10 U.S.C. § 2222 — Defense business systems: business proc-

Page 1762 TITLE 10—ARMED FORCES [§ 2221 days after the date on which such final regulations are published.’’ PILOT PROGRAMS FOR TESTING PROGRAM MANAGER PERFORMANCE OF PRODUCT SUPPORT OVERSIGHT RE- SPONSIBILITIES FOR LIFE CYCLE OF ACQUISITION PRO- GRAMS Pub. L. 105–261, div. A, title VIII, § 816, Oct. 17, 1998, 112 Stat. 2088, authorized the Secretary of Defense to designate 10 acquisition programs of the military de- partments as pilot programs on program manager re- sponsibility for product support and required report to Congress by Feb. 1, 1999. ENHANCED SYSTEM OF PERFORMANCE INCENTIVES Pub. L. 103–355, title V, § 5001(b), Oct. 13, 1994, 108 Stat. 3350, provided that, within one year after Oct. 13, 1994, the Secretary of Defense should review the incentives and personnel actions available for encouraging excel- lence in the management of defense acquisition pro- grams and provide an enhanced system of incentives, including pay for performance, to facilitate the achievement of goals approved or defined pursuant to subsec. (a) of this section. RECOMMENDED LEGISLATION Pub. L. 103–355, title V, § 5001(c), Oct. 13, 1994, 108 Stat. 3350, directed the Secretary of Defense, not later than one year after Oct 13, 1994, to submit to Congress any recommended legislation that the Secretary considered necessary to carry out this section and otherwise to fa- cilitate and enhance management of Department of De- fense acquisition programs on the basis of performance. [§ 2221. Repealed. Pub. L. 105–261, div. A, title IX, § 906(f)(1), Oct. 17, 1998, 112 Stat. 2096] Section, added Pub. L. 104–106, div. A, title IX, § 914(a)(1), Feb. 10, 1996, 110 Stat. 412; amended Pub. L. 104–201, div. A, title X, § 1008(a), Sept. 23, 1996, 110 Stat. 2633; Pub. L. 105–85, div. A, title X, § 1006(a), Nov. 18, 1997, 111 Stat. 1869; Pub. L. 105–261, div. A, title X, § 1069(b)(2), Oct. 17, 1998, 112 Stat. 2136, related to Fisher House trust funds. See section 2493 of this title. Statutory Notes and Related Subsidiaries EFFECTIVE DATE OF REPEAL Repeal effective 90 days after Oct. 17, 1998, see section 906(f)(3) of Pub. L. 105–261, set out as an Effective Date of 1998 Amendment note under section 1321 of Title 31, Money and Finance. § 2222. Defense business systems: business proc- ess reengineering; enterprise architecture; management (a) DEFENSE BUSINESS PROCESSES GEN- ERALLY.—The Secretary of Defense shall ensure that defense business processes are reviewed, and as appropriate revised, through business process reengineering to match best commercial practices, to the maximum extent practicable, so as to minimize customization of commercial business systems. (b) DEFENSE BUSINESS SYSTEMS GENERALLY.— The Secretary of Defense shall ensure that each covered defense business system developed, de- ployed, and operated by the Department of De- fense— (1) supports efficient business processes that have been reviewed, and as appropriate re- vised, through business process reengineering; (2) is integrated into a comprehensive de- fense business enterprise architecture; (3) is managed in a manner that provides vis- ibility into, and traceability of, expenditures for the system; and (4) uses an acquisition and sustainment strategy that prioritizes the use of commer- cial software and business practices. (c) ISSUANCE OF GUIDANCE.— (1) SECRETARY OF DEFENSE GUIDANCE.—The Secretary shall issue guidance to provide for the coordination of, and decision making for, the planning, programming, and control of in- vestments in covered defense business sys- tems. (2) SUPPORTING GUIDANCE.—The Secretary shall direct the Chief Information Officer of the Department of Defense, the Under Sec- retary of Defense for Acquisition and Sustainment, and the Chief Information Offi- cer of each of the military departments to issue and maintain supporting guidance, as ap- propriate and within their respective areas of responsibility, for the guidance of the Sec- retary issued under paragraph (1). (d) GUIDANCE ELEMENTS.—The guidance issued under subsection (c) shall include the following elements: (1) Policy to ensure that the business proc- esses of the Department of Defense are con- tinuously reviewed and revised— (A) to implement the most streamlined and efficient business processes practicable; and (B) to eliminate or reduce the need to tai- lor commercial off-the-shelf systems to meet or incorporate requirements or interfaces that are unique to the Department of De- fense. (2) A process to establish requirements for covered defense business systems. (3) Mechanisms for the planning and control of investments in covered defense business systems, including a process for the collection and review of programming and budgeting in- formation for covered defense business sys- tems. (4) Policy requiring the periodic review of covered defense business systems that have been fully deployed, by portfolio, to ensure that investments in such portfolios are appro- priate. (5) Policy to ensure full consideration of sus- tainability and technological refreshment re- quirements, and the appropriate use of open architectures. (6) Policy to ensure that best acquisition and systems engineering practices are used in the procurement and deployment of commercial systems, modified commercial systems, and defense-unique systems to meet Department of Defense missions. (7) Policy to ensure a covered defense busi- ness system is in compliance with the Depart- ment’s auditability requirements. (8) Policy to ensure approvals required for the development of a covered defense business system. (e) DEFENSE BUSINESS ENTERPRISE ARCHITEC- TURE.— (1) BLUEPRINT.—The Secretary, working through the Chief Information Officer of the Department of Defense, shall develop and maintain a blueprint to guide the development Page 1763 TITLE 10—ARMED FORCES § 2222 of integrated business processes within the De- partment of Defense. Such blueprint shall be known as the ‘‘defense business enterprise ar- chitecture’’. (2) PURPOSE.—The defense business enter- prise architecture shall be sufficiently defined to effectively guide implementation of inter- operable defense business system solutions and shall be consistent with the policies and procedures established by the Director of the Office of Management and Budget. (3) ELEMENTS.—The defense business enter- prise architecture shall— (A) include policies, procedures, business data standards, business performance meas- ures, and business information requirements that apply uniformly throughout the De- partment of Defense; and (B) enable the Department of Defense to— (i) comply with all applicable law, in- cluding Federal accounting, financial man- agement, and reporting requirements; (ii) routinely produce verifiable, timely, accurate, and reliable business and finan- cial information for management pur- poses; (iii) integrate budget, accounting, and program information and systems; and (iv) identify whether each existing busi- ness system is a part of the business sys- tems environment outlined by the defense business enterprise architecture, will be- come a part of that environment with ap- propriate modifications, or is not a part of that environment. (4) INTEGRATION INTO INFORMATION TECH- NOLOGY ARCHITECTURE.—(A) The defense busi- ness enterprise architecture shall be inte- grated into the information technology enter- prise architecture required under subpara- graph (B). (B) The Chief Information Officer of the De- partment of Defense shall develop an informa- tion technology enterprise architecture. The architecture shall describe a plan for improv- ing the information technology and computing infrastructure of the Department of Defense, including for each of the major business proc- esses conducted by the Department of Defense. (5) COMMON ENTERPRISE DATA.—The defense business enterprise shall include enterprise data that may be automatically extracted from the relevant systems to facilitate De- partment of Defense-wide analysis and man- agement of its business operations. (6) ROLES AND RESPONSIBILITIES.— (A) The Chief Information Officer of the Department of Defense, in coordination with the Chief Data and Artificial Intelligence Of- ficer, shall have primary decision-making authority with respect to the development of common enterprise data. In consultation with the Defense Business Council, the Chief Information Officer shall— (i) develop an associated data govern- ance process; and (ii) oversee the preparation, extraction, and provision of data across the defense business enterprise. (B) The Chief Information Officer and the Under Secretary of Defense (Comptroller) shall— (i) in consultation with the Defense Business Council, document and maintain any common enterprise data for their re- spective areas of authority; (ii) participate in any related data gov- ernance process; (iii) extract data from defense business systems as needed to support priority ac- tivities and analyses; (iv) when appropriate, ensure the source data is the same as that used to produce the financial statements subject to annual audit; (v) in consultation with the Defense Business Council, provide access, except as otherwise provided by law or regulation, to such data to the Office of the Secretary of Defense, the Joint Staff, the military de- partments, the combatant commands, the Defense Agencies, the Department of De- fense Field Activities, and all other of- fices, agencies, activities, and commands of the Department of Defense; and (vi) ensure consistency of the common enterprise data maintained by their re- spective organizations. (C) The Director of Cost Assessment and Program Evaluation shall have access to data for the purpose of executing missions as designated by the Secretary of Defense. (D) The Secretary of Defense, the Chair- man of the Joint Chiefs of Staff, the Secre- taries of the military departments, com- manders of combatant commands, the heads of the Defense Agencies, the heads of the De- partment of Defense Field Activities, and the heads of all other offices, agencies, ac- tivities, and commands of the Department of Defense shall provide access to the relevant system of such department, combatant com- mand, Defense Agency, Defense Field Activ- ity, or office, agency, activity, and command organization, as applicable, and data ex- tracted from such system, for purposes of automatically populating data sets coded with common enterprise data. (f) DEFENSE BUSINESS COUNCIL.— (1) REQUIREMENT FOR COUNCIL.—The Sec- retary shall establish a Defense Business Council to provide advice to the Secretary on developing the defense business enterprise ar- chitecture, reengineering the Department’s business processes, developing and deploying defense business systems, and developing re- quirements for defense business systems. The Council shall be co-chaired by the Chief Infor- mation Officer and the Performance Improve- ment Officer of the Department of Defense. (2) MEMBERSHIP.—The membership of the Council shall include the following: (A) The Chief Information Officers of the military departments, or their designees. (B) The Chief Management Officers of the military departments, or their designees. (C) The following officials of the Depart- ment of Defense, or their designees: (i) The Under Secretary of Defense for Acquisition and Sustainment with respect to acquisition, logistics, and installations management processes. Page 1764 TITLE 10—ARMED FORCES § 2222 (ii) The Under Secretary of Defense (Comptroller) with respect to financial management and planning and budgeting processes. (iii) The Under Secretary of Defense for Personnel and Readiness with respect to human resources management processes. (iv) The Chief Data and Artificial Intel- ligence Officer of the Department of De- fense. (g) APPROVALS REQUIRED FOR DEVELOPMENT.— (1) INITIAL APPROVAL REQUIRED.—The Sec- retary shall ensure that a covered defense business system program cannot proceed into development (or, if no development is re- quired, into production or fielding) unless the appropriate approval official (as specified in paragraph (2)) determines that— (A) the system has been, or is being, re- engineered to be as streamlined and efficient as practicable, and the implementation of the system will maximize the elimination of unique software requirements and unique interfaces; (B) the system and business system port- folio are or will be in compliance with the defense business enterprise architecture de- veloped pursuant to subsection (e) or will be in compliance as a result of modifications planned; (C) the system has valid, achievable re- quirements and a viable plan for imple- menting those requirements (including, as appropriate, market research, business proc- ess reengineering, and prototyping activi- ties); (D) the system has an acquisition strategy designed to eliminate or reduce the need to tailor commercial off-the-shelf systems to meet unique requirements, incorporate unique requirements, or incorporate unique interfaces to the maximum extent prac- ticable; and (E) the system is in compliance with the Department’s auditability requirements. (2) APPROPRIATE OFFICIAL.—For purposes of paragraph (1), the appropriate approval official with respect to a covered defense business sys- tem is the following: (A) Except as may be provided in subpara- graph (C), in the case of a priority defense business system, the Chief Information Offi- cer of the Department of Defense. (B) Except as may be provided in subpara- graph (C), for any defense business system other than a priority defense business sys- tem— (i) in the case of a system of a military department, the Chief Information Officer of that military department; and (ii) in the case of a system of a Defense Agency or Department of Defense Field Activity, or a system that will support the business process of more than one military department or Defense Agency or Depart- ment of Defense Field Activity, the Chief Information Officer of the Department of Defense. (C) In the case of any defense business sys- tem, such official other than the applicable official under subparagraph (A) or (B) as the Secretary designates for such purpose. (3) ANNUAL CERTIFICATION.