oversight

Acquisition Reform: Authority Delegated Under the Secretary of Defense for Acquisition

Published by the Government Accountability Office on 1990-06-06.

Below is a raw (and likely hideous) rendition of the original report. (PDF)

                                                                           I
                                                                       .


      t
                     United   States   General   Accounting   Office

.&A0                 Report to the Honorable
                     William V. Roth, Jr., U.S. Senate


              ..--
June I!#!30
                     AC UISITION
                     RE243RM
                     Authority Delegated
                     Under the Secretary of
              i      Defense for,
                     Acquisition
                   United States
GAO                General Accounting  Office
                   Washington, D.C. 20648

                   National Security and
                   International Affairs Division

                   B-221205

                   June 6,199O

                   The Honorable William V. Roth, Jr.
                   United States Senate

                   Dear Senator Roth:

                   This is in response to your October 20, 1989, request to determine if the
                   Under Secretary of Defense (Acquisition) (WI(A)),    appointed on
                   August 11, 1989, has been given the authority and support necessary to
                   supervise the entire Department of Defense (DOD) acquisition system. We
                   also looked at the current US~A)(S use of authority.

                   The President’s 1986 Blue Ribbon Commission on Defense Manage-
                   ment-the Packard Commission-recommended              the USD(A) be a full-
                   time acquisition manager with the responsibility and accountability for
                   supervising the DOD acquisition system. Our November 1989 report’ to
                   you addressed the tenure of the previous two USD(A)S and noted that
                   they had not been given the full authority and support needed. That
                   report also noted that language contained in the USD(A)‘S charter seemed
                   to limit the uSD(A)‘s authority to direct the service secretaries regarding
                   acquisition matters and did not include authority to issue acquisition
                   policy and directives.


                   Our review indicates that the current USD(A) has been provided the
Results in Brief   authority and support needed to supervise DOD’S acquisition system as
                   envisioned by the Packard Commission. The USD(A) charter has been
                   revised to expand and clarify the USD(A)‘S authority and responsibility.
                   The Defense Secretary’s Defense Management Report reaffirms and
                   enhances delegations of authority and responsibility to the Office of the
                   USD(A) and states that the USD(A) will have the full support of the Secre-
                   tary and Deputy Secretary of Defense.

                   The manner and extent to which the USDCA) uses the office’s authority
                   will depend on the personality, skills, abilities, and management style of
                   the individual occupying the position. The current USD(A)‘S management
                   style appears to be one of decentralized decision-making authority.




                    ‘Acquisition Reform: DOD’s Efforts   to Streamline Its Acquisition   System and Reduce Personnel
                   (GAO/NSIADSO-21,      Nov. 1989).



                    Page 1                                                        GAO/NSIAIMO-133      Acquisition     Reform
                        B-221206




                        Secretary of Defense on acquisition resource decisions. A comparison
                        and analysis of the two charters is included in appendix I.


                        USD(A) believes he has the necessary authority and control to fully exe-
USD(A)‘s Viewpoint of   cute the duties assigned to the position and the support of the Secretary
Authority               and Deputy Secretary of Defense as WD'S acquisition executive. USD(A)
                        believes the secretaries of the military departments accept his authority
                        and responsibilities regarding acquisition matters. usq.4) has no knowl-
                        edge or indication that the military services have appealed any of his
                        decisions or are not abiding by his directions.

                        It is USD(A)'S belief that the Packard Commission’s three-tiered manage-
                        ment chain for acquisition programs is a valid and necessary change and
                        that further refinements to the services’ existing command chains will
                        take place. However, the USD(A) also believes that changes in DOD should
                        be evolutionary rather than revolutionary and prefers not to force
                        unwanted changes on the services.


                        Since his appointment on August 11,1989, the current USD(A) had issued
USD(A)‘s Use of         a number of policy directives through December 1989. For example, he
Authority               issued policy guidance to limit the use of fixed-priced research and
                        development contracts, and has established requirements for milestone
                        reviews. He has also chaired a number of weapon system reviews.

                        We examined 15 acquisition decision memorandums resulting from such
                        reviews and noted that the IJSD(A) concurred or approved the services
                        request in 14 of the 15 reviews. Several of the approvals provided addi-
                        tional guidance to the services and in at least one case, the approval was
                        subject to further guidance.

