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TITLE VIII--ACQUISITION POLICY, ACQUISITION MANAGEMENT, AND RELATED MATTERS

Subtitle B Provisions Relating to Major Defense Acquisition Programs

NDAA Section

House Conference Report 110-477

SEC. 817. INVESTMENT STRATEGY FOR MAJOR DEFENSE ACQUISITION PROGRAMS.

    (a) Report Required- Not later than May 1, 2008, the Secretary of Defense shall submit to the congressional defense committees a report on the strategies of the Department of Defense for balancing the allocation of funds and other resources among major defense acquisition programs.

    (b) Elements- The report required by subsection (a) shall address, at a minimum, the ability of the organizations, policies, and procedures of the Department of Defense to provide for--

      (1) establishing priorities among needed capabilities under major defense acquisition programs, and assessing the resources (including funds, technologies, time, and personnel) needed to achieve such capabilities;

      (2) balancing the cost, schedule, and requirements of major defense acquisition programs, including those within the same functional or mission area, to ensure the most efficient use of resources; and

      (3) ensuring that the budget, requirements, and acquisition processes of the Department of Defense work in a complementary manner to achieve desired results.

    (c) Role of Tri-Chair Committee in Resource Allocation-

      (1) IN GENERAL- The report required by subsection (a) shall also address the role of the committee described in paragraph (2) in the resource allocation process for major defense acquisition programs.

      (2) COMMITTEE- The committee described in this paragraph is a committee (to be known as the `Tri-Chair Committee') composed of the following:

        (A) The Under Secretary of Defense for Acquisition, Technology, and Logistics, who is one of the chairs of the committee.

        (B) The Vice Chairman of the Joint Chiefs of Staff, who is one of the chairs of the committee.

        (C) The Director of Program Analysis and Evaluation, who is one of the chairs of the committee.

        (D) Any other appropriate officials of the Department of Defense, as jointly agreed upon by the Under Secretary and the Vice Chairman.

    (d) Changes in Law- The report required by subsection (a) shall, to the maximum extent practicable, include a discussion of any changes in the budget, acquisition, and requirements processes of the Department of Defense undertaken as a result of changes in law pursuant to any section in this Act.

    (e) Recommendations- The report required by subsection (a) shall include any recommendations, including recommendations for legislative action, that the Secretary considers appropriate to improve the organizations, policies, and procedures described in the report.

Investment strategy for major defense acquisition programs (sec. 817)

The Senate amendment contained a provision (sec. 804) that would require the Secretary of Defense to submit a report to the congressional defense committees on the strategies of the Department of Defense for balancing the allocation of funds and other resources among major defense acquisition programs. The report would also address the role of the Tri-Chair Committee of the Department of Defense in the resource allocation process for major defense acquisition programs.

The House bill contained no similar provision.

The House recedes with an amendment that would require that the report also address, to the maximum extent practicable, any changes to the budget, acquisition, and requirements processes of the Department of Defense that the Department has undertaken or plans to undertake as a result of changes in law made by provisions of this Act.

Senate Armed Services Committee Report 110-77

Investment strategy for major defense acquisition programs (sec. 804)

The committee recommends a provision that would require the Secretary of Defense to report to the congressional defense committees on Department of Defense organizations, procedures, and approaches for the allocation of funds and other resources under major defense acquisition programs.

The Secretary's report should specifically address the Department's strategy for allocating funds in the cases of joint requirements and requirements that could be met by more than one military department or defense agency. In a March 2007 report, the Government Accountability Office (GAO) recommended that the Department implement an enterprise-wide portfolio management approach to making weapon system investments that integrates the assessment and determination of warfighting needs with available resources and cuts across the services by functional or capability area. The GAO report recommends that the Secretary establish a single point of accountability at the department level with the authority, responsibility, and tools to ensure that portfolio management for weapon system investments is effectively implemented across the Department.

In this regard, the committee notes that the Department has already developed a portfolio management process for certain capability areas, including Joint Command and Control, Joint Net Centric Operations, Battlespace Awareness, and Joint Logistics. In each area, the Department has designated an enterprise-wide capability portfolio manager, who is charged with developing strategic objectives, projected capability mixes, performance metrics, and actions required to meet objectives and mitigate risk. The capability portfolio managers have direct access to the Deputy's Advisory Working Group, the Joint Requirements Oversight Council, and the Defense Acquisition Board. They also provide input to the Concept Decision Tri-chair (which includes the Under Secretary of Defense for Acquisition, Technology, and Logistics, the Vice Chairman of the Joint Chiefs of Staff, and the Director, Program Analysis and Evaluation) on capability issues.

The committee urges the Department to consider expanding the portfolio management process to include additional portfolios of joint requirements and requirements that could be met by more than one military department or defense agency. The committee expects the Secretary's report to specifically address GAO's recommendations regarding portfolio management.

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