Federal Acquisition Management Improvement Act of 1994

TABLE OF CONTENTS:

Title I: Acquisition Improvement Goals

Title II: Acquisition Management Policies

Subtitle A: Armed Services Acquisitions

Subtitle B: Civilian Agency Acquisitions

Title III: Organization of the Acquisition Process

Subtitle A: Armed Services Procurements

Subtitle B: Civilian Agency Acquisitions

Title IV: Contract Formation

Subtitle A: Specifications and Standards

Subtitle B: Performance-Based Contracting

Title V: Performance-Based Contract Administration

Title VI: Davis-Bacon Act Exemption

Title VII: Miscellaneous Conforming Amendments

Title VIII: Effective Date

Federal Acquisition Management Improvement Act of 1994 - Title I: Acquisition Improvement Goals - Declares that it is the policy of Congress that a total of at least $22.5 billion should be achieved in Federal budget savings in Federal procurement costs by the end of FY 1999. Requires the Director of the Office of Management and Budget to report annually to the Congress on progress in implementing this policy.

(Sec. 102) Amends Federal law to declare the policy of Congress that, starting January 1, 2000, the Department of Defense (DOD) should:

(1) achieve, on average, 90 percent of the cost and schedule goals established for DOD research and development programs and acquisition programs; and (2) take no more than eight years on average to convert an emerging technology into initial operational capability.

Directs the DOD Comptroller to evaluate the cost goals proposed for each phase of a DOD acquisition program.

Requires the Joint Chiefs of Staff to approve or define performance and schedule goals for DOD acquisition programs.

(Sec. 103) Declares the policy of Congress that, starting January 1, 2000, each Federal agency other than DOD should also achieve, on average, 90 percent of the cost and schedule goals established for its research and development programs and acquisition programs.

Requires the chief financial officer of an executive agency to evaluate the cost goals proposed for each phase of one of its acquisition programs.

Requires each agency head to approve or define performance and schedule goals for the agency's acquisition programs.

Title II: Acquisition Management Policies - Subtitle A: Armed Services Acquisitions - Urges the Secretary of Defense (Secretary) to:

(1) expedite implementation of certain acquisition workforce provisions of Federal law; and (2) reemphasize the importance of ensuring that the acquisition workforce is educated and trained in accordance with the standards set by such law.

(Sec. 202) Directs the Secretary to: (1) review the incentives and personnel actions available for encouraging excellence in the DOD acquisition workforce; and (2) prescribe in regulations an enhanced system of incentives for the encouragement of excellence.

Declares that the position of acquisition program executive officer carries the grade of brigadier general, rear admiral (lower half), major general, or rear admiral, as the Secretary deems appropriate. Authorizes the President to designate such a position as one of importance and responsibility to carry the grade of lieutenant general or vice admiral.

Sets the position of acquisition program manager at the grade of colonel, brigadier general, or major general, or, in the case of the Navy, captain, rear admiral (lower half), or rear admiral, as the Secretary deems appropriate.

Authorizes the Secretary to fix the civilian grade of either position at the civilian equivalent of the uniformed grade.

Authorizes the Secretary to provide for the pay rate of a DOD employee in an acquisition position based on specific criteria relating the rate to the employee's contribution to the achievement of policy and performance goals. Sets a formula ceiling for such a pay rate. Authorizes the Secretary, in approving or formulating the personnel budget of a military department or Defense Agency, to consider whether increased funding is appropriate on the basis of its achievement of acquisition program schedule, performance, and cost goals.

(Sec. 203) States that a person in the position of program manager or deputy program manager may not be reassigned before completion of a phase in the acquisition program cycle. Allows the Secretary, in exceptional circumstances, to waive this prohibition on reassignment with respect to a person assigned to a critical acquisition position, with the person's written agreement.

Subtitle B: Civilian Agency Acquisitions - Urges each Federal agency head to ensure that the agency's acquisition workforce is trained to perform Federal acquisition functions effectively and efficiently.

(Sec. 212) Requires each Federal agency head, on an expedited basis, to: (1) establish policies and procedures for the effective management (including accession, education, training, and career development) of persons serving in the agency's acquisition positions; and (2) replicate within the agency, to the maximum extent practicable, DOD acquisition workforce policies and procedures.

(Sec. 213) Directs each Federal agency head, for the encouragement of excellence in the agency's acquisition workforce, to provide an enhanced system of incentives relating pay to performance and considering the extent to which personnel performance contributes to the achievement of cost, schedule, and performance goals.

