S.Amdt. 5353

1. Adds SEC. 907. DIRECTOR OF INDEPENDENT COST ASSESSMENT at the end of subtitle A of title IX

   Adds a section

   In S. 3001 · Placed on Calendar Senate

   (2) Updates.--Not later than March 1 of each of 2010, 2011, and 2012, the Chief Management Officer of each military department shall submit to the congressional defense committees a current update of the report submitted by such Chief Management Officer under paragraph (1).

   Inserted: SEC. 907. DIRECTOR OF INDEPENDENT COST ASSESSMENT.

   Inserted: (a) Director of Independent Cost Assessment.--

   Inserted: (1) In general.--Chapter 4 of title 10, United States Code, is amended by inserting after section 139a the following new section:

   Inserted: "Sec. 139b. Director of Independent Cost Assessment

   Inserted: "(a) There is a Director of Independent Cost Assessment in the Department of Defense, appointed by the President, by and with the advice and consent of the Senate. The Director shall be appointed without regard to political affiliation and solely on the basis of fitness to perform the duties of the Director. The Director may be removed from office by the President. The President shall communicate the reasons for any such removal to both Houses of Congress.

   Inserted: "(b) The Director is the principal advisor to the Secretary of Defense, the Under Secretary of Defense for Acquisition, Technology, and Logistics, and the Under Secretary of Defense (Comptroller) on cost estimation and cost analyses for the acquisition programs of the Department of Defense and the principal cost estimation official within the senior management of the Department of Defense. The Director shall--

   Inserted: "(1) prescribe, by authority of the Secretary of Defense, policies and procedures for the conduct of cost estimation and cost analysis for the acquisition programs of the Department of Defense;

   Inserted: "(2) provide guidance to and consult with the Secretary of Defense, the Under Secretary of Defense for Acquisition, Technology, and Logistics, the Under Secretary of Defense (Comptroller), and the Secretaries of the military departments with respect to cost estimation in the Department of Defense in general and with respect to specific cost estimates and cost analyses to be conducted in connection with a major defense acquisition program under chapter 144 of this title or a major automated information system program under chapter 144A of this title;

   Inserted: "(3) monitor and review all cost estimates and cost analyses conducted in connection with major defense acquisition programs and major automated information system programs;

   Inserted: "(4) conduct independent cost estimates and cost analyses for major defense acquisition programs and major automated information system programs when necessary to ensure that such estimates and analyses are unbiased, fair, and reliable; and

   Inserted: "(5) review and make recommendations to the Secretary of Defense on all budgetary and financial matters relating to cost estimation and cost analysis for the acquisition programs of the Department of Defense, including the personnel required to perform such estimates and analyses.

   Inserted: "(c)(1) The Director may communicate views on matters within the responsibility of the Director directly to the Secretary of Defense and the Deputy Secretary of Defense without obtaining the approval or concurrence of any other official within the Department of Defense.

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   Inserted: "(2) The Director shall consult closely with, but the Director and the Director's staff shall be independent of, the Under Secretary of Defense for Acquisition, Technology, and Logistics, the Under Secretary of Defense (Comptroller), and all other officers and entities of the Department of Defense responsible for acquisition and budgeting.

   Inserted: "(d)(1) The Secretary of a military department shall report promptly to the Director the results of all cost estimates and cost analyses conducted by the military department and all studies conducted by the military department in connection with cost estimates and cost analyses for major defense acquisition programs of the military department.

   Inserted: "(2) The Director may make comments on cost estimates and cost analyses conducted by a military department for a major defense acquisition program, request changes in such cost estimates and cost analyses to ensure that they are fair and reliable, and develop or require the development of independent cost estimates or cost analyses for such program, as the Director determines to be appropriate.

   Inserted: "(3) The Director shall have access to any records and data in the Department of Defense (including the records and data of each military department) that the Director considers necessary to review in order to carry out the Director's duties under this section.

   Inserted: "(e) The Director shall prepare an annual report summarizing the cost estimation and cost analysis activities of the Department of Defense during the previous year. Each such report shall be submitted concurrently to the Secretary of Defense, the Under Secretary of Defense for Acquisition, Technology, and Logistics, the Under Secretary of Defense (Comptroller), and Congress not later than 10 days after the transmission of the budget for the next fiscal year under section 1105 of title 31. The Secretary may comment on any report of the Director to Congress under this subsection.

   Inserted: "(f) The President shall include in the budget transmitted to Congress pursuant to section 1105 of title 31 for each fiscal year a separate statement of estimated expenditures and proposed appropriations for that fiscal year for the Director of Independent Cost Assessment in carrying out the duties and responsibilities of the Director under this section.

   Inserted: "(g) The Secretary of Defense shall ensure that the Director has sufficient professional staff of military and civilian personnel to enable the Director to carry out the duties and responsibilities of the Director under this section.".

   Inserted: (2) Clerical amendment.--The table of sections at the beginning of chapter 4 of such title is amended by inserting after the item relating to section 139a the following new item:

   Inserted: "139b. Director of Independent Cost Assessment.".

   Inserted: (b) Transfer of Certain Personnel and Functions.--The personnel and functions of the following entities of the Department of Defense are hereby transferred to the Director of Independent Cost Assessment under section 139b of title 10, United States Code (as added by subsection (a)), and shall report directly to the Director:

   Inserted: (1) The Cost Analysis Improvement Group.

   Inserted: (2) The cost estimation functions of the Director of Program Analysis and Evaluation.

   Inserted: (c) Conforming Amendments.--

   Inserted: (1) Section 2306b(i)(1)(B) of title 10, United States Code, is amended by striking "Cost Analysis Improvement Group of the Department of Defense" and inserting "Director of Independent Cost Assessment".

   Inserted: (2) Section 2366a(a)(1)(C) of such title is amended by striking "have been developed to execute" and inserting "have been approved by the Director of Independent Cost Assessment to provide for the execution of".

   Inserted: (3) Section 2366b(a)(4) of such title is amended by striking "has been submitted" and inserting "has been approved by the Director of Independent Cost Assessment".

   Inserted: (4) Section 2433(e)(2)(B)(iii) of such title is amended by striking "are reasonable" and inserting "have been determined by the Director of Independent Cost Assessment to be reasonable".

   Inserted: (5) Subparagraph (A) of section 2434(b)(1) of such title is amended to read as follows:

   Inserted: "(A) be prepared or approved by the Director of Independent Cost Assessment; and".

   Inserted: (6) Section 2445c(f)(3) of such title is amended by striking "are reasonable" and inserting "have been determined by the Director of Independent Cost Assessment to be reasonable".

   Original wording

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

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As printed