Back to JWNDAA 2007 Contents

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

Subtitle E—Other Matters

JWNDAA Section

House Conference Report 109-702

(a) Strategy- The Secretary of Defense shall develop a comprehensive strategy for enhancing the role of Department of Defense program managers in developing and carrying out defense acquisition programs.

(b) Matters to Be Addressed- The strategy required by this section shall address, at a minimum--

(1) enhanced training and educational opportunities for program managers;

(2) increased emphasis on the mentoring of current and future program managers by experienced senior executives and program managers within the Department;

(3) improved career paths and career opportunities for program managers;

(4) additional incentives for the recruitment and retention of highly qualified individuals to serve as program managers;

(5) improved resources and support (including systems engineering expertise, cost estimating expertise, and software development expertise) for program managers;

(6) improved means of collecting and disseminating best practices and lessons learned to enhance program management throughout the Department;

(7) common templates and tools to support improved data gathering and analysis for program management and oversight purposes;

(8) increased accountability of program managers for the results of defense acquisition programs; and

(9) enhanced monetary and nonmonetary awards for successful accomplishment of program objectives by program managers.

(c) Guidance on Tenure and Accountability of Program Managers Before Milestone B- Not later than 180 days after the date of the enactment of this Act, the Secretary of Defense shall revise Department of Defense guidance for major defense acquisition programs to address the qualifications, resources, responsibilities, tenure, and accountability of program managers for the program development period (before Milestone B approval (or Key Decision Point B approval in the case of a space program)).

(d) Guidance on Tenure and Accountability of Program Managers After Milestone B- Not later than 180 days after the date of enactment of this Act, the Secretary of Defense shall revise Department of Defense guidance for major defense acquisition programs to address the qualifications, resources, responsibilities, tenure and accountability of program managers for the program execution period (from Milestone B approval (or Key Decision Point B approval in the case of a space program) until the delivery of the first production units of a program). The guidance issued pursuant to this subsection shall address, at a minimum--

(1) the need for a performance agreement between a program manager and the milestone decision authority for the program, setting forth expected parameters for cost, schedule, and performance, and appropriate commitments by the program manager and the milestone decision authority to ensure that such parameters are met;

(2) authorities available to the program manager, including, to the extent appropriate, the authority to object to the addition of new program requirements that would be inconsistent with the parameters established at Milestone B (or Key Decision Point B in the case of a space program) and reflected in the performance agreement; and

(3) the extent to which a program manager for such period should continue in the position without interruption until the delivery of the first production units of the program.

(e) Reports-

(1) REPORT BY SECRETARY OF DEFENSE- Not later than 270 days after the date of enactment of this Act, the Secretary of Defense shall submit to the congressional defense committees a report on the strategy developed pursuant to subsection (a) and the guidance issued pursuant to subsections (b) and (c).

(2) REPORT BY COMPTROLLER GENERAL- Not later than one year after the date of enactment of this Act, the Comptroller General shall submit to the congressional defense committees a report on the actions taken by the Secretary of Defense to implement the requirements of this section.

The Senate amendment contained provisions (secs. 861–863 and 865) that would address the role of program managers in defense acquisition programs.

The House bill contained no similar provision.

The House recedes with an amendment that would consolidate these provisions into a single provision and provide greater flexibility to the Secretary of Defense in implementing the new requirements.

Subsections (a) and (b) would require the Secretary to develop a comprehensive strategy for enhancing the role of Department of Defense program managers in carrying out defense acquisition programs. These subsections track the language of the Senate amendment without change.

Subsection (c) would require the Secretary to issue guidance on qualifications, resources, responsibilities, tenure, and accountability of program managers for the program development period before Milestone B approval (or Key Decision Point B approval in the case of a space program).

 Subsection (d) would require the Secretary to revise the Department’s guidance on qualifications, resources, responsibilities, tenure, and accountability of program managers for the program execution period from Milestone B approval (or Key Decision Point B approval in the case of a space program) until the delivery of the first production units for a program. The guidance would address, at a minimum, the need for a performance agreement between a program manager and the milestone decision authority for the program; the authorities available to a program manager; and the tenure of a program manager.

The conferees agree with the assessment of the Government Accountability Office that the Department has consistently failed to give program managers the authority that they need to successfully execute acquisition programs and, as a result, is unable to hold them accountable.

The conferees believe that program managers for the development period before Milestone B should be responsible for: (1) bringing to maturity the technologies and manufacturing processes that will be needed to carry out the program; (2) ensuring continued focus during program development on meeting stated mission requirements and other requirements of the Department; (3) making trade-offs between program cost, schedule, and performance for the life-cycle of the program; (4) developing a business case for the program; and (5) ensuring that appropriate information is available to the milestone decision authority to make a decision on Milestone B approval, including the information necessary to make the certification required by section 2366a of title 10, United States Code.

