Issue Briefs

Following is a summary of provisions in a bill that recently passed the House to improve DoD acquisition that involve personnel matters.

Section 201—Acquisition Workforce Excellence

This section would amend title 10, United States Code by inserting a new section 1701a, that would require the Department of Defense (DOD) to develop and manage a highly skilled professional acquisition workforce. This section would implement the recommendations of the Panel on Defense Acquisition Reform by authorizing the Secretary of Defense to develop a system focused on rewarding, when appropriate, the acquisition workforce for its excellence and contribution to mission, ensuring that the technical expertise and business skills needed to obtain best value are resident within the workforce, and managing the workforce in a manner that complements and reinforces the performance management of the defense acquisition system pursuant to section 101 of this Act.

This section would require the Department of the Defense to use several existing authorities. The committee notes that the most significant of these authorities are the flexibilities provided pursuant to section 9902 of title 5, United States Code, related to performance management, hiring, and training of managers within the General Schedule (GS) system. The committee further notes that the defense acquisition demonstration project, which is extended for an additional five years elsewhere under this Act, may provide some important lessons for the Department’s efforts to develop a DOD-wide performance management program within the GS system. This section also would direct the Secretary of Defense to require managers to develop individual performance plans for members of the acquisition workforce as well as appropriate procedures for due process for members of the acquisition workforce who consistently fail to meet performance standards. This section also would authorize additional actions to be taken to restore the focus on professionalizing the acquisition workforce through the development of attractive career paths, encouraging continuing education and training, and utilizing the Defense Civilian Leadership Program established under section 1112 of the National Defense Authorization Act for Fiscal Year 2010 (Public Law 111-84). In order to facilitate the hiring for positions within the acquisition workforce, this section would allow the use of expedited security clearance processing as authorized pursuant to section 1564 of title 10, United States Code.

The committee recognizes that while the Department is aggressively moving forward with hiring new personnel within the acquisition workforce, there still may be a significant gap in personnel with relevant knowledge and experience. Therefore, this section would provide the Department with greater authority to hire highly qualified experts, pursuant to section 9903 of title 5, United States Code, for temporary leadership roles in critical positions, providing mentors to advise employees on their career paths and opportunities to advance and excel in the acquisition profession, and assist with the design of education and training programs for the acquisition workforce. This section would clarify that highly qualified experts hired by the Department could be hired on a part-time basis.

Finally, actions taken under this section would be subject to the requirements of chapter 71 of title 5, United States Code, and would be deemed an agency rule or regulation under section 7177(a)(2) of title 5, United States Code.

Section 202—Amendments to the Acquisition Workforce Demonstration Project

This section would amend title 10, United States Code, by inserting a new section 1762 that would codify the authority for the Department of Defense Acquisition Workforce Demonstration (DAWD) Project, which originally was established pursuant to section 4303 of the National Defense Authorization Act for Fiscal Year 1996 (Public Law 104-106). The original authority was to expire on September 30, 2012. The committee recognizes that the organizations that had transitioned to the DAWD project had limited experience with the project before they were converted to the National Security Personnel System (NSPS). Now that the authority for NSPS has been repealed, pursuant to section 1113 of the National Defense Authorization Act for Fiscal Year 2010 (Public Law 111-84), those organizations that had been in the DAWD project previously will be converted back to the project. However, the committee is aware of the stress that may be imposed on the personnel system and the individual employees if they were converted from NSPS back to the DAWD project and, within less than two years, converted to the General Schedule (GS) system. Therefore, this section would extend the authority for the project to September 30, 2017; within six months after the authority terminates, all employees within the acquisition demonstration project must be transferred to the performance management system, under the GS system, that is being developed pursuant to section 9902 of title 5, United States Code. This is intended to provide a more orderly transition for the affected employees. However, the committee intends that the extension of this authority is only for those organizations that had fully implemented a defense acquisition workforce demonstration project, pursuant to Office of Personnel Management regulations, including the issuance of a Federal Register notice that such project would be initiated.

This section also would require the Secretary of Defense to undertake an independent assessment of the project to capture the lessons learned from it and the adequacy of the project in establishing career paths, promoting training, and protecting diversity in promotion. A copy of the assessment would be provided to the Senate Committee on Armed Services, the House Committee on Armed Services, the Senate Committee on Homeland Security and Governmental Affairs, and the House Committee on Oversight and Government Reform beginning in 2011, and every two years thereafter, until the termination of the DAWD project.

Section 203—Incentive Programs for Civilian and Military Personnel in the Acquisition Workforce

This section would amend title 10, United States Code, by inserting a new section 1763 that would require the Secretary of Defense to develop an enhanced system of incentives for the encouragement of excellence in the civilian acquisition workforce, including connecting salary increases, bonuses, promotions and awards to performance and contribution to agency mission. In addition to other incentives that may be considered, this section also would direct the Secretary to use the Department of Defense Civilian Workforce Incentive Fund established pursuant to section 9902 of title 5, United States Code. This section would encourage opportunities for special career broadening experiences for high performers. The committee intends that such experiences would include broad opportunities, to include but not be limited to, educational sabbaticals, or attendance at acquisition relevant seminars or conferences both within the United States or overseas.

This section also would direct the military departments to enhance their existing incentive programs. The committee is aware that at least the Defense Logistics Agency, the Department of the Navy, and Department of the Air Force each have programs that make cash awards or personal decorations to employees that make suggestions for savings or process improvements that benefit their organization. This section would encourage the Secretary of Defense to extend such incentives to members of the military in the acquisition workforce wherever possible.