Requires each Federal agency head to: (1) consider specifically whether the position grade of any acquisition program manager should be increased; and (2) prescribe in regulations a system of incentives for encouraging professional excellence among agency technical specialists who support acquisitions.

(Sec. 214) States that this subtitle does not apply to DOD.

Title III: Organization of the Acquisition Process - Subtitle A: Armed Services Procurements - Amends Federal law to revise the duties of the Under Secretary of Defense for Acquisition.

Establishes in DOD a Defense Research, Development, and Acquisition Agency (DRDAA), whose Director shall conduct all DOD research, development, and acquisition activities.

States that the responsibilities of a weapon acquisition program executive officer shall cover the entire life cycle of the program.

Specifies the responsibilities of the DRDAA Chief of Engineering and Analysis.

Declares that the Secretaries of the Army, Navy, and Air Force shall exercise authority for procurements of property and services only to the extent the Secretary of Defense determines necessary for the sustainment of the operations of the respective military department.

Transfers to the Secretary of Defense all other research, development, and acquisition functions of the Secretaries of the Army, Navy, and Air Force, except those related to planning, programming, and budgeting.

(Sec 302) Directs the Secretary of Defense (Secretary) to define in regulations a simplified acquisition program cycle that is results-oriented and consists of specified phases. Requires the Secretary to submit to Congress information on the objectives and plans for each phase before initial funding for the phase is made available. Requires Congress to authorize appropriations for a phase of an acquisition program in a single amount sufficient to carry out that phase.

Requires the DOD acquisition program approval process to have one major decision point which shall occur for an acquisition program before it proceeds into product integration and development. Specifies the duties of the Under Secretary for Acquisition at such decision point.

Subtitle B: Civilian Agency Acquisitions - Declares the policy of Congress that: (1) the purpose of Federal acquisitions of property or services is to satisfy the needs of potential users; and (2) potential users should be involved to a significant extent in acquisition initiation, planning, and execution.

(Sec. 312) Requires the Inspector General of each Federal agency (or, where, necessary, agency head) to review its acquisition process and submit findings and recommendations to the Congress.

(Sec. 313) Requires each Federal agency head to develop and implement a results-oriented property and services acquisition process.

(Sec. 314) States that this subtitle does not apply to DOD.

Title IV: Contract Formation - Subtitle A: Specifications and Standards - Amends Federal law and the Federal Property and Administrative Services Act of 1949 to state that armed services and civilian agency specifications shall be the specifications of commercial items, unless they cannot meet bona fide DOD or agency needs.

Subtitle B: Performance-Based Contracting - Amends Federal law and the Federal Property and Administrative Services Act of 1949 to authorize an armed services or a civilian agency acquisition program executive officer to determine the type of contract to be used when entering one under the program. Requires use of an incentive type contract unless it would inhibit achievement of acquisition performance goals.

(Sec. 412) Amends the Office of Federal Procurement Policy to require the Administrator of Federal Procurement Policy to prescribe for executive agencies guidance regarding consideration in awarding contracts of the past contract performance of offerors.

Title V: Performance-Based Contract Administration - Amends Federal law and the Federal Property and Administrative Services Act of 1949 with respect to contract financing in both armed services and civilian agency acquisitions.

(Sec. 501) Declares that: (1) Government financing shall be provided only to the extent necessary to ensure prompt and efficient performance and only after the availability of private financing is considered; (2) a contractor's use of funds received as contract financing and the contractor's financial condition shall be monitored; and (3) if the contractor is a small business concern, special attention shall be given to meeting the contractor's financial need.

States that advance payments may be made on any of the following bases: (1) performance measured by objective, quantifiable methods; (2) accomplishment of events defined in the program management plan; or (3) other quantifiable measurers of results.

Declares that the lien in favor of the United States on property contracted for is effective immediately upon the first advancement of funds without filing, notice, or any other action by the United States.

(Sec. 502) Amends the Federal Property and Administrative Services Act of 1949 to apply to civilian agency acquisition progress payments the same requirements that apply to armed services acquisitions.

Title VI: Davis-Bacon Act Exemption - Amends the Federal statute known as the Davis-Bacon Act to raise from $2,000 to $500,000 the threshold amount of contracts to which the prevailing wage requirements of such Act apply.

Title VII: Miscellaneous Conforming Amendments - Makes conforming amendments to Federal law.

Title VIII: Effective Date - Sets forth the effective date of this Act.