                        As part of the USD(A)'S efforts to streamline the acquisition process and
                        reduce layers of review and approval, he has taken steps to reduce over-
                        sight of the military departments by the Office of the Secretary of
                        Defense (OSD) officials. For example, on January 26, 1990, the USD(A)
                        issued a memorandum to assure that his office withholds program funds
                        to enforce oversight reviews only when necessary by limiting the
                        authority to withhold and release funding to himself and his principal
                        deputy. The USD(A) stated that his goal was to maximize managerial flex-
                        ibility, reduce program instability, and place authority and responsi-
                        bility fully on the program manager.



                        page3
B-221206




to the USD(A) with the IJSD(A)(S executive assistant and reviewed     USD(A)
acquisition decision memorandums and policy guidance.

This report was reviewed by the US&A) and other DOD officials and their
comments are included where appropriate. We conducted our review
between October and December 1989 in accordance with generally
accepted government auditing standards.


As agreed with your office, unless you publicly announce its contents
earlier, we plan no further distribution of this report until 30 days from
the date of this letter. At that time, we will send copies of this report to
the Secretary of Defense and other interested parties upon request.

This report was prepared under the direction of Paul F. Math, Director,
Research, Development, Acquisition, and Procurement Issues, who may
be reached on (202) 275-8400, if you or your staff have any questions.
Other major contributors are listed in appendix II.

Sincerely yours,




Frank C. Conahan
Assistant Comptroller General




 Page 5                                      GAO/NSIAD9@183   Acquisition   Reform
Page 7   GAO/NSIAB!Wll?3   Acquisition   Refm
                                                Appendix I
                                                Andy&    of Authority     Delegated   to
                                                the USD(A)




Charter issued in 1987                                                Charter issued in 1989
f. The Inspector General, DOD shall coordrnate audit and oversight 01 b Prescnbe policies, in coordination with the Inspector General,
contractor activrtres with USD(A) to prevent duplication of effort in   ODD,and the Comptroller of the Department of Detense, to ensure
DOD and unnecessary duplicative oversight of contractors.             au&t and oversight of contractor actrvrtres are coordrnated and
                                                                      carned out In a manner to prevent duplrcatton by drfferent elements
                                                                      6TDGO 1 he exercrse of thus responsrbrlrty shall not atfect the
                                                                      authonty of the Inspector General under the Inspector General Act of
                                                                      m

g. Serve as the Natronal Armaments Drrector and Secretary of                e. Serve as the National Armaments Drrector and Secretary of
Defense representative to the Four Power Conference. Develop                Defense representattve to the Four Power Conference.
Memorandums of Agreement and Memorandums of Understanding
wrth friendly and allred nations relating to acqulsrtion matters.

See paragraph 1.g above.                                                    m. Develop, in coordination with the Under Secretary of Defense
                                                                            Pokey), Memorandums ot Agreement and Memorandums ot
                                                                             nderstandrng wrth fnendly and Allred Natrons relating to acqursrtion
                                                                            matters.

h. Chair the Defense Acquisitron Board [DAB], assisted by an                b. Charr the Defense Acqursitron Board [DAB], supported by an
integrated structure of councils and committees that relate to the          integrated structure of acqursition-related commrttees, and pursuant
acquisition process.                                                        to paragraph E.3. of thus Urrectrve, serve as srgnatory authonty on
                                                                                         Uecrsron Memoranda documenting Milestone revrews by


No related responsibility                                                   d. Chair the DOD Ethics Council, with responsrbilitres as prescribed
                                                                            In DUDtlrrectrve blX.4/.

No related responsibrlity                                                   k. Administer the Defense Acquisition Executrve Summary and Cost/
                                                                            Schedule Control System Cnteria systems.

No related responsibrlrty.                                                  I Designate major defense acqursitron programs as either [DAB] or
                                                                            Component programs, sign congressional certrtrcatrons and reports
                                                                            to Include mrlestone authonzatron breaches, admrnrster the Selected
                                                                            Acqursitron Report and Unrt Cost Report systems, and exercrse the
                                                                            other specrttc authontres provrded for rn the delegatrons ofaufhorify
                                                                            contarned rn enclosure 2.

No related responsrbrlity                                                    n Estabksh polrcies for marntenance of the defense lndustnal base

 No related responsibility                                                  o Supervrse the management and performance of the Strategic and
                                                                            Crifical Detense Materials Program pursuant to txecutrve Order
                                                                            7T?626
                                                                            A
 No related responsrbrlity                                                   q. Advrse the Secretary of Defense and Deputy Secretary of Defense
                                                                             on technrcal and programmatrc Issues ansrng In Defense Plannrng
                                                                             and Hesources Board matters.

