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

Subtitle A—Provisions Relating to Major Defense Acquisition Programs

JWNDAA Section

House Conference Report 109-702

(a) STUDY REQUIREMENT.—The Secretary of Defense, acting through the Under Secretary of Defense for Acquisition, Technology, and Logistics in coordination with the service acquisition executives of each military department, shall conduct a study on revisions to requirements relating to Selected Acquisition Reports, as set forth in section 2432 of title 10, United States Code.

(b) MATTERS COVERED.—The study required under subsection (a) shall—

(1) focus on incorporating into the Selected Acquisition Report those elements of program progress that the Department of Defense considers most relevant to evaluating the performance and progress of major defense acquisition programs, with particular reference to the cost estimates and program schedule established when a major defense acquisition program receives Milestone B approval;

(2) address the need to ensure that data provided through the Selected Acquisition Report is consistent with data provided through internal Department of Defense reporting systems for management purposes; and

(3) include any recommendations to add to, modify, or delete elements of the Selected Acquisition Report, consistent with the findings of the study.

(c) REPORT.—Not later than March 1, 2007, the Secretary shall submit to the Committees on Armed Services of the Senate and the House of Representatives a report on the results of the study, including such recommendations as the Secretary considers appropriate.

The House bill contained a provision (sec. 803) that would require the Under Secretary of Defense for Acquisition, Technology, and Logistics, in coordination with the service acquisition executives of each military department, to conduct a study on revisions to requirements related to Selected Acquisition Reports, as set forth in section 2432 of title 10, United States Code.

The Senate provision contained no similar provision.

The Senate recedes with a clarifying amendment.

House Armed Services Committee Report Report 109-452

SECTION 803--STUDY AND REPORT ON REVISIONS TO SELECTED ACQUISITION REPORT REQUIREMENTS

This section would require the Under Secretary of Defense for Acquisition, Technology and Logistics, in coordination with the service acquisition executives of each military department, to conduct a study on revisions to requirements related to Selected Acquisition Reports (SARs), as set forth in section 2432 of title 10, United States Code.

The SAR provides the committee with a critical tool for providing oversight of major defense acquisition programs. The SAR gives the committee access to clear and regular information on program progress, including information of a classified nature. The committee understands that the elements currently required to be included in the SAR have not been updated for a number of years. Some important elements of program progress are not included in the current SAR, and in some cases, information which may have previously been a good measure of program progress may no longer be as relevant to program oversight.

The committee recognizes that in order for the SAR to be useful to both the Department of Defense (DOD) and the committee, it should focus on those measures of program progress for major defense acquisition programs that are the most useful for oversight across a broad range of programs, without placing an undue reporting burden. One element in the current SAR that is clearly critical to congressional oversight is the unit cost information which provides the basis for reporting of cost growth under the Nunn-McCurdy Act (10 U.S.C. 2433). However, many elements of program progress beyond unit cost are essential to both departmental and congressional oversight. The committee believes that a revised SAR should be based upon the normal, internal-working documents utilized by the program manager on a day-to-day basis and not created exclusively in response to a congressional reporting requirement. The SAR should be a tool that provides both appropriate congressional oversight, validates the health of a program, and demonstrates that the program management techniques being employed are appropriate. DOD's recommendations shall be submitted to the committee by March 1, 2007.