Sec. 831. Modernization of acquisition processes to ensure integrity of industrial base
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The Secretary of Defense shall streamline and digitize the existing Department of Defense approach for identifying and mitigating risks to the defense industrial base across the acquisition process, creating a continuous model that uses digital tools, technologies, and approaches designed to ensure the accessibility of data to key decision-makers in the Department. The Under Secretary of Defense for Acquisition and Sustainment, in coordination with the Defense Security Service (or successor entity) and other organizations as appropriate, shall develop an analytical framework for risk mitigation across the acquisition process. The analytical framework required under paragraph
(1)shall include the following elements: Characterization and monitoring of supply chain risks, including— material sources and fragility; counterfeit parts; cybersecurity of contractors; vendor vetting in contingency or operational environments; and other risk areas as determined appropriate. Characterization and monitoring of risks posed by contractor behavior that constitute violations of laws or regulations, including those relating to— fraud; ownership structures; trafficking in persons; workers’ health and safety; affiliation with the enemy; and other risk areas as deemed appropriate. Characterization of the Department’s acquisition processes and procedures, including— market research; responsibility determinations, including consideration of the need for special standards of responsibility to address the risks described in subparagraphs
(A)and (B); facilities clearances; contract requirements definition and technical evaluation; contract awards and contractor mobilization; contractor mobilization to include hiring, training, and establishing facilities; contract administration, contract management, and oversight; contract audit for closeout; contractor business system reviews; and other relevant processes and procedures. Characterization and monitoring of the health and activities of the defense industrial base, including those relating to— balance sheets, revenues, profitability, and debt; investment, innovation, and technological and manufacturing sophistication; finances, access to capital markets, and cost of raising capital within those markets; corporate governance, leadership, and culture of performance; and history of performance on past Department of Defense and government contracts. The Secretary of Defense shall designate the roles and responsibilities of organizations and individuals to execute activities under this section, including— the Under Secretary of Defense for Acquisition and Sustainment, including the Office of Defense Pricing and Contracting and the Office of Industrial Policy; Service Acquisition Executives; program offices and procuring contracting officers; administrative contracting officers within the Defense Contract Management Agency and the Supervisor of Shipbuilding; the Defense Security Service and the Defense Counterintelligence Security Agency; the Defense Contract Audit Agency; departments, agencies, or activities which own or operate systems containing data relevant to Department of Defense contractors; the Under Secretary for Research and Engineering; and other relevant organizations and individuals. The Under Secretary of Defense for Acquisition and Sustainment, in consultation with the Chief Data Officer of the Department of Defense, and the Defense Security Service (or successor entity), shall assess the extent to which existing systems of record relevant to risk assessments and contracting are producing, exposing, and timely maintaining valid and reliable data for the purposes of the Department’s continuous assessment and mitigation of risks in the defense industrial base. The assessment required under subparagraph
(A)shall include the following elements: Identification of the necessary source data, to include data from contractors, intelligence and security activities, program offices, and commercial research entities. A description of the modern data infrastructure, tools, and applications and what changes would improve the effectiveness and efficiency of mitigating the risks described in subsection (b)(2). An assessment of the following systems owned or operated outside of the Department of Defense: The Federal Awardee Performance and Integrity Information System (FAPIIS). The System for Award Management (SAM). The Federal Procurement Data System–Next Generation (FPDS-NG). An assessment of systems owned or operated by the Department of Defense, including the Defense Security Service (or successor entity) and other defense agencies and field activities used to capture and analyze the performance of vendors and contractors. Based on the findings pursuant to paragraph (1), the Secretary of Defense shall develop a unified set of activities to modernize the systems of record, data sources and collection methods, and data exposure mechanisms. The unified set of activities should feature— the ability to continuously collect data on, assess, and mitigate risks; data analytics and business intelligence tools and methods; and continuous development and continuous delivery of secure software to implement the activities. Not later than November 15, 2019, the Secretary of Defense shall submit to the congressional defense committees a report on actions taken pursuant to this section, including recommendations for any further authorities or legislation. Not later than April 15, 2020, the Secretary of Defense shall submit to the congressional defense committees a report on actions taken pursuant to this section, including recommendations for any further legislation. Not later than February 15, 2020, the Comptroller General of the United States shall brief the congressional defense committees on Department of Defense efforts over the previous 5 years to continuously assess and mitigate risks to the defense industrial base across the acquisition process, and a summary of current and planned efforts. Not later than June 15, 2020, and annually thereafter, the Comptroller General of the United States shall submit to the congressional defense committees an assessment of Department of Defense progress in implementing the framework required under subsection (b).