—For any fiscal year in which funds are expended for develop- ment or sustainment pursuant to a covered de- fense business system program, the appro- priate approval official shall review the sys- tem and certify, certify with conditions, or de- cline to certify, as the case may be, that it continues to satisfy the requirements of para- graph (1). If the approval official determines that certification cannot be granted, the ap- proval official shall notify the milestone deci- sion authority for the program and provide a recommendation for corrective action. (4) OBLIGATION OF FUNDS IN VIOLATION OF RE- QUIREMENTS.—The obligation of Department of Defense funds for a covered defense business system program that has not been certified in accordance with paragraph (3) is a violation of section 1341(a)(1)(A) of title 31. (h) RESPONSIBILITY OF MILESTONE DECISION AU- THORITY.—The milestone decision authority for a covered defense business system program shall be responsible for the acquisition of such system and shall ensure that acquisition process ap- provals are not considered for such system until the relevant certifications and approvals have been made under this section. (i) DEFINITIONS.—In this section: (1)(A) DEFENSE BUSINESS SYSTEM.—The term ‘‘defense business system’’ means an informa- tion system that is operated by, for, or on be- half of the Department of Defense, including any of the following: (i) A financial system. (ii) A financial data feeder system. (iii) A contracting system. (iv) A logistics system. (v) A planning and budgeting system. (vi) An installations management system. (vii) A human resources management sys- tem. (viii) A training and readiness system. (B) The term does not include— (i) a national security system; or (ii) an information system used exclu- sively by and within the defense commissary system or the exchange system or other in- strumentality of the Department of Defense conducted for the morale, welfare, and recre- ation of members of the armed forces using nonappropriated funds. (2) COVERED DEFENSE BUSINESS SYSTEM.—The term ‘‘covered defense business system’’ means a defense business system that is ex- pected to have a total amount of budget au- thority, over the period of the current future- years defense program submitted to Congress under section 221 of this title, in excess of $50,000,000. (3) BUSINESS SYSTEM PORTFOLIO.—The term ‘‘business system portfolio’’ means all busi- ness systems performing functions closely re- lated to the functions performed or to be per- formed by a covered defense business system. (4) COVERED DEFENSE BUSINESS SYSTEM PRO- GRAM.—The term ‘‘covered defense business system program’’ means a defense acquisition Page 1765 TITLE 10—ARMED FORCES § 2222 program to develop and field a covered defense business system or an increment of a covered defense business system. (5) PRIORITY DEFENSE BUSINESS SYSTEM.—The term ‘‘priority defense business system’’ means a defense business system that is— (A) expected to have a total amount of budget authority over the period of the cur- rent future-years defense program submitted to Congress under section 221 of this title in excess of $250,000,000; or (B) designated by the Chief Information Officer of the Department of Defense as a priority defense business system, based on specific program analyses of factors includ- ing complexity, scope, and technical risk, and after notification to Congress of such designation. (6) ENTERPRISE ARCHITECTURE.—The term ‘‘enterprise architecture’’ has the meaning given that term in section 3601(4) of title 44. (7) INFORMATION SYSTEM.—The term ‘‘infor- mation system’’ has the meaning given that term in section 11101 of title 40, United States Code. (8) NATIONAL SECURITY SYSTEM.—The term ‘‘national security system’’ has the meaning given that term in section 3552(b)(6)(A) of title 44. (9) BUSINESS PROCESS MAPPING.—The term ‘‘business process mapping’’ means a proce- dure in which the steps in a business process are clarified and documented in both written form and in a flow chart. (10) COMMON ENTERPRISE DATA.—The term ‘‘common enterprise data’’ means business op- erations or management-related data, gen- erally from defense business systems, in a usa- ble format that is automatically accessible by authorized personnel and organizations. (11) DATA GOVERNANCE PROCESS.—The term ‘‘data governance process’’ means a system to manage the timely Department of Defense- wide sharing of data described under sub- section (e)(6)(A). (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; Pub. L. 113–283, § 2(e)(5)(A), Dec. 18, 2014, 128 Stat. 3087; Pub. L. 113–291, div. A, title VIII, § 803, title IX, § 901(d), (k)(3), title X, § 1071(f)(16), Dec. 19, 2014, 128 Stat. 3427, 3463, 3468, 3511; Pub. L. 114–92, div. A, title VIII, § 883(a)(1), (f), title X, § 1081(a)(7), Nov. 25, 2015, 129 Stat. 942, 1001; Pub. L. 114–328, div. A, title X, § 1081(a)(6), (c)(5), Dec. 23, 2016, 130 Stat. 2417, 2419; Pub. L. 115–91, div. A, title IX, § 912(a), title X, § 1081(b)(2), Dec. 12, 2017, 131 Stat. 1519, 1597; Pub. L. 115–232, div. A, title X, § 1081(f)(1)(A)(ii), Aug. 13, 2018, 132 Stat. 1986; Pub. L. 116–92, div. A, title VIII, § 839(a), title IX, § 902(25), title XVII, § 1731(a)(31), Dec. 20, 2019, 133 Stat. 1498, 1545, 1814; Pub. L. 117–263, div. A, title IX, § 902, Dec. 23, 2022, 136 Stat. 2748; Pub. L. 118–159, div. A, title IX, § 902(b), Dec. 23, 2024, 138 Stat. 2026.) Editorial Notes PRIOR PROVISIONS A prior section 2222, added Pub. L. 105–85, div. A, title X, § 1008(a)(1), Nov. 18, 1997, 111 Stat. 1870; amended Pub. L. 107–107, div. A, title X, § 1009(b)(1)–(3)(A), Dec. 28, 2001, 115 Stat. 1208, 1209, required Secretary of Defense to submit to Congress an annual strategic plan for im- provement of financial management within Depart- ment of Defense and specified statements and matters to be included in the plan, prior to repeal by Pub. L. 107–314, div. A, title X, § 1004(h)(1), Dec. 2, 2002, 116 Stat. 2631. AMENDMENTS 2024—Subsec. (f)(1). Pub. L. 118–159 substituted ‘‘co- chaired’’ for ‘‘chaired’’ and inserted ‘‘and the Perform- ance Improvement Officer’’ after ‘‘Chief Information Officer’’. 2022—Subsec. (c)(2). Pub. L. 117–263, § 902(1), sub- stituted ‘‘the Chief Information Officer of the Depart- ment of Defense, the Under Secretary of Defense for Acquisition and Sustainment, and the Chief Informa- tion Officer’’ for ‘‘the Chief Management Officer of the Department of Defense, the Under Secretary of Defense for Acquisition and Sustainment, the Chief Information Officer, and the Chief Management Officer’’. Subsec. (e)(1). Pub. L. 117–263, § 902(2)(A), substituted ‘‘the Chief Information Officer’’ for ‘‘the Chief Manage- ment Officer’’. Subsec. (e)(6)(A). Pub. L. 117–263, § 902(2)(B)(i), in in- troductory provisions, substituted ‘‘The Chief Informa- tion Officer of the Department of Defense, in coordina- tion with the Chief Data and Artificial Intelligence Of- ficer,’’ for ‘‘The Chief Management Officer of the De- partment of Defense’’ and ‘‘the Chief Information Offi- cer shall—’’ for ‘‘the Chief Management Officer shall— ’’. Subsec. (e)(6)(B). Pub. L. 117–263, § 902(2)(B)(ii), sub- stituted ‘‘The Chief Information Officer’’ for ‘‘ The Chief Management Officer’’ in introductory provisions. Subsec. (f)(1). Pub. L. 117–263, § 902(3)(A), struck out ‘‘the Chief Management Officer and’’ before ‘‘the Chief Information Officer’’. Subsec. (f)(2). Pub. L. 117–263, § 902(3)(B)(i), (ii), added subpar. (A) and redesignated former subpars. (A) and (B) as (B) and (C), respectively. Subsec. (f)(2)(C)(iv). Pub. L. 117–263, § 902(3)(B)(iii), added cl. (iv). Subsec. (g)(2). Pub. L. 117–263, § 902(4), substituted ‘‘the Chief Information Officer’’ for ‘‘the Chief Manage- ment Officer’’ wherever appearing. Subsec. (i)(5)(B). Pub. L. 117–263, § 902(5), substituted ‘‘the Chief Information Officer’’ for ‘‘the Chief Manage- ment Officer’’. 2019—Subsec. (c)(2). Pub. L. 116–92, § 902(25)(A), sub- stituted ‘‘Under Secretary of Defense for Acquisition and Sustainment’’ for ‘‘Under Secretary of Defense for Acquisition, Technology, and Logistics’’. Subsec. (d). Pub. L. 116–92, § 839(a)(1), substituted ‘‘subsection (c)’’ for ‘‘subsection (c)(1)’’ in introductory provisions. Subsec. (d)(7), (8). Pub. L. 116–92, § 839(a)(2), added pars. (7) and (8). Subsec. (f)(2)(B)(i). Pub. L. 116–92, § 902(25)(B), sub- stituted ‘‘Under Secretary of Defense for Acquisition and Sustainment’’ for ‘‘Under Secretary of Defense for Acquisition, Technology, and Logistics’’. Subsec. (i)(11). Pub. L. 116–92, § 1731(a)(31), substituted ‘‘subsection (e)(6)(A)’’ for ‘‘subsection (a)(6)(A)’’. 2018—Pub. L. 115–232 substituted ‘‘Chief Management Officer’’ for ‘‘Deputy Chief Management Officer’’ in subsec. (c)(2) after ‘‘shall direct the’’ and in subsecs. (e)(1), (f)(1), (g)(2)(A), (B)(ii), and (i)(5)(B). Page 1766 TITLE 10—ARMED FORCES § 2222 2017—Subsecs. (c)(2), (e)(1). Pub. L. 115–91, § 1081(b)(2), repealed Pub. L. 114–92, § 883(f)(1)(A). See 2015 Amend- ment notes below. Subsec. (e)(5), (6). Pub. L. 115–91, § 912(a)(1), added pars. (5) and (6). Subsec. (f)(1). Pub. L. 115–91, § 1081(b)(2), repealed Pub. L. 114–92, § 883(f)(1)(B). See 2015 Amendment note below. Subsecs. (g)(2)(A), (B)(ii), (i)(5)(B). Pub. L. 115–91, § 1081(b)(2), repealed Pub. L. 114–92, § 883(f)(1)(A). See 2015 Amendment notes below. Subsec. (i)(10), (11). Pub. L. 115–91, § 912(a)(2), added pars. (10) and (11). 2016—Pub. L. 114–328, § 1081(c)(5), added subsec. (f) to section 883 of Pub. L. 114–92. See 2015 Amendment notes below. Subsec. (d)(1)(B). Pub. L. 114–328, § 1081(a)(6)(A), in- serted ‘‘to’’ before ‘‘eliminate’’. Subsec. (g)(1)(E). Pub. L. 114–328, § 1081(a)(6)(B), in- serted ‘‘the system’’ before ‘‘is in compliance’’. Subsec. (i)(5). Pub. L. 114–328, § 1081(a)(6)(C), struck out ‘‘program’’ after ‘‘system’’ in heading. 2015—Pub. L. 114–92, § 883(f)(2), as added by Pub. L. 114–328, § 1081(c)(5), repealed second par. (3) of section 901(k) of Pub. L. 113–291. See 2014 Amendment notes below. Pub. L. 114–92, § 883(a)(1), amended section generally. Prior to amendment, section related to architecture, accountability, and modernization of defense business systems. Subsecs. (c)(2), (e)(1). Pub. L. 114–92, § 883(f)(1)(A), as added by Pub. L. 114–328, § 1081(c)(5), which directed the substitution of ‘‘Under Secretary of Defense for Busi- ness Management and Information’’ for ‘‘Deputy Chief Management Officer of the Department of Defense’’, was repealed by Pub. L. 115–91, § 1081(b)(2). Subsec. (f)(1). Pub. L. 114–92, § 883(f)(1)(B), as added by Pub. L. 114–328, § 1081(c)(5), which directed the substi- tution of ‘‘Under Secretary of Defense for Business Management and Information’’ for ‘‘Deputy Chief Man- agement Officer’’, was repealed by Pub. L. 115–91, § 1081(b)(2). Subsecs. (g)(2)(A), (B)(ii), (i)(5)(B). Pub. L. 114–92, § 883(f)(1)(A), as added by Pub. L. 114–328, § 1081(c)(5), which directed the substitution of ‘‘Under Secretary of Defense for Business Management and Information’’ for ‘‘Deputy Chief Management Officer of the Department of Defense’’, was repealed by Pub. L. 115–91, § 1081(b)(2). Subsec. (j)(5). Pub. L. 114–92, § 1081(a)(7), substituted ‘‘section 3552(b)(6)’’ for ‘‘section 3552(b)(5)’’. Amend- ment was executed prior to amendment by Pub. L. 114–92, § 883(a)(1), see above, pursuant to section 1081(e) of Pub. L. 114–92, set out as a note under section 101 of this title. 2014—Subsec. (a). Pub. L. 113–291, § 901(d)(1), inserted ‘‘and’’ at end of par. (1), substituted period for ‘‘; and’’ at end of par. (2), and struck out par. (3) which read as follows: ‘‘the certification of the investment review board under paragraph (2) has been approved by the De- fense Business Systems Management Committee estab- lished by section 186 of this title.’’ Subsec. (a)(1)(A). Pub. L. 113–291, § 803(b)(1), inserted ‘‘, including business process mapping,’’ after ‘‘re-engi- neering efforts’’. Subsec. (c)(1). Pub. L. 113–291, § 901(d)(2), substituted ‘‘investment review board established under subsection (g)’’ for ‘‘Defense Business Systems Management Com- mittee’’ in introductory provisions. Subsecs. (c)(2)(E), (f)(1)(D), (E), (2)(E). Pub. L. 113–291, § 901(k)(3), which directed substitution of ‘‘the Under Secretary of Defense for Business Management and In- formation’’ for ‘‘the Deputy Chief Management Officer of the Department of Defense’’, but could not be exe- cuted following the general amendment of the section by Pub. L. 114–92, was repealed by Pub. L. 114–92, § 883(f)(2), as added by Pub. L. 114–328, § 1081(c)(5). See 2015 and 2016 Amendment notes above. Subsec. (g)(1). Pub. L. 113–291, § 901(k)(3), which di- rected substitution of ‘‘the Under Secretary of Defense for Business Management and Information’’ for ‘‘the Deputy Chief Management Officer of the Department of Defense’’, but could not be executed following the gen- eral amendment of the section by Pub. L. 114–92, was repealed by Pub. L. 114–92, § 883(f)(2), as added by Pub. L. 114–328, § 1081(c)(5). See 2015 and 2016 Amendment notes above. Pub. L. 113–291, § 901(d)(3)(A), struck out ‘‘, not later than March 15, 2012,’’ before ‘‘to establish an invest- ment review board’’. Subsec. (g)(2)(C). Pub. L. 113–291, § 901(d)(3)(B), sub- stituted ‘‘the investment review’’ for ‘‘each investment review’’ in introductory provisions. Subsec. (g)(2)(F). Pub. L. 113–291, § 901(d)(3)(C), struck out ‘‘and the Defense Business Systems Management Committee, as required by section 186(c) of this title,’’ after ‘‘Secretary of Defense’’. Subsec. (g)(3). Pub. L. 113–291, § 1071(f)(16), struck out ‘‘(A)’’ after ‘‘(3)’’. Subsec. (g)(3)(A). Pub. L. 113–291, § 901(k)(3), which di- rected substitution of ‘‘Under Secretary of Defense for Business Management and Information’’ for ‘‘Deputy Chief Management Officer’’ the first place appearing, and ‘‘Under Secretary’’ for ‘‘Deputy Chief Management Officer’’ the second, third, and fourth places appearing, but could not be executed following the general amend- ment of the section by Pub. L. 114–92, was repealed by Pub. L. 114–92, § 883(f)(2), as added by Pub. L. 114–328, § 1081(c)(5). See 2015 and 2016 Amendment notes above. Subsec. (j)(1). Pub. L. 113–291, § 803(a), designated ex- isting provisions as subpar. (A), struck out ‘‘, other than a national security system,’’ after ‘‘information system’’, and added subpar. (B). Subsec. (j)(5). Pub. L. 113–283 substituted ‘‘section 3552(b)(5)’’ for ‘‘section 3542(b)(2)’’. Subsec. (j)(6). Pub. L. 113–291, § 803(b)(2), added par. (6). 