(a)
(1) the appropriate pre-certification authority for the covered defense business system program has determined that—
(A) the defense business system program is in compliance with the enterprise architecture developed under subsection (c) and appropriate business process re-engineering efforts have been undertaken to ensure that—
(i) the business process supported by the defense business system program is or will be as streamlined and efficient as practicable; and
(ii) the need to tailor commercial-off-the-shelf systems to meet unique requirements or incorporate unique requirements or incorporate unique interfaces has been eliminated or reduced to the maximum extent practicable;
(B) the defense business system program is necessary to achieve a critical national security capability or address a critical requirement in an area such as safety or security; or
(C) the defense business system program is necessary to prevent a significant adverse effect on a project that is needed to achieve an essential capability, taking into consideration the alternative solutions for preventing such adverse effect;
(2) the covered defense business system program has been reviewed and certified by the investment review board established under subsection (g); and
(3) the certification of the investment review board under paragraph (2) has been approved by the Defense Business Systems Management Committee established by section 186 of this title.
(b)
(c)
(A) an enterprise architecture, known as the defense business enterprise architecture, to cover all defense business systems, and the functions and activities supported by defense business systems, which shall be sufficiently defined to effectively guide, constrain, and permit implementation of interoperable defense business system solutions and consistent with the policies and procedures established by the Director of the Office of Management and Budget; and
(B) a transition plan for implementing the defense business enterprise architecture.
(2) The Secretary of Defense shall delegate responsibility and accountability for the defense business enterprise architecture content, including unambiguous definitions of functional processes, business rules, and standards, as follows:
(A) The Under Secretary of Defense for Acquisition, Technology, and Logistics shall be responsible and accountable for the content of those portions of the defense business enterprise architecture that support acquisition, logistics, installations, environment, or safety and occupational health activities of the Department of Defense.
(B) The Under Secretary of Defense (Comptroller) shall be responsible and accountable for the content of those portions of the defense business enterprise architecture that support financial management activities or strategic planning and budgeting activities of the Department of Defense.
(C) The Under Secretary of Defense for Personnel and Readiness shall be responsible and accountable for the content of those portions of the defense business enterprise architecture that support human resource management activities of the Department of Defense.
(D) The Chief Information Officer of the Department of Defense shall be responsible and accountable for the content of those portions of the defense business enterprise architecture that support information technology infrastructure or information assurance activities of the Department of Defense.
(E) The Deputy Chief Management Officer of the Department of Defense shall be responsible and accountable for developing and maintaining the defense business enterprise architecture as well as integrating business operations covered by subparagraphs (A) through (D).
(d)
(1) An information infrastructure that, at a minimum, would enable the Department of Defense to—
(A) comply with all applicable law, including Federal accounting, financial management, and reporting requirements;
(B) routinely produce timely, accurate, and reliable business and financial information for management purposes;
(C) integrate budget, accounting, and program information and systems; and
(D) provide for the systematic measurement of performance, including the ability to produce timely, relevant, and reliable cost information.
(2) Policies, procedures, data standards, performance measures, and system interface requirements that are to apply uniformly throughout the Department of Defense.
(3) A target defense business systems computing environment, compliant with the defense business enterprise architecture, for each of the major business processes conducted by the Department of Defense, as determined by the Chief Management Officer of the Department of Defense.
(e)
(1) A listing of the new systems that are expected to be needed to complete the target defense business systems computing environment described in subsection (d)(3), along with each system's time-phased milestones, performance measures, financial resource needs, and risks or challenges to integration into the business enterprise architecture.
(2) A listing of the defense business systems that will be phased out of the defense business systems computing environment within three years after review and certification as "legacy systems" by the investment management process established under subsection (g), together with the schedule for terminating those legacy systems.
(3) A listing of the existing systems that are part of the target defense business systems computing environment, together with a strategy for making the modifications to those systems that will be needed to ensure that such systems comply with the defense business enterprise architecture, including time-phased milestones, performance measures, and financial resource needs.
(f)
(A) In the case of an Army program, the Chief Management Officer of the Army.
(B) In the case of a Navy program, the Chief Management Officer of the Navy.
(C) In the case of an Air Force program, the Chief Management Officer of the Air Force.
(D) In the case of a program of a Defense Agency, the Director, or equivalent, of such Defense Agency, unless otherwise approved by the Deputy Chief Management Officer of the Department of Defense.
(E) In the case of a program that will support the business processes of more than one military department or Defense Agency, an appropriate pre-certification authority designated by the Deputy Chief Management Officer of the Department of Defense.
(2) For purposes of subsection (g), the appropriate senior official of the Department of Defense for the functions and activities supported by a covered defense business system is as follows:
(A) The Under Secretary of Defense for Acquisition, Technology, and Logistics, in the case of any defense business system the primary purpose of which is to support acquisition, logistics, installations, environment, or safety and occupational health activities of the Department of Defense.
(B) The Under Secretary of Defense (Comptroller), in the case of any defense business system the primary purpose of which is to support financial management activities or strategic planning and budgeting activities of the Department of Defense.
