[House Report 115-46]
[From the U.S. Government Publishing Office]
115th Congress } { Report
HOUSE OF REPRESENTATIVES
1st Session } { 115-46
======================================================================
DHS MULTIYEAR ACQUISITION STRATEGY ACT OF 2017
_______
March 20, 2017.--Committed to the Committee of the Whole House on the
State of the Union and ordered to be printed
_______
Mr. McCaul, from the Committee on Homeland Security, submitted the
following
R E P O R T
[To accompany H.R. 1249]
[Including cost estimate of the Congressional Budget Office]
The Committee on Homeland Security, to whom was referred
the bill (H.R. 1249) to amend the Homeland Security Act of 2002
to require a multiyear acquisition strategy of the Department
of Homeland Security, and for other purposes, having considered
the same, report favorably thereon without amendment and
recommend that the bill do pass.
CONTENTS
Page
Purpose and Summary.............................................. 2
Background and Need for Legislation.............................. 2
Hearings......................................................... 2
Committee Consideration.......................................... 3
Committee Votes.................................................. 3
Committee Oversight Findings..................................... 3
New Budget Authority, Entitlement Authority, and Tax Expenditures 3
Congressional Budget Office Estimate............................. 4
Statement of General Performance Goals and Objectives............ 4
Duplicative Federal Programs..................................... 4
Congressional Earmarks, Limited Tax Benefits, and Limited Tariff
Benefits....................................................... 4
Federal Mandates Statement....................................... 4
Preemption Clarification......................................... 4
Disclosure of Directed Rule Makings.............................. 4
Advisory Committee Statement..................................... 5
Applicability to Legislative Branch.............................. 5
Section-by-Section Analysis of the Legislation................... 5
Changes in Existing Law Made by the Bill, as Reported............ 6
Purpose and Summary
The purpose of H.R. 1249 is to amend the Homeland Security
Act of 2002 (Pub. L. 107-296) to require a multi-year
acquisition strategy for the Department of Homeland Security
(DHS) and for other purposes.
H.R. 1249 requires DHS to develop a multi-year acquisition
strategy as part of each Future Years Homeland Security Program
to guide the overall direction of DHS acquisitions, while also
allowing flexibility to deal with ever-changing threats and
risks. Specifically, the strategy shall include, among other
things, a prioritized list of acquisition investments based on
mission, a plan to develop a reliable DHS-wide inventory of
investments, and an identification of capabilities required to
leverage emerging technology. This will help industry better
understand, plan, and align resources to meet the future
acquisition needs of the Department.
Background and Need for Legislation
The Government Accountability Office (GAO) and the DHS
Office of Inspector General (OIG) have consistently reported on
the longstanding challenges DHS faces in managing its major
acquisition programs, which cost the Department over $7 billion
each year. Every two years, GAO identifies areas in the federal
government that are ``high risk'' due to their vulnerabilities
to fraud, waste, abuse, and mismanagement. Since 2003, GAO has
identified DHS's transformation of 22 agencies into one
department, and the Department's subsequent challenges with its
management functions, as high risk. In GAO's 2017 high risk
update, GAO noted that DHS has made progress in addressing its
management challenges, but has not yet completed all the
necessary actions to fully address acquisition management.
Additionally, the OIG reports annually on major management
challenges facing the Department. In November 2016, the OIG
identified challenges in DHS's management of acquisition
programs. Although DHS has taken steps to improve acquisition
management, DHS struggles to ensure that major acquisition
programs cost what they were originally estimated, are
delivered on schedule, and provide the capabilities originally
intended. As a result, industry is not always informed of what
capabilities and technologies the Department needs to address a
particular threat. H.R. 1249 requires DHS to develop a multi-
year acquisition strategy to guide future acquisitions so that
industry is able to provide the solutions necessary to address
the Department's needs.
Hearings
No hearings were specifically held on H.R.1249. However,
the Committee held oversight hearings on acquisition
management, as listed below.
