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

House Conference Report 109-360

SEC. 814. REVIEW OF DEFENSE ACQUISITION STRUCTURES AND CAPABILITIES.

(a) Review by Defense Acquisition University- The Defense Acquisition University, acting under the direction and authority of the Under Secretary of Defense for Acquisition, Technology, and Logistics, shall conduct a review of the acquisition structures and capabilities of the Department of Defense, including the acquisition structures and capabilities of the following:

(1) Each military department.

(2) Each defense agency.

(3) Any other element of the Department of Defense that has an acquisition function.

(b) Elements of Review-

(1) IN GENERAL- In reviewing the acquisition structures and capabilities of an organization under subsection (a), the Defense Acquisition University shall--

(A) determine the current structure of the organization;

(B) review the evolution of the current structure of the organization, including the reasons for each reorganization of the structure;

(C) identify the capabilities needed by the organization to fulfill its function and assess the capacity of the organization, as currently structured, to provide such capabilities;

(D) identify any gaps, shortfalls, or inadequacies relating to acquisitions in the current structures and capabilities of the organization;

(E) identify any recruiting, retention, training, or professional development steps that may be needed to address any such gaps, shortfalls, or inadequacies; and

(F) make such recommendations as the review team determines to be appropriate.

(2) EMPHASIS IN REVIEW- In conducting the review of acquisition structures and capabilities under subsection (a), the University shall place special emphasis on consideration of--

(A) structures, capabilities, and processes for joint acquisition, including actions that may be needed to improve such structures, capabilities, and processes; and

(B) actions that may be needed to improve acquisition outcomes.

(c) Funding- The Under Secretary of Defense for Acquisition, Technology, and Logistics shall provide the Defense Acquisition University the funds required to conduct the review under subsection (a).

(d) Report on Review-

(1) IN GENERAL- Not later than 180 days after the completion of the review required by subsection (a), the University shall submit to the Under Secretary of Defense for Acquisition, Technology, and Logistics a report on the review.

(2) ANNEX- The report shall include a separate annex on the acquisition structures and capabilities on each organization covered by the review. The annex--

(A) shall address the matters specified under subsection (b) with respect to such organization; and

(B) may include such recommendations with respect to such organization as the University considers appropriate.

(3) TRANSMITTAL OF FINAL REPORT- Not later than 90 days after the receipt of the report under paragraph (1), the Under Secretary shall transmit to the congressional defense committees a copy of the report, together with the comments of the Under Secretary on the report.

(e) Defense Acquisition University Defined- In this section, the term `Defense Acquisition University' means the Defense Acquisition University established pursuant to section 1746 of title 10, United States Code.

The Senate amendment contained a provision (sec. 806) that would require the Defense Acquisition University, acting under the direction of the Under Secretary of Defense for Acquisition, Technology, and Logistics, to review and report on the capabilities and shortfalls of the acquisition organizations of the military departments and defense agencies.

The House bill contained no similar provision.

The House recedes with a clarifying amendment that would address the scope of the study.

Senate Report 109-69

The committee recommends a provision that would require the Defense Acquisition University, acting under the direction of the Under Secretary of Defense for Acquisition, Technology and Logistics, to review and report on the capabilities and shortfalls of the acquisition organizations of the military departments and defense agencies. The review would place particular emphasis on steps needed to improve joint acquisition and acquisition outcomes.

The review would specifically identify and make recommendations for addressing any gaps, shortfalls, or inadequacies in current acquisition organizations that could make it more difficult for these organizations to provide high-quality systems to the warfighter on a timely and cost-effective basis. The committee is particularly concerned that the military departments appear to have divested much of their system engineering capability over the last 15 years. In addition, the committee is concerned that the Department of Defense has become excessively reliant upon contracts awarded by other agencies for the acquisition of services and information technology, and does not appear to have developed the appropriate structures and competencies needed to adequately handle these responsibilities.

At an April 14, 2004, hearing of the Subcommittee on AirLand of the Committee on Armed Services, the Acting Secretary of the Air Force testified that his department had gone too far in downsizing its acquisition organization and had removed critical checks and balances from the acquisition process. These problems are not unique to the Air Force. Because the problems in the Air Force acquisition organization appear to be the most severe, the provision would require an interim report on the Air Force acquisition organization not later than one year after the date of enactment of this Act.