(C) The Under Secretary of Defense for Personnel and Readiness, in the case of any defense business system the primary purpose of which is to support human resource management activities of the Department of Defense.
(D) The Chief Information Officer of the Department of Defense, in the case of any defense business system the primary purpose of which is to support information technology infrastructure or information assurance activities of the Department of Defense.
(E) The Deputy Chief Management Officer of the Department of Defense, in the case of any defense business system the primary purpose of which is to support any activity of the Department of Defense not covered by subparagraphs (A) through (D).
(g)
(2) The review of defense business systems programs under the investment management process shall include the following:
(A) Review and approval by an investment review board of each covered defense business system program before the obligation of funds on the system in accordance with the requirements of subsection (a).
(B) Periodic review, but not less than annually, of all covered defense business system programs, grouped in portfolios of defense business systems.
(C) Representation on each investment review board by appropriate officials from among the Office of the Secretary of Defense, the armed forces, the combatant commands, the Joint Chiefs of Staff, and the Defense Agencies, including representation from each of the following:
(i) The appropriate pre-certification authority for the defense business system under review.
(ii) The appropriate senior official of the Department of Defense for the functions and activities supported by the defense business system under review.
(iii) The Chief Information Officer of the Department of Defense.
(D) Use of threshold criteria to ensure an appropriate level of review within the Department of Defense of, and accountability for, defense business system programs depending on scope, complexity, and cost.
(E) Use of procedures for making certifications in accordance with the requirements of subsection (a).
(F) Use of procedures for ensuring consistency with the guidance issued by the Secretary of Defense and the Defense Business Systems Management Committee, as required by section 186(c) of this title, and incorporation of common decision criteria, including standards, requirements, and priorities that result in the integration of defense business systems.
(3)(A) 1 The investment management process required by paragraph (1) shall include requirements for the military departments and the Defense Agencies to make available to the Deputy Chief Management Officer such information on covered defense business system programs and other business functions as the Deputy Chief Management Officer shall require for the review of defense business system programs under the process. Such information shall be made available to the Deputy Chief Management Officer through existing data sources or in a standardized format established by the Deputy Chief Management Officer for purposes of this paragraph.
(h)
(1) Identification of each defense business system program for which funding is proposed in that budget.
(2) Identification of all funds, by appropriation, proposed in that budget for each such program, including—
(A) funds for current services (to operate and maintain the system covered by such program); and
(B) funds for business systems modernization, identified for each specific appropriation.
(3) For each such program, identification of the appropriate pre-certification authority and senior official of the Department of Defense designated under subsection (f).
(4) For each such program, a description of each approval made under subsection (a)(3) with regard to such program.
(i)
(1) describe actions taken and planned for meeting the requirements of subsection (a), including—
(A) specific milestones and actual performance against specified performance measures, and any revision of such milestones and performance measures; and
(B) specific actions on the defense business system programs submitted for certification under such subsection;
(2) identify the number of defense business system programs so certified;
(3) identify any covered defense business system program during the preceding fiscal year that was not approved under subsection (a), and the reasons for the lack of approval;
(4) discuss specific improvements in business operations and cost savings resulting from successful defense business systems programs; and
(5) include a copy of the most recent report of the Chief Management Officer of each military department on implementation of business transformation initiatives by such department in accordance with section 908 of the Duncan Hunter National Defense Authorization Act for Fiscal Year 2009 (Public Law 110–417; 122 Stat. 4569; 10 U.S.C. 2222 note).
(j)
(1) The term "defense business system" means an information system, other than a national security system, operated by, for, or on behalf of the Department of Defense, including financial systems, mixed systems, financial data feeder systems, and information technology and information assurance infrastructure, used to support business activities, such as acquisition, financial management, logistics, strategic planning and budgeting, installations and environment, and human resource management.
(2) The term "covered defense business system program" means any defense business system program that is expected to have a total cost in excess of $1,000,000 over the period of the current future-years defense program submitted to Congress under section 221 of this title.
(3) The term "enterprise architecture" has the meaning given that term in section 3601(4) of title 44.
(4) The terms "information system" and "information technology" have the meanings given those terms in section 11101 of title 40.
(5) The term "national security system" has the meaning given that term in section 3542(b)(2) of title 44.
(Added Pub. L. 108–375, div. A, title III, §332(a)(1), Oct. 28, 2004, 118 Stat. 1851; amended Pub. L. 109–364, div. A, title IX, §906(a), Oct. 17, 2006, 120 Stat. 2354; Pub. L. 110–417, [div. A], title III, §351, Oct. 14, 2008, 122 Stat. 4425; Pub. L. 111–84, div. A, title X, §1072(a), Oct. 28, 2009, 123 Stat. 2470; Pub. L. 111–383, div. A, title X, §1075(b)(29), Jan. 7, 2011, 124 Stat. 4370; Pub. L. 112–81, div. A, title IX, §901, Dec. 31, 2011, 125 Stat. 1527; Pub. L. 112–239, div. A, title IX, §906, Jan. 2, 2013, 126 Stat. 1869; Pub. L. 113–66, div. A, title IX, §901, Dec. 26, 2013, 127 Stat. 815.)
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