To provide for a report on the establishment of a Deputy Secretary of Defense for Management.

SA 2442. Mr. BYRD (for himself, Mr. Warner, Mr. Ensign, Mr. Akaka,
Mr. Lautenberg, and Mr. Levin) proposed an amendment intended to the
bill S. 1042, to authorize appropriations for fiscal year 2006 for
military activities of the Department of Defense, for military
construction, and for defense activities of the Department of Energy,
to prescribe personnel strengths for such fiscal year for the Armed
Forces, and for other purposes; as follows:

At the end of subtitle A of title IX, add the following:

SEC. __. DEPUTY SECRETARY OF DEFENSE FOR MANAGEMENT.

(a) Establishment.--
(1) Position and duties.--
(A) Chapter 4 of title 10, United States Code, is amended--
(i) in section 131(b), by striking paragraph (1) and
inserting the following new paragraph:
``(1) Two Deputy Secretaries of Defense, as follows:
``(A) The Deputy Secretary of Defense.
``(B) The Deputy Secretary of Defense for Management.'';
and
(ii) by inserting after section 132 the following new
section 132a:

``Sec. 132a. Deputy Secretary of Defense for Management

``(a) Establishment.--(1) There is a Deputy Secretary of
Defense for Management, appointed from civilian life by the
President,

[[Page S12537]]

by and with the advice and consent of the Senate, from among
persons who have--
``(A) extensive executive level experience in leadership
and management in the public or private sector;
``(B) substantial experience in the reform of accounting or
financial management systems in large organizations;
``(C) a demonstrated ability to manage large and complex
organizations; and
``(D) a record of achieving positive operational results.
``(2) A person may not be appointed as Deputy Secretary of
Defense for Management within 10 years after relief from
active duty as a commissioned officer of a regular component
of an armed force.
``(3) The Deputy Secretary of Defense for Management shall
serve for a term of seven years.
``(b) General Authority.--(1) The Deputy Secretary of
Defense for Management--
``(A) serves as the Chief Management Officer of the
Department of Defense;
``(B) is the principal adviser to the Secretary of Defense
on matters relating to the management of the Department of
Defense, including defense business activities, to ensure
departmentwide capability to carry out the strategic plan of
the Department of Defense in support of national security
objectives; and
``(C) performs such additional duties and exercises such
other powers as the Secretary may prescribe.
``(2) The Deputy Secretary of Defense for Management takes
precedence in the Department of Defense immediately after the
Deputy Secretary of Defense.
``(3)(A) The Deputy Secretary of Defense for Management
shall act for, and exercise the powers of, the Secretary of
Defense when--
``(i) the Secretary is disabled or there is no Secretary of
Defense; and
``(ii) the Deputy Secretary of Defense is disabled or there
is no Deputy Secretary of Defense.
``(B) The Deputy Secretary of Defense for Management shall
act for, and exercise the powers of, the Deputy Secretary of
Defense when the Deputy Secretary is disabled or there is no
Deputy Secretary of Defense.
``(c) Management Duties.--To support the economical,
efficient, and effective execution of the national defense
objectives, policies, and plans of the Department of Defense,
the Deputy Secretary of Defense for Management shall be
responsible to the Secretary of Defense for the development,
approval, implementation, integration, and oversight of
policies, procedures, processes, and systems for the
management of the Department of Defense that relate to
performance of the following functions:
``(1) Planning and budgeting, including performance
measurement.
``(2) Acquisition.
``(3) Logistics.
``(4) Facilities, installations, and environment.
``(5) Financial management.
``(6) Human resources and personnel.
``(7) Management of information resources, including
information technology, networks, and telecommunications
functions.
``(d) Defense Business Reform.--For the functions specified
in subsection (c), the Deputy Secretary of Defense for
Management shall--
``(1) develop and maintain a departmentwide management
strategic plan for business reform, and identify key
initiatives to be undertaken by the Department and its
components, together with related resource needs;
``(2) establish performance goals and measures for
improving and evaluating overall economy, efficiency, and
effectiveness;
``(3) monitor and measure the progress of the Department of
Defense and its components in meeting established performance
goals for improving economy, efficiency, and effectiveness;
and
``(4) review and approve plans and budgets for business
reform, including any proposed changes to policies,
procedures, processes, and systems, to ensure the
compatibility of those plans and budgets with--
``(A) the overall strategic plan and budget of the
Department of Defense;
``(B) the strategic plan for business reform of the
Department of Defense; and
``(C) achievement of the integration of business activities
throughout the Department of Defense.
``(e) Defense Business Systems.--(1) In carrying out the
duties of the position under this section, the Deputy
Secretary of Defense for Management shall oversee the
implementation of a defense business systems modernization
program including the execution of any funds appropriated for
maintaining legacy systems and for modernizing defense
business systems.
``(2) The Deputy Secretary of Defense for Management
shall--
``(A) oversee the development of, and shall review and
approve, all budget requests for defense business systems,
including the information to be submitted to Congress under
section 2222(h) of this title; and
``(B) subject to the authority, direction, and control of
the Secretary of Defense, perform the responsibilities of the
Secretary under section 2222 of this title.
``(3) In this subsection, the terms `defense business
system' and `defense business system modernization' have the
meanings given to those terms in section 2222(j) of this
title.
``(f) Relationship to Other Defense Officials.--(1) The
Deputy Secretary of Defense for Management exercises the
authority of the Secretary of Defense in the performance of
the duties of the Deputy Secretary under this section,
subject to the authority, direction, and control of the
Secretary.
``(2) The Secretaries of the military departments and the
heads of the other elements of the Department of Defense are
subject to the authority, direction, and control of the
Deputy Secretary in the performance of their duties with
respect to matters within the authority of the Deputy
Secretary, and the exercise of that authority by the Deputy
Secretary is binding on the military departments and such
other elements.
``(g) Consultation With Other Officials.--In carrying out
the duties of the position under this section, the Deputy
Secretary of Defense for Management shall consult on a
continuing basis with the Deputy Secretary of Defense, the
Secretaries of the military departments, and the Chairman of
the Joint Chiefs of Staff--
``(1) to support economical, efficient, and effective
performance of the missions of the Department of Defense; and
``(2) to support each of those officials--
``(A) in the implementation of the national defense
strategy and the strategic plan of the Department of Defense;
and
``(B) in the administration of related programs, plans,
operations, and activities.
``(h) Performance and Evaluation.--(1) The Deputy Secretary
of Defense for Management shall enter into an annual
performance agreement with the Secretary of Defense each
year. The agreement shall set forth measurable individual and
organizational goals that are consistent with the goals and
measures established under subsection (d) of this section.
The agreement shall be available for public disclosure.
``(2) The Secretary of Defense shall evaluate the
performance of the Deputy Secretary of Defense for Management
each year and shall determine as part of each such evaluation
whether the Deputy Secretary has made satisfactory progress
toward achieving the goals set out in the performance
agreement for that year under paragraph (1).''.
(B) The table of sections at the beginning of such chapter
is amended by inserting after the item relating to section
132 the following new item:

