to ensure full consideration of sustainability and
technological refreshment requirements, and the appropriate
use of open architectures.
“(6) Policy to ensure that best acquisition and systems
engineering practices are used in the procurement and
deployment of commercial systems, modified commercial systems,
and defense-unique systems to meet Department of Defense
missions.
“(e) Defense business enterprise
architecture.—
“(1) BLUEPRINT.—The Secretary, working
through the Deputy Chief Management Officer of the Department
of Defense, shall develop and maintain a blueprint to guide
the development of integrated business processes within the
Department of Defense. Such blueprint shall be known as the
‘defense business enterprise architecture’.
“(2) PURPOSE.—The defense business enterprise architecture
shall be sufficiently defined to effectively guide
implementation of interoperable defense business system
solutions and shall be consistent with the policies and
procedures established by the Director of the Office of
Management and Budget.
“(3) ELEMENTS.—The defense business enterprise architecture
shall—
“(A) include policies, procedures,
business data standards, business performance measures, and
business information requirements that apply uniformly
throughout the Department of Defense; and
“(B) enable the Department of Defense to—
“(i) comply with all applicable
law, including Federal accounting, financial management,
and reporting requirements;
“(ii) routinely produce verifiable, timely, accurate, and
reliable business and financial information for management
purposes;
“(iii) integrate budget, accounting, and program
information and systems; and
“(iv) identify whether each existing business system is a
part of the business systems environment outlined by the
defense business enterprise architecture, will become a
part of that environment with appropriate modifications,
or is not a part of that environment.
“(4) INTEGRATION INTO INFORMATION
TECHNOLOGY ARCHITECTURE.— (A) The defense business
enterprise architecture shall be integrated into the
information technology enterprise architecture required
under subparagraph (B).
“(B) The Chief Information Officer of the Department of
Defense shall develop an information technology enterprise
architecture. The architecture shall describe a plan for
improving the information technology and computing
infrastructure of the Department of Defense, including for
each of the major business processes conducted by the
Department of Defense.
“(f) Defense business council.—
“(1) REQUIREMENT FOR COUNCIL.—The
Secretary shall establish a Defense Business Council to
provide advice to the Secretary on developing the defense
business enterprise architecture, reengineering the
Department’s business processes, developing and deploying
defense business systems, and developing requirements for
defense business systems. The Council shall be chaired by the
Deputy Chief Management Officer and the Chief Information
Officer of the Department of Defense.
“(2) MEMBERSHIP.—The membership of the Council shall include
the following:
“(A) The Chief Management Officers
of the military departments, or their designees.
“(B) The following officials of the Department of Defense,
or their designees:
“(i) The Under Secretary of
Defense for Acquisition, Technology, and Logistics with
respect to acquisition, logistics, and installations
management processes.
“(ii) The Under Secretary of Defense (Comptroller) with
respect to financial management and planning and budgeting
processes.
“(iii) The Under Secretary of Defense for Personnel and
Readiness with respect to human resources management
processes.
“(g) Approvals required for
development.—
“(1) INITIAL APPROVAL REQUIRED.—The
Secretary shall ensure that a covered defense business system
program cannot proceed into development (or, if no development
is required, into production or fielding) unless the
appropriate approval official (as specified in paragraph (2))
determines that—
“(A) the system has been, or is
being, reengineered to be as streamlined and efficient as
practicable, and the implementation of the system will
maximize the elimination of unique software requirements and
unique interfaces;
“(B) the system and business system portfolio are or will be
in compliance with the defense business enterprise
architecture developed pursuant to subsection (e) or will be
in compliance as a result of modifications planned;
“(C) the system has valid, achievable requirements and a
viable plan for implementing those requirements (including,
as appropriate, market research, business process
reengineering, and prototyping activities);
“(D) the system has an acquisition strategy designed to
eliminate or reduce the need to tailor commercial
off-the-shelf systems to meet unique requirements,
incorporate unique requirements, or incorporate unique
interfaces to the maximum extent practicable; and
“(E) is in compliance with the Department’s auditability
requirements.
"(2) APPROPRIATE OFFICIAL.—For
purposes of paragraph (1), the appropriate approval official
with respect to a covered defense business system is the
following:
“(A) Except as may be provided in
subparagraph (C), in the case of a priority defense business
system, the Deputy Chief Management Officer of the
Department of Defense.
