Department of Defense Acquisition Reorganization Act of 1986

Department of Defense Acquisition Reorganization Act of 1986 - Amends Federal defense procurement provisions to establish in the Department of Defense (DOD) under the Secretary of Defense the position of Under Secretary of Defense for Acquisition, appointed by the President with the advice and consent of the Senate. Requires the Under Secretary to: (1) be responsible for all acquisition activities of DOD; and (2) perform such duties as the Secretary may prescribe.

Redesignates the position of Under Secretary of Defense for Research and Engineering as Director of Defense Research and Engineering.

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

Establishes in DOD a Defense Acquisition Corps (DAC) consisting of acquisition-related positions in the Office of the Secretary of Defense, the military departments, and certain defense agencies. Makes the Under Secretary of Defense for Acquisition the head of the DAC. Requires the Secretary to make appointments to the DAC from the best-qualified civilian applicants and military personnel. Directs the Secretary to establish by regulations a personnel system for civilian personnel within the DAC. Outlines information to be included in such regulations. Exempts civilian personnel of the DAC from any applicable competitive service requirements.

Directs 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) establish the DAC; (2) review existing acquisition-related positions in the military departments to determine which positions should be included in the DAC; and (3) make appointments to such positions.

Directs the Secretary to establish by regulation a Defense Acquisition University that includes existing acquisition-related defense schools.