Department of Defense Acquisition Management Reform Act of 1995

TABLE OF CONTENTS:

Title I: Performance Based Acquisition Process

Subtitle A: Performance Goals

Subtitle B: Results-Oriented Acquisition Process

Subtitle C: Rapid Contracting

Subtitle D: Performance Based Contract Management

Subtitle E: Financial Management

Subtitle F: Defense Acquisition Workforce

Subtitle G: Revision of Procurement Integrity

Requirements

Subtitle H: Clerical Amendments

Title II: Reorganization and Reform of the Defense

Acquisition System

Subtitle A: Streamlining and Improvement of Acquisition

Management

Subtitle B: Transfer of Functions

Subtitle C: Conforming Amendments

Subtitle D: Effective Date

Title III: Depot-Level Maintenance

Department of Defense Acquisition Management Reform Act of 1995 - Title I: Performance Based Acquisition Process - Subtitle A: Performance Goals - Amends Federal defense procurement provisions to: (1) require acquisition programs of the Department of Defense (DOD) for each DOD appropriation account to be assessed for achieving on average 90 percent of their cost, performance, and scheduling goals; and (2) direct the Secretary of Defense to terminate any major defense acquisition program that fails to meet at least 50 percent of its cost, performance, and schedule goals.

(Sec. 103) Amends the Federal Acquisition Streamlining Act of 1994 to direct the Secretary to include certain additional incentives such as pay and promotion incentives within a system which encourages excellence in the personnel management of defense acquisition programs (DAPs). Requires a review of such system to be completed by October 1, 1997, and requires a report from the Secretary to specified congressional committees.

Subtitle B: Results-Oriented Acquisition Process - Directs the Secretary to revise DOD regulations relating to the acquisition of major systems and information technology systems.

(Sec. 112) Directs the Secretary to define in appropriate regulations a simplified acquisition program cycle (cycle) that is results-oriented and consists of the following phases: (1) the integrated decision team meeting; (2) prototype development and testing; (3) product integration, development, and testing; and (4) production and integration into existing systems. Utilizes established maximum time limits for the completion of the cycle and each of its phases, with alternatives to such limits. Requires the acquisition program approval process to have one major decision point which shall occur before the program proceeds into product integration, development, and testing. Directs the Under Secretary of Defense for Acquisition to review, and make certain determinations with respect to, such program. Requires any regulations adopted to ensure that potential users of an item being acquired under a cycle are afforded an opportunity to participate in the acquisition decisions during the appropriate phases.

(Sec. 113) Prohibits the Secretary from issuing a notice to proceed with production of a major system until: (1) at least one phase of initial operational test and evaluation has been completed, during both the prototype development and testing phase and again during the product integration, development, and testing phase; and (2) the Director of Operational Test and Evaluation has made certain certifications to the Secretary concerning testing and evaluation procedures and conditions. Authorizes the waiver of such requirements under certain conditions, including for national security reasons. Prohibits operational testing of a new system other than a major system until the head of the operational test and evaluation agency of the military department concerned determines the quantity of articles of the system that are to be procured for operational testing.

Repeals a Federal provision requiring any increase in the quantity of articles to be procured for low-rate initial production to be made only with the approval of the official making the original quantity determination. Prohibits such quantity from being increased by more than ten percent of the original quantity as of the date on which funds appropriated for procurement are first obligated for the program. Allows such original quantity to be exceeded in addition to the ten percent increase during periods of war or national emergency or when the Secretary makes certain certifications to specified congressional committees concerning the necessity of such action. Requires the Director of Operational Test and Evaluation to report directly to the Secretary (currently, the Secretary and the Deputy Secretary of Defense), without intervening review or approval.

(Sec. 114) Directs the Secretary to revise existing DOD directives regarding development and procurement of certain information systems in order to consolidate those directives into one series of directives that is consistent with the simplified cycle established under this Act.

Subtitle C: Rapid Contracting - Directs the Secretary to establish, and take necessary action to achieve, a goal of reducing by 50 percent the time necessary for DOD to acquire an item for the user of that item.