2013—Subsec. (e)(1). Pub. L. 113–66, § 901(1), substituted ‘‘target defense business systems computing environ- ment described in subsection (d)(3)’’ for ‘‘defense busi- ness enterprise architecture’’. Subsec. (e)(2). Pub. L. 113–66, § 901(2), substituted ‘‘that will be phased out of the defense business sys- tems computing environment within three years after review and certification as ‘legacy systems’ by the in- vestment management process established under sub- section (g)’’ for ‘‘existing as of September 30, 2011 (known as ‘legacy systems’) that will not be part of the defense business enterprise architecture’’ and struck out ‘‘that provides for reducing the use of those legacy systems in phases’’ before period at end. Subsec. (e)(3). Pub. L. 113–66, § 901(3), substituted ‘‘ex- isting systems that are part of the target defense busi- ness systems computing environment’’ for ‘‘legacy sys- tems (referred to in subparagraph (B)) that will be a part of the target defense business systems computing environment described in subsection (d)(3)’’. Subsec. (g)(3). Pub. L. 112–239 added par. (3). 2011—Pub. L. 112–81 amended section generally. Prior to amendment, section related to architecture, ac- countability, and modernization of defense business systems. Subsec. (a). Pub. L. 111–383 substituted ‘‘Funds’’ for ‘‘Effective October 1, 2005, funds’’. 2009—Subsec. (a). Pub. L. 111–84, § 1072(a)(1)(A), (B), added par. (1) and redesignated former pars. (1) and (2) as (2) and (3), respectively. Subsec. (a)(2)(A). Pub. L. 111–84, § 1072(a)(1)(C), added subpar. (A) and struck out former subpar. (A), which read as follows: ‘‘is in compliance with the enterprise architecture developed under subsection (c);’’. Subsec. (a)(3). Pub. L. 111–84, § 1072(a)(1)(D), sub- stituted ‘‘the certification by the approval authority and the determination by the chief management officer are’’ for ‘‘the certification by the approval authority is’’. Subsec. (f). Pub. L. 111–84, § 1072(a)(2), designated ex- isting provisions as par. (1), redesignated former pars. (1) to (5) as subpars. (A) to (E), respectively, of par. (1), in subpar. (E) substituted ‘‘subparagraphs (A) through (D)’’ for ‘‘paragraphs (1) through (4)’’, and added par. (2). Page 1767 TITLE 10—ARMED FORCES § 2222 2008—Subsec. (i). Pub. L. 110–417 substituted ‘‘2013’’ for ‘‘2009’’ in introductory provisions. 2006—Subsec. (j)(6). Pub. L. 109–364 substituted ‘‘in section 3542(b)(2) of title 44’’ for ‘‘in section 2315 of this title’’. Statutory Notes and Related Subsidiaries EFFECTIVE DATE OF 2017 AMENDMENT Pub. L. 115–91, div. A, title X, § 1081(b)(2), Dec. 12, 2017, 131 Stat. 1597, provided that the amendment made by section 1081(b)(2) is effective as of Nov. 25, 2015. EFFECTIVE DATE OF 2016 AMENDMENT Pub. L. 114–328, div. A, title X, § 1081(c), Dec. 23, 2016, 130 Stat. 2419, provided that the amendment made by section 1081(c)(5) is effective as of Nov. 25, 2015, and as if included in Pub. L. 114–92 as enacted. EFFECTIVE DATE OF 2015 AMENDMENT Pub. L. 114–92, div. A, title VIII, § 883(f)(1), as added by Pub. L. 114–328, div. A, title X, § 1081(c)(5), Dec. 23, 2016, 130 Stat. 2419, which provided that the amendment made by section 883(f)(1) was effective on the effective date specified in former section 901(a)(1) of Pub. L. 113–291 (Feb. 1, 2017), was repealed by Pub. L. 115–91, div. A, title X, § 1081(b)(2), Dec. 12, 2017, 131 Stat. 1597. EFFECTIVE DATE OF 2014 AMENDMENT Pub. L. 113–291, div. A, title IX, § 901(k)(3), Dec. 19, 2014, 128 Stat. 3468, which provided that the amendment made by section 901(k)(3) was effective on the effective date specified in former section 901(a)(1) of Pub. L. 113–291 (Feb. 1, 2017), was repealed by Pub. L. 114–92, div. A, title VIII, § 883(f)(2), as added by Pub. L. 114–328, div. A, title X, § 1081(c)(5), Dec. 23, 2016, 130 Stat. 2420. TRANSFER OF FUNCTIONS Position of Chief Management Officer of the Depart- ment of Defense effectively abolished upon the repeal of section 132a of this title by Pub. L. 116–283, div. A, title IX, § 901(a)(1), Jan. 1, 2021, 134 Stat. 3794. Duties, personnel, and functions of the Chief Management Offi- cer transferred to other Department of Defense officers, employees, and organizations, and any reference to the Chief Management Officer of the Department of De- fense to be deemed to refer to the applicable Depart- ment of Defense officer or employee as so designated, see section 901(b), (c) of Pub. L. 116–283, set out in a note under former section 132a of this title. PILOT PROGRAM ON USE OF ARTIFICIAL INTELLIGENCE FOR CERTAIN WORKFLOW AND OPERATIONS TASKS Pub. L. 118–159, div. A, title II, § 237, Dec. 23, 2024, 138 Stat. 1842, provided that: ‘‘(a) PILOT PROGRAM REQUIRED.—Beginning not later than 60 days after the date of the enactment of this Act [Dec. 23, 2024], the Secretary of Defense shall carry out a pilot program to assess the feasibility and advis- ability of using artificial intelligence-enabled software to optimize the workflow and operations for— ‘‘(1) depots, shipyards, or other manufacturing fa- cilities run by the Department of Defense; and ‘‘(2) contract administration for the Department, including— ‘‘(A) the adjudication and review of contracts; and ‘‘(B) activities related to the Modernization and Analytics Initiative managed by the Defense Con- tract Management Agency. ‘‘(b) METHOD OF IMPLEMENTATION.—The Secretary of Defense may carry out subsection (a) through— ‘‘(1) the establishment of a new pilot program; or ‘‘(2) the designation of an existing initiative of the Department of Defense to serve as the pilot program required under such subsection. ‘‘(c) SOFTWARE.—In carrying out the pilot program required by subsection (a), the Secretary shall— ‘‘(1) use best in breed software platforms; ‘‘(2) consider industry best practices in the selec- tion of software programs; ‘‘(3) implement the program based on human cen- tered design practices to best identify the business needs for improvement; and ‘‘(4) demonstrate connection to enterprise plat- forms of record with authoritative data sources. ‘‘(d) CONSULTATION.—In carrying out the activities described in subsection (a)(1) under the pilot program, the Secretary of Defense shall consult with— ‘‘(1) the Under Secretary of Defense for Acquisition and Sustainment; ‘‘(2) the Secretary of the Army; ‘‘(3) the Secretary of the Navy; and ‘‘(4) the Secretary of the Air Force. ‘‘(e) REPORT.—Not later than one year after the date of the commencement of the pilot program under sub- section (a), the Secretary of Defense shall submit to the Committees on Armed Services of the Senate and the House of Representatives a report containing the following information: ‘‘(1) An evaluation of each software platform used in the pilot program. ‘‘(2) An analysis of how workflows and operations were modified as part of the pilot program. ‘‘(3) A quantitative assessment of the impact the software had at each of the locations in which the pilot program was carried out.’’ NEXT GENERATION BUSINESS HEALTH METRICS Pub. L. 118–31, div. A, title IX, § 921, Dec. 22, 2023, 137 Stat. 373, provided that: ‘‘(a) METRICS REQUIRED.—The Secretary of Defense, in coordination with the Secretaries of the military de- partments, shall develop an updated set of business health metrics to inform decision-making by senior leaders of the Department of Defense. ‘‘(b) ELEMENTS.—In developing the metrics required by subsection (a), the Secretary of Defense shall— ‘‘(1) using the latest literature on performance measurement, determine what additional new metrics should be implemented, or current metrics should be adapted, to reduce output-based measures and emphasize objective, measurable indicators aligned to enduring strategic goals of the Department of Defense; ‘‘(2) assess the current business processes of the De- partment and provide recommendations to align the metrics with available data sources to determine what gaps might exist in such processes; ‘‘(3) ensure that data can be collected automati- cally and, on a long-term basis, in a manner that pro- vides for longitudinal analysis; ‘‘(4) link the metrics with the Strategic Manage- ment Plan and other performance documents guiding the Department; ‘‘(5) identify any shortfalls in resources, data, training, policy, or law that could be an impediment to implementing the metrics; ‘‘(6) revise leading and lagging indicators associ- ated with each such metric to provide a benchmark against which to assess progress; ‘‘(7) improve visualization of and comprehension for the use of the metrics in data-driven decision-mak- ing, including adoption of new policies and training as needed; ‘‘(8) incorporate the ability to aggregate and disaggregate data to provide the ability to focus on functional, component-level metrics; and ‘‘(9) increase standardization of the use and collec- tion of business health metrics across the Depart- ment. ‘‘(c) ADDITIONAL SUPPORT.—The Secretary of Defense may enter into a contract or other agreement with a federally funded research and development center or university-affiliated research center to support the de- velopment of the metrics required under subsection (a).’’ Page 1768 TITLE 10—ARMED FORCES § 2222 PRIZE COMPETITIONS FOR BUSINESS SYSTEMS MODERNIZATION Pub. L. 118–31, div. A, title XV, § 1525, Dec. 22, 2023, 137 Stat. 556, provided that: ‘‘(a) ESTABLISHMENT.—Not later than 270 days after the date of the enactment of this Act [Dec. 22, 2023], under the authority of section 4025 of title 10, United States Code, the Secretary of Defense shall establish one or more prize competitions to support the business systems modernization goals of the Department of De- fense. ‘‘(b) SCOPE.— ‘‘(1) IN GENERAL.—The Secretary of Defense shall structure any prize competition established under subsection (a) to complement, and to the extent prac- ticable, accelerate the delivery or expand the functionality of business systems capabilities sought by the Secretaries of the military departments that are in operation, in development, or belong to any broad class of systems covered by the defense busi- ness enterprise architecture specified in section 2222(e) of title 10, United States Code. ‘‘(2) AREAS FOR CONSIDERATION.—In carrying out subsection (a), the Secretary of Defense and the Sec- retaries of the military departments shall consider the following: ‘‘(A) Integration of artificial intelligence or ma- chine learning capabilities. ‘‘(B) Data analytics, business intelligence, or re- lated visualization capabilities. ‘‘(C) Automated updating of business architec- tures, business systems integration, or documenta- tion relating to existing systems or manuals. ‘‘(D) Improvements to interfaces or processes for interacting with other non-Department of Defense business systems. ‘‘(E) Updates or replacements for legacy defense business systems to improve operational effective- ness and efficiency, such as the system of the De- fense Logistics Agency known as the ‘Mechaniza- tion of Contract Administration Services’ system, or any successor system. ‘‘(F) Contract writing systems, or expanded capa- bilities relating to such systems, that may be inte- grated into existing systems of the Department of Defense. ‘‘(G) Pay and personnel systems, or expanded ca- pabilities relating to such systems, that may be in- tegrated into existing systems of the Department of Defense. ‘‘(H) Other finance and accounting systems, or ex- panded capabilities relating to such systems, that may be integrated into existing systems of the De- partment of Defense. ‘‘(I) Systems supporting the defense industrial base and related supply chain visibility, analytics, and management. ‘‘(c) FRAMEWORK.—Not later than 180 days after the date of the enactment of this Act, the Secretary of De- fense shall provide to the congressional defense com- mittees [Committees on Armed Services and Appro- priations of the Senate and the House of Representa- tives] a briefing on the framework to be used in car- rying out the prize competition under subsection (a). ‘‘(d) ANNUAL BRIEFINGS.—Not later than October 1 of each year until the date of termination under sub- section (e), the Secretary of Defense shall provide to the congressional defense committees a briefing on the results of the prize competition under subsection (a). ‘‘(e) TERMINATION.—The authority to carry out the prize competition under subsection (a) shall terminate on September 30, 2028.’’ IMPROVED RECORDING AND MAINTAINING OF DEPARTMENT OF DEFENSE REAL PROPERTY DATA Pub. L. 116–92, div. B, title XXVIII, § 2823, Dec. 20, 2019, 133 Stat. 1889, provided that: ‘‘(a) INITIAL REPORT.—Not later than 150 days after the date of the enactment of this Act [Dec. 20, 2019], the Undersecretary [probably should be ‘‘Under Secretary’’] of Defense for Acquisition and Sustainment shall sub- mit to the congressional defense committees [Commit- tees on Armed Services and Appropriations of the Sen- ate and the House of Representatives] a report that evaluates service-level best practices for recording and maintaining real property data. ‘‘(b) ISSUANCE OF GUIDANCE.—Not later than 300 days after the date of the enactment of this Act, the Under- secretary [probably should be ‘‘Under Secretary’’] of Defense for Acquisition and Sustainment shall issue service-wide guidance on the recording and collection of real property data based on the best practices de- scribed in the report.’’ REFORM OF BUSINESS ENTERPRISE OPERATIONS IN SUP- PORT OF CERTAIN ACTIVITIES ACROSS DEPARTMENT OF DEFENSE Pub. L. 115–232, div. A, title IX, § 921(b), Aug. 13, 2018, 132 Stat. 1927, provided that: ‘‘(1) PERIODIC REFORM.— ‘‘(A) IN GENERAL.—Not later than January 1, 2020, and not less frequently than once every five years thereafter, the Secretary of Defense shall, acting through the Chief Management Officer of the Depart- ment of Defense, reform enterprise business oper- ations of the Department of Defense, through reduc- tions, eliminations, or improvements, across all orga- nizations and elements of the Department with re- spect to covered activities in order to increase effec- tiveness and efficiency of mission execution. ‘‘(B) CMO REPORTS.—Not later than January 1 of every fifth calendar year beginning with January 1, 2025, the Chief Management Officer shall submit to the congressional defense committees [Committees on Armed Services and Appropriations of the Senate and the House of Representatives] a report that de- scribes the activities carried out by the Chief Man- agement Officer under this subsection during the pre- ceding five years, including an estimate of any cost savings achieved as a result of such activities. ‘‘(2) COVERED ACTIVITIES DEFINED.—In this subsection, the term ‘covered activities’ means any activity relat- ing to civilian resources management, logistics man- agement, services contracting, or real estate manage- ment. ‘‘(3) REPORTING FRAMEWORK.—Not later than January 1, 2020, the Chief Management Officer shall establish a consistent reporting framework to establish a baseline for the costs to perform all covered activities, and shall submit to Congress a report that, for each individual covered activity performed in fiscal year 2019, identifies the following: ‘‘(A) The component or components of the Depart- ment responsible for performing such activity, and a business process map of such activity, in fiscal year 2019. ‘‘(B) The number of the military, civilian, and con- tractor personnel of the component or components of the Department who performed such activity in that fiscal year. ‘‘(C) The manpower requirements for such activity as of that fiscal year. ‘‘(D) The systems and other resources associated with such activity as of that fiscal year. ‘‘(E) The cost in dollars of performing such activity in fiscal year 2019. ‘‘(4) INITIAL PLAN.—Not later than February 1, 2019, the Chief Management Officer shall submit to the con- gressional defense committees a plan, schedule, and cost estimate for conducting the reforms required under paragraph (1)(A). ‘‘(5) CERTIFICATION OF COST SAVINGS.—Not later than January 1, 2020, the Chief Management Officer shall certify to the congressional defense committees that the savings and costs incurred as a result of activities carried out under paragraph (1) will achieve savings in fiscal year 2020 against the total amount obligated and expended for covered activities in fiscal year 2019 of— ‘‘(A) not less than 25 percent of the cost in dollars of performing covered activities in fiscal year 2019 as specified pursuant to paragraph (3)(E); or Page 1769 TITLE 10—ARMED FORCES § 2222 ‘‘(B) if the Chief Management Officer determines that achievement of savings of 25 percent or more will create overall inefficiencies for the Department, notice and justification will be submitted to the con- gressional defense committees specifying a lesser per- centage of savings that the Chief Management Officer determines to be necessary to achieve efficiencies in the delivery of covered activities, which notice and justification shall be submitted by not later than Oc- tober 1, 2019, together with a description of the effi- ciencies to be achieved. ‘‘(6) COMPTROLLER GENERAL REPORTS.—The Comp- troller General of the United States shall submit to the congressional defense committees the following: ‘‘(A) Not later than 90 days after the submittal of the plan under paragraph (4), a report that verifies whether the plan is feasible. ‘‘(B) Not later than 270 days after the date of enact- ment of this Act [Aug. 13, 2018], a report setting forth an assessment of the actions taken under paragraph (1)(A) since the date of the enactment of this Act. ‘‘(C) Not later than 270 days after the submittal of the reporting framework under paragraph (3), a re- port that verifies whether the baseline established in the framework is accurate. ‘‘(D) Not later than 270 days after the submittal of the report under paragraph (5), a report that verifies— ‘‘(i) whether the activities described in the report were carried out; and ‘‘(ii) whether any cost savings estimated in the report are accurate.’’ [For abolition and transfer of functions of Chief Man- agement Officer of the Department of Defense, see Transfer of Functions note above.] ANALYSIS OF DEPARTMENT OF DEFENSE BUSINESS MAN- AGEMENT AND OPERATIONS DATASETS TO PROMOTE SAVINGS AND EFFICIENCIES Pub. L. 115–232, div. A, title IX, § 922, Aug. 13, 2018, 132 Stat. 1929, provided that: ‘‘(a) IN GENERAL.—The Chief Management Officer of the Department of Defense shall develop a policy on analysis of Department of Defense datasets on business management and business operations by the public for purposes of accessing data analysis capabilities that would promote savings and efficiencies and otherwise enhance the utility of such datasets to the Department. ‘‘(b) INITIAL DISCHARGE OF POLICY.— ‘‘(1) IN GENERAL.—The Chief Management Officer shall commence the discharge of the policy required pursuant to subsection (a) by— ‘‘(A) identifying one or more matters— ‘‘(i) that are of significance to the Department of Defense; ‘‘(ii) that are currently unresolved; and ‘‘(iii) whose resolution from a business manage- ment or business operations dataset of the De- partment could benefit from a method or tech- nique of analysis not currently familiar to the Department; ‘‘(B) identifying between three and five business management or business operations datasets of the Department not currently available to the public whose evaluation could result in novel data anal- ysis solutions toward management or operations problems of the Department identified by the Chief Management Officer; and ‘‘(C) encouraging, whether by competition or other mechanisms, the evaluation of the datasets described in subparagraph (B) by appropriate per- sons and entities in the public or private sector (in- cluding academia). ‘‘(2) PROTECTION OF SECURITY AND CONFIDEN- TIALITY.—In providing for the evaluation of datasets pursuant to this subsection, the Chief Management Officer shall take appropriate actions to protect the security and confidentiality of any information con- tained in the datasets, including through special pre- cautions to ensure that any personally identifiable information is not included and no release of infor- mation will adversely affect national security mis- sions.’’ [For abolition and transfer of functions of Chief Man- agement Officer of the Department of Defense, see Transfer of Functions note above.] AUDIT OF FINANCIAL SYSTEMS OF THE DEPARTMENT OF DEFENSE BY PROFESSIONAL ACCOUNTANTS Pub. L. 115–232, div. A, title X, § 1004, Aug. 13, 2018, 132 Stat. 1947, provided that: ‘‘The Secretary of Defense, acting through the Under Secretary of Defense (Comp- troller) or an appropriate official of a military depart- ment, shall ensure that each major implementation of, or modification to, a business system that contributes to financial information of the Department of Defense is reviewed by professional accountants with experi- ence reviewing Federal financial systems to validate that such financial system will meet any applicable Federal requirements. The Secretary of Defense shall ensure that such accountants— ‘‘(1) are provided all necessary data and records; and ‘‘(2) report independently on their findings.’’ STANDARDIZED BUSINESS PROCESS RULES FOR MILITARY INTELLIGENCE PROGRAM Pub. L. 115–232, div. A, title XVI, § 1624(a), Aug. 13, 2018, 132 Stat. 2119, provided that: ‘‘(1) DEVELOPMENT.—Not later than October 1, 2020, the Chief Management Officer of the Department of De- fense, in coordination with the Under Secretary of De- fense (Comptroller) and the Under Secretary of Defense for Intelligence [now Under Secretary of Defense for In- telligence and Security], shall develop and implement standardized business process rules for the planning, programming, budgeting, and execution process for the Military Intelligence Program. ‘‘(2) TREATMENT OF DATA.—The Chief Management Of- ficer shall develop the standardized business process rules under paragraph (1) in accordance with section 911 of the National Defense Authorization Act for Fiscal Year 2018 (Public Law 115–91; 131 Stat. 1519; 10 U.S.C. 2222 note) [set out below] and section 2222(e)(6) of title 10, United States Code. ‘‘(3) USE OF EXISTING SYSTEMS.—In developing the standardized business process rules under paragraph (1), to the extent practicable, the Chief Management Offi- cer shall use enterprise business systems of the Depart- ment of Defense in existence as of the date of the en- actment of this Act [Aug. 13, 2018]. ‘‘(4) REPORT.—Not later than March 1, 2019, the Chief Management Officer of the Department of Defense, the Under Secretary of Defense (Comptroller), and the Under Secretary of Defense for Intelligence shall joint- ly submit to the appropriate congressional committees a report containing a plan to develop the standardized business process rules under paragraph (1). ‘‘(5) APPROPRIATE CONGRESSIONAL COMMITTEES.—In this subsection, the term ‘appropriate congressional committees’ means the following: ‘‘(A) The congressional defense committees [Com- mittees on Armed Services and Appropriations of the Senate and the House of Representatives]. ‘‘(B) The Permanent Select Committee on Intel- ligence of the House of Representatives and the Se- lect Committee on Intelligence of the Senate.’’ POLICY ON TREATMENT OF DEFENSE BUSINESS SYSTEM DATA RELATED TO BUSINESS OPERATIONS AND MAN- AGEMENT Pub. L. 115–91, div. A, title IX, § 911, Dec. 12, 2017, 131 Stat. 1519, provided that: ‘‘(a) ESTABLISHMENT OF POLICY.—Not later than one year after the date of the enactment of this Act [Dec. 12, 2017], the Secretary of Defense shall establish a data policy for the Department of Defense that mandates that any data contained in a defense business system related to business operations and management is an asset of the Department of Defense. Page 1770 TITLE 10—ARMED FORCES § 2222 ‘‘(b) AVAILABILITY.—As part of the policy required by subsection (a), the Secretary of Defense shall ensure that, except as otherwise provided by law or regulation, data described in such subsection shall be made readily available to members of the Office of the Secretary of Defense, the Joint Staff, the military departments, the combatant commands, the Defense Agencies, the De- partment of Defense Field Activities, and all other of- fices, agencies, activities, and commands of the Depart- ment of Defense, as applicable.’’ ESTABLISHMENT OF DATA ANALYTICS CAPABILITY Pub. L. 115–91, div. A, title IX, § 912(e), Dec. 12, 2017, 131 Stat. 1521, provided that: ‘‘(1) DATA ANALYTICS CAPABILITY REQUIRED.—Not later than September 30, 2020, the Chief Management Officer of the Department of Defense shall establish and main- tain within the Department of Defense a data analytics capability for purposes of supporting enhanced over- sight and management of the Defense Agencies and De- partment of Defense Field Activities. ‘‘(2) ELEMENTS.—The data analytics capability shall permit the following: ‘‘(A) The maintenance on a continuing basis of an accurate tabulation of the amounts expended by the Defense Agencies and Department of Defense Field Activities on Government and contractor personnel. ‘‘(B) The maintenance on a continuing basis of an accurate number of the personnel currently sup- porting the Defense Agencies and Department of De- fense Field Activities, including the following: ‘‘(i) Members of the regular components of the Armed Forces. ‘‘(ii) Members of the reserve components of the Armed Forces. ‘‘(iii) Civilian employees of the Department of De- fense. ‘‘(iv) Detailees, whether from another organiza- tion or element of the Department or from another department or agency of the Federal Government. ‘‘(C) The tracking of costs for employing contract personnel, including federally funded research and de- velopment centers. ‘‘(D) The maintenance on a continuing basis of the following: ‘‘(i) An identification of the functions being per- formed by each Defense Agency and Department of Defense Field Activity. ‘‘(ii) An accurate tabulation of the amounts being expended by each Defense Agency and Department of Defense Field Activity on its functions. ‘‘(3) REPORTING REQUIREMENTS.— ‘‘(A) INTERIM REPORT.