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 Reqnests for copies of GAO reporta should be sent to: : U.S. General Accounting Off& Post Office Box 6016 Gaithersburg, Maryland 20877 Telephone 202-2766241 d The first five copies of each report are free. Additional copies are $2.00 each. 1 There is a 26% discount on orders for 100 or more copies m&W to a i single address. l 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 Page2
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)