Mr. President, I ask unanimous consent that the order for the quorum call be rescinded. Mr. President, the Weapon Systems Acquisition Reform Act of 2009, authored by Senators Levin and McCain, would strengthen and reform the Department of…
Mr. President, I ask unanimous consent that the order for the quorum call be rescinded.
Mr. President, the Weapon Systems Acquisition Reform Act of 2009, authored by Senators Levin and McCain, would strengthen and reform the Department of Defense acquisition process.
The bill would bring increased accountability, more transparency, and cost savings to major defense acquisition programs. Simply put, the bill would build discipline into the planning and requirements process, keep projects focused, help to prevent cost overruns and schedule delays and ultimately save taxpayers' dollars.
I am very proud to join the chairman and ranking member of the Armed Services Committee in cosponsoring this important initiative. I applaud their continued efforts to improve procurement at the Pentagon.
In fiscal year 2008, DOD spending reached $396 billion, approximately 74 percent of total Federal contract spending. The scope of the Department's contract spending is particularly startling when one examines closely Army procurement. The number of Army contract actions has grown by more than 600 percent since 2001, and contract dollars have increased by more than 500 percent.
In 2007, the Army put on contract one out of every four Federal contracting dollars. These figures alone are overwhelming. But they actually understate the scope of the procurement challenges at the Department of Defense.
Research, development, testing, evaluation, and procurement of increasingly complex weapon systems challenge the Department's ability to ensure that taxpayer dollars are wisely spent. Let me give you an example: The National Polar Orbiting Operational Environmental Satellite System--there is a mouthful--is just one of several Defense programs that have been undermined by cost overruns and schedule delays.
This is a complicated program that is required to promote and provide a remote sensing capability that is used by the Department of Defense and by the National Oceanic and Atmospheric Administration.
A 2006 report by an inspector general indicated that this one program was more than $3 billion over the initial life cycle cost estimates and nearly 17 months behind schedule. So here we have an essential program that is $3 billion over the initial life cycle cost estimates and it is about a year and a half behind schedule. Unfortunately, this is not an isolated example. It is but one of many examples of defense procurements that have suffered from soaring cost increases and unacceptable delays.
The legislation introduced by Senators Levin and McCain, which I am pleased to cosponsor, would improve the Defense Department's planning and program oversight in many ways.
First, the bill would create a new director of independent cost assessment to be the principal cost estimation official at the Department. The director would be responsible for monitoring and reviewing all cost estimates and cost analyses conducted in connection with the major defense acquisition programs. Having this set of independent eyes on critical but expensive programs would help to prevent wasteful spending. It would help to ensure that when we embark on a new defense acquisition, we truly have confidence in the cost estimates.
The bill also mandates that the Department carefully balance cost, schedule, and performance as part of the requirements development process. These reforms would build important discipline into the procurement process long before a request for proposals is issued and a contract is awarded. By carefully considering the needs of the program office, the associated requirements and estimated cost of a program, and the risks inherent in system development and deployment, the Department will be able to make much more rational decisions about its investments and use more effective contracting vehicles for procurements long before taxpayer dollars are committed to the project.
I also applaud the bright lines this legislation would establish regarding organizational conflicts of interest by defense contractors. These reforms would strengthen the wall between Government employees and contractors, helping to ensure that ethical boundaries are respected. While certainly private sector contractors are vital partners with military and civilian employees at the Department of Defense, their roles and responsibilities must be well defined and free of conflicts of interest as they undertake their critical work supporting our Nation's military.
What we are finding--and we have had oversight hearings in the Homeland Security Committee on this issue--is that in the Department of Homeland Security and the Department of Defense, in some cases we have defense contractors involved in setting requirements, defining requirements for projects on which subsidiaries of those defense contractors may well be bidding. We want to avoid those kinds of conflicts of interest which impair confidence in the integrity of the process.
We also want to make sure we are following current law as far as activities that should be done in-house because they are inherently governmental.
I note, too, that this legislation encourages the Department to reinvest personnel resources in systems engineers--a necessary element for any successful acquisition reform of the Department's major weapon systems programs. Without experienced, well-trained engineers, the Department will be unable to set definitive requirements during the planning process, incapable of effectively testing and evaluating the development of these systems, and ineffective in addressing systems defects in the incredibly complex programs in which the Department, of necessity, invests. The lack of systems engineers also prevents strong program oversight, as the limited number of engineers available simply cannot focus sufficient time and attention on the programs as they are constantly pulled in multiple directions.
Adding systems engineers is only one part of the overall personnel reforms necessary to improve the acquisition process. DOD must also invest significantly in its undermanned acquisition workforce.