“(B) Except as may be provided in subparagraph (C), for any
defense business system other than a priority defense
business system—
“(i) in the case of a system of a
military department, the Chief Management Officer of that
military department; and
“(ii) in the case of a system of a Defense Agency or
Department of Defense Field Activity, or a system that
will support the business process of more than one
military department or Defense Agency or Department of
Defense Field Activity, the Deputy Chief Management
Officer of the Department of Defense.
“(C) In the case of any defense
business system, such official other than the applicable
official under subparagraph (A) or (B) as the Secretary
designates for such purpose.
“(3) ANNUAL CERTIFICATION.—For any
fiscal year in which funds are expended for development or
sustainment pursuant to a covered defense business system
program, the appropriate approval official shall review the
system and certify, certify with conditions, or decline to
certify, as the case may be, that it continues to satisfy the
requirements of paragraph (1). If the approval official
determines that certification cannot be granted, the approval
official shall notify the milestone decision authority for the
program and provide a recommendation for corrective action.
“(4) OBLIGATION OF FUNDS IN VIOLATION
OF REQUIREMENTS.—The obligation of Department of Defense funds
for a covered defense business system program that has not
been certified in accordance with paragraph (3) is a violation
of section
1341(a)(1)(A) of title 31.
“(h) Responsibility of milestone
decision authority.—The milestone decision authority for a
covered defense business system program shall be responsible for
the acquisition of such system and shall ensure that acquisition
process approvals are not considered for such system until the
relevant certifications and approvals have been made under this
section.
“(i) Definitions.—In this section:
“(1) (A) DEFENSE BUSINESS SYSTEM.—The
term ‘defense business system’ means an information system
that is operated by, for, or on behalf of the Department of
Defense, including any of the following:
“(i) A financial system.
“(ii) A financial data feeder system.
“(iii) A contracting system.
“(iv) A logistics system.
“(v) A planning and budgeting system.
“(vi) An installations management system.
“(vii) A human resources management system.
“(viii) A training and readiness system.
“(B) The term does not include—
“(i) a national security system; or
“(ii) an information system used exclusively by and within
the defense commissary system or the exchange system or
other instrumentality of the Department of Defense conducted
for the morale, welfare, and recreation of members of the
armed forces using nonappropriated funds.
“(2) COVERED DEFENSE BUSINESS
SYSTEM.—The term ‘covered defense business system’ means a
defense business system that is expected to have a total
amount of budget authority, over the period of the current
future-years defense program submitted to Congress under
section 221 of this title, in excess of $50,000,000.
“(3) BUSINESS SYSTEM PORTFOLIO.—The term ‘business system
portfolio’ means all business systems performing functions
closely related to the functions performed or to be performed
by a covered defense business system.
“(4) COVERED DEFENSE BUSINESS SYSTEM PROGRAM.—The term
‘covered defense business system program’ means a defense
acquisition program to develop and field a covered defense
business system or an increment of a covered defense business
system.
“(5) PRIORITY DEFENSE BUSINESS SYSTEM PROGRAM.—The term
‘priority defense business system’ means a defense business
system that is—
“(A) expected to have a total amount
of budget authority over the period of the current
future-years defense program submitted to Congress under
section 221 of this title in excess of $250,000,000; or
“(B) designated by the Deputy Chief Management Officer of
the Department of Defense as a priority defense business
system, based on specific program analyses of factors
including complexity, scope, and technical risk, and after
notification to Congress of such designation.
“(6) ENTERPRISE ARCHITECTURE.—The term
‘enterprise architecture’ has the meaning given that term in
section 3601(4) of title 44.
“(7) INFORMATION SYSTEM.—The term
‘information system’ has the meaning given that term in
section 11101 of title 40, United States Code.
“(8) NATIONAL SECURITY SYSTEM.—The term ‘national security
system’ has the meaning given that term in
section
3552(b)(6)(A) of title 44.
“(9) BUSINESS PROCESS MAPPING.—The term ‘business process
mapping’ means a procedure in which the steps in a business
process are clarified and documented in both written form and
in a flow chart.”.
(2) CLERICAL AMENDMENT.—The table of sections at the beginning
of such chapter is amended by striking the item relating to
section 2222 and inserting the following new item:
“2222. Defense business systems:
business process reengineering; enterprise architecture;
management.”.
