SEC. 816. MAJOR AUTOMATED
INFORMATION SYSTEM PROGRAMS.
(a) Reports and Information on Program Cost and Performance-
(1) IN GENERAL- Part IV of subtitle
A of title 10, United States Code, is amended by inserting after
chapter 144 the following new chapter:
`CHAPTER 144A--MAJOR AUTOMATED
INFORMATION SYSTEM PROGRAMS
`Sec. `2445a. Major automated information system program
defined.
`Sec. `2445b. Cost, schedule, and performance information.
`Sec. `2445c. Reports: quarterly reports; reports on program
changes.
`Sec. `2445d. Construction with other reporting requirements.
`Sec. 2445a. Major automated
information system program defined
`(a) In General- In this chapter, the term `major automated
information system program' means a Department of Defense
program for the acquisition of an automated information system
(either as a product or a service) if--
`(1) the program is designated
by the Secretary of Defense, or a designee of the Secretary,
as a major automated information system program; or
`(2) the dollar value of the program is estimated to exceed--
`(A) $32,000,000 in fiscal
year 2000 constant dollars for all program costs in a single
fiscal year;
`(B) $126,000,000 in fiscal year 2000 constant dollars for
all program acquisition costs for the entire program; or
`(C) $378,000,000 in fiscal year 2000 constant dollars for
the total life-cycle costs of the program (including
operation and maintenance costs).
`(b) Adjustment- The Secretary
of Defense may adjust the amounts (and base fiscal year) set
forth in subsection (a) on the basis of Department of Defense
escalation rates. An adjustment under this subsection shall be
effective after the Secretary transmits a written notification
of the adjustment to the congressional defense committees.
`(c) Increments- In the event any increment of a major automated
information system program separately meets the requirements for
treatment as a major automated information system program, the
provisions of this chapter shall apply to such increment as well
as to the overall major automated information system program of
which such increment is a part.
`Sec. 2445b. Cost, schedule, and performance information
`(a) Submittal of Cost, Schedule, and Performance Information-
The Secretary of Defense shall submit to Congress each calendar
year, not later than 45 days after the President submits to
Congress the budget for a fiscal year under section 1105 of
title 31, budget justification documents regarding cost,
schedule, and performance for each major automated information
system program for which funds are requested by the President in
the budget.
`(b) Elements- The documents submitted under subsection (a) with
respect to a major automated information system program shall
include detailed and summarized information with respect to the
automated information system to be acquired under the program,
and shall specifically include each of the following:
`(1) The development schedule,
including major milestones.
`(2) The implementation schedule, including estimates of
milestone dates, initial operational capability, and full
operational capability.
`(3) Estimates of development costs and full life-cycle costs.
`(4) A summary of key performance parameters.
`(c) Baseline-
(1) For purposes of this
chapter, the initial submittal to Congress of the documents
required by subsection (a) with respect to a major automated
information system program shall constitute the original
estimate or information originally submitted on such program
for purposes of the reports and determinations on program
changes in section 2445c of this title.
`(2) An adjustment or revision of the original estimate or
information originally submitted on a program may be treated
as the original estimate or information originally submitted
on the program if the adjustment or revision is the result of
a critical change in the program covered by section 2445c(d)
of this title.
`(3) In the event of an adjustment or revision to the original
estimate or information originally submitted on a program
under paragraph (2), the Secretary of Defense shall include in
the next budget justification documents submitted under
subsection (a) after such adjustment or revision a
notification to the congressional defense committees of such
adjustment or revision, together with the reasons for such
adjustment or revision.
`Sec. 2445c. Reports:
quarterly reports; reports on program changes
`(a) Quarterly Reports by
Program Managers- The program manager of a major automated
information system program shall, on a quarterly basis, submit
to the senior Department of Defense official responsible for the
program a written report identifying any variance in the
projected development schedule, implementation schedule,
life-cycle costs, or key performance parameters for the major
automated information system to be acquired under the program
from such information as originally submitted to Congress under
section 2445b of this title.