 2 For each assrgned areas, the USD(A) shall.                                2 For each assigned area rdentrfred in sectron D , below, the USD(A)
                                                                             shall:

 a. Drrect plannrng and specral studies to analyze and evaluate the          a. Direct planning and analyses actrvrties to assess the technical,
 technrcal, economrc, and mrlrtary worth ot programs In the acqulsltron      economic, and military worth ot specrfrc acqursmon programs and
 system.                                                                     Investment areas.

 b Establrsh policies, conduct analyses, provide advice, make                b. Establish polrcies, systems, and standards that promote more
 recommendations, and issue guidance on DOD plans and programs.              effective and eftrcrent admmrstratron and management ot acqursrtron
                                                                             resources, and monrtor the execuhon of approved programs to
 c Develop systems and standards for the adminrstratron and                  ensure avatlable resources are berng applred rn accordance with
 management of approved DOD acquisitron plans and programs.                  establrshed poltcres and standards.
                                                                                                                                       (contrnued)




                                                  Page 9                                                     GAO/NSlAIMO-183     Acquisition   Reform
                                                 Appendix I
                                                 Analysis of Authority   DelegMed   to
                                                 the IJSD(A)




Charter issued in 1987                                                    Charter issued in 1989
4. Logistrcs management, to Include supply systems, spares                5. Logistics acquisition and management, to rnclude supply systems,
program management, Items standardization, energy, warehousing,           spares program management, weapons systems logistics elements,
drstributron and related actrvitres.                                      Items standardizabon, transportatron, energy, warehousrng.
                                                                          drstrrbution, and related activities

5. Procurement actrvitres.                                                6. Procurement actrvitres

6. Scientific and technical information.                                  7 Screntrfrc and technical information

7 Productron and manufacturing                                            8 Productron and manufacturing.

8. Industrial base resources and productivity                             9. lndustrral base resources and productivity

9. Force modernization.                                                    10 Force modernrzatron and sustainabrlrty and availabrlity of fielded
                                                                           mafor weapons systems.

IO. Developmental Test and Evaluatron, as defined in DOD Directrve         11 Developmental Test and Evaluation, as defined in DOD Drrectrve
;yCl; 3, and review and approval of the Test and Evaluatron Master         5000.3, and, to the extent permrtted by law, revrew and approval of
                                                                           the Test andEvaluation Master Plan

11. Environmental servrces.                                                12 Envrronmental policy, servrces, and related actions.

12. Assignment and reassignment of research and engineering and            13 Assignment and reassignment of research and engineering and
acquisition responsibility for programs, systems and activities.           acqursrtron responsrbility for programs, systems and activities.

13. Codevelopment, coproduction, logistics support, and research           14 Codevelopment, coproduction, coprocurement. logistics support,
Interchange with friendly and allied nations, In coordination with the     wartime host-natron support, and research Interchange with frrendly
Under Secretary of Defense (Policy).                                       and allred natrons, In coordination wrth the Under Secretary of
                                                                           Defense (Policy).

14. lnstallatron management.                                               15. Installation management and base closures.

15 Construction, includrng construction funded by host nations             16 Construction, rncludrng constructron funded by host nations
under the North Atlantic Treaty Organrzation Infrastructure program        under the North Atlantic Treaty Organization Infrastructure program
                                                                           and srmrlar programs with other allied countnes

No related responsblrty                                                    17 Strategrc and cntrcal defense matertals, to Include the
                                                                           acqursrtron, retentron, and drsposal of stocks and the conservatron
                                                                           and development of sources of materials

No related responsrbilrty                                                  18. Unrque acqursrtion matters in support of special operations and
                                                                           low-rntensrty conflict programs, systems, and activities related to
                                                                           acqursrtron, rn coordinatron with the Under Secretary of Defense
                                                                           (Polrcy)

The Secretary added 3 paragraphs and amended 8 paragraphs rn the functron sectron of the 1989 charter. Agarn, these changes either
clanfied or expanded the functional areas of the USD(A)
 E. Authorities   and relationships                                        E. Authorities   and relationships

 1. The USD(A) shall take precedence in DOD on acquisition matters         1. The USD(A) shall take precedence in DOD on acquisrtion matters
 after the Secretary and Deputy Secretary of Defense On all other          after the Secretary and Deputy Secretary of Defense. On all other
 matters, the USD(A) shall take precedence after the Secretary and         matters, the USD(A) shall take precedence after the Secretary and
 Deputy Secretary of Defense and the Secretaries of the Military           Deputy Secretary of Defense and the Secretaries of the Military
 Departments.                                                              Departments
                                                                                                                                     (continued)