The dramatic downsizing of the defense acquisition workforce during the 1990s was followed by an even more dramatic increase in workload. So at the time that the Defense Department's acquisition workforce was declining, the workload was increasing. In fiscal year 2001, the Department spent $138 billion on contracts. Seven years later, DOD
spending reached $396 billion--a 187-percent increase. Of that amount, $202 billion was for the procurement of services. That requires labor- intensive acquisition management and oversight. Needless to say, these factors have greatly strained the defense acquisition workforce and greatly increased the risk of acquisition failure. At the same time, a significant increase in the use of contractor acquisition support personnel has added another layer of complexity as the Department must manage both organizational and personal conflicts of interest.
I commend Secretary Gates for recognizing just how important these workforce issues are. Under his leadership, the Department has set forth an aggressive program for strengthening the acquisition workforce, including increasing the number of acquisition personnel and improving their training. The Secretary has proposed increasing the workforce by 15 percent through 2015. That amounts to approximately 20,000 new employees. I also praise the Secretary for not only adding additional personnel but for thinking about what they should be doing. For example, he has proposed that some of these new employees take over tasks that are currently being performed by defense contractors. That is that conflict-of-interest issue I mentioned earlier. If the Secretary's plan goes through--and I am going to support him strongly in this regard--the acquisition workforce would increase to numbers not seen in a decade. That will save money and improve acquisition outcomes.
But this isn't just a numbers game. In addition to having a sufficient number of personnel, the Department must have the right mix. I am pleased that the Secretary has proposed 600 additional auditors for DCAA, the Defense Contract Audit Agency, and additional engineers and technical experts.
These acquisition changes will help to prevent contracting waste, fraud, abuse, and mismanagement. Most of all, they are absolutely essential to the effective implementation of the procurement reforms in this bill. We can write the best laws. We can impose the strongest reforms. But if we do not have sufficient personnel, well-trained employees to carry out these reforms, our efforts will be for naught.
I now call up an amendment I have at the desk. It is amendment No. 1045.
I ask unanimous consent that reading of the amendment be dispensed with.
Mr. President, this amendment, which I am offering along with my distinguished colleague, Senator McCaskill, who has brought great auditing skills to this body, would help to ensure that the Department is supplying certain critical principles consistently and reliably to all projects that use a specific management tool that is known as EVM, earned value management. The Department currently requires EVM tracking for all contracts that exceed $20 million. This provides important visibility into the scope, schedule, and cost in a single integrated system. When properly applied, this system can provide an early warning of performance problems. The Government Accountability Office has observed, however, that contractor reporting on EVM often lacks consistency, leading to inaccurate data and faulty application of this metric. In other words, this is a garbage-in/ garbage-out problem that we need to correct.
To address this challenge, our amendment would provide enforcement mechanisms to ensure that contractors establish and use approved EVM systems, and we would require the Department of Defense to consider the quality of the contractor's EVM systems and reporting in the past performance evaluation for a contract. When a contractor is bidding, the contracting official looks at any past performance. With improved data quality, both the Government and the contractor will be able to improve program oversight, leading to better acquisition outcomes.
This is so important. Some of the provisions that are particularly important in the Levin-McCain bill would increase transparency and oversight so that if an acquisition process is going in the wrong direction, we know about it and are able to take action. We are able to decide whether the Nunn-McCurdy breaches, for example, warrant halting the project. We are improving the cost estimate system for weapons acquisition projects. We have a lot of reforms. This would increase our transparency, our ability to flag problems.
I believe this amendment Senator McCaskill and I offer would help to strengthen the Department's acquisition planning, increase and improve program oversight, and help to prevent contracting waste, fraud, and mismanagement.
Let me end my comments by reminding all of us why this bill and our amendment are so important.
Ultimately, these procurement reforms will help ensure that our brave men and women in uniform--our military personnel--have the equipment they need when they need it, that it performs as promised, and that our tax dollars are not wasted on programs that are doomed to fail.
Thank you, Mr. President.
Mr. President, I thank the chairman for his thoughtful comments and for working with us on this amendment. I hope at the appropriate time it can be adopted. I believe it is acceptable to Senator McCain. But I am unclear whether there is further clearance that needs to be done.
But, again, while the Senator is on the floor, I want to once again praise Senator Levin and Senator McCain for tackling this critical issue. It is complex. And it is important that the reforms make a difference to our military--to those who need these weapon systems, who need the material and the supplies that the contracting is procuring. It is also important that taxpayers be protected. There have been far too many cost overruns and schedule delays that hurt those who are on the front lines, quite literally.
I praise and thank the chairman again for his leadership in this area.
Thank you, Mr. President.
Mr. President, I ask unanimous consent that the order for the quorum call be rescinded.
Mr. President, I am informed that the amendment I have offered with Senator McCaskill, which is the pending amendment, No. 1045, has been cleared on our side.
I move to lay that motion on the table.
The motion to lay on the table was agreed to.
Thank you, Mr. President. And I thank the chairman.