(Sec. 122) Authorizes a contracting officer of an agency receiving more than three competitive proposals for a proposed contract to solicit best and final offers from three of such offerors, without conducting discussions with representatives of all of the competitive offers.

(Sec. 123) Authorizes the Secretary to establish a contractor certification system for the procurement of DOD property or services that are acquired on a repetitive basis. Authorizes the head of a DOD agency to enter into such a contract on the basis of a competition among contractors certified under the system. Provides for the termination of such certification under appropriate circumstances.

(Sec. 124) Requires solicitations for defense contracts for the procurement of property of services to include a statement of past contractor performance of the offeror and any certification of the offeror under the certification system established under this Act. Directs the Secretary to maintain a contractor performance data base containing performance histories of each contractor under DOD contracts.

(Sec. 125) Requires (currently authorizes) the head of a defense agency to enter into multiyear contracts for the purchase of property whenever certain cost savings and other factors are present.

(Sec. 126) Directs the Secretary to authorize and encourage the use of leasing in the acquisition of equipment when practicable and otherwise authorized by law. Requires a report on legislative changes required to facilitate such leases.

Subtitle D: Performance Based Contract Management - Includes within unallowable defense contractor costs: (1) labor costs in excess of those provided in the contract offer; and (2) bid protest costs.

(Sec. 132) Directs the Secretary to prescribe in regulations: (1) policies and procedures that encourage DOD contract administrators to submit to program managers for consideration alternative approaches to contract management, including an analysis of the costs and benefits of each alternative; and (2) a clause, to be included in each cost- and incentive-type contract, that provides contractor rewards for exceeding the contract cost, schedule, or performance parameters, as well as contractor penalties for failing to adhere to such parameters.

Subtitle E: Financial Management - Requires the Secretary, before initial funding is made available for a phase of the acquisition program cycle for which an authorization of appropriations is specifically required, to submit to the Congress information concerning the objectives and plans for conducting such phase and the funding requirements for the entire phase. Directs the Congress, in authorizing appropriations for such a phase, to provide a single amount sufficient for carrying out the entire phase. Requires specific identification of the phase being funded.

(Sec. 142) Authorizes the Secretary to transfer funds from appropriations available for a particular acquisition program phase in order to pay the cost of incentives provided to program managers who have been certified by the Secretary as having achieved at least 90 percent of the cost, schedule, and performance goals established for that phase.

(Sec. 143) Directs the Comptroller General to review and report to the Congress on commercial practices regarding DOD accounts payable, and to develop standards to be used by the Secretary for improving DOD contract payment procedures and financial management systems. Empowers the Secretary with certain responsibilities with respect to corrective actions necessary to resolve weaknesses found by the Comptroller General.

Subtitle F: Defense Acquisition Workforce - Directs the Secretary to ensure that DOD management policies and procedures provide that education and training in acquisition matters, and past performance of acquisition responsibilities, are major factors in the selection of personnel for assignment to DOD acquisition positions. Requires demonstrated past performance of acquisition duties to be considered under various provisions relating to employee qualifications, requirements, and evaluations.

(Sec. 152) Directs the Secretary to provide for the acquisition of professional educational development and training services for the DOD acquisition workforce from commercial sources and through programs provided by Federal sources for all Federal acquisition personnel. Terminates provisions requiring the establishment and maintenance of a defense acquisition university structure. Requires DOD program managers and executive officers to have completed the course of development and training services established under this section. Authorizes the Secretary to submit to the Congress an alternative system of development and training.