                                                  Page 11                                                   GAO/NSfAlWO-183     Acquisition   Reform
                                                  Appendix I
                                                  Analysis of Authority   Delegated   to
                                                  the USD(A)




Charter issued in 1987                                                     Charter issued in 1989
b. Provide technical gurdance for utilization of the Electra-magnetic      b Provrde technical gurdance for utilizatron of the Electra-magnetic
Compatrbility Analysis Center                                              Compatrbility Analysis Center.

c Provrde policy guidance, goal settrng, and management                    c. Provrde policy guidance, goal settrng, and management
supervrsron for the Logistrcs Systems Analysrs Offrce, Defense             supervision for assigned Management Support Activities, and
Logrstrcs Studies Information Exchange, Defense Management                 utrlrzation of Federally Funded Research and Development Centers,
Journal, Defense Materiel Specifications and Standards
Offrce, Product Engineering Service Office, Weapon Support
Improvement and Analysis Office, Defense Housrng Management
Systems Office, Defense Base Operatrons Analysrs Office, and
utilrzatron of Federally Funded Research and Development Centers

d. Use existing facrlrties and servrces of DOD and other Federal           d. Use exrstrng facilities and servrces of DOD and other Federal
Agencres, whenever practicable, to avoid duplication and to achieve        Agencres, whenever practicable, to avord duplication and to achieve
an appropriate balance among modernrzatron, readiness,                     an appropriate balance among modernrzatron, readrness,
sustainabrlrty, efficiency, and economy                                    sustarnabilrty, efficrency, and economy.

5. The USD(A) shall also                                                   6. The USD(A) shall also:
a. Issue DOD Instructions, DOD publicatrons, and one-time directive         a. Issue DOD Instructrons, DOD publrcatrons, and one-trme drrective-
type memoranda, consrstent with DOD 5025.1-M, that implement                type memoranda, consrstent with DOD 5025.1-M, that implement
policres approved by the Secretary of Defense in the functrons                       ion policies and procedures for the functions assigned
assigned to the USD(A) lnstructrons to Unified and Specified                          Instructions to Unrfred and Specrfred Commands shall be
Commands shall be issued through the Charrman of the Jornt Chiefs                    hrough the Charrman of the Joint Chiefs of Staff.
of Staff.

b. Obtarn reports, Information, advrce. and assistance consistent wrtn b Obtarn reports, rnformatron, advice, and assistance consistent with
DOD Directrve 7750.5, as necessary in carryrng out assigned            DOD Drrective 7750.5, as necessary in carrying out assigned
functions.                                                             functrons

c. Communtcate directly wrth the Heads of DOD Components.                   c. Communrcate drrectly wrth the Heads of DOD Components
Communications to Commanders of Unrfied and Specified                       Communrcatrons to Commanders of Unified and Specrfied
Commands shall be coordinated through the Chairman of the Joint             Commands shall be through the Charrman of the Joint Chiefs of Staff.
Chrefs of Staff
d Establrsh arrangements for DOD partrcipation In non-defense               d Establrsh arrangements for DOD participation rn non-defense
governmental programs for which the USD(A) IS assigned prrmary              governmental programs for which the USD(A) is asstgned prrmary
cognizance                                                                  cognrzance
e Communrcate with other Government Agencres, representatives of e Communrcate with other Government Agencres, representatrves of
the legislatrve branch, and members of the public, as appropnate, in the legrslatrve branch, and members of the publrc, as appropriate, In
carryrng out assigned funchons.                                      carrying out assigned functions.
f. Coordrnate and exchange rnformatron wrth other Office of the             f. Coordinate wrth and exchange Information with other Office of the
Secretary of Defense and DOD officrals exercrsrng collateral or             Secretary of Ci%Znse and DOD officials exercising collateral or
related responsibilities                                                    related responsibrlitres

g. Exercise the delegatrons of authority contained in enclosure 2 to        g. Exercrse the delegatrons of authority contatned in enclosure 2
this Drrectrve.                                                             (deleted)
No Drrection.                                                               h. Work drrectly wrth the Servrce Acquisrtion Executives
                                                                                                                                         (continued)




                                                   Page 13                                                  GAO/NSIAIMO-133     Acquisition   Reform
Major Contributors to This Report


                        Michael E. Motley, Associate Director
National Security and   James F. Wiggins, Assistant Director
International Affairs   Robert W. Fain, Evaluator-in-Charge
Division, Washington
D.C.




