Department of Defense Acquisition Reorganization Act of 1986

Department of Defense Acquisition Reorganization Act of 1986 - Amends Federal law to establish within the Office of the Secretary of Defense an Office of Defense Acquisition, headed by the Under Secretary of Defense for Acquisition, which shall be responsible for the following: (1) acquisition of all property and services for the Department of Defense (DOD), including major defense systems acquisitions; (2) all of the contract administration and contract audit functions of DOD; and (3) the supervision, direction, and control of specified defense acquisition functions and personnel.

Prohibits entering into a contract for the full-scale development or procurement of a major defense system unless the Under Secretary of Defense for Acquisition (the Under Secretary) has reviewed and approved the program. Requires a specified reduction in the staff of the Under Secretary within two years of establishment of such office.

Directs the Secretary of Defense to develop appropriate policies and personnel training programs for DOD personnel assigned to a procurement function. Directs the Secretary, no later than January 1, 1987, to report on such policies and programs to the Senate and House Armed Services Committees. Requires such policies and programs to be implemented no later than January 1, 1986.