The conferees believe that a program manager for the execution period from Milestone B to the delivery of production units should enter into performance agreements with the milestone decision authority for the program that: (1) establishes expected parameters for the cost, schedule, and performance of the program consistent with the business case for the program and the Milestone B decision; (2) provides the commitment of the milestone decision authority to provide the level of funding and resources required to meet such parameters; and (3) provides the assurance of the program manager that such parameters are achievable and that such program manager will be accountable for meeting such parameters.

The conferees also believe that program managers should be granted the autonomy to manage their programs without interference from outside officials. The conferees believe that the guidance should include: (1) the assurance that program requirements will not be modified in a way that would be inconsistent with the business case, the Milestone B decision, and any performance agreement entered without a written determination by a senior Department official that the modifications are necessary in the interest of the national defense; (2) program manager authority to make trade-offs between cost, schedule, and performance or to redirect funding within the program, provided that such tradeoffs or redirections of funds are consistent with the parameters established for the program and with applicable requirements of law; and (3) program manager authority to use program funds to recruit and hire such technical experts as may be required to carry out the program in a manner consistent with the requirements of law and regulation, if necessary expertise is not otherwise provided by the Department.

The conferees also believe that (1) a program manager should be assigned to remain with a program, to the extent practicable, during the entire respective development or execution period; and (2) a program manager should be provided the resources and support (including systems engineering expertise, cost estimating expertise, and software development expertise) needed to meet their responsibilities. The conferees expect the guidance issued by the Secretary to reflect these principles, subject to such modifications and exceptions as the Secretary may deem necessary.

Subsection (e) would require reports by the Secretary and the Comptroller General on steps taken to carry out the requirements of this section.

Senate Armed Services Committee Report 109-254

The committee recommends five provisions under subtitle D that would provide for better management of Department of Defense acquisition programs by enhancing the role of program managers.

The committee remains concerned by continued growth in the cost and time it takes to field major weapon systems. In January 2005, the Government Accountability Office (GAO) reported that the Department acquisition process `consistently yields undesirable consequences--cost increases, late deliveries to the warfighter, and performance shortfalls--in weapon system programs.' Similarly, a June 2005 memorandum from the Deputy Secretary of Defense concluded that `Many programs continue to increase in cost and schedule even after multiple studies and recommendations that span the past 15 years.'

In response to a request from the Subcommittee on Readiness and Management Support of the Committee on Armed Services, GAO reviewed best management practices of private sector companies. In a November 2005 report, entitled `Best Practices: Better Support of Weapon System Program Managers Needed to Improve Outcomes,' GAO concluded that leading private sector companies empower their program managers to execute their programs and hold them accountable for the results.

By contrast, GAO found that the Department fails to give program managers the authority they need to execute acquisition programs and, as a result, is unable to hold them accountable. GAO determined that:

[O]nce programs begin, the program manager is not empowered to execute the program. In particular, program managers cannot veto new requirements, control funding, or control staff.

* * * * *

With so much outside their span of control, program managers say that DOD is unable to hold them accountable when programs get off track. Another reason that it is difficult to hold program managers accountable is that their tenure is relatively short. The problems being encountered today may well be the result of a poor decision made years ago by another program manager.

The program manager provisions (secs. 861-865) are designed to help address these problems by requiring the application of best practices from the commercial sector to Department acquisition programs.

Section 861 would require the Secretary of Defense to establish a comprehensive strategy for enhancing the role of Department program managers in carrying out defense acquisition programs. The strategy should address a wide array of issues identified in the GAO report, including additional recruiting incentives, enhanced training and educational opportunities, increased emphasis on mentoring, identification of career paths, improved resources and technical support, better collection and dissemination of lessons learned, better access to information and data management tools, increased accountability for acquisition results, and enhanced monetary and nonmonetary incentives for program managers.

Section 862 would address the tenure and accountability of program managers for the program development period. The provision would establish responsibilities of such program managers and require that they be assigned to a program until a business case has been completed and the program is ready for a Milestone B decision.

Section 863 would address the tenure and accountability of program managers for the program execution period. The provision would require each such program manager to enter into a performance agreement with the milestone decision authority (MDA) that establishes the expected parameters of performance, including the commitment of the MDA that adequate funding and resources are available and will be provided and assurance of the program manager that the parameters are achievable. The provision would also require that program managers be given authority comparable to the authority given to private sector program managers and that they be assigned to a program until the delivery of the first production units, with a narrow waiver authority.

Section 865 would require the Comptroller General to submit to the congressional defense committees by February 1, 2007 a report on actions taken by the Secretary of Defense to comply with the requirements of the four sections.