—Not later than one year after the date of the enactment of this Act [Dec. 12, 2017], the Chief Management Officer of the Depart- ment of Defense shall submit to the congressional de- fense committees [Committees on Armed Services and Appropriations of the Senate and the House of Representatives] a report on progress in establishing the data analytics capability. The report shall in- clude the following: ‘‘(i) A description and assessment of the efforts of the Chief Management Officer through the date of the report to establish the data analytics capa- bility. ‘‘(ii) A description of current gaps in the data re- quired to establish the data analytics capability, and a description of the efforts to be undertaken to eliminate such gaps. ‘‘(B) FINAL REPORT.—Not later than December 31, 2020, the Chief Management Officer shall submit to the congressional defense committees a report on the data analytics capability as established pursuant to this section.’’ DATA INTEGRATION STRATEGIES PILOT PROGRAMS Pub. L. 115–91, div. A, title IX, § 912(f), Dec. 12, 2017, 131 Stat. 1522, provided that: ‘‘(1) IN GENERAL.—The Secretary of Defense shall carry out pilot programs to develop data integration strategies for the Department of Defense to address high-priority management challenges of the Depart- ment. ‘‘(2) ELEMENTS.—The pilot programs carried out under the authority of this subsection shall involve data integration strategies to address challenges of the Department with respect to the following: ‘‘(A) The budget of the Department. ‘‘(B) Logistics. ‘‘(C) Personnel security and insider threats. ‘‘(D) At least two other high-priority challenges of the Department identified by the Secretary for pur- poses of this subsection. ‘‘(3) REPORT ON PILOT PROGRAMS.—Not later than one year after the date of the enactment of this Act [Dec. 12, 2017], the Secretary of Defense shall submit to the congressional defense committees [Committees on Armed Services and Appropriations of the Senate and the House of Representatives] a report describing the pilot programs to be carried out under this section, in- cluding the challenge of the Department to be ad- dressed by the pilot program and the manner in which the data integration strategy under the pilot program will address the challenge. If any proposed pilot pro- gram requires legislative action for the waiver or modi- fication of a statutory requirement that otherwise pre- vents or impedes the implementation of the pilot pro- gram, the Secretary shall include in the report a rec- ommendation for legislative action to waive or modify the statutory requirement.’’ IMPROPER PAYMENT MATTERS Pub. L. 115–91, div. A, title X, § 1003, Dec. 12, 2017, 131 Stat. 1542, provided that: ‘‘Subject to the authority, di- rection, and control of the Secretary of Defense, the Under Secretary of Defense (Comptroller) shall take the following actions: ‘‘(1) With regard to estimating improper payments: ‘‘(A) Establish and implement key quality assur- ance procedures, such as reconciliations, to ensure the completeness and accuracy of sampled popu- lations. ‘‘(B) Revise the procedures for the sampling methodologies of the Department of Defense so that such procedures— ‘‘(i) comply with Office of Management and Budget guidance and generally accepted statis- tical standards; ‘‘(ii) produce statistically valid improper pay- ment error rates, statistically valid improper payment dollar estimates, and appropriate con- fidence intervals for both; and ‘‘(iii) in meeting clauses (i) and (ii), take into account the size and complexity of the trans- actions being sampled. ‘‘(2) With regard to identifying programs suscep- tible to significant improper payments, conduct a risk assessment that complies with the Improper Payments Elimination and Recovery Act of 2010 (Public Law 111–204 [See Short Title of 2010 Amend- ment note set out under section 3301 of Title 31, Money and Finance]) and the amendments made by that Act (in this section collectively referred to as ‘IPERA’). ‘‘(3) With regard to reducing improper payments, establish procedures that produce corrective action plans that— ‘‘(A) comply fully with IPERA and associated Of- fice of Management and Budget guidance, including by holding individuals responsible for imple- menting corrective actions and monitoring the sta- tus of corrective actions; and ‘‘(B) are in accordance with best practices, such as those recommended by the Chief Financial Offi- cers Council, including by providing for— ‘‘(i) measurement of the progress made toward remediating root causes of improper payments; and ‘‘(ii) communication to the Secretary of De- fense and the heads of departments, agencies, and Page 1771 TITLE 10—ARMED FORCES § 2222 organizations and elements of the Department of Defense, and key stakeholders, on the progress made toward remediating the root causes of im- proper payments. ‘‘(4) With regard to implementing recovery audits for improper payments, develop and implement pro- cedures to— ‘‘(A) identify costs related to the recovery audits and recovery efforts of the Department of Defense; and ‘‘(B) evaluate improper payment recovery efforts in order to ensure that they are cost effective. ‘‘(5) Monitor the implementation of the revised chapter of the Financial Management Regulations on recovery audits in order to ensure that the Depart- ment of Defense, the military departments, the De- fense Agencies, and the other organizations and ele- ments of the Department of Defense either conduct recovery audits or demonstrate that it is not cost ef- fective to do so. ‘‘(6) Develop and submit to the Office of Manage- ment and Budget for approval a payment recapture audit plan that fully complies with Office of Manage- ment and Budget guidance. ‘‘(7) With regard to reporting on improper pay- ments, design and implement procedures to ensure that the annual improper payment and recovery audit reporting of the Department of Defense is com- plete, accurate, and complies with IPERA and associ- ated Office of Management and Budget guidance.’’ FINANCIAL OPERATIONS DASHBOARD FOR THE DEPARTMENT OF DEFENSE Pub. L. 115–91, div. A, title X, § 1005, Dec. 12, 2017, 131 Stat. 1544, provided that: ‘‘(a) IN GENERAL.—The Under Secretary of Defense (Comptroller) shall develop and maintain on an Inter- net website available to Department of Defense agen- cies a tool (commonly referred to as a ‘dashboard)’ [sic] to permit officials to track key indicators of the finan- cial performance of the Department of Defense. Such key indicators may include outstanding accounts pay- able, abnormal accounts payable, outstanding ad- vances, unmatched disbursements, abnormal undeliv- ered orders, negative unliquidated obligations, viola- tions of sections 1341 and 1517(a) of title 31, United States Code (commonly referred to as the ‘Anti-Defi- ciency Act’), costs deriving from payment delays, in- terest penalty payments, and improper payments, and actual savings realized through interest payments made, discounts for timely or advanced payments, and other financial management and improvement initia- tives. ‘‘(b) INFORMATION COVERED.—The tool shall cover fi- nancial performance information for the military de- partments, the defense agencies, and any other organi- zations or elements of the Department of Defense. ‘‘(c) TRACKING OF PERFORMANCE OVER TIME.—The tool shall permit the tracking of financial performance over time, including by month, quarter, and year, and per- mit users of the tool to export both current and histor- ical data on financial performance. ‘‘(d) UPDATES.—The information covered by the tool shall be updated not less frequently than quarterly.’’ IMPROVED MANAGEMENT PRACTICES TO REDUCE COST AND IMPROVE PERFORMANCE OF CERTAIN DEPART- MENT OF DEFENSE ORGANIZATIONS Pub. L. 114–328, div. A, title VIII, § 894, Dec. 23, 2016, 130 Stat. 2325, provided that: ‘‘(a) IN GENERAL.—Beginning not later than 180 days after the date of the enactment of this Act [Dec. 23, 2016], the Secretary of Defense shall designate units, subunits, or entities of the Department of Defense, other than Centers of Industrial and Technical Excel- lence designated pursuant to section 2474 of title 10, United States Code, that conduct work that is commer- cial in nature or is not inherently governmental to prioritize efforts to conduct business operations in a manner that uses modern, commercial management practices and principles to reduce the costs and im- prove the performance of such organizations. ‘‘(b) ADOPTION OF MODERN BUSINESS PRACTICES.—The Secretary shall ensure that each such unit, subunit, or entity of the Department described in subsection (a) is authorized to adopt and implement best commercial and business management practices to achieve the goals described in such subsection. ‘‘(c) WAIVERS.—The Secretary shall authorize waivers of Department of Defense, military service, and De- fense Agency regulations, as appropriate, to achieve the goals in subsection (a), including in the following areas: ‘‘(1) Financial management. ‘‘(2) Human resources. ‘‘(3) Facility and plant management. ‘‘(4) Acquisition and contracting. ‘‘(5) Partnerships with the private sector. ‘‘(6) Other business and management areas as iden- tified by the Secretary. ‘‘(d) GOALS.—The Secretary of Defense shall identify savings goals to be achieved through the implementa- tion of the commercial and business management prac- tices adopted under subsection (b), and establish a schedule for achieving the savings. ‘‘(e) BUDGET ADJUSTMENT.—The Secretary shall es- tablish policies to adjust organizational budget alloca- tions, at the Secretary’s discretion, for purposes of— ‘‘(1) using savings derived from implementation of best commercial and business management practices for high priority military missions of the Department of Defense; ‘‘(2) creating incentives for the most efficient and effective development and adoption of new commer- cial and business management practices by organiza- tions; and ‘‘(3) investing in the development of new commer- cial and business management practices that will re- sult in further savings to the Department of Defense. ‘‘(f) BUDGET BASELINES.—Beginning not later than one year after the date of the enactment of this Act [Dec. 23, 2016], each such unit, subunit, or entity of the Department described in subsection (a) shall, in accord- ance with such guidance as the Secretary of Defense shall establish for purposes of this section— ‘‘(1) establish an annual baseline cost estimate of its operations; and ‘‘(2) certify that costs estimated pursuant to para- graph (1) are wholly accounted for and presented in a format that is comparable to the format for the pres- entation of such costs for other elements of the De- partment or consistent with best commercial prac- tices.’’ INCREASED USE OF COMMERCIAL DATA INTEGRATION AND ANALYSIS PRODUCTS FOR THE PURPOSE OF PRE- PARING FINANCIAL STATEMENT AUDITS Pub. L. 114–328, div. A, title X, § 1003, Dec. 23, 2016, 130 Stat. 2380, which required the Secretary of Defense to procure or develop technologies or services to improve data collection and analyses to support preparation of auditable financial statements for the Department of Defense, was repealed by Pub. L. 115–91, div. A, title X, § 1002(f)(3), Dec. 12, 2017, 131 Stat. 1542. See section 240e of this title. SCIENCE AND TECHNOLOGY ACTIVITIES TO SUPPORT BUSINESS SYSTEMS INFORMATION TECHNOLOGY ACQUI- SITION PROGRAMS Pub. L. 114–92, div. A, title II, § 217, Nov. 25, 2015, 129 Stat. 770, as amended by Pub. L. 115–232, div. A, title X, § 1081(f)(1)(A)(v), Aug. 13, 2018, 132 Stat. 1986; Pub. L. 116–92, div. A, title IX, § 902(26), Dec. 20, 2019, 133 Stat. 1545; Pub. L. 116–283, div. A, title XVIII, § 1806(e)(3)(B), Jan. 1, 2021, 134 Stat. 4156, provided that: ‘‘(a) IN GENERAL.—The Secretary of Defense, acting through the Under Secretary of Defense for Acquisition and Sustainment and Under Secretary of Defense for Page 1772 TITLE 10—ARMED FORCES § 2222 Research and Engineering, the Chief Management Offi- cer, and the Chief Information Officer, shall establish a set of science, technology, and innovation activities to improve the acquisition outcomes of major automated information systems through improved performance and reduced developmental and life cycle costs. ‘‘(b) EXECUTION OF ACTIVITIES.—The activities estab- lished under subsection (a) shall be carried out by such military departments and Defense Agencies as the Under Secretary and the Chief Management Officer consider appropriate. ‘‘(c) ACTIVITIES.— ‘‘(1) IN GENERAL.—The set of activities established under subsection (a) may include the following: ‘‘(A) Development of capabilities in Department of Defense laboratories, test centers, and federally funded research and development centers to provide technical support for acquisition program manage- ment and business process re-engineering activi- ties. ‘‘(B) Funding of intramural and extramural re- search and development activities as described in subsection (e). ‘‘(2) CURRENT ACTIVITIES.—The Secretary shall iden- tify the current activities described in subparagraphs (A) and (B) of paragraph (1) that are being carried out as of the date of the enactment of this Act [Nov. 25, 2015]. The Secretary shall consider such current ac- tivities in determining the set of activities to estab- lish pursuant to subsection (a). ‘‘(d) GAP ANALYSIS.