[Congressional Bills 115th Congress]
[From the U.S. Government Publishing Office]
[S. 906 Introduced in Senate (IS)]
<DOC>
115th CONGRESS
1st Session
S. 906
To amend the Homeland Security Act of 2002 to provide for congressional
notification regarding major acquisition program breaches, and for
other purposes.
_______________________________________________________________________
IN THE SENATE OF THE UNITED STATES
April 7, 2017
Mrs. McCaskill (for herself and Mr. Daines) introduced the following
bill; which was read twice and referred to the Committee on Homeland
Security and Governmental Affairs
_______________________________________________________________________
A BILL
To amend the Homeland Security Act of 2002 to provide for congressional
notification regarding major acquisition program breaches, and for
other purposes.
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the ``Reducing DHS Acquisition Cost Growth
Act''.
SEC. 2. CONGRESSIONAL NOTIFICATION FOR MAJOR ACQUISITION PROGRAMS.
(a) In General.--Subtitle D of title VIII of the Homeland Security
Act of 2002 (6 U.S.C. 391 et seq.) is amended by adding at the end the
following:
``SEC. 836. CONGRESSIONAL NOTIFICATION AND OTHER REQUIREMENTS FOR MAJOR
ACQUISITION PROGRAM BREACH.
``(a) Definitions.--In this section:
``(1) Acquisition.--The term `acquisition' has the meaning
given the term in section 131 of title 41, United States Code.
``(2) Acquisition program.--The term `acquisition program'
means the process by which the Department acquires, with any
appropriated amounts, by contract for purchase or lease,
property or services (including construction) that support the
missions and goals of the Department.
``(3) Acquisition program baseline.--The term `acquisition
program baseline', with respect to an acquisition program,
means a summary of the cost, schedule, and performance
parameters, expressed in standard, measurable, quantitative
terms, which shall be met in order to accomplish the goals of
the program.
``(4) Appropriate committees of congress.--The term
`appropriate committees of Congress' has the meaning given the
term in section 226(a).
``(5) Best practices.--The term `best practices', with
respect to acquisition, means a knowledge-based approach to
capability development that includes--
``(A) identifying and validating needs;
``(B) assessing alternatives to select the most
appropriate solution;
``(C) clearly establishing well-defined
requirements;
``(D) developing realistic cost assessments and
schedules;
``(E) securing stable funding that matches
resources to requirements;
``(F) demonstrating technology, design, and
manufacturing maturity;
``(G) using milestones and exit criteria or
specific accomplishments that demonstrate progress;
``(H) adopting and executing standardized processes
with known success across programs;
``(I) establishing an adequate workforce that is
qualified and sufficient to perform necessary
functions; and
``(J) integrating the capabilities described in
subparagraphs (A) through (I) into the mission and
business operations of the Department.
``(6) Breach.--The term `breach', with respect to a major
acquisition program, means a failure to meet any cost,
schedule, or performance threshold specified in the most
recently approved acquisition program baseline.
``(7) Component acquisition executive.--The term `Component
Acquisition Executive' means the senior acquisition official
within a component who is designated in writing by the Under
Secretary for Management, in consultation with the component
head, with authority and responsibility for leading a process
and staff to provide acquisition and program management
oversight, policy, and guidance to ensure that statutory,
regulatory, and higher level policy requirements are fulfilled,
including compliance with Federal law, the Federal Acquisition
Regulation, and Department acquisition management directives
established by the Under Secretary for Management.
``(8) Major acquisition program.--The term `major
acquisition program' means an acquisition program of the
Department that is estimated by the Secretary to require an
eventual total expenditure of at least $300,000,000 (based on
fiscal year 2017 constant dollars) over the life cycle cost of
the program.
``(b) Requirements Within Department in Event of Breach.--
``(1) Notifications.--
``(A) Notification of breach.--If a breach occurs
in a major acquisition program, the program manager for
the program shall notify the Component Acquisition
Executive for the program, the head of the component
concerned, the Executive Director of the Program
Accountability and Risk Management division, the Under
Secretary for Management, and the Deputy Secretary not
later than 30 calendar days after the date on which the
breach is identified.
``(B) Notification to secretary.--If a breach
occurs in a major acquisition program and the breach
results in a cost overrun greater than 15 percent, a
schedule delay greater than 180 days, or a failure to
meet any of the performance thresholds from the cost,
schedule, or performance parameters specified in the
most recently approved acquisition program baseline for
the program, the Component Acquisition Executive for
the program shall notify the Secretary and the
Inspector General of the Department not later than 5
business days after the date on which the Component
Acquisition Executive for the program, the head of the
component concerned, the Executive Director of the
Program Accountability and Risk Management Division,
the Under Secretary for Management, and the Deputy
Secretary are notified of the breach under subparagraph
(A).