                        Page 16                                 GAO/NSL4MO-183   Acquisition   Reform
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Related GAO Products


              Major Acquisitions: Summary of Recurring Problems and Systemic
              Issues: 1960-1987 (GAO~NSIAD~-~~~BR, Sept. 13, 1988).

              Defense Management: Status of Recommendations by Blue Ribbon Com-
              mission on Defense Management (GAO/NSIAD89-19FS, Nov. 4, 1988).

              Acquisition Reform: Military Departments’ Response to the Reorganiza-
              tion Act (GAOINSIAD-89-70, June 1, 1989).

              Acquisition Reform: DOD’s Efforts to Streamline Its Acquisition System
              and Reduce Personnel (GAO/NSIAD-9021,   Nov. 1, 1989).




(396728)      Page 16                                   GAO/NSIAIMO-183   Acquisition   Reform
                                                  Appendix I
                                                  AmIysia of Authority Delegated to
                                                  the USD(A)




Charter issued in 1987                                                     Charter issued in 1989
6. Other Office of the Secretary of Defense offlclals and Heads of         7 Other Office of the Secretary of Defense officials and Heads of
DOD Components shall coordmate with the USD(A) on all matters              DOD Components shall coordinate with the USD(A) on all matters
related to authorities, responsibilities, and functions assigned in this   related to authorities, responsibilities, and functions assigned in this
Directive.                                                                 Dvective

No emergency delegation                                                    8 In the absence or dlsabillty of the USD(A), the Acting USD(A) may
                                                                           exercise all authontles of the USU(AJ

                                                                           9 Nothlng In this Directive or the Delegations of Authority to the
                                                                           UWA) llmlts or otherwise affects delegations ot authonty by the
                                                                           Secretary ot Llefense to the Deputy Secretary of Uefense.

F. Effective   date                                                        F. Effective   date

Signed by the Deputy Secretary of Defense                                  Slgned by the Secretary of Defense.
In the Authonty and Relationships section of the 1989 charter, the Secretary made 25 amendments which included the addition of 5 new
paragraphs that either clarlfled or expanded the USD(A)‘s authority. A key clarifying amendment is in paragraph E.2., which states, “The
USD(A) IS hereby granted the authority to direct the Secretaries of the Mllltary Departments and Heads of all other DOD Components with
respect to matters for which the USD(A) has responsibility.” The 1987 charter appeared to limit the USD(A)‘s authonty by specifying the
dlrection on policy, procedure, and execution of the acqulsltlon system A key expanding amendment IS paragraph E.4,. which authorizes
the USD(A) to direct the DOD Comptroller to wlthhold funds for acqulsitlon programs that do not meet milestone requirements. And,
paragraph E.3 delegates to USD(A) the authority to establish these requirements




                                                   Page 14                                                  GAO/NSIAB90.183 Acquisition Reform
                                                                                                                                                  -
                                                  Appendix I
                                                  Analysis of Authority    Delegated   to
                                                  the USD(A)




Charter issued in 1987                                                      Chatter issued in 1989
2 The USD(A) shall drrect the Secretanes of the Milrtarv Departments
and Heads of’other DOD Components on policy, procedure’, and
execution of the acquisrtron system This Includes responsrbrlrty for
the development, management, supervrsron, and evaluation of
acqursrtion systems and processes



3 The Secretary/Deputy Secretary of Defense shall make decisrons
on acquisrtron mrlestones and resource matters, based on
recommendations by the USD(A). The USD(A) shall prepare the
documentatron that reflects the Secretary/Deputy Secretary of
Defense milestone decrsrons. These decisions shall be executed
through the USD(A) for rmplementation by the Heads of DOD
Components


No related responsibrlity




4 In the performance of assrgned functrons. the USD(A) shall:                5 In the performance of assigned functions, the USD(A) shall:

a. Exercrse drrectron, authorrty and control over actrvrtres reporting       a Exercrse directjon, authorrty and control over the following
directly to that official. These rnclude                                     actrvitres and organrzatrons that constitute the USD(A) organrzation.
                                                                             (The reporting relatronshrps of the actrvrtres and organrzatrons wrth
                                                                             regard to the USU(A) (e.g., drrect or rndrrect) shall be at the
                                                                             drscretron of the USD(A).)

(1) The Drrector of Defense Research and Engrneerrng.                        (1) The Director of Defense Research and Engineering.

