
From the U.S. Code Online via GPO Access
[wais.access.gpo.gov]
[Laws in effect as of January 2, 2001]
[Document not affected by Public Laws enacted between
  January 2, 2001 and January 28, 2002]
[CITE: 10USC2220]

 
                         TITLE 10--ARMED FORCES
 
                    Subtitle A--General Military Law
 
                PART IV--SERVICE, SUPPLY, AND PROCUREMENT
 
                 CHAPTER 131--PLANNING AND COORDINATION
 
Sec. 2220. Performance based management: acquisition programs

    (a) Establishment of Goals.--(1) The Secretary of Defense shall 
approve or define the cost, performance, and schedule goals for major 
defense acquisition programs of the Department of Defense and for each 
phase of the acquisition cycle of such programs.
    (2) The Under Secretary of Defense (Comptroller) shall evaluate the 
cost goals proposed for each major defense acquisition program of the 
Department.
    (b) Annual Reporting Requirement.--The Secretary of Defense shall 
include in the annual report submitted to Congress pursuant to section 
113(c) of this title an assessment of whether major acquisition programs 
of the Department of Defense are achieving, on average, 90 percent of 
cost, performance, and schedule goals established pursuant to subsection 
(a) and whether the average period for converting emerging technology 
into operational capability has decreased by 50 percent or more from the 
average period required for such conversion as of October 13, 1994. The 
Secretary shall use data from existing management systems in making the 
assessment.
    (c) Performance Evaluation.--Whenever the Secretary of Defense, in 
the assessment required by subsection (b), determines that major defense 
acquisition programs of the Department of Defense are not achieving, on 
average, 90 percent of cost, performance, and schedule goals established 
pursuant to subsection (a), the Secretary shall ensure that there is a 
timely review of major defense acquisition programs and other programs 
as appropriate. In conducting the review, the Secretary shall--
        (1) determine whether there is a continuing need for programs 
    that are significantly behind schedule, over budget, or not in 
    compliance with performance or capability requirements; and
        (2) identify suitable actions to be taken, including 
    termination, with respect to such programs.

(Added Pub. L. 103-355, title V, Sec. 5001(a)(1), Oct. 13, 1994, 108 
Stat. 3349; amended Pub. L. 104-106, div. A, title XV, Sec. 1503(a)(20), 
div. D, title XLIII, Sec. 4321(b)(1), Feb. 10, 1996, 110 Stat. 512, 671; 
Pub. L. 105-85, div. A, title VIII, Sec. 841(a), Nov. 18, 1997, 111 
Stat. 1843.)


                               Amendments

    1997--Subsec. (b). Pub. L. 105-85 substituted ``whether major 
acquisition programs'' for ``whether major and nonmajor acquisition 
programs''.
    1996--Subsec. (a)(2). Pub. L. 104-106, Sec. 1503(a)(20), substituted 
``Under Secretary of Defense (Comptroller)'' for ``Comptroller of the 
Department of Defense''.
    Subsec. (b). Pub. L. 104-106, Sec. 4321(b)(1), substituted ``October 
13, 1994'' for ``the date of the enactment of the Federal Acquisition 
Streamlining Act of 1994''.


                    Effective Date of 1996 Amendment

    For effective date and applicability of amendment by section 
4321(b)(1) of Pub. L. 104-106, see section 4401 of Pub. L. 104-106, set 
out as a note under section 251 of Title 41, Public Contracts.


   Pilot Programs for Testing Program Manager Performance of Product 
    Support Oversight Responsibilities for Life Cycle of Acquisition 
                                Programs

    Pub. L. 105-261, div. A, title VIII, Sec. 816, Oct. 17, 1998, 112 
Stat. 2088, provided that:
    ``(a) Designation of Pilot Programs.--The Secretary of Defense, 
acting through the Secretaries of the military departments, shall 
designate 10 acquisition programs of the military departments as pilot 
programs on program manager responsibility for product support.
    ``(b) Responsibilities of Program Managers.--The program manager for 
each acquisition program designated as a pilot program under this 
section shall have the responsibility for ensuring that the product 
support functions for the program are properly carried out over the 
entire life cycle of the program.
    ``(c) Report.--Not later than February 1, 1999, the Secretary of 
Defense shall submit to the congressional defense committees [Committees 
on Armed Services and Appropriations of Senate and House of 
Representatives] a report on the pilot programs. The report shall 
contain the following:
        ``(1) A description of the acquisition programs designated as 
    pilot programs under subsection (a).
        ``(2) For each such acquisition program, the specific management 
    actions taken to ensure that the program manager has the 
    responsibility for oversight of the performance of the product 
    support functions.
        ``(3) Any proposed change to law, policy, regulation, or 
    organization that the Secretary considers desirable, and determines 
    feasible to implement, for ensuring that the program managers are 
    fully responsible under the pilot programs for the performance of 
    all such responsibilities.''


                Enhanced System of Performance Incentives

    Section 5001(b) of Pub. L. 103-355 provided that: ``Within one year 
after the date of the enactment of this Act [Oct. 13, 1994], the 
Secretary of Defense shall review the incentives and personnel actions 
available to the Secretary of Defense for encouraging excellence in the 
management of defense acquisition programs and provide an enhanced 
system of incentives to facilitate the achievement of goals approved or 
defined pursuant to section 2220(a) of title 10, United States Code. The 
enhanced system of incentives shall, to the maximum extent consistent 
with applicable law--
        ``(1) relate pay to performance (including the extent to which 
    the performance of personnel in such programs contributes to 
    achieving the cost goals, performance goals, and schedule goals 
    established for acquisition programs of the Department of Defense 
    pursuant to section 2220(a) of title 10, as added by subsection 
    (a)); and
        ``(2) provide for consideration, in personnel evaluations and 
    promotion decisions, of the extent to which the performance of 
    personnel in such programs contributes to achieving the cost goals, 
    performance goals, and schedule goals established for acquisition 
    programs of the Department of Defense pursuant to section 2220(a) of 
    title 10, United States Code, as added by subsection (a).''


                         Recommended Legislation

    Section 5001(c) of Pub. L. 103-355 provided that: ``Not later than 
one year after the date of the enactment of this Act [Oct 13, 1994], the 
Secretary of Defense shall submit to Congress any recommended 
legislation that the Secretary considers necessary to carry out section 
2220 of title 10, United States Code, as added by subsection (a), and 
otherwise to facilitate and enhance management of Department of Defense 
acquisition programs on the basis of performance.''