On February 26, 2015, the Subcommittee on Oversight and
Management Efficiency held a hearing entitled ``Assessing DHS's
Performance: Watchdog Recommendations to Improve Homeland
Security.'' The Subcommittee received testimony from The
Honorable John Roth, Inspector General, U.S. Department of
Homeland Security; Ms. Rebecca Gambler, Director, Homeland
Security and Justice, U.S. Government Accountability Office;
and Dr. Daniel M. Gerstein, Senior Policy Researcher, The RAND
Corporation.
On April 22, 2015, the Subcommittee on Oversight and
Management Efficiency held a hearing entitled ``Acquisition
Oversight: How Effectively is DHS Safeguarding Taxpayer
Dollars?'' The Subcommittee received testimony from Ms. Michele
Mackin, Director, Acquisition and Sourcing Management, U.S.
Government Accountability Office; The Honorable Chip Fulghum,
Acting Deputy Undersecretary for Management and Chief Financial
Officer, U.S. Department of Homeland Security; and Dr. Cedric
Sims, Partner, Evermay Consulting Group.
On September 18, 2015, the Subcommittee on Oversight and
Management Efficiency held a hearing entitled ``Making DHS More
Efficient: Industry Recommendations to Improve Homeland
Security.'' The Subcommittee received testimony from Mr. Marc
Pearl, President and Chief Executive Officer, Homeland Security
and Defense Business Council; Mr. Harry Totonis, Board
Director, Business Executives for National Security; and Ms.
Elaine Duke, Principal, Elaine Duke & Associates, LLC.
On February 16, 2017, the Subcommittee on Oversight and
Management Efficiency held a hearing entitled ``Watchdog
Recommendations: A Better Way Ahead to Manage the Department of
Homeland Security.'' The Subcommittee received testimony from
The Honorable John Roth, Inspector General, U.S. Department of
Homeland Security, and Ms. Rebecca Gambler, Director, Homeland
Security and Justice, U.S. Government Accountability Office.
Committee Consideration
The Committee met on March 8, 2017, to consider H.R. 1249,
and ordered the measure to be reported to the House with a
favorable recommendation, without amendment, by voice vote.
Committee Votes
Clause 3(b) of Rule XIII of the Rules of the House of
Representatives requires the Committee to list the recorded
votes on the motion to report legislation and amendments
thereto.
No recorded votes were requested during consideration of
H.R. 1249.
Committee Oversight Findings
Pursuant to clause 3(c)(1) of Rule XIII of the Rules of the
House of Representatives, the Committee has held oversight
hearings and made findings that are reflected in this report.
New Budget Authority, Entitlement Authority, and Tax Expenditures
In compliance with clause 3(c)(2) of Rule XIII of the Rules
of the House of Representatives, the Committee finds that H.R.
1249, the DHS Multiyear Acquisition Strategy Act of 2017, would
result in no new or increased budget authority, entitlement
authority, or tax expenditures or revenues.
Congressional Budget Office Estimate
Pursuant to clause 3(c)(3) of Rule XIII of the Rules of the
House of Representatives, a cost estimate provided by the
Congressional Budget Office pursuant to section 402 of the
Congressional Budget Act of 1974 was not made available to the
Committee in time for the filing of this report. The Chairman
of the Committee shall cause such estimate to be printed in the
Congressional Record upon its receipt by the Committee.
Statement of General Performance Goals and Objectives
Pursuant to clause 3(c)(4) of Rule XIII of the Rules of the
House of Representatives, H.R. 1249 contains the following
general performance goals and objectives, including outcome
related goals and objectives authorized.
The purpose of H.R. 1249, the DHS Multiyear Acquisition
Strategy Act of 2017, is to provide guidance to the Department
of Homeland Security regarding acquisition management.
Duplicative Federal Programs
Pursuant to clause 3(c) of Rule XIII, the Committee finds
that H.R. 1249 does not contain any provision that establishes
or reauthorizes a program known to be duplicative of another
Federal program.
Congressional Earmarks, Limited Tax Benefits, and Limited Tariff
Benefits
In compliance with Rule XXI of the Rules of the House of
Representatives, this bill, as reported, contains no
congressional earmarks, limited tax benefits, or limited tariff
benefits as defined in clause 9(e), 9(f), or 9(g) of the Rule
XXI.