—In establishing the set of activi- ties under subsection (a), not later than 270 days after the date of the enactment of this Act [Nov. 25, 2015], the Secretary, in coordination with the Secretaries of the military departments and the heads of the Defense Agencies, shall conduct a gap analysis to identify ac- tivities that are not, as of such date, being pursued in the current science and technology program of the De- partment. The Secretary shall use such analysis in de- termining— ‘‘(1) the set of activities to establish pursuant to subsection (a) that carry out the purposes specified in subsection (c)(1); and ‘‘(2) the proposed funding requirements and timelines. ‘‘(e) FUNDING OF INTRAMURAL AND EXTRAMURAL RE- SEARCH AND DEVELOPMENT.— ‘‘(1) IN GENERAL.—In carrying out the set of activi- ties required by subsection (a), the Secretary may award grants or contracts to eligible entities to carry out intramural or extramural research and develop- ment in areas of interest described in paragraph (3). ‘‘(2) ELIGIBLE ENTITIES.—For purposes of this sub- section, an eligible entity includes the following: ‘‘(A) Entities in the defense industry. ‘‘(B) Institutions of higher education. ‘‘(C) Small businesses. ‘‘(D) Nontraditional defense contractors (as de- fined in section 3014 of title 10, United States Code). ‘‘(E) Federally funded research and development centers, primarily for the purpose of improving technical expertise to support acquisition efforts. ‘‘(F) Nonprofit research institutions. ‘‘(G) Government laboratories and test centers, primarily for the purpose of improving technical expertise to support acquisition efforts. ‘‘(3) AREAS OF INTEREST.—The areas of interest de- scribed in this paragraph are the following: ‘‘(A) Management innovation, including per- sonnel and financial management policy innova- tion. ‘‘(B) Business process re-engineering. ‘‘(C) Systems engineering of information tech- nology business systems. ‘‘(D) Cloud computing to support business sys- tems and business processes. ‘‘(E) Software development, including systems and techniques to limit unique interfaces and sim- plify processes to customize commercial software to meet the needs of the Department of Defense. ‘‘(F) Hardware development, including systems and techniques to limit unique interfaces and sim- plify processes to customize commercial hardware to meet the needs of the Department of Defense. ‘‘(G) Development of methodologies and tools to support development and operational test of large and complex business systems. ‘‘(H) Analysis tools to allow decision-makers to make tradeoffs between requirements, costs, tech- nical risks, and schedule in major automated infor- mation system acquisition programs. ‘‘(I) Information security in major automated in- formation system systems. ‘‘(J) Innovative acquisition policies and practices to streamline acquisition of information tech- nology systems. ‘‘(K) Such other areas as the Secretary considers appropriate. ‘‘(f) PRIORITIES.— ‘‘(1) IN GENERAL.—In carrying out the set of activi- ties required by subsection (a), the Secretary shall give priority to— ‘‘(A) projects that— ‘‘(i) address the innovation and technology needs of the Department of Defense; and ‘‘(ii) support activities of initiatives, programs, and offices identified by the Under Secretary and Chief Management Officer; and ‘‘(B) the projects and programs identified in para- graph (2). ‘‘(2) PROJECTS AND PROGRAMS IDENTIFIED.—The projects and programs identified in this paragraph are the following: ‘‘(A) Major automated information system pro- grams. ‘‘(B) Projects and programs under the oversight of the Chief Management Officer. ‘‘(C) Projects and programs relating to defense procurement acquisition policy. ‘‘(D) Projects and programs of the agencies and field activities of the Office of the Secretary of De- fense that support business missions such as fi- nance, human resources, security, management, lo- gistics, and contract management. ‘‘(E) Military and civilian personnel policy devel- opment for information technology workforce.’’ [For abolition and transfer of functions of Chief Man- agement Officer of the Department of Defense, see Transfer of Functions note above.] DEADLINE FOR GUIDANCE ON COVERED DEFENSE BUSINESS SYSTEMS Pub. L. 114–92, div. A, title VIII, § 883(b), Nov. 25, 2015, 129 Stat. 947, provided that: ‘‘The guidance required by subsection (c)(1) of section 2222 of title 10, United States Code, as amended by subsection (a)(1), shall be issued not later than December 31, 2016.’’ COMPTROLLER GENERAL ASSESSMENT REQUIREMENT Pub. L. 114–92, div. A, title VIII, § 883(d)(1), Nov. 25, 2015, 129 Stat. 947, which required the Comptroller Gen- eral, in odd-numbered years, to submit an assessment of the extent to which the actions taken by the Depart- ment of Defense complied with the requirements of this section, was repealed by Pub. L. 115–232, div. A, title VIII, § 833(c), Aug. 13, 2018, 132 Stat. 1859, effective Jan. 1, 2020. ACCOUNTING STANDARDS TO VALUE CERTAIN PROPERTY, PLANT, AND EQUIPMENT ITEMS Pub. L. 114–92, div. A, title X, § 1002, Nov. 25, 2015, 129 Stat. 960, provided that: ‘‘(a) REQUIREMENT FOR CERTAIN ACCOUNTING STAND- ARDS.—The Secretary of Defense shall work in coordi- nation with the Federal Accounting Standards Advi- sory Board to establish accounting standards to value large and unordinary general property, plant, and equipment items. ‘‘(b) DEADLINE.—The accounting standards required by subsection (a) shall be established by not later than Page 1773 TITLE 10—ARMED FORCES § 2222 September 30, 2017, and be available for use for the full audit on the financial statements of the Department of Defense for fiscal year 2018, as required by section 1003(a) of the National Defense Authorization Act for Fiscal Year 2014 (Public Law 113–66; 127 Stat. 842; 10 U.S.C. 2222 note).’’ ANNUAL AUDIT OF FINANCIAL STATEMENTS OF DEPART- MENT OF DEFENSE COMPONENTS BY INDEPENDENT EX- TERNAL AUDITORS Pub. L. 114–92, div. A, title X, § 1005, Nov. 25, 2015, 129 Stat. 961, which required an annual audit of financial statements of Department of Defense components by independent external auditors, was repealed by Pub. L. 115–91, div. A, title X, § 1002(e)(4), Dec. 12, 2017, 131 Stat. 1541. See section 240d of this title. DEADLINE FOR ESTABLISHMENT OF INVESTMENT REVIEW BOARD AND INVESTMENT MANAGEMENT PROCESS Pub. L. 113–291, div. A, title IX, § 901(e), Dec. 19, 2014, 128 Stat. 3464, provided that: ‘‘The investment review board and investment management process required by [former] section 2222(g) of title 10, United States Code, as amended by subsection (d)(3), shall be established not later than March 15, 2015.’’ AUDIT OF DEPARTMENT OF DEFENSE FISCAL YEAR 2018 FINANCIAL STATEMENTS Pub. L. 113–66, div. A, title X, § 1003(a), Dec. 26, 2013, 127 Stat. 842, which required a full audit of the financial statements of the Department of Defense for fiscal year 2018, was repealed by Pub. L. 115–91, div. A, title X, § 1002(b)(2), Dec. 12, 2017, 131 Stat. 1538. For similar pro- visions requiring annual audits, see section 240a of this title. REVIEW OF OBLIGATION AND EXPENDITURE THRESHOLDS Pub. L. 111–383, div. A, title VIII, § 882, Jan. 7, 2011, 124 Stat. 4308, as amended by Pub. L. 113–291, div. A, title IX, § 901(n)(1), Dec. 19, 2014, 128 Stat. 3469; Pub. L. 115–91, div. A, title X, § 1081(b)(1)(D), Dec. 12, 2017, 131 Stat. 1597; Pub. L. 116–92, div. A, title IX, § 902(27), Dec. 20, 2019, 133 Stat. 1546, provided that: ‘‘(a) PROCESS REVIEW.—Not later than one year after the date of the enactment of this Act [Jan. 7, 2011], the Chief Management Officer of the Department of De- fense, in coordination with the Chief Management Offi- cer of each military department, the Director of the Of- fice of Performance Assessment and Root Cause Anal- ysis, the Under Secretary of Defense (Comptroller), and the Comptrollers of the military departments, shall complete a comprehensive review of the use and value of obligation and expenditure benchmarks and propose new benchmarks or processes for tracking financial performance, including, as appropriate— ‘‘(1) increased reliance on individual obligation and expenditure plans for measuring program financial performance; ‘‘(2) mechanisms to improve funding stability and to increase the predictability of the release of fund- ing for obligation and expenditure; and ‘‘(3) streamlined mechanisms for a program man- ager to submit an appeal for funding changes and to have such appeal evaluated promptly. ‘‘(b) TRAINING.—The Under Secretary of Defense for Acquisition and Sustainment and the Under Secretary of Defense (Comptroller) shall ensure that, as part of the training required for program managers and busi- ness managers, an emphasis is placed on obligating and expending appropriated funds in a manner that achieves the best value for the Government and that the purpose and limitations of obligation and expendi- ture benchmarks are made clear. ‘‘(c) REPORT.—The Deputy Chief Management Officer of the Department of Defense shall include a report on the results of the review under this section in the next update of the strategic management plan transmitted to the Committees on Armed Services of the Senate and the House of Representatives under section 904(d) of the National Defense Authorization Act for Fiscal Year 2008 (Public Law 110–181; 122 Stat. 275; 10 U.S.C. note prec. 2201) after the completion of the review.’’ [Pub. L. 113–291, div. A, title IX, § 901(n)(1), Dec. 19, 2014, 128 Stat. 3469, formerly set out as a References note under section 131 of this title, which provided that, effective after Feb. 1, 2017, any reference to the Deputy Chief Management Officer of the Department of Defense was to be deemed to refer to the Under Sec- retary of Defense for Business Management and Infor- mation, was repealed by Pub. L. 115–91, div. A, title X, § 1081(b)(1)(D), Dec. 12, 2017, 131 Stat. 1597, effective as of Dec. 23, 2016.] AUDIT READINESS OF FINANCIAL STATEMENTS OF THE DEPARTMENT OF DEFENSE Pub. L. 112–239, div. A, title X, § 1005(b), Jan. 2, 2013, 126 Stat. 1904, provided that: ‘‘(1) IN GENERAL.—The Chief Management Officer of the Department of Defense and the Chief Management Officers of each of the military departments shall en- sure that plans to achieve an auditable statement of budgetary resources of the Department of Defense by September 30, 2014, include appropriate steps to mini- mize one-time fixes and manual work-arounds, are sus- tainable and affordable, and will not delay full auditability of financial statements. ‘‘(2) ADDITIONAL ELEMENTS IN FIAR PLAN REPORT.— Each semi-annual report on the Financial Improve- ment and Audit Readiness Plan of the Department of Defense submitted by the Under Secretary of Defense (Comptroller) under section 1003(b) of the National De- fense Authorization Act for Fiscal Year 2010 (Public Law 111–84; 123 Stat. 2439; 10 U.S.C. 2222 note) during the period beginning on the date of the enactment of this Act [Jan. 2, 2013] and ending on September 30, 2014, shall include the following: ‘‘(A) A description of the actions taken by the mili- tary departments pursuant to paragraph (1). ‘‘(B) A determination by the Chief Management Of- ficer of each military department whether or not such military department is able to achieve an auditable statement of budgetary resources by Sep- tember 30, 2014, without an unaffordable or unsustainable level of one-time fixes and manual work-arounds and without delaying the full auditability of the financial statements of such mili- tary department. ‘‘(C) If the Chief Management Officer of a military department determines under subparagraph (B) that the military department is not able to achieve an auditable statement of budgetary resources by Sep- tember 30, 2014, as described in that subparagraph— ‘‘(i) an explanation why the military department is unable to meet the deadline; ‘‘(ii) an alternative deadline by which the mili- tary department will achieve an auditable state- ment of budgetary resources; and ‘‘(iii) a description of the plan of the military de- partment for meeting the alternative deadline.’’ Pub. L. 112–81, div. A, title X, § 1003, Dec. 31, 2011, 125 Stat. 1555, as amended by Pub. L. 113–291, div. A, title IX, § 901(n)(1), Dec. 19, 2014, 128 Stat. 3469; Pub. L. 115–91, div. A, title X, § 1081(b)(1)(D), Dec. 12, 2017, 131 Stat. 1597, provided that: ‘‘(a) PLANNING REQUIREMENT.— ‘‘(1) IN GENERAL.—The report to be issued pursuant to section 1003(b) of the National Defense Authoriza- tion Act for 2010 (Public Law 111–84; 123 Stat. 2440; 10 U.S.C. 2222 note) and provided by not later than May 15, 2012, shall include a plan, including interim objec- tives and a schedule of milestones for each military department and for the defense agencies, to support the goal established by the Secretary of Defense that the statement of budgetary resources is validated for audit by not later than September 30, 2014. Consistent with the requirements of such section, the plan shall include process and control improvements and busi- ness systems modernization efforts necessary for the Department of Defense to consistently prepare time- Page 1774 TITLE 10—ARMED FORCES § 2222 ly, reliable, and complete financial management in- formation. ‘‘(2) SEMIANNUAL UPDATES.—The reports to be issued pursuant to such section after the report described in paragraph (1) shall update the plan required by such paragraph and explain how the Department has pro- gressed toward meeting the milestones established in the plan. ‘‘(b) INCLUSION OF SUBORDINATE ACTIVITIES FOR IN- TERIM MILESTONES.—For each interim milestone estab- lished pursuant to section 881 of the Ike Skelton Na- tional Defense Authorization Act for Fiscal Year 2011 (Public Law 111–383; 124 Stat. 4306; 10 U.S.C. 2222 note), the Under Secretary of Defense (Comptroller), in con- sultation with the Deputy Chief Management Officer of the Department of Defense, the Secretaries of the mili- tary departments, and the heads of the defense agencies and defense field activities, shall include a detailed de- scription of the subordinate activities necessary to ac- complish each interim milestone, including— ‘‘(1) a justification of the time required for each ac- tivity; ‘‘(2) metrics identifying the progress made within each activity; and ‘‘(3) mitigating strategies for milestone timeframe slippages. ‘‘(c) REPORT REQUIRED.