Defense Acquisition Enterprise and Initiative Act of 1986

Defense Acquisition Enterprise and Initiative Act of 1986 - Amends general Federal procurement law to authorize the Secretary of a military department to designate any major defense acquisition program conducted by such department as a defense enterprise program, which shall be managed by a program manager. Requires such program manager to report to and be under the direction and control of the Secretary concerned. Limits the regulation of such defense enterprise programs (programs) as specified.

Requires the Secretary concerned to appoint a program manager for each program. Outlines administrative provisions concerning the appointment and performance review of such managers. Authorizes the manager of a program to establish a senior staff to assist in the management of the program, as well as a technical staff.

Provides that it is the policy of the Congress to authorize at any one time in connection with any program the appropriation of sufficient funds to carry out the program through at least one defense systems acquisition review council milestone established for the program. Directs the Secretary of Defense to specify the amount of necessary funds for each such program.

Establishes in the Department of Defense the Defense Acquisition Service (DAS). Limits to 10,000 the number of personnel employed by DAS. Outlines administrative provisions concerning the appointment, assignments, and rates of pay of DAS personnel. Provides for the payment of performance awards to selected members of DAS. Requires the performance of each member of DAS to be evaluated at least once each year. Authorizes appropriate increases or reductions in pay after such performance evaluations. Limits the number of DAS employees in each military department for each of FY 1987 through 1989.

Prohibits a a covered senior defense official from contacting a defense contractor regarding future employment opportunities with the defense contractor. Defines "covered senior defense official." Requires such official to immediately terminate any contact made by a defense contractor regarding possible future employment. Provides for the payment of severance pay to a covered senior defense official upon termination of Federal employment as a covered senior defense official.