Federal Mandates Statement
An estimate of Federal mandates prepared by the Director of
the Congressional Budget Office pursuant to section 423 of the
Unfunded Mandates Reform Act was not made available to the
Committee in time for the filing of this report. The Chairman
of the Committee shall cause such estimate to be printed in the
Congressional Record upon its receipt by the Committee.
Preemption Clarification
In compliance with section 423 of the Congressional Budget
Act of 1974, requiring the report of any Committee on a bill or
joint resolution to include a statement on the extent to which
the bill or joint resolution is intended to preempt State,
local, or Tribal law, the Committee finds that H.R. 1249 does
not preempt any State, local, or Tribal law.
Disclosure of Directed Rule Makings
The Committee estimates that H.R. 1249 would require no
directed rule makings.
Advisory Committee Statement
No advisory committees within the meaning of section 5(b)
of the Federal Advisory Committee Act were created by this
legislation.
Applicability to Legislative Branch
The Committee finds that the legislation does not relate to
the terms and conditions of employment or access to public
services or accommodations within the meaning of section
102(b)(3) of the Congressional Accountability Act.
Section-by-Section Analysis of the Legislation
Section 1. Short Title.
This section provides that this bill may be cited as the
``DHS Multiyear Acquisition Strategy Act of 2017''.
Sec. 2. Multiyear Acquisition Strategy.
Section 2 amends Subtitle D of title VIII of the Homeland
Security Act. This section requires that, within 1 year of
enactment, the Secretary must submit to the House and Senate
Committees on Homeland Security and the Comptroller General of
the United States a multi-year acquisition strategy to guide
the overall direction of DHS acquisitions. Every year
thereafter, the Secretary must update and include that strategy
in each Future Years Homeland Security Program report already
required by section 874 of the Homeland Security Act of 2002.
Section 2 also requires the Secretary to consult with
headquarters, components, employees in the field, industry, and
the academic community when developing the strategy. The
strategy must allow flexibility to deal with ever-changing
threats and risks and to help industry better understand, plan,
and align resources to meet the future acquisition needs of
DHS.
Section 2 requires the Secretary to include the following
elements in the strategy:
1. A prioritized list of acquisition investments;
2. A plan to develop a reliable DHS-wide inventory of
investments and real property assets;
3. A plan to address known funding gaps between
requirements and resources for acquisitions;
4. An identification of capabilities required to support
acquisition and to leverage emerging technology and R&D
trends;
5. A focus on flexible solutions to allow the necessary
incentives and protections for appropriate risk-taking
to meet acquisition needs with resiliency, agility, and
responsiveness;
6. A focus on incentives for program managers to achieve
cost savings;
7. An assessment of ways to improve the acquisition process
to reduce cost overruns;
8. A focus on ways to increase outreach to key stakeholders
that includes methods to engage small and disadvantaged
businesses and guidance for interaction by program
managers with key stakeholders to prevent
misinterpretation of acquisition regulations;
9. A plan to ensure competition or the option of
competition for major acquisition programs; and
10. plan to that identifies the acquisition workforce
needs of each component and develops options for
filling those needs. This plan shall also address ways
to improve recruitment, hiring, training, and retention
of acquisition workforce personnel to retain highly
qualified personnel, among other things
The Committee believes that for this strategy to be
actionable, it must be informed by the acquisition plans and
priorities of the components. As such, the Secretary is
encouraged to establish a robust process for collaboration
between and among components to develop the Department's
prioritized list of acquisition investments.
Sec. 3. Government Accountability Office Review of Multiyear
Acquisition Strategy.
Section 3 requires GAO to review the Department's multi-
year acquisition strategy within 6 months of the Secretary
submitting the first strategy. The review shall assess, among
other things, the Department's: (1) compliance with the
requirements in section 2; (2) establishment of clear
connections between DHS objectives and acquisition priorities;
and (3) demonstration that acquisition policy reflects
acquisition best practices.
Changes in Existing Law Made by the Bill, as Reported
In compliance with clause 3(e) of rule XIII of the Rules of
the House of Representatives, changes in existing law made by
the bill, as reported, are shown as follows (new matter is
printed in italics and existing law in which no change is
proposed is shown in roman):
HOMELAND SECURITY ACT OF 2002
* * * * * * *
TITLE VIII--COORDINATION WITH NON-FEDERAL ENTITIES; INSPECTOR GENERAL;
UNITED STATES SECRET SERVICE; COAST GUARD; GENERAL PROVISIONS
* * * * * * *
Subtitle D--Acquisitions
* * * * * * *
SEC. 836. MULTIYEAR ACQUISITION STRATEGY.
