Accountability and training for defense acquisition

(a) Standardization for program acquisition executives (1) Performance indicators for program acquisition executives The Secretary of Defense shall develop key performance indicators to be used by all program acquisition executives, which shall address the following: (A) The portfolio cost variance from baseline estimates. (B) Milestone delivery performance and turnaround time across different phases of acquisition. (C) Market research and competition. (D) Use of Modular Open System Architecture. (E) Supply chain and workforce risk mitigation. (F) Authority utilization, including other transaction authority, commercial solutions opening, middle tier acquisition, and software acquisition pathway. (G) Derisking activity, including capital market involvement. (H) Any other metric the Secretary considers relevant. (2) Data dashboard (A) In general The Secretary of Defense shall develop and implement a phased rollout plan for a centralized, enterprise-grade data dashboard, designed to provide real-time visibility into the operational health, strategic growth, and efficiency of each program acquisition executive portfolio. (B) Contents The dashboard described in subparagraph (A) shall automatically track and visualize performance across the following four critical performance pillars: (i) Financial and budgeting health. (ii) Schedule and operational delivery. (iii) Industrial base and workforce growth. (iv) Innovation and agility metrics. (3) Workforce deficiency analysis The Secretary of Defense shall conduct a comprehensive human capital market analysis of each program acquisition executive portfolio to identify— (A) immediate and projected workforce deficiencies; and (B) the staffing ratios required to support expanded portfolios, with a focus on recruiting specialized talent from the private sector, such as data scientists, industrial base analysts, and commercial finance experts. (4) Report on Performance Indicators Not later than 180 days after the date of the enactment of this Act, the Secretary of Defense shall submit to Congress a report that includes the performance indicators developed under paragraph (1), the phased rollout plan developed under paragraph (2), and the analysis conducted under paragraph (3). (b) Pilot program on commercial acquisition practices (1) Establishment of Pilot Program Not later than 180 days after the date of the enactment of this Act, the Secretary of Defense, acting through the Under Secretary of Defense for Acquisition and Sustainment, shall establish a pilot program (referred to in this section as the Pilot Program) to enhance the use of commercial acquisition practices within the Department of Defense by appointing highly qualified experts to serve in senior decision-making roles for covered acquisitions. (2) Senior Commercial Acquisition Executives Pipeline (A) In general In carrying out the Pilot Program, the Secretary of Defense shall appoint not less than 10 and not more than 30 highly qualified experts as Senior Commercial Acquisition Executives — (i) to actively assist the Secretary in the development, instruction, and continuous refinement of the Gold Tier Capital Certification Training Program established under subsection (c); and (ii) to align commercial and public practices for defense acquisitions and contracts. (B) Qualifications In appointing individuals as Senior Commercial Acquisition Executives under subparagraph (A), the Secretary shall— (i) select individuals with significant experience in commercial acquisition, including— (I) not fewer than 8 years of experience in procuring or managing large-scale commercial products or services; and (II) demonstrated responsibility for acquisition decisions in competitive commercial markets that involve funding or a project value of more than $50,000,000; and (ii) prioritize the appointment of individuals with experience in industries such as advanced technology, manufacturing, logistics, or any other sector characterized by large-scale commercial procurement. (C) Appointment term A Senior Commercial Acquisition Executive shall be appointed for a term of four years. (D) Hiring Authority and Compensation The Secretary may— (i) appoint individuals under this section as highly qualified experts pursuant to section 9903 of title 5, United States Code, or any other applicable authority; and (ii) fix the pay of an individual appointed under this section at the highest rate authorized for highly qualified experts under section 9903 of title 5, United States Code, and may use any available flexibility under such section to recruit individuals with the expertise required under this section. (E) Duties Each Senior Commercial Acquisition Executive shall— (i) be assigned to a military department, defense agency, or other component of the Department of Defense and report to the senior acquisition executive, or any other official the Secretary considers appropriate, of the assigned department, agency, or component; (ii) lead or participate in the development and approval of acquisition strategies for covered acquisitions; (iii) advise and support contracting officers and program officials in the use of commercial acquisition procedures, including— (I) commercial solution openings; (II) fixed-price contracting; and (III) price-based evaluation methods; (iv) promote the use of commercial practices consistent with the objectives of section 3102 of title 10, United States Code; and (v) provide input and recommendations for the Gold Tier Capital Certification Training