Sec. 1802. Establishment of the role of portfolio acquisition executive
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Subchapter III of chapter 87 of title 10, United States Code, is amended by inserting after section 1731 the following new section: A portfolio acquisition executive is the senior acquisition official designated by the component acquisition executive or the service acquisition executive of the military department concerned, as applicable, to lead a portfolio of capabilities, with authority for plans, budgets, and execution of programs assigned to the portfolio, including life-cycle management.
To ensure streamlined accountability for management, the following relationships shall apply: Each program manager (as defined in section 1737 of this title) for a defense acquisition program shall report directly to the portfolio acquisition executive for such program unless otherwise directed by the component acquisition executive or service acquisition executive of the military department concerned (as applicable). Each portfolio acquisition executive shall report directly to the component acquisition executive or the service acquisition executive of the military department concerned (as applicable).
The component acquisition executive or service acquisition executive of the military department concerned (as applicable) shall oversee the designation of, performance of, and resource allocation for all portfolio acquisition executives. For the defense acquisition programs assigned to a portfolio acquisition executive, such portfolio acquisition executive shall— ensure that activities carried out under such programs are aligned with, and are conducted in a manner that supports, the objectives of the defense acquisition system established pursuant to section 3102 of this title; subject to the authority, direction, and control of the component acquisition executive or service acquisition executive of the military department concerned (as applicable)— carry out all powers, functions, and duties of the component acquisition executive or service acquisition executive concerned (as applicable) with respect to members of the acquisition workforce assigned to the portfolio acquisition executive; and ensure that the policies of the Secretary of Defense established in accordance with this chapter are implemented in such portfolio; coordinate with the relevant service chief (as defined in section 3101 of this title) when evaluating, modifying, or implementing requirements determinations, performance objectives, procurement quantity objectives, and materiel readiness objectives established under section 118(c) of this title; liaise and collaborate directly with operational users of such defense acquisition programs to receive regular feedback to ensure the effectiveness and suitability of capabilities; provide timely information to the relevant service chief, the Joint Staff, the Director of Cost Assessment and Program Evaluation, and other officials identified by the Secretary of Defense on cost, schedule, and performance trade-offs of defense acquisition programs assigned to the portfolio acquisition executive; employ iterative development cycles with the authority to modify, discontinue, or terminate the development of capabilities— that no longer align with a joint capability requirement (as defined in section 181 of this title) or other capability requirement established by the Secretary or relevant service chief; or that are experiencing significant cost growth, technical or performance deficiencies, or delays in schedule; collaborate with mission engineering functions of the Department of Defense to conduct cross-service technical and operational activities to coordinate integration of emerging technologies, prototypes, and operational concepts, as appropriate; and ensure effective market research and, to the maximum extent practical, prioritize— the use of transactions for prototype projects under section 4022; and the procurement of commercial products and commercial services under chapter 247 of this title.
The Secretary concerned with respect to a portfolio acquisition executive shall ensure that each such portfolio acquisition executive is assigned dedicated personnel and other resources required to successfully perform the assigned duties and responsibilities of such portfolio acquisition executive. Personnel shall be under the authority and control of such portfolio acquisition executive subject to the component acquisition executive or service acquisition executive of the department concerned.
Personnel and resources shall not be provided through matrixed, collateral duty, or dual-reporting arrangements, except as specifically authorized by the Secretary concerned in writing. Personnel and resources required include— contracting and contract management; estimating costs; financial management and business; life-cycle management and product support; program management; engineering and technical management; developmental testing and evaluation; and other personnel as determined by the Secretary concerned, as appropriate. .
Except as provided in paragraph (2), each covered defense law (as defined in section 102 of title 10, United States Code) is amended— by striking the term program executive officer and inserting portfolio acquisition executive in each place it appears in text or headings; by striking the term Program executive officer and inserting Portfolio acquisition executive in each place it appears in text or headings; by striking the term program executive officers and inserting portfolio acquisition executives in each place it appears in text or headings; and by striking the term Program executive officers and inserting Portfolio acquisition executives in each place it appears in text or headings.
Section 1737(a)(4) of title 10, United States Code, is amended to read as follows: The term portfolio acquisition executive means an individual described in section 1732(a) of this title. .