Department of Defense Acquisition Reorganization Act of 1988

Department of Defense Acquisition Reorganization Act of 1988 - Establishes within the Department of Defense a Defense Acquisition Agency. Provides that the Under Secretary of Defense for Acquisition shall be the head of such Agency.

Specifies that the Agency shall be responsible for all functions of the Department of Defense (including the military departments) relating to acquisition of property and services (including construction). Terminates the procurement authority of the Secretary of the Army, the Secretary of the Navy, and the Secretary of the Air Force.

Establishes in the Department of Defense a Defense Acquisition Corps (DAC) to be headed by the Under Secretary of Defense for Acquisition.

Requires the Secretary to make appointments to the DAC from the best-qualified civilian applicants and military personnel. Directs the Secretary to establish by regulation a personnel system for civilian personnel within the DAC. Outlines information to be included in such regulations. Allows the Secretary to exempt civilian personnel of the DAC from any otherwise applicable competitive service requirements.

Authorizes the Secretary to establish by regulation a merit pay system for such members of the DAC as the Secretary deems appropriate. Provides for the assignment of members of the DAC.

Requires the Secretary, not later than one year after the enactment of this Act, to: (1) review existing acquisition-related positions in the military departments to determine which positions should be included in the DAC; and (2) make appointments to such positions.

Directs the Secretary of Defense to review each major defense acquisition program before such program proceeds into the stages of: (1) initial research and development; (2) full-scale development; and (3) production. Sets forth evaluations to be included in each review. Prohibits the Secretary or the Secretary of a military department from obligating or expending funds with respect to a stage of a major defense acquisition program unless the Secretary of Defense approves such program at the beginning of such stage.

Directs the Secretary of Defense to establish and operate a Defense Acquisition University which includes all existing acquisition-related defense schools.