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

Subtitle E — Acquisition Workforce Provisions

NDAA Section

House Conference Report 110-477

SEC. 851. REQUIREMENT FOR SECTION ON DEFENSE ACQUISITION WORKFORCE IN STRATEGIC HUMAN CAPITAL PLAN.

(a) In General- In the update of the strategic human capital plan for 2008, and in each subsequent update, the Secretary of Defense shall include a separate section focused on the defense acquisition workforce, including both military and civilian personnel.

(b) Funding- The section shall contain--

(1) an identification of the funding programmed for defense acquisition workforce improvements, including a specific identification of funding provided in the Department of Defense Acquisition Workforce Fund established under section 1705 of title 10, United States Code (as added by section 852 of this Act);

(2) an identification of the funding programmed for defense acquisition workforce training in the future-years defense program, including a specific identification of funding provided by the acquisition workforce training fund established under section 37(h)(3) of the Office of Federal Procurement Policy Act (41 U.S.C. 433(h)(3));

(3) a description of how the funding identified pursuant to paragraphs (1) and (2) will be implemented during the fiscal year concerned to address the areas of need identified in accordance with subsection (c);

(4) a statement of whether the funding identified under paragraphs (1) and (2) is being fully used; and

(5) a description of any continuing shortfall in funding available for the defense acquisition workforce.

(c) Areas of Need- The section also shall identify any areas of need in the defense acquisition workforce, including--

(1) gaps in the skills and competencies of the current or projected defense acquisition workforce;

(2) changes to the types of skills needed in the current or projected defense acquisition workforce;

(3) incentives to retain in the defense acquisition workforce qualified, experienced defense acquisition workforce personnel; and

(4) incentives for attracting new, high-quality personnel to the defense acquisition workforce.

(d) Strategic Human Capital Plan Defined- In this section, the term `strategic human capital plan' means the strategic human capital plan required under section 1122 of the National Defense Authorization Act for Fiscal Year 2006 (Public Law 109-163; 119 Stat. 3452; 10 U.S.C. prec. 1580 note).

The House bill contained a provision (sec. 802(b)) that would require the Secretary of Defense to include a section on the acquisition workforce in annual updates of the strategic human capital plan required under section 1122 of the National Defense Authorization Act for Fiscal Year 2006 (Public Law 109-163).

The Senate amendment contained a similar provision (sec. 844(h)).

The Senate recedes with an amendment clarifying the issues to be addressed in the plan.

House Armed Services Committee Report 110-146

SECTION 802--ACQUISITION WORKFORCE PROVISIONS

This section would repeal subparagraph (H) of section 37 (h)(3) of the Office of Federal Procurement Policy Act (41 U.S.C. 403 et. seq.), thereby making permanent the acquisition workforce training fund. The fund supports the training of acquisition personnel of the federal government and is financed by contract fees. The fund has proven to be an efficient and effective mechanism of providing for the training of the acquisition workforce, which will be a long-term requirement of the federal government.

This section would also require the Secretary of Defense to include a section on the acquisition workforce in the next Department of Defense strategic human capital plan required by section 1122 of the National Defense Authorization Act for Fiscal Year 2006 (Public Law 109-163). The section of the plan relating to the acquisition workforce would identify the budgets programmed in the Future Years Defense Program for training of the acquisition workforce; an assessment of whether such funds are adequate; and measures to protect such funds from diversion to other uses. The plan would also identify the requirement, if any, to change the skill mix in the acquisition workforce, and to adopt incentives to recruit and retain high quality personnel.

The committee recommends a provision that would require the Secretary of Defense to establish an Acquisition Workforce Development Fund (the `Fund') to ensure that the Department of Defense (DOD) has the workforce capacity, in both personnel and skills, needed to properly perform its mission, provide appropriate oversight of contractor performance, and provide the best value for the expenditure of public resources. The fund would be financed through quarterly remittances by the military departments and defense agencies, based on amounts spent for contract services in the previous fiscal quarter.

Earlier this year, the Acquisition Advisory Panel chartered pursuant to section 1423 of the National Defense Authorization Act for Fiscal Year 2004 (Public Law 108-136) reported that `curtailed investments in human capital have produced an acquisition workforce that often lacks the training and resources to function effectively.' As a result, `The Federal Government does not have the capacity in its current acquisition workforce necessary to meet the demands that have been placed on it.' The failure of DOD and other federal agencies to adequately fund the acquisition workforce, the Panel concluded, is `penny wise and pound foolish,' as it seriously undermines the pursuit of good value for the expenditure of public resources.'

During the same period in which the acquisition workforce has been allowed to atrophy, DOD contracts for services have grown without constraint. Over the last 5 years, DOD has almost doubled its spending on service contracts, while the number of procurement personnel available to oversee these contracts has dropped by more than 25 percent. As a result, the Department has become increasingly reliant upon contractors to help manage and oversee the work of other contractors. The provision recommended by the committee would endeavor to reverse this trend by taking money currently spent to hire service contractors and spending it instead to reinvigorate the DOD acquisition workforce.