``132a. Deputy Secretary of Defense for Management.''.

(2) Executive level ii.--Section 5313 of title 5, United
States Code, is amended by inserting after ``Deputy Secretary
of Defense'' the following:
``Deputy Secretary of Defense for Management.''.
(b) Membership of Certain Department of Defense Management
Committees.--
(1) Financial management modernization executive
committee.--Section 185(a) of title 10, United States Code,
is amended--
(A) in paragraph (2)--
(i) by redesignating subparagraphs (A), (B), (C), (D), and
(E) as subparagraphs (B), (C), (D), (E), and (F),
respectively;
(ii) by inserting after ``composed of the following:'' the
following new subparagraph (A):
``(A) The Deputy Secretary of Defense for Management, who
shall be the chairman of the committee.''; and
(iii) in subparagraph (B), as redesignated by clause (i),
by striking ``, who shall be the chairman of the committee'';
and
(B) in paragraph (3), by inserting ``the Deputy Secretary
of Defense for Management,'' after ``the Deputy Secretary of
Defense,''.
(2) Defense business system management committee.--Section
186 of such title is amended by striking ``Deputy Secretary
of Defense'' each place it appears in subsections (a)(1) and
(b) and inserting ``Deputy Secretary of Defense for
Management''.
(c) Adjustments to Duties and Precedence of Other
Officials.--
(1) Under secretary of defense for policy.--Section 134 of
title 10, United States Code, is amended--
(A) in subsection (b)(2), by striking ``Secretary of
Defense--'' and inserting ``Secretary of Defense   and   the
Deputy   Secretary   of Defense--''; and
(B) in subsection (c), by inserting ``the Deputy Secretary
of Defense for Management,'' after ``the Deputy Secretary of
Defense,''.
(2) Under secretary of defense for acquisition, technology,
and logistics.--Section 133(e) of such title is amended--
(A) in paragraph (1), by striking ``and the Deputy
Secretary of Defense'' and inserting ``, the Deputy Secretary
of Defense, and the Deputy Secretary of Defense for
Management''; and
(B) in paragraph (2), by inserting ``the Deputy Secretary
of Defense for Management,'' after ``the Deputy Secretary of
Defense,''.
(3) Deputy under secretary of defense for logistics and
materiel readiness.--Section 133b(c)(2) of such title is
amended by inserting ``the Deputy Secretary of Defense for
Management,'' after ``the Deputy Secretary of Defense,''.
(4) Director of operational test and evaluation.--Section
139 of such title is amended--
(A) in subsection (b)--
(i) in paragraph (2), by striking ``and the Under Secretary
of Defense for Acquisition, Technology, and Logistics'' and
inserting ``, the Deputy Secretary of Defense, the Deputy
Secretary of Defense for Management, the Under Secretary of
Defense for Acquisition, Technology, and Logistics,''; and
(ii) in paragraph (5), by inserting ``, the Deputy
Secretary of Defense, and the Deputy Secretary of Defense for
Management'' after ``the Secretary of Defense''; and

[[Page S12538]]

(B) in subsection (c), by striking ``and the Deputy
Secretary of Defense'' in the first sentence and inserting
``, the Deputy Secretary of Defense, and the Deputy Secretary
of Defense for Management''.
______