(2) The Assrstant Secretary of Defense (Research and Technology).            (2) The Assrstant Secretary of Defense (Productron and Logrstrcs)
(3) The Assistant Secretary of Defense (Acqursrtron and Logistrcs)           No related offrce

(4) Acqursrtron related actrvitres of the Assistant Secretary of Defense     (3) Acquisrtron related achvrtres of the Assrstant Secretary of Defense
(Command, Control, Communrcahons, and Intellrgence)                          (Command, Control, Communications, and Intelltgence).

(5) The Assrstant Secretary of Defense (Atomrc Energy).                      (4) The Assrstant Secretary of Defense (Atomrc Energy).
(6) The Drrector of Small and Drsadvantaged     Busrness Utilizatron         (6) The Drrector of Small and Disadvantaged   Business Utilization
(7) The Defense Advanced Research Projects Agency, the Defense               (8) The Defense Advanced Research Projects Agency, the Defense
Communrcations Agency, the Defense Logistics Agency, the                     Communications Agency, the Defense Logistics Agency, the
Defense Mapprng Agency, the Defense Nuclear Agency, and the                  Defense Mapping Agency, the Defense Nuclear Agency, the Defense
Defense Systems Management College                                           Contract Management Agency, the Defense Systems Management
                                                                             College, and the On-Sate Inspectron Agency
No related offrce                                                            (5) The Deputy Under Secretary of Defense (Industrial and
                                                                             Internatronal Programs )
No related office                                                            (7) The Director, Program Integration.
                                                                                                                                          (contrnued)




                                                   Page 12                                                   GAO/NSIAD90-183     Acquisition   Reform
                                                Appendix I
                                                Analysis of Authority   Delegated   to
                                                the USD(A)




Charter issued in 1997                                                   Charter issued in 1999
d Develop plans, program, actrons and taskrngs to ensure                 c. Review and evaluate DOD Component plans, programs, and
adherence to DOD policres and national security objectives, to           budget submrssrons to ensure adherence to established pnorfies,
ensure that programs and systems are designed to accommodate             polrcres and procedures, standards, and resource gurdance; and as
cross-Service operational requirements and promote modernization,        appropnate, develop recommended alternatrves for Secretary and
consrstent with readiness, sustarnabrlity and efficiency of the Armed    Deputy Secretary ot Uefense conslderatron dunng all phases of the
Forces of the Unrted States and its allies.                              planntng, programmtng and budgetrng system process

e Revrew and evaluate recommendations      on requrrements and           See para 2.b. and c above.
prrorrtres

f Revrew and evaluate DOD Component plans and programs to                See para 2.b. and c. above
ensure adherence to approved polrcres, standards, and resource
planning gurdance

g In contunctron wrth the DOD Comptroller and Assrstant Secretary         See para. 2 b and c. above.
of Defense (Program Analysis and Evaluatron) review proposed
resource programs, formulate budget estimates, recommend
resource allocatrons, and monitor the rmplementation of approved
resource programs.
h Fullfill planning, programmrng and budgeting actrvitres relatrng to     See para. 2.b. and c. above.
USD(A) responsrbilities.

( Promote coordrnatron, cooperatron, and mutual understandrng of all d Promote coordrnatron, cooperanon, and mutual understanding of
matters related to assrgned actrvrtres. both instde and outsrde of   all matters related to assigned activities, both inside and outside of
DOD                                                                  DOD

] Serve as primary focal point and pnncrpal spokesman for DOD and         e Serve as pnmary focal pornt and prrncipal spokesman for DOD and
serve on boards, commrttees, and other groups pertaining to               serve on boards, commrttees, and other groups pertaining to
assrgned functronal areas, and represent the Secretary of Defense on      assrgned functional areas, and represent the Secretary and Deputy
USD(A) matters outside DOD                                                Secretary of Defense on USD(A) matters outstde DOD
k Develop and maintarn Information management and reportrng              f Establrsh and marntarn management rnformation and reportrng
systems                                                                  sy%Eiic-
I Perform such other dunes as the Secretary of Defense may               g Perform such other duties as the Secretary or Deputy Secretary of
prescrrbe                                                                Defense may prescribe.
As can be seen above, the Responsrbrlrtres sectron was expanded from 21 to 25 paragraphs. The Secretary made 30 amendments that
either clanfred USD(A)‘s responsibrlrtres or expanded them In paragraph C 1 d of the 1989 charter, the USD(A) is appornted the Chair of
DOD’s Ethrcs Council This IS a new responsibrlrty for the USD(A) In paragraph C 1 f , the Secretary’s amendment makes It clear the USD(A)
~111establish and publrsh DOD’s acqursrtion policy drrectrves
D. Functions                                                             D. Functions
The USD(A) shall carry out the responsrbrlrtres described rn sectron C above, for the followrng functional areas
1 Acqusrtron management                                                   1 Acqursrtion management
2 Bask? and applred research, desrgn and engrneering, and the            2 Basic and applred research, and the defense technology base
development of weapon systems.
See paragraph 2. above                                                   3 Desrgn and engrneenng, and the development      of weapon systems.
3 Command, Control, Communrcatrons, and lntellrgence [C3l]               4 Command, Control, Communrcations, and Intelligence [C31]
programs, systems, and actrvrtres related to acquisitron                 programs, systems, and actrvitres related to acqursition.
                                                                                                                                   (continued)