`(b) Senior Officials Responsible for Programs- For purposes of
this section, the senior Department of Defense official
responsible for a major automated information system program
is--
`(1) in the case of an
automated information system to be acquired for a military
department, the senior acquisition executive for the military
department; or
`(2) in the case of any other automated information system to
be acquired for the Department of Defense or any component of
the Department of Defense, the Under Secretary of Defense for
Acquisition, Technology, and Logistics.
`(c) Report on Significant
Changes in Program-
`(1) IN GENERAL- If, based on
a quarterly report submitted by the program manager of a major
automated information system program pursuant to subsection
(a), the senior Department of Defense official responsible for
the program makes a determination described in paragraph (2),
the official shall, not later than 45 days after receiving
such report, notify the congressional defense committees in
writing of such determination.
`(2) COVERED DETERMINATION- A determination described in this
paragraph with respect to a major automated information system
program is a determination that--
`(A) there has been a
schedule change that will cause a delay of more than six
months but less than a year in any program schedule
milestone or significant event from the schedule originally
submitted to Congress under paragraph (1) or (2) of section
2445b(b) of this title;
`(B) the estimated program development cost or full
life-cycle cost for the program has increased by at least 15
percent, but less than 25 percent, over the original
estimate submitted to Congress under paragraph (3) of
section 2445b(b) of this title; or
`(C) there has been a significant, adverse change in the
expected performance of the major automated information
system to be acquired under the program from the parameters
originally submitted to Congress under paragraph (4) of
section 2445b(b) of this title.
`(d) Report on Critical Changes
in Program-
`(1) IN GENERAL- If, based on
a quarterly report submitted by the program manager of a major
automated information system program pursuant to subsection
(a), the senior Department of Defense official responsible for
the program makes a determination described in paragraph (2),
the official shall, not later than 60 days after receiving
such report--
`(A) carry out an evaluation
of the program under subsection (e); and
`(B) submit, through the Secretary of Defense, to the
congressional defense committees a report meeting the
requirements of subsection (f).
`(2) COVERED DETERMINATION- A
determination described in this paragraph with respect to a
major automated information system program is a determination
that--
`(A) the system failed to
achieve initial operational capability within five years of
milestone A approval;
`(B) there has been a schedule change that will cause a
delay of one year or more in any program schedule milestone
or significant event from the schedule originally submitted
to Congress under paragraph (1) or (2) of section 2445b(b)
of this title;
`(C) the estimated program development cost or full
life-cycle cost for the program has increased by 25 percent
or more over the original estimate submitted to Congress
under paragraph (3) of section 2445b(b) of this title; or
`(D) there has been a change in the expected performance of
the major automated information system to be acquired under
the program that will undermine the ability of the system to
perform the functions anticipated at the time information on
the program was originally submitted to Congress under
section 2445b(b) of this title.
`(e) Program Evaluation- The
evaluation of a major automated information system program
conducted under this subsection for purposes of subsection
(d)(1)(A) shall include an assessment of--
`(1) the projected cost and
schedule for completing the program if current requirements
are not modified;
`(2) the projected cost and schedule for completing the
program based on reasonable modification of such requirements;
and
`(3) the rough order of magnitude of the cost and schedule for
any reasonable alternative system or capability.
`(f) Report on Critical Program
Changes- A report on a major automated information system
program conducted under this subsection for purposes of
subsection (d)(1)(B) shall include a written certification (with
supporting explanation) stating that--
`(1) the automated information
system to be acquired under the program is essential to the
national security or to the efficient management of the
Department of Defense;
`(2) there is no alternative to the system which will provide
equal or greater capability at less cost;
`(3) the new estimates of the costs, schedule, and performance
parameters with respect to the program and system are
reasonable; and
`(4) the management structure for the program is adequate to
manage and control program costs.
`(g) Prohibition on Obligation
of Funds-
(1) If the determination of a
critical change to a program is made by the senior Department
official responsible for the program under subsection (d)(2)
and a report is not submitted to Congress within the 60-day
period provided by subsection (d)(1), appropriated funds may
not be obligated for any major contract under the program.