(a) Multiyear Acquisition Strategy Required.--
(1) In general.--Not later than one year after the
date of the enactment of this section, the Secretary
shall submit to the appropriate congressional
committees and the Comptroller General of the United
States a multiyear acquisition strategy to guide the
overall direction of the acquisitions of the Department
while allowing flexibility to deal with ever-changing
threats and risks, and to help industry better
understand, plan, and align resources to meet the
future acquisition needs of the Department. Such
strategy shall be updated and included in each Future
Years Homeland Security Program required under section
874.
(2) Form.--The strategy required under paragraph (1)
shall be submitted in unclassified form but may include
a classified annex for any sensitive or classified
information if necessary. The Secretary shall publish
such strategy in an unclassified format that is
publicly available.
(b) Consultation.--In developing the strategy required under
subsection (a), the Secretary shall, as the Secretary
determines appropriate, consult with headquarters, components,
employees in the field, and individuals from industry and the
academic community.
(c) Contents of Strategy.--The strategy shall include the
following:
(1) Prioritized list.--A systematic and integrated
prioritized list developed by the Under Secretary for
Management in coordination with all of the Component
Acquisition Executives of Department major acquisition
programs that Department and component acquisition
investments seek to address, including the expected
security and economic benefit of the program or system
that is the subject of acquisition and an analysis of
how the security and economic benefit derived from such
program or system will be measured.
(2) Inventory.--A plan to develop a reliable
Department-wide inventory of investments and real
property assets to help the Department--
(A) plan, budget, schedule, and acquire
upgrades of its systems and equipment; and
(B) plan for the acquisition and management
of future systems and equipment.
(3) Funding gaps.--A plan to address funding gaps
between funding requirements for major acquisition
programs and known available resources, including, to
the maximum extent practicable, ways of leveraging best
practices to identify and eliminate overpayment for
items to--
(A) prevent wasteful purchasing;
(B) achieve the greatest level of efficiency
and cost savings by rationalizing purchases;
(C) align pricing for similar items; and
(D) utilize purchase timing and economies of
scale.
(4) Identification of capabilities.--An
identification of test, evaluation, modeling, and
simulation capabilities that will be required to--
(A) support the acquisition of technologies
to meet the needs of such strategy;
(B) leverage to the greatest extent possible
emerging technological trends and research and
development trends within the public and
private sectors; and
(C) identify ways to ensure that appropriate
technology is acquired and integrated into the
Department's operating doctrine to improve
mission performance.
(5) Focus on flexible solutions.--An assessment of
ways the Department can improve its ability to test and
acquire innovative solutions to allow needed incentives
and protections for appropriate risk-taking in order to
meet its acquisition needs with resiliency, agility,
and responsiveness to assure homeland security and
facilitate trade.
(6) Focus on incentives to save taxpayer dollars.--An
assessment of ways the Department can develop
incentives for program managers and senior Department
acquisition officials to--
(A) prevent cost overruns;
(B) avoid schedule delays; and
(C) achieve cost savings in major acquisition
programs.
(7) Focus on addressing delays and bid protests.--An
assessment of ways the Department can improve the
acquisition process to minimize cost overruns in--
(A) requirements development;
(B) procurement announcements;
(C) requests for proposals;
(D) evaluation of proposals;
(E) protests of decisions and awards; and
(F) the use of best practices.
(8) Focus on improving outreach.--An identification
and assessment of ways to increase opportunities for
communication and collaboration with industry, small
and disadvantaged businesses, intra-government
entities, university centers of excellence, accredited
certification and standards development organizations,
and national laboratories to ensure that the Department
understands the market for technologies, products, and
innovation that is available to meet its mission needs
and to inform the Department's requirements-setting
process before engaging in an acquisition, including--
(A) methods designed especially to engage
small and disadvantaged businesses, a cost-
benefit analysis of the tradeoffs that small
and disadvantaged businesses provide,
information relating to barriers to entry for
small and disadvantaged businesses, and
information relating to unique requirements for
small and disadvantaged businesses; and
(B) within the Department Vendor
Communication Plan and Market Research Guide,
instructions for interaction by acquisition
program managers with such entities to--
(i) prevent misinterpretation of
acquisition regulations; and
(ii) permit, within legal and ethical
boundaries, interacting with such
entities with transparency.