                                                 Page 10                                                 GAO/NSLALHO-183   Acquisition   Reform
Appendix I

Analysis of Authority Delegatedto the USD(A)


                                                    To determine whether or not the USD(A) was delegated the necessary
                                                    authority to supervise the entire DOD Acquisition System and fulfill the
                                                    duties of the Defense Acquisition Executive, we compared the original
                                                    charter for the office, issued on February 10, 1987, which we found to
                                                    be deficient, to the charter that was amended and issued by the current
                                                    Secretary of Defense on August 8,1989. The underlined portions of the
                                                    1989 charter reflect amendments or changes made to the 1987 charter.


Charter issued in 1987                                                    Charter issued in 1989
C. Responsibilities                                                       C. Responsibilities
USD(A) IS the principal staff assistant and advisor to the Secretary of   USD(A) IS the principal staff assistant and advisor to the Secretary of
Defense for all matters relating to the acquisition system;               Defense for all matters relating to the DOD Acquisition System;

1. The USD(A) shall:                                                      1 The USD(A) shall:

a. Serve as the Defense Acquisition Executive [DAE] with                  a Serve as the Defense Acqulsltlon Executive [DAE] with full
responsibility for supervlsing the performance of the entire DOD          responslblllty for supervlsmg the performance of the DODAcqui-
acquisition system in accordance with policies, provIsIons, and           sltlon System and enforcing pokes and practlcles contalned In DOD
authorities contained in DOD Dlrectlve 5000.1, and Office of              lSirect!ve 5UUU.1, DUD InstructIon SUWL, and OHIce of Management
Management and Budget Circular Number A-109.                              and Budget Circular Number A-109.
b. Establish poky for acquisition plans and strategies, valldate          f. Establish and publish policies governing operations of the DOD
program acquisition requirements, and develop acquisition program         Acquisition System and the admInistratIve overslght of defense
guidance.                                                                 contractors
d. Set policy for administrative   overslght of defense contractors       See paragraph 1.f above.
c Set poky for acqulsltlon matters, including research and                h Coordinate research and development programs DOD-wide to
development, production, construction, logistics, developmental           ellmmate duplication of effort and ensure that avallable resources are
testing, procurement, and training and career development of              used to maxImum advantage.
acqulsltion personnel
See paragraph 1.c above.                                                  I Establish policies and programs that strengthen DOD Components’
                                                                          technology development programs, encourage technlcal cornpetItIon
                                                                          and technology-driven prototyplng that promise Increased military
                                                                          capabllltles, and exploit the cost-reduction potenttal ot Innovative or
                                                                          commercially developed technologies
See paragraph 1.c. above                                                  ] Develop acquisltlon plans, strategies, guidance, and assessments,
                                                                          lncludlng affordablllty assessments and Investment area analyses, In
                                                                          support ot the acqulsltion mllestone revjew and planning,
                                                                          programmlng and budgeting system processes.
See paragraph 1 c. above                                                  p Establish policies, In coordination with the AssIstant Secretary of
                                                                          Detense (Force Management and Personnel) for the tralnlng and
                                                                          career development of acqulsltlon personnel.
e. Serve as the DOD Procurement Executive, with responsibilities as       c Serve as the DOD Procurement Executive, with responslblllties as
prescribed in Executive Order 12352 and 41 United States Code 401         prescribed In Executive Order 12352 and 41 United States Code 401.
419.                                                                      424
                                                                          -
                                                                                                                                  (continued)




                                                    Page 8                                                GAO/NSIAD-90-183     Acquisition   Reform
Contents



Appendix I                                                                                               8
Analysis of Authority
Delegated to the
USD(A)
Appendix II
Major Contributors to
This Report
Related GAO Products




                        Abbreviations

                        DOD       Department of Defense
                        OSD       Office of the Secretary of Defense
                        ‘JSWA)    Under Secretary of Defense (Acquisition)


                        Page 6                                     GAO/W?L4I%Si%lS3   Acquisition   Reform
              B221206




              In addition, the US~A) stated that he would personally review existing
              withholds and release as many as possible, and discuss with the DOD
              Comptroller the reduction of withholds initiated by his staff.