— ‘‘(1) IN GENERAL.—The Secretary of Defense shall submit to Congress a report relating to the Financial Improvement and Audit Readiness Plan of the De- partment of Defense submitted in accordance with section 1003 of the National Defense Authorization Act for 2010 (Public Law 111–84; 123 Stat. 2440 [2439]; 10 U.S.C. 2222 note) and section 881 of the Ike Skelton National Defense Authorization Act for Fiscal Year 2011 (Public Law 111–383; 121 Stat. 4306; 10 U.S.C. 2222 note). ‘‘(2) MATTERS COVERED.—The report shall include a corrective action plan for any identified weaknesses or deficiencies in the execution of the Financial Im- provement and Audit Readiness Plan. The corrective action plan shall— ‘‘(A) identify near- and long-term measures for re- solving any such weaknesses or deficiencies; ‘‘(B) assign responsibilities within the Depart- ment of Defense to implement such measures; ‘‘(C) specify implementation steps for such meas- ures; and ‘‘(D) provide timeframes for implementation of such measures.’’ [Pub. L. 113–291, div. A, title IX, § 901(n)(1), Dec. 19, 2014, 128 Stat. 3469, formerly set out as a References note under section 131 of this title, which provided that, effective after Feb. 1, 2017, any reference to the Deputy Chief Management Officer of the Department of Defense was to be deemed to refer to the Under Sec- retary of Defense for Business Management and Infor- mation, was repealed by Pub. L. 115–91, div. A, title X, § 1081(b)(1)(D), Dec. 12, 2017, 131 Stat. 1597, effective as of Dec. 23, 2016.] Pub. L. 111–383, div. A, title VIII, § 881, Jan. 7, 2011, 124 Stat. 4306, as amended by Pub. L. 113–291, div. A, title IX, § 901(n)(1), Dec. 19, 2014, 128 Stat. 3469; Pub. L. 115–91, div. A, title X, § 1081(b)(1)(D), Dec. 12, 2017, 131 Stat. 1597, provided that: ‘‘(a) INTERIM MILESTONES.— ‘‘(1) REQUIREMENT.—Not later than 90 days after the date of the enactment of this Act [Jan. 7, 2011], the Under Secretary of Defense (Comptroller), in con- sultation with the Deputy Chief Management Officer of the Department of Defense, the secretaries of the military departments, and the heads of the defense agencies and defense field activities, shall establish interim milestones for achieving audit readiness of the financial statements of the Department of De- fense, consistent with the requirements of section 1003 of the National Defense Authorization Act for Fiscal Year 2010 (Public Law 111–84; 123 Stat. 2439; 10 U.S.C. 2222 note). ‘‘(2) MATTERS INCLUDED.—The interim milestones established pursuant to paragraph (1) shall include, at a minimum, for each military department and for the defense agencies and defense field activities— ‘‘(A) an interim milestone for achieving audit readiness for each major element of the statement of budgetary resources, including civilian pay, mili- tary pay, supply orders, contracts, and funds bal- ance with the Treasury; and ‘‘(B) an interim milestone for addressing the ex- istence and completeness of each major category of Department of Defense assets, including military equipment, real property, inventory, and operating material and supplies. ‘‘(3) DESCRIPTION IN SEMIANNUAL REPORTS.—The Under Secretary shall describe each interim mile- stone established pursuant to paragraph (1) in the next semiannual report submitted pursuant to sec- tion 1003(b) of the National Defense Authorization Act for Fiscal Year 2010 (Public Law 111–84; 123 Stat. 2439; 10 U.S.C. 2222 note). Each subsequent semiannual report submitted pursuant to section 1003(b) shall ex- plain how the Department has progressed toward meeting such interim milestones. ‘‘(b) VALUATION OF DEPARTMENT OF DEFENSE AS- SETS.— ‘‘(1) REQUIREMENT.—Not later than 120 days after the date of the enactment of this Act, the Under Sec- retary of Defense (Comptroller) shall, in consultation with other appropriate Federal agencies and offi- cials— ‘‘(A) examine the costs and benefits of alternative approaches to the valuation of Department of De- fense assets; ‘‘(B) select an approach to such valuation that is consistent with principles of sound financial man- agement and the conservation of taxpayer re- sources; and ‘‘(C) begin the preparation of a business case anal- ysis supporting the selected approach. ‘‘(2) The Under Secretary shall include information on the alternatives considered, the selected approach, and the business case analysis supporting that ap- proach in the next semiannual report submitted pur- suant to section 1003(b) of the National Defense Au- thorization Act for Fiscal Year 2010 (Public Law 111–84; 123 Stat. 2439; 10 U.S.C. 2222 note). ‘‘(c) REMEDIAL ACTIONS REQUIRED.—In the event that the Department of Defense, or any component of the Department of Defense, is unable to meet an interim milestone established pursuant to subsection (a), the Under Secretary of Defense (Comptroller) shall— ‘‘(1) develop a remediation plan to ensure that— ‘‘(A) the component will meet the interim mile- stone no more than one year after the originally scheduled date; and ‘‘(B) the component’s failure to meet the interim milestone will not have an adverse impact on the Department’s ability to carry out the plan under section 1003(a) of the National Defense Authoriza- tion Act for Fiscal Year 2010 (Public Law 111–84; 123 Stat. 2439; 10 U.S.C. 2222 note); and ‘‘(2) include in the next semiannual report sub- mitted pursuant to section 1003(b) of the National De- fense Authorization Act for Fiscal Year 2010 (Public Law 111–84; 123 Stat. 2439; 10 U.S.C. 2222 note)— ‘‘(A) a statement of the reasons why the Depart- ment of Defense, or component of the Department of Defense, will be unable to meet such interim milestone; ‘‘(B) the revised completion date for meeting such interim milestone; and ‘‘(C) a description of the actions that have been taken and are planned to be taken by the Depart- ment of Defense, or component of the Department of Defense, to meet such interim milestone. ‘‘(d) INCENTIVES FOR ACHIEVING AUDITABILITY.— ‘‘(1) REVIEW REQUIRED.—Not later than 120 days after the date of the enactment of this Act, the Under Secretary of Defense (Comptroller) shall review op- tions for providing appropriate incentives to the mili- tary departments, Defense Agencies, and defense field Page 1775 TITLE 10—ARMED FORCES § 2222 activities to ensure that financial statements are validated as ready for audit earlier than September 30, 2017. ‘‘(2) OPTIONS REVIEWED.—The review performed pur- suant to paragraph (1) shall consider changes in pol- icy that reflect the increased confidence that can be placed in auditable financial statements, and shall include, at a minimum, consideration of the fol- lowing options: ‘‘(A) Consistent with the need to fund urgent warfighter requirements and operational needs, pri- ority in the release of appropriated funds. ‘‘(B) Relief from the frequency of financial report- ing in cases in which such reporting is not required by law. ‘‘(C) Relief from departmental obligation and ex- penditure thresholds to the extent that such thresholds establish requirements more restrictive than those required by law. ‘‘(D) Increases in thresholds for reprogramming of funds. ‘‘(E) Personnel management incentives for the fi- nancial and business management workforce. ‘‘(F) Such other measures as the Under Secretary considers appropriate. ‘‘(3) REPORT.—The Under Secretary shall include a discussion of the review performed pursuant to para- graph (1) in the next semiannual report pursuant to section 1003(b) of the National Defense Authorization Act for Fiscal Year 2010 (Public Law 111–84; 123 Stat. 2439; 10 U.S.C. 2222 note) and for each option consid- ered pursuant to paragraph (2) shall include— ‘‘(A) an assessment of the extent to which the im- plementation of the option— ‘‘(i) would be consistent with the efficient oper- ation of the Department of Defense and the effec- tive funding of essential Department of Defense programs and activities; and ‘‘(ii) would contribute to the achievement of Department of Defense goals to prepare auditable financial statements; and ‘‘(B) a recommendation on whether such option should be adopted, a schedule for implementing the option if adoption is recommended, or a reason for not recommending the option if adoption is not rec- ommended.’’ [Pub. L. 113–291, div. A, title IX, § 901(n)(1), Dec. 19, 2014, 128 Stat. 3469, formerly set out as a References note under section 131 of this title, which provided that, effective after Feb. 1, 2017, any reference to the Deputy Chief Management Officer of the Department of Defense was to be deemed to refer to the Under Sec- retary of Defense for Business Management and Infor- mation, was repealed by Pub. L. 115–91, div. A, title X, § 1081(b)(1)(D), Dec. 12, 2017, 131 Stat. 1597, effective as of Dec. 23, 2016.] Pub. L. 111–84, div. A, title X, § 1003, Oct. 28, 2009, 123 Stat. 2439, as amended by Pub. L. 112–239, div. A, title X, § 1005(a), Jan. 2, 2013, 126 Stat. 1904; Pub. L. 113–66, div. A, title X, § 1003(b), Dec. 26, 2013, 127 Stat. 842, which directed the Chief Management Officer of the De- partment of Defense to develop a Financial Improve- ment and Audit Readiness Plan and to submit semi-an- nual reports to Congress on the status of the implemen- tation of such plan, was repealed by Pub. L. 115–91, div. A, title X, § 1002(c)(4), Dec. 12, 2017, 131 Stat. 1540. BUSINESS PROCESS REENGINEERING EFFORTS; ONGOING PROGRAMS Pub. L. 111–84, div. A, title X, § 1072(b), Oct. 28, 2009, 123 Stat. 2471, provided that: ‘‘(1) IN GENERAL.—Not later than one year after the date of the enactment of this Act [Oct. 28, 2009], the ap- propriate chief management officer for each defense business system modernization approved by the De- fense Business Systems Management Committee before the date of the enactment of this Act that will have a total cost in excess of $100,000,000 shall review such de- fense business system modernization to determine whether or not appropriate business process re- engineering efforts have been undertaken to ensure that— ‘‘(A) the business process to be supported by such defense business system modernization will be as streamlined and efficient as practicable; and ‘‘(B) the need to tailor commercial-off-the-shelf systems to meet unique requirements or incorporate unique interfaces has been eliminated or reduced to the maximum extent practicable. ‘‘(2) ACTION ON FINDING OF LACK OF REENGINEERING EF- FORTS.—If the appropriate chief management officer de- termines that appropriate business process re- engineering efforts have not been undertaken with re- gard to a defense business system modernization as de- scribed in paragraph (1), that chief management offi- cer— ‘‘(A) shall develop a plan to undertake business process reengineering efforts with respect to the de- fense business system modernization; and ‘‘(B) may direct that the defense business system modernization be restructured or terminated, if nec- essary to meet the requirements of paragraph (1). ‘‘(3) DEFINITIONS.—In this subsection: ‘‘(A) The term ‘appropriate chief management offi- cer’, with respect to a defense business system mod- ernization, has the meaning given that term in para- graph (2) of [former] subsection (f) of section 2222 of title 10, United States Code (as amended by sub- section (a)(2) of this section). ‘‘(B) The term ‘defense business system moderniza- tion’ has the meaning given that term in [former] subsection (j)(3) of section 2222 of title 10, United States Code.’’ BUSINESS TRANSFORMATION INITIATIVES FOR THE MILITARY DEPARTMENTS Pub. L. 110–417, [div. A], title IX, § 908, Oct. 14, 2008, 122 Stat. 4569, provided that: ‘‘(a) IN GENERAL.—The Secretary of each military de- partment shall, acting through the Chief Management Officer of such military department, carry out an ini- tiative for the business transformation of such military department. ‘‘(b) OBJECTIVES.—The objectives of the business transformation initiative of a military department under this section shall include, at a minimum, the fol- lowing: ‘‘(1) The development of a comprehensive business transformation plan, with measurable performance goals and objectives, to achieve an integrated man- agement system for the business operations of the military department. ‘‘(2) The development of a well-defined enterprise- wide business systems architecture and transition plan encompassing end-to-end business processes and capable of providing accurately and timely informa- tion in support of business decisions of the military department. ‘‘(3) The implementation of the business trans- formation plan developed pursuant to paragraph (1) and the business systems architecture and transition plan developed pursuant to paragraph (2). ‘‘(c) BUSINESS TRANSFORMATION OFFICES.— ‘‘(1) ESTABLISHMENT.—Not later than 180 days after the date of the enactment of this Act [Oct. 14, 2008], the Secretary of each military department shall es- tablish within such military department an office (to be known as the ‘Office of Business Transformation’ of such military department) to assist the Chief Man- agement Officer of such military department in car- rying out the initiative required by this section for such military department. ‘‘(2) HEAD.—The Office of Business Transformation of a military department under this subsection shall be headed by a Director of Business Transformation, who shall be appointed by the Chief Management Of- ficer of the military department, in consultation with the Director of the Business Transformation Agency of the Department of Defense, from among individ- uals with significant experience managing large-scale organizations or business transformation efforts. Page 1776 TITLE 10—ARMED FORCES § 2222 ‘‘(3) SUPERVISION.