(b) Deadline for guidance.—The guidance required by subsection
(c)(1) of
section 2222 of title 10, United States Code, as
amended by subsection (a)(1), shall be issued not later than
December 31, 2016.
(c) Repeal.—Section 811 of the John Warner National Defense
Authorization Act for Fiscal Year 2007 (Public Law 109–364; 10 U.S.C. 2222 note) is repealed.
(d) Comptroller general assessment.—
(1) ASSESSMENT REQUIRED.—In each
odd-numbered year, the Comptroller General of the United
States shall submit to the congressional defense committees an
assessment of the extent to which the actions taken by the
Department of Defense comply with the requirements of
section
2222 of title 10, United States Code.
(2) REPEAL OF SUPERSEDED PROVISION.—Subsection (d) of section
332 of the Ronald W. Reagan National Defense Authorization Act
for Fiscal Year 2005 (Public Law 108–375; 118 Stat. 1856) is
repealed.
(e) Guidance on acquisition of business
systems.—The Secretary of Defense shall issue guidance for major
automated information systems acquisition programs to promote
the use of best acquisition, contracting, requirement
development, systems engineering, program management, and
sustainment practices, including—
(1) ensuring that an acquisition
program baseline has been established within two years after
program initiation;
(2) ensuring that program requirements have not changed in a
manner that increases acquisition costs or delays the
schedule, without sufficient cause and only after maximum
efforts to reengineer business processes prior to changing
requirements;
(3) policies to evaluate commercial off-the-shelf business
systems for security, resilience, reliability,
interoperability, and integration with existing interrelated
systems where such system integration and interoperability are
essential to Department of Defense operations;
(4) policies to work with commercial off-the-shelf business
system developers and owners in adapting systems for
Department of Defense use;
(5) policies to perform Department of Defense legacy system
audits to determine which systems are related to or rely upon
the system to be replaced or integrated with commercial
off-the-shelf business systems;
(6) policies to perform full backup of systems that will be
changed or replaced by the installation of commercial
off-the-shelf business systems prior to installation and
deployment to ensure reconstitution of the system to a
functioning state should it become necessary;
(7) policies to engage the research and development activities
and laboratories of the Department of Defense to improve
acquisition outcomes; and
(8) policies to refine and improve developmental and
operational testing of business processes that are supported
by the major automated information systems.
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Streamlining of requirements relating to
defense business systems (sec. 883)
The House bill contained a provision (sec. 858) that would
revise section 2222 of title 10, United States Code, to clarify
responsibilities for the management of defense business
information technology systems. As a result, this section would
repeal the current reporting requirement contained in section
2222 of title 10, United States Code, and insert a new annual
reporting requirement through the year 2020 on the revised
requirements of section 2222.The
Senate amendment contained a similar provision (section 871).
The conference agreement includes a
provision that would combine the two provisions. The revised
section 2222 of title 10, United States Code, streamlines the
requirements for development and management of business systems,
as well as associated reporting requirements; mandates elements
of guidance to be issued by the Secretary of Defense on
investments in and acquisition of business systems; clarifies
the responsibilities of senior officials in the acquisition and
management of business systems; and emphasizes the need for
robust business process engineering prior to investment in
commercial technology or the modification of commercial systems
for use by the Department of Defense.
House Report
114-201 to accompany H. R. 1735 as it was reported out of
the House Armed Services Committee.
Section 858--Streamlining of
Requirements Relating to Defense Business Systems
This section would revise section 2222
of title 10, United States Code, to clarify responsibilities for
the management of defense business systems. As a result, this
section would repeal the current reporting requirement contained
in section 2222 of title 10, United States Code, and insert a
new annual reporting requirement through the year 2020 on the
revised requirements of section 2222.
Senate Report
114-49 to accompany S. 1376 as it was reported out of the
Senate Armed Services Committee.
Streamlining of requirements relating
to defense business systems (sec. 871)
The committee recommends a provision to
streamline requirements relative to the acquisition of defense
business systems. The provision would clarify the lines of
responsibility and oversight roles for these types of programs.
Further, it would reduce the oversight burden on the Department
of Defense (DOD) with respect to lower cost systems. It would
also mandate that DOD establish guidance for these types of
programs, which would help to improve their cost and schedule
outcomes through the emphasis of robust business process re-
engineering and requirements refinement, prior to any expensive
customization of commercial software. |