(9) Competition.--A plan regarding competition under
subsection (d).
(10) Acquisition workforce.--A plan regarding the
Department acquisition workforce under subsection (e).
(d) Competition Plan.--The strategy required under subsection
(a) shall also include a plan to address actions to ensure
competition, or the option of competition, for major
acquisition programs. Such plan may include assessments of the
following measures in appropriate cases if such measures are
cost effective:
(1) Competitive prototyping.
(2) Dual-sourcing.
(3) Unbundling of contracts.
(4) Funding of next-generation prototype systems or
subsystems.
(5) Use of modular, open architectures to enable
competition for upgrades.
(6) Acquisition of complete technical data packages.
(7) Periodic competitions for subsystem upgrades.
(8) Licensing of additional suppliers, including
small businesses.
(9) Periodic system or program reviews to address
long-term competitive effects of program decisions.
(e) Acquisition Workforce Plan.--
(1) Acquisition workforce.--The strategy required
under subsection (a) shall also include a plan to
address Department acquisition workforce accountability
and talent management that identifies the acquisition
workforce needs of each component performing
acquisition functions and develops options for filling
such needs with qualified individuals, including a
cost-benefit analysis of contracting for acquisition
assistance.
(2) Additional matters covered.--The acquisition
workforce plan under this subsection shall address ways
to--
(A) improve the recruitment, hiring,
training, and retention of Department
acquisition workforce personnel, including
contracting officer's representatives, in order
to retain highly qualified individuals who have
experience in the acquisition life cycle,
complex procurements, and management of large
programs;
(B) empower program managers to have the
authority to manage their programs in an
accountable and transparent manner as such
managers work with the acquisition workforce;
(C) prevent duplication within Department
acquisition workforce training and
certification requirements through leveraging
already-existing training within the Federal
Government, academic community, or private
industry;
(D) achieve integration and consistency with
Government-wide training and accreditation
standards, acquisition training tools, and
training facilities;
(E) designate the acquisition positions that
will be necessary to support the Department
acquisition requirements, including in the
fields of--
(i) program management;
(ii) systems engineering;
(iii) procurement, including
contracting;
(iv) test and evaluation;
(v) life cycle logistics;
(vi) cost estimating and program
financial management; and
(vii) additional disciplines
appropriate to Department mission
needs;
(F) strengthen the performance of contracting
officers' representatives (as defined in
subpart 1.602-2 and subpart 2.101 of the
Federal Acquisition Regulation), including by--
(i) assessing the extent to which
such representatives are certified and
receive training that is appropriate;
(ii) assessing what training is most
effective with respect to the type and
complexity of assignment; and
(iii) implementing actions to improve
training based on such assessments; and
(G) identify ways to increase training for
relevant investigators and auditors of the
Department to examine fraud in major
acquisition programs, including identifying
opportunities to leverage existing Government
and private sector resources in coordination
with the Inspector General of the Department.
(f) Definitions.--In this section:
(1) Acquisition.--The term ``acquisition'' has the
meaning given such term in section 131 of title 41,
United States Code.
(2) Appropriate congressional committees.--The term
``appropriate congressional committees'' means--
(A) the Committee on Homeland Security of the
House of Representatives and the Committee on
Homeland Security and Governmental Affairs of
the Senate; and
(B) the Committee on Appropriations of the
House of Representatives and the Committee on
Appropriations of the Senate.
(3) Best practices.--The term ``best practices'',
with respect to acquisition, means--
(A) a knowledge-based approach to capability
development that includes 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 into the mission and business
operations of the Department of Homeland
Security the capabilities described in
subparagraphs (A) through (I).
(4) 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.
(5) Major acquisition program.--The term ``major
acquisition program'' means a Department acquisition
program 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 its
life cycle cost.
* * * * * * *