Section 204—Career Development for Civilian and Military Personnel in the Acquisition Workforce

This section would amend title 10, United States Code, by inserting a new section 1722b that would require the Secretary of Defense to develop attractive career paths for civilians in the acquisition workforce. The committee agrees with the assessment of the Panel on Defense Acquisition Reform that a renewed focus on career development for civilians in the acquisition workforce is necessary. Similar action already was taken for military personnel in the Duncan Hunter National Defense Authorization Act for Fiscal Year 2009 (Public Law 110-417). This section would require the Secretary of Defense to issue guidance to fulfill this requirement to ensure career paths exist that attract the highest quality civilian personnel, are consistent with a deliberate workforce development strategy, provide sufficient opportunities for promotion and advancement, and provide a sufficient number of trained and qualified people in the workforce. This section would require detailed information on the status of the civilian and military acquisition workforce, including information on this effort, be included in the Department’s strategic human capital management plan, required by section 115b of title 10, United States Code.

This section also would amend section 1723 of title 10, United States Code, to require the Secretary to develop and support career training and development for each career path (for both civilian and military career paths), including key work experiences that allow individuals to develop in-depth knowledge in the acquisition process. Key work experiences for members of the acquisition workforce would include periodic interaction with the end-user community to develop greater knowledge and understanding of how the hardware or service provided are used in the field.

Section 205—Recertification and Training Requirements

This section would further amend section 1723 of title 10, United States Code, by requiring the Secretary of Defense to increase training for members of the acquisition workforce, with additional emphasis on the acquisition of services, long term sustainment strategies, acquisition of information technology, and rapid acquisition. With regard specifically to services acquisition, the committee is aware that while the volume of service contracting has grown, services contracting training has not kept pace. The committee recognizes that Defense Acquisition University has created the Learning Center of Excellence for Service Acquisition, but is concerned that adequate professional-level courses for services program managers continue to be lacking.

This section also would direct the Secretary to establish requirements for continuing education and periodic recertification. The committee notes that currently the Department makes its training investment up front for certification, which means that once an individual obtains a level three certification (currently, the highest certification level) that individual retains that certification for the remainder of his or her career. The committee believes that periodic recertification, not more than every five years, would add value to ensuring the professionalism of the acquisition workforce, as well as currency of their knowledge, similar to that afforded other professions that have continuing education and recertification requirements.

This section would further amend title 10, United States Code, by inserting a new section 1748 that would require the Secretary to establish fulfillment standards to supplement this training that takes into account an individual’s demonstrated competencies in certain areas, as well as creating standards relating to the appropriate use of private sector contractors to provide training.

Section 206—Information Technology Acquisition Workforce

This section would amend title 10, United States Code, by inserting a new section 1725 that would require the Secretary of Defense to strengthen the part of the acquisition workforce that specializes in information technology (IT), including establishing defined targets for billets for IT acquisition, defined career paths in IT acquisition and specific certification requirements for IT acquisition. This section would require that such actions be taken within 180 days of enactment of this Act. These actions would implement the recommendations of the Panel on Defense Acquisition Reform for the Department to “develop a plan for how to strengthen the IT acquisition workforce, especially as it increases the size of the overall acquisition workforce in the coming years.” The committee urges the Secretary to ensure the plan for the IT workforce developed in accordance with this section is tied to key attributes of any new IT acquisition system, as required by section 804 of the National Defense Authorization Act for Fiscal Year 2010 (Public Law 111-84), and is integrated into the Department’s overall acquisition workforce strategic plan.

Section 207—Definition of Acquisition Workforce

This section would add a definition of the acquisition workforce to section 101 of title 10, United States Code. The acquisition workforce is defined as those designated pursuant to section 1721(a) of title 10, United States Code.

Section 208—Defense Acquisition University Curriculum Review

This section would require the Under Secretary of Defense for Acquisition, Technology, and Logistics to conduct a review of the curriculum offered by the Defense Acquisition University (DAU), not later than one year following the date of enactment of this Act, to ensure its support for the training and education of members of the acquisition workforce. The review would include a focus on education and training courses developed in services contracting, long-term sustainment strategies, information technology and rapid acquisition. This section also would require the Secretary of Defense, following the review of the Under Secretary of Defense for Acquisition, Technology, and Logistics, to determine the adequacy of funding for training and education and identify any additional funding needed in the next annual strategic workforce plan required by section 115(b) of title 10, United States Code.

This section also would amend 1746 of title 10, United States Code, to require the DAU president to coordinate with the relevant professional schools and degree granting institutions within the Department of the Defense and the military departments on best practices for curriculum development. This section is intended to improve the interaction between the various educational entities within the Department related to training and education of the acquisition workforce.

Section 209—Cost Estimating Internship and Scholarship Programs

This section would require the Secretary of Defense to establish internship and scholarship programs in cost estimating within 270 days after the date of enactment of this Act. As noted in the report of the Panel on Defense Acquisition Reform, courses taught on financial economics do not address the underlying sources for cost estimating. Yet sound cost estimating is essential to the acquisition process and should be considered a core acquisition function. As recommended by the panel, the committee agrees that internship and scholarship programs specifically focused on cost estimating will benefit the acquisition process. The programs established by this section would be for a four year period.