Subtitle G: Revision of Procurement Integrity Requirements - Amends the Office of Federal Procurement Policy Act (the Act) to: (1) require the head of a procuring activity who approves a recusal request (request for dismissal from participation in a procurement contract due to possible conflict of interests) to retain such request for at least five years and make such request available to the public; and (2) make certain contract officer or employee certification requirements under such Act inapplicable to contracts of less than $500,000. Provides that no individual who, in the year prior to separation from service as a military officer in a covered position or an officer or employee of the Government, participated personally and substantially in acquisition functions related to a contract of $500,000 or more shall knowingly accept or continue employment with the contractor or subcontractor involved under such contract for a period of one year following separation from service, except for employment in an unrelated position. Defines a "covered position" as one which requires such officer or employee to work directly on contracts in excess of $500,000. Requires a procurement ethics training program for procurement officials who are likely to be involved in contracts, modifications, or extensions in excess of $25,000. (Currently, all officials must participate in the program.)

(Sec. 162) Provides penalties for those aiding, abetting, counseling, commanding, inducing, or procuring acts of Government officials which affect a personal interest of the individual.

(Sec. 163) Repeals certain superseded and obsolete laws.

(Sec. 164) Provides implementing regulations and requires Inspector General reports in each of FY 1996 through 1999 on compliance by the head of an agency in designating procurement positions covered by amendments to the Act.

Subtitle H: Clerical Amendments - Makes clerical amendments to Federal armed forces provisions, the Federal criminal code, and the Department of Energy Organization Act.

Title II: Reorganization and Reform of the Defense Acquisition System - Subtitle A: Streamlining and Improvement of Acquisition Management - Adds specified duties for the Under Secretary of Defense for Acquisition and Technology (Under Secretary).

Establishes in DOD a Defense Research, Development, and Acquisition Agency, with a Director and a Chief of Engineering and Analysis (Chief). Outlines the duties to be performed by the Agency, including the planning, programming, and carrying out of the research, development, and acquisition (RDA) activities of DOD, the preparation and integration of budgets for RDA activities, and the review of acquisition program plans. Provides for: (1) selection and evaluation of Agency program executive officers; (2) the organization of personnel; (3) policies and procedures for the interaction of commanders of unified and specified combatant commands with program executive officers regarding the initiation and conduct of weapons acquisition programs; and (4) the selection, evaluation, and duties of Agency program managers. Requires the Chief to be responsible for ensuring that all functional analytical capabilities provided to the Agency Director and its officers and managers in connection with DOD acquisition programs are the most advanced capability of their type. Limits the procurement authority of the Secretaries of the various military departments to that considered necessary for the sustainment of operations of that service branch.

(Sec. 202) Directs the Chairman of the Joint Chiefs of Staff to make recommendations to the Under Secretary regarding the desirability for joint development by the United States and one or more foreign countries of foreign products or systems.

Subtitle B: Transfer of Functions - Transfers, with specified exceptions, to the: (1) Secretary all RDA activities of the military departments; and (2) Agency all the functions of specified organizations and commands. Directs the Secretary to terminate all organizations whose functions are so transferred. Provides savings provisions.

Subtitle C: Conforming Amendments - Repeals specified Federal provisions concerning the general authorities and responsibilities of the defense acquisition workforce. Makes conforming amendments with respect to the transfer of certain RDA functions made earlier under this Act.

Subtitle D: Effective Date - Makes this title and its amendments effective one year after the date of enactment of this Act.

Title III: Depot-Level Maintenance - Repeals Federal provisions: (1) prohibiting more than 40 percent of funds made available for military department or defense agency depot-level maintenance and repair workloads from being used to contract for the performance of such workload by nongovernmental personnel; (2) prohibiting the management of DOD civilian depot-level maintenance personnel on the basis of end strengths; (3) providing an exception to (1), above; and (4) requiring a report concerning funds used to contract out for such work.

(Sec. 302) States that it is essential to the national defense that DOD preserve an organic maintenance and repair capability to meet readiness and sustainability requirements for the systems and equipment required for contingency plans. Requires the Secretary to identify those DOD maintenance and repair activities that are necessary to preserve such capability (core capability), and prohibits the Secretary from contracting out for their performance. Allows for the contracting out of non-core capability functions.

(Sec. 303) Directs the Secretary to provide for the performance by the private sector of all DOD depot-level maintenance and repair work except: (1) when no responsive bids for such performance are received from responsible offerors; or (2) for reasons of national security as determined by the Secretary.