—The Director of Business Trans- formation of a military department under paragraph (2) shall report directly to the Chief Management Of- ficer of the military department, subject to policy guidance from the Director of the Business Trans- formation Agency of the Department of Defense. ‘‘(4) AUTHORITY.—In carrying out the initiative re- quired by this section for a military department, the Director of Business Transformation of the military department under paragraph (2) shall have the au- thority to require elements of the military depart- ment to carry out actions that are within the purpose and scope of the initiative. ‘‘(d) RESPONSIBILITIES OF BUSINESS TRANSFORMATION OFFICES.—The Office of Business Transformation of a military department established pursuant to sub- section (b) may be responsible for the following: ‘‘(1) Transforming the budget, finance, accounting, and human resource operations of the military de- partment in a manner that is consistent with the business transformation plan developed pursuant to subsection (b)(1). ‘‘(2) Eliminating or replacing financial manage- ment systems of the military department that are in- consistent with the business systems architecture and transition plan developed pursuant to subsection (b)(2). ‘‘(3) Ensuring that the business transformation plan and the business systems architecture and transition plan are implemented in a manner that is aggressive, realistic, and accurately measured. ‘‘(4) Such other responsibilities as the Secretary of that military department determines are appro- priate. ‘‘(e) REQUIRED ELEMENTS.—In carrying out the initia- tive required by this section for a military department, the Chief Management Officer and the Director of Busi- ness Transformation of the military department shall ensure that each element of the initiative is consistent with— ‘‘(1) the requirements of the Business Enterprise Architecture and Transition Plan developed by the Secretary of Defense pursuant to section 2222 of title 10, United States Code; ‘‘(2) the Standard Financial Information Structure of the Department of Defense; ‘‘(3) the Federal Financial Management Improve- ment Act of 1996 [section 101(f) [title VIII] of title I of div. A of Pub. L. 104–208, 31 U.S.C. 3512 note] (and the amendments made by that Act); and ‘‘(4) other applicable requirements of law and regu- lation. ‘‘(f) REPORTS ON IMPLEMENTATION.— ‘‘(1) INITIAL REPORTS.—Not later than nine months after the date of the enactment of this Act [Oct. 14, 2008], the Chief Management Officer of each military department shall submit to the congressional defense committees [Committees on Armed Services and Ap- propriations of the Senate and the House of Rep- resentatives] a report on the actions taken, and on the actions planned to be taken, by such military de- partment to implement the requirements of this sec- tion. ‘‘(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 con- gressional defense committees a current update of the report submitted by such Chief Management Offi- cer under paragraph (1).’’ FINANCIAL MANAGEMENT TRANSFORMATION INITIATIVE FOR THE DEFENSE AGENCIES Pub. L. 110–181, div. A, title X, § 1005, Jan. 28, 2008, 122 Stat. 301, provided that: ‘‘(a) FINANCIAL MANAGEMENT TRANSFORMATION INITIA- TIVE.— ‘‘(1) IN GENERAL.—The Director of the Business Transformation Agency of the Department of Defense shall carry out an initiative for financial manage- ment transformation in the Defense Agencies. The initiative shall be known as the ‘Defense Agencies Initiative’ (in this section referred to as the ‘Initia- tive’). ‘‘(2) SCOPE OF AUTHORITY.—In carrying out the Ini- tiative, the Director of the Business Transformation Agency may require the heads of the Defense Agen- cies to carry out actions that are within the purpose and scope of the Initiative. ‘‘(b) PURPOSES.—The purposes of Initiative shall be as follows: ‘‘(1) To eliminate or replace financial management systems of the Defense Agencies that are duplicative, redundant, or fail to comply with the standards set forth in subsection (d). ‘‘(2) To transform the budget, finance, and account- ing operations of the Defense Agencies to enable the Defense Agencies to achieve accurate and reliable fi- nancial information needed to support financial ac- countability and effective and efficient management decisions. ‘‘(c) REQUIRED ELEMENTS.—The Initiative shall in- clude, to the maximum extent practicable— ‘‘(1) the utilization of commercial, off-the-shelf technologies and web-based solutions; ‘‘(2) a standardized technical environment and an open and accessible architecture; and ‘‘(3) the implementation of common business proc- esses, shared services, and common data structures. ‘‘(d) STANDARDS.—In carrying out the Initiative, the Director of the Business Transformation Agency shall ensure that the Initiative is consistent with— ‘‘(1) the requirements of the Business Enterprise Architecture and Transition Plan developed pursuant to section 2222 of title 10, United States Code; ‘‘(2) the Standard Financial Information Structure of the Department of Defense; ‘‘(3) the Federal Financial Management Improve- ment Act of 1996 [section 101(f) [title VIII] of title I of div. A of Pub. L. 104–208, 31 U.S.C. 3512 note] (and the amendments made by that Act); and ‘‘(4) other applicable requirements of law and regu- lation. ‘‘(e) SCOPE.—The Initiative shall be designed to pro- vide, at a minimum, capabilities in the major process areas for both general fund and working capital fund operations of the Defense Agencies as follows: ‘‘(1) Budget formulation. ‘‘(2) Budget to report, including general ledger and trial balance. ‘‘(3) Procure to pay, including commitments, obli- gations, and accounts payable. ‘‘(4) Order to fulfill, including billing and accounts receivable. ‘‘(5) Cost accounting. ‘‘(6) Acquire to retire (account management). ‘‘(7) Time and attendance and employee entitle- ment. ‘‘(8) Grants financial management. ‘‘(f) CONSULTATION.—In carrying out subsections (d) and (e), the Director of the Business Transformation Agency shall consult with the Comptroller of the De- partment of Defense [now Under Secretary of Defense (Comptroller)] to ensure that any financial manage- ment systems developed for the Defense Agencies, and any changes to the budget, finance, and accounting op- erations of the Defense Agencies, are consistent with the financial standards and requirements of the Depart- ment of Defense. ‘‘(g) PROGRAM CONTROL.—In carrying out the Initia- tive, the Director of the Business Transformation Agency shall establish— ‘‘(1) a board (to be known as the ‘Configuration Control Board’) to manage scope and cost changes to the Initiative; and ‘‘(2) a program management office (to be known as the ‘Program Management Office’) to control and en- force assumptions made in the acquisition plan, the cost estimate, and the system integration contract for the Initiative, as directed by the Configuration Control Board. Page 1777 TITLE 10—ARMED FORCES § 2223 ‘‘(h) PLAN ON DEVELOPMENT AND IMPLEMENTATION OF INITIATIVE.—Not later than six months after the date of the enactment of this Act [Jan. 28, 2008], the Director of the Business Transformation Agency shall submit to the congressional defense committees [Committees on Armed Services and Appropriations of the Senate and the House of Representatives] a plan for the develop- ment and implementation of the Initiative. The plan shall provide for the implementation of an initial capa- bility under the Initiative as follows: ‘‘(1) In at least one Defense Agency by not later than eight months after the date of the enactment of this Act. ‘‘(2) In not less than five Defense Agencies by not later than 18 months after the date of the enactment of this Act.’’ LIMITATION ON FINANCIAL MANAGEMENT IMPROVEMENT AND AUDIT INITIATIVES WITHIN THE DEPARTMENT OF DEFENSE Pub. L. 109–364, div. A, title III, § 321, Oct. 17, 2006, 120 Stat. 2144, as amended by Pub. L. 111–383, div. A, title X, § 1075(g)(1), Jan. 7, 2011, 124 Stat. 4376, provided that: ‘‘(a) LIMITATION.—The Secretary of Defense may not obligate or expend any funds for the purpose of any fi- nancial management improvement activity relating to the preparation, processing, or auditing of financial statements until the Secretary submits to the congres- sional defense committees [Committees on Armed Services and Appropriations of the Senate and the House of Representatives] a written determination that each activity proposed to be funded is— ‘‘(1) consistent with the financial management im- provement plan of the Department of Defense re- quired by section 376(a)(1) of the National Defense Authorization Act for Fiscal Year 2006 (Public Law 109–163; 119 Stat. 3213); and ‘‘(2) likely to improve internal controls or other- wise result in sustained improvements in the ability of the Department to produce timely, reliable, and complete financial management information. ‘‘(b) EXCEPTION.—The limitation in subsection (a) shall not apply to an activity directed exclusively at assessing the adequacy of internal controls and remedi- ating any inadequacy identified pursuant to such as- sessment.’’ TIME-CERTAIN DEVELOPMENT FOR DEPARTMENT OF DEFENSE INFORMATION TECHNOLOGY BUSINESS SYSTEMS Pub. L. 109–364, div. A, title VIII, § 811, Oct. 17, 2006, 120 Stat. 2316, which provided limitations for Milestone A approval and initial operational capability regarding certain Department of Defense information technology business systems, was repealed by Pub. L. 114–92, div. A, title VIII, § 883(c), Nov. 25, 2015, 129 Stat. 947. § 2223. Information technology: additional re- sponsibilities of Chief Information Officers (a) ADDITIONAL RESPONSIBILITIES OF CHIEF IN- FORMATION OFFICER OF DEPARTMENT OF DE- FENSE.—In addition to the responsibilities pro- vided for in chapter 35 of title 44 and in section 11315 of title 40, the Chief Information Officer of the Department of Defense shall— (1) review and provide recommendations to the Secretary of Defense on Department of De- fense budget requests for information tech- nology and national security systems; (2) ensure the interoperability of informa- tion technology and national security systems throughout the Department of Defense; (3) ensure that information technology and national security systems standards that will apply throughout the Department of Defense are prescribed; (4) provide for the elimination of duplicate information technology and national security systems within and between the military de- partments and Defense Agencies; and (5) maintain a consolidated inventory of De- partment of Defense mission critical and mis- sion essential information systems, identify interfaces between those systems and other in- formation systems, and develop and maintain contingency plans for responding to a disrup- tion in the operation of any of those informa- tion systems. (b) ADDITIONAL RESPONSIBILITIES OF CHIEF IN- FORMATION OFFICER OF MILITARY DEPART- MENTS.—In addition to the responsibilities pro- vided for in chapter 35 of title 44 and in section 11315 of title 40, the Chief Information Officer of a military department, with respect to the mili- tary department concerned, shall— (1) review budget requests for all informa- tion technology and national security sys- tems; (2) ensure that information technology and national security systems are in compliance with standards of the Government and the De- partment of Defense; (3) ensure that information technology and national security systems are interoperable with other relevant information technology and national security systems of the Govern- ment and the Department of Defense; and (4) coordinate with the Joint Staff with re- spect to information technology and national security systems. (c) DEFINITIONS.—In this section: (1) The term ‘‘Chief Information Officer’’ means the senior official designated by the Secretary of Defense or a Secretary of a mili- tary department pursuant to section 3506 of title 44. (2) The term ‘‘information technology’’ has the meaning given that term by section 11101 of title 40. (3) The term ‘‘national security system’’ has the meaning given that term by section 3552(b)(6) of title 44. (Added Pub. L. 105–261, div. A, title III, § 331(a)(1), Oct. 17, 1998, 112 Stat. 1967; amended Pub. L. 106–398, § 1 [[div. A], title VIII, § 811(a)], Oct. 30, 2000, 114 Stat. 1654, 1654A–210; Pub. L. 107–217, § 3(b)(1), Aug. 21, 2002, 116 Stat. 1295; Pub. L. 109–364, div. A, title IX, § 906(b), Oct. 17, 2006, 120 Stat. 2354; Pub. L. 113–283, § 2(e)(5)(B), Dec. 18, 2014, 128 Stat. 3087; Pub. L. 114–92, div. A, title X, § 1081(a)(7), Nov. 25, 2015, 129 Stat. 1001.) Editorial Notes AMENDMENTS 2015—Subsec. (c)(3). Pub. L. 114–92 substituted ‘‘sec- tion 3552(b)(6)’’ for ‘‘section 3552(b)(5)’’. 2014—Subsec. (c)(3). Pub. L. 113–283 substituted ‘‘sec- tion 3552(b)(5)’’ for ‘‘section 3542(b)(2)’’. 2006—Subsec. (c)(3). Pub. L. 109–364 substituted ‘‘sec- tion 3542(b)(2) of title 44’’ for ‘‘section 11103 of title 40’’. 2002—Subsecs. (a), (b). Pub. L. 107–217, § 3(b)(1)(A), (B), substituted ‘‘section 11315 of title 40’’ for ‘‘section 5125 of the Clinger-Cohen Act of 1996 (40 U.S.C. 1425)’’ in in- troductory provisions. Subsec. (c)(2). Pub. L. 107–217, § 3(b)(1)(C), substituted ‘‘section 11101 of title 40’’ for ‘‘section 5002 of the Clinger-Cohen Act of 1996 (40 U.S.C. 1401)’’. Subsec. (c)(3). Pub. L. 107–217, § 3(b)(1)(D), substituted ‘‘section 11103 of title 40’’ for ‘‘section 5142 of the Clinger-Cohen Act of 1996 (40 U.S.C. 1452)’’.