``(2) Remediation plan and root cause analysis.--
``(A) In general.--If a breach occurs in a major
acquisition program, the program manager for the
program shall submit in writing to the head of the
component concerned, the Executive Director of the
Program Accountability and Risk Management division,
and the Under Secretary for Management, at a date
established by the Under Secretary for Management, a
remediation plan and root cause analysis relating to
the breach and program.
``(B) Remediation plan.--The remediation plan
required under subparagraph (A) shall--
``(i) explain the circumstances of the
breach at issue;
``(ii) provide prior cost estimating
information;
``(iii) include a root cause analysis that
determines the underlying cause or causes of
shortcomings in cost, schedule, or performance
of the major acquisition program with respect
to which the breach has occurred, including the
role, if any, of--
``(I) unrealistic performance
expectations;
``(II) unrealistic baseline
estimates for cost or schedule or
changes in program requirements;
``(III) immature technologies or
excessive manufacturing or integration
risk;
``(IV) unanticipated design,
engineering, manufacturing, or
technology integration issues arising
during program performance;
``(V) changes to the scope of the
program;
``(VI) inadequate program funding
or changes in planned out-year funding
from one 5-year funding plan to the
next 5-year funding plan as outlined in
the Future Years Homeland Security
Program required under section 874;
``(VII) legislative, legal, or
regulatory changes; or
``(VIII) inadequate program
management personnel, including lack of
sufficient number of staff, training,
credentials, certifications, or use of
best practices;
``(iv) propose corrective action to address
cost growth, schedule delays, or performance
issues;
``(v) explain the rationale for why a
proposed corrective action is recommended; and
``(vi) in coordination with the Component
Acquisition Executive for the program, discuss
all options considered, including--
``(I) the estimated impact on cost,
schedule, or performance of the program
if no changes are made to current
requirements;
``(II) the estimated cost of the
program if requirements are modified;
and
``(III) the extent to which funding
from other programs will need to be
reduced to cover the cost growth of the
program.
``(3) Review of corrective actions.--
``(A) In general.--The Under Secretary for
Management--
``(i) shall review each remediation plan
required under paragraph (2); and
``(ii) not later than 30 days after
submission of a remediation plan under
paragraph (2), may approve the plan or provide
an alternative proposed corrective action.
``(B) Submission to congress.--Not later than 30
days after the date on which the Under Secretary for
Management completes a review of a remediation plan
under subparagraph (A), the Under Secretary for
Management shall submit to the appropriate committees
of Congress--
``(i) a copy of the remediation plan; and
``(ii) a statement describing the
corrective action or actions that have occurred
pursuant to paragraph (2)(B)(iv) for the major
acquisition program at issue, with a
justification for each action.
``(c) Requirements Relating to Congressional Notification if Breach
Occurs.--
``(1) Notification to congress.--If a notification to the
Secretary is made under subsection (b)(1)(B) relating to a
breach in a major acquisition program, the Under Secretary for
Management shall notify the appropriate committees of Congress
of the breach in the next quarterly Comprehensive Acquisition
Status Report, as required in the matter under the heading
`Office of the Under Secretary for Management' in title I of
division F of the Consolidated Appropriations Act of 2016
(Public Law 114-113; 129 Stat. 2493), after receipt by the
Under Secretary for Management of notification under that
subsection.
``(2) Significant variances in costs or schedule.--If a
likely cost overrun is greater than 20 percent or a likely
delay is greater than 12 months from the costs and schedule
specified in the acquisition program baseline for a major
acquisition program, the Under Secretary for Management shall
include in the notification required in paragraph (1) a written
certification, with supporting explanation, that--
``(A) the program is essential to the
accomplishment of the mission of the Department;
``(B) there are no alternatives to the capability
or asset provided by the program that will provide
equal or greater capability in a more cost-effective
and timely manner;
``(C) the new acquisition schedule and estimates
for total acquisition cost are reasonable; and
``(D) the management structure for the program is
adequate to manage and control cost, schedule, and
performance.''.
(b) Clerical Amendment.--The table of contents in section 1(b) of
the Homeland Security Act of 2002 (Public Law 107-296; 116 Stat. 2135)
is amended by inserting after the item relating to section 835 the
following:
``Sec. 836. Congressional notification and other requirements for major
acquisition program breach.''.
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