Department of Defense Acquisition Reorganization Act of 1989

Department of Defense Acquisition Reorganization Act of 1989 - Establishes in the Department of Defense (DOD) a defense acquisition system that shall be administered by the Under Secretary of Defense for Acquisition (Under Secretary). Requires all DOD functions relating to the acquisition of property and services to be performed using the defense acquisition system. Terminates the separate defense procurement authority currently held by the Secretaries of the Army, Navy, and Air Force.

Establishes in DOD a Defense Acquisition Corps (DAC), to be headed by the Under Secretary. Requires the Secretary of Defense to make appointments to DAC from the best-qualified civilian applicants.

Directs the Secretary to establish a personnel program for civilian personnel within DAC. Outlines personnel rules to be issued by the Secretary in connection with such program. Exempts DAC personnel from certain competitive service and other requirements applicable to other Federal employees. Authorizes the Secretary to establish a merit pay program for such members of the DAC as the Secretary considers appropriate.

Provides for assignment of civilian personnel to positions within DAC, requiring the Secretary to review current acquisition-related positions within the military departments and to make initial appointments to DAC from the best-qualified civilian and military personnel currently assigned to acquisition-related functions within DOD.

Directs the Secretary to review each major defense acquisition program before such program proceeds into each of the following stages: (1) validations of plans and requirements; (2) initial research and development; (3) full-scale development; and (4) production. Prohibits the Secretary or the Secretary of a military department from obligating or expending funds with respect to a stage of such a program unless the Secretary approves such program at the beginning of such stage. Prohibits the Secretary from delegating any such approval power to the Secretary of a military department.

Directs the Secretary to establish and operate a Defense Acquisition University which shall include all acquisition-related defense schools in existence as of the enactment of this Act. Outlines rules to be issued by the Secretary in establishing and operating such University.