Department of Defense Acquisition Reorganization Act of 1989

Department of Defense Acquisition Reorganization Act of 1989 - Requires the Under Secretary of Defense for Acquisition to: (1) plan and conduct all major defense acquisition programs of the Department of Defense (DOD); and (2) supervise all other DOD acquisitions. Directs the Secretary of each military department and the head of each defense agency, for each major defense acquisition program, to: (1) determine and define the procurement needs for that program; (2) determine and define the performance standards for the systems to be acquired under the program; and (3) report such needs and standards to the Under Secretary. Authorizes the Secretary of Defense to revise such needs or standards. Directs the Secretary to: (1) select the system concept for design under a major defense acquisition program; and (2) determine and define the level of risk acceptable for a system to be acquired under a major defense acquisition program (MDAP). Requires the Secretary of a military department or defense agency head to determine whether the system acquired under such MDAP meets the needs of such department or agency.

Directs the Under Secretary, in planning for and conducting a MDAP for the acquisition of a system, to: (1) consult with the Secretaries of the military departments and the heads of the appropriate defense agencies with regard to the need for such system; (2) consider whether the acquisition of a system from any allied government would meet those needs; (3) consult with the Joint Chiefs of Staff and the Vice Chairman of the Joint Chiefs concerning the potential for two or more military departments to use one system and potential alternative systems to be used by two or more departments; (4) determine the extent to which there is a commonality of parts and components among the systems to be acquired for such departments; (5) carry out functions relating to the research, development, and production of the system under the MDAP; (6) consult with, and seek advice and comments from, military department Secretaries and defense agency heads; and (7) be the sole DOD representative in negotiating with private sector representatives in connection with the MDAP. States that the Under Secretary is not responsible for conducting, monitoring, or reviewing operational testing and evaluation under a MDAP. Provides that, for purposes of a MDAP, the head of a defense agency shall include the Secretary of Defense, acting through the Under Secretary.

Establishes within DOD a Defense Acquisition Agency (DAA) to be headed by the Under Secretary. Specifies that the Under Secretary shall plan and conduct MDAPs through such agency.

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

Authorizes the Secretary to establish and administer a performance management and recognition system for DAA employees. Provides for the assignment of DAA employees.

Directs the Secretary to ensure that members of the armed forces are assigned to duty in the DAA to furnish the agency advice and assistance on the use of systems to be acquired under MDAPs. Prohibits a member from serving as a MDAP manager or performing supervisory duties in the conduct of such a program. Requires such members in the DAA to be promoted at a rate not less than the promotion rate for all members of the same armed force in the same grade and competitive category. Requires the Secretary to periodically report to the Congress on the promotion rates of such members in the DAA.

Makes inapplicable to the Coast Guard and the National Aeronautics and Space Administration certain provisions relating to contract requirements for production special tooling and production special test equipment.