              In a March 12, 1990, memorandum to the Director, Operational Test and
              Evaluation, the USE(A) questioned the rationale for and value added by
              OSD’s approval of test and evaluation master plans for major acquisi-
              tions The USD(A) requested that the Director clarify, in detail, the role of
              OSD and the interrelationships of various testing offices.

              The USD(A) appears to be moving towards support of those, including the
              Air Force, that believe approval of test plans should be limited to the
              services’ acquisition management chain. However, according to the
              Director, the Chairmen of the Defense Acquisition Board Committees
              stated Operational Test and Evaluation’s independent, objective, and
              unbiased input on test plans was needed-particularly       with the pres-
              sure on program managers to develop optimistic development and test
              schedules. LED(A) officials stated that the USD(A) has not come to a con-
              clusion on 0s~‘~ role in approving the services’ testing plans.

              We support streamlining efforts and the need to place authority, respon-
              sibility, and accountability at the program manager level. However, we
              believe caution is needed to ensure a sufficient level of management
              oversight is retained at OSD to assure that program managers are not
              functioning primarily as program advocates and representatives of the
              user.

              Not only must the program manager be free of layers of review and
              oversight, he must also be independent and free of the institutional
              structures, influences, and incentives that have led to (1) overly opti-
              mistic assessments of program cost, schedule, and performance,
              (2) costly requirements and design changes, (3) high risk concurrent
              acquisition strategies, and (4) delays in fully reporting cost, schedule,
              and performance problems. It was this environment that led to the
              establishment of the review layers and controls in the first place.


              We did a word-for-word comparison of the 1987 and 1989 charters to
Scopeand      determine the changes made in the delegation of authority and responsi-
Methodology   bilities to the USD(A). We compared the authority and responsibilities of
              the USD(A) in the 1989 charter to those recommended by the Packard
              Commission. We discussed the authorities and responsibilities delegated



              Page 4                                       GAO/NSL4LWO-18.3   Acquisition   Reform
                       5221205




                       This is reflected in recent efforts to increase program manager decision-
                       making authority and responsibility and to reduce review layers. These
                       efforts are consistent with the Packard Commission’s recommendations.
                       However, we believe that decentralizing and delegating authority and
                       responsibility must be exercised in a manner that does not undermine
                       the intended centralized policy-making and supervisory role of the
                       USD(A).



                       We found the 1989 amended charter to be substantially different from
1989 Charter Expands   the original 1987 charter. The Secretary’s amended charter expands and
USD(A)‘s Authority     clarifies the US~A)'S authority and responsibilities in all DOD acquisition
Substantially          matters. For example, the amended charter clearly states the USqA) is
                       granted authority to direct the secretaries of the military departments
                       and heads of other DOD components with respect to matters for which
                       the USD(A) is responsible. This includes enforcing the minimum require-
                       ments for major acquisition programs established in DOD's acquisition
                       policy directive (DOD Directive 5000.1).

                       In addition, the amended charter gives the USqA) authority to make
                       decisions on milestone reviews by the Defense Acquisition Board and to
                       issue decision documents under his signature. This authority previously
                       resided with the Secretary and Deputy Secretary of Defense. Based on
                       documents provided by DOD, the USqA) has since exercised this authority
                       many times. For example, in October 1989, the USqA) issued acquisition
                       decision memorandums on the Close Air Support Aircraft, Advanced
                       Field Artillery Tactical Data System, Advanced Tactical Fighter, and the
                       DOD National Airspace System. WD provided us with 15 examples of
                       decision memorandums signed by the LSD(A).

                       The IJSWA) was also given the authority to establish the requirements
                       that an acquisition program must satisfy before progressing to the next
                       milestone. The Secretary of Defense authorized IJSqA) to direct the DOD
                       Comptroller to withhold funds for programs that do not meet milestone
                       requirements.

                       In addition to amending the usqA) charter, the Secretary of Defense
                       included the USDCA) as a member of the newly created DOD Executive
                       Committee, which is the key deliberative and decision-making body for
                       all major defense issues. Also, the USqA) continues to serve as a member
                       of the Defense Planning and Resources Board, the Chairman of the
                       Defense Acquisition Board, and key advisor to the Secretary and Deputy



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