`(2) The prohibition on the obligation of funds for a program
under paragraph (1) shall cease to apply on the date on which
Congress has received a report in compliance with the
requirements of subsection (d)(2).
`Sec. 2445d. Construction
with other reporting requirements
`In the case of a major automated information system program
covered by this chapter that is also treatable as a major
defense acquisition program for which reports would be required
under chapter 144 of this title, no reports on the program are
required under such chapter if the requirements of this chapter
with respect to the program are met.'.
(2) CLERICAL AMENDMENTS- The
tables of chapters the beginning of subtitle A of such title,
and of part IV of subtitle A of such title, are each amended
by inserting after the item relating to chapter 144 the
following new item:
2445a'.
(b) Report on Reporting
Requirements Applicable to Major Automated Information
System Programs- Not later than 180 days after the date of
enactment of this Act, the Secretary of Defense shall submit
to the congressional defense committees a report setting
forth the reporting requirements applicable to major
automated information system programs as of the date of the
report, including a specification of such reporting
requirements considered by the Secretary to be duplicative
or redundant.
(c) Effective Date-
(1) IN GENERAL- The
amendments made by subsection (a) shall take effect on
January 1, 2008, and shall apply with respect to any major
automated information system program for which amounts are
requested in the budget of the President (as submitted to
Congress under section 1105 of title 31, United States
Code) for a fiscal year after fiscal year 2008, regardless
of whether the acquisition of the automated information
system to be acquired under the program was initiated
before, on, or after January 1, 2008.
(2) REPORT REQUIREMENT- Subsection (b) shall take effect
on the date of the enactment of this Act.
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Major automated information system program
(sec. 816)
The Senate amendment contained a provision
(sec. 804) that would require that, as
part of the annual budget justification materials,
the Department of Defense provide to
the congressional defense committees a report
on major automated information systems
(MAIS) programs. The report would include
the estimate of developmental costs
and total life-cycle costs (original and current),
a schedule of major events (original
and current), and a brief summary of key
performance criteria. The provision would
further require the Department to promptly
notify the congressional defense committees
when a program exceeds established cost,
schedule, or performance criteria.
The House bill contained no similar provision.
The House recedes with an amendment
that would provide an additional criterion
for requiring a report when a MAIS fails to
achieve initial operating capability within 5
years of Milestone A approval. |
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Major automated information system programs (sec. 804)
The committee recommends a
provision that would require that, as part of the annual budget
justification materials, the Department of Defense provide to the
congressional defense committees a report on programs designated
as major automated information systems (MAIS). The report would
include the estimate of developmental costs and total life-cycle
costs (original and current), a schedule of major events
(original and current), and a brief summary of key performance
criteria (original and current).
The provision would further
require the Department to promptly notify the congressional
defense committees when a program manager responsible for a MAIS
program becomes aware that a MAIS program may exceed 25 percent
of either developmental or life-cycle cost estimates, expects to
slip any major scheduled event by more than 1 year, or expects to
deviate significantly in performance goals. That program would be
subject to the reporting requirements similar to those included
in section 2433, of title 10, United States Code, commonly
referred to as the Nunn-McCurdy reporting requirements.
Over the past several months, the
committee has been disappointed to learn of multiple major
automated information systems within the Department that have
slipped in both cost and schedule without notification to
Congress. The committee remains disturbed by the continued
requirements creep and resources drain from which most major
information technology programs suffer.
In Department of Defense (DoD)
Instruction Number 5000.2, the Department stipulates the criteria
to be met in order to designate a program as a major automated
information system (MAIS). Currently, 47 programs meet the MAIS
criteria. The Department has 26 internal reporting requirements
for MAIS programs that incorporate aspects of cost, schedule, and
performance. Additionally, the services are required to report
deviations in accordance with Department Strategic Information
Management Plans. As of June 2004, according to the Government
Accountability Office, no MAIS program has been reported as
having deviated significantly from its goals, despite not one
MAIS program having met cost, schedule, or performance criteria.
This legislative provision would clarify reporting requirements
to the congressional defense committees for MAIS programs and
stipulate actions required if deviations occur to program cost,
schedule, or performance criteria.
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