Program. (F) Covered acquisitions For covered acquisitions, the Secretary shall ensure that a Senior Commercial Acquisition Executive either serves as the lead acquisition official or provides oversight for the acquisition strategy, which shall include meaningful participation in decisions relating to the contract structure, the pricing approach, and the source selection methodology. (3) Reporting requirements (A) Interim report Not later than two years after the date of the enactment of this Act, and annually thereafter, the Under Secretary of Defense for Acquisition and Sustainment shall submit to the congressional defense committees a report that— (i) provides the number of Senior Commercial Acquisition Executives and the portfolio and service assignment of each such executive; (ii) describes the types of acquisitions in which such executives were involved; (iii) describes the extent to which the executives influenced acquisition strategy, contract structure, and pricing approaches; (iv) provides an assessment of the effectiveness of the Pilot Program in improving the use of commercial acquisition practices, including any impacts on cost, speed, and participation by nontraditional defense contractors; and (v) includes recommendations regarding whether the authority of the Secretary to appoint Senior Commercial Acquisition Executives under this section should be extended, modified, or made permanent. (B) Final report (i) In general Not later than 180 days prior to the termination date described in paragraph (4), the Secretary of Defense shall submit to the congressional defense committees a comprehensive report that evaluates the Pilot Program. (ii) Contents The report shall include an assessment of total cost avoidance, accelerated acquisition timelines, industry feedback, and a formal recommendation on whether to permanently codify the authorities granted under this section. (4) Sunset (A) In general The authority of the Secretary to appoint individuals under paragraph (2)(A) shall terminate 5 years after the date of the enactment of this Act. (B) Individuals appointed before termination date An individual appointed under paragraph (2)(A) before the termination date described in subparagraph (A) of this paragraph may continue to serve for the duration of the individual's appointment, subject to applicable law. (5) Covered acquisitions defined In this subsection, the term covered acquisitions means an acquisition— (A) not designated as a major defense acquisition program, as defined in section 4201 of title 10, United States Code; and (B) for a product or service that includes, as a significant component or purpose— (i) software or software-intensive systems; (ii) autonomous systems, including unmanned platforms and associated enabling technologies; (iii) artificial intelligence, machine learning, or data analytics capabilities; (iv) cloud computing, data infrastructure, or digital platforms; (v) cyber capabilities, including cybersecurity and cyber defense tools; (vi) space-based services or commercially provided space capabilities; (vii) advanced sensing, networking, or communications technologies; or (viii) such other technology areas as the Secretary of Defense determines can be effectively acquired using commercial acquisition procedures, including where such procedures would improve speed, cost, competition, or access to innovative suppliers. (c) Pilot training program for Gold Tier Capital Certification (1) Establishment Not later than 180 days after the date of the enactment of this Act, the Secretary of Defense, acting through the Under Secretary of Defense for Acquisition and Sustainment, shall establish a pilot training program (referred to in this subsection as the Training Program) to establish, evaluate, and refine within the Department of Defense the training and qualifications necessary for an elite advanced financial certification, which shall be known as the Gold Tier Capital Certification. (2) Participant nomination and selection (A) Annual nominations For each fiscal year during which the Training Program is active, each service acquisition executive shall nominate not fewer than 10 and not more than 15 contracting officers from their respective military department to participate in the Training Program. (B) Selection criteria Nominations shall be based on demonstrated technical competence, leadership potential, and aptitude for advanced commercial acquisition practices. (3) Curriculum requirements (A) Core competencies The Training Program shall feature a rigorous, advanced curriculum focused on commercial capital markets and corporate and alternative defense financing, including the following instructional areas: (i) Capital structure fundamentals, including debt, equity, and hybrid financial instruments. (ii) Risk allocation models and corporate financial incentive alignment. (iii) Deal structuring and creative financing mechanisms. (iv) Commercial valuation methodologies and return-on-investment analysis. (v) Public-private partnership models and execution frameworks. (vi) Operational and structural distinctions between venture capital, private equity, internal corporate investment, and traditional commercial banking. (B) Educational partners The curriculum described in subparagraph (A) shall be developed and delivered in coordination with partner institutions and Senior Commercial Acquisition Executives (appointed in subsection (b)), including top-tier graduate business and economic schools, investment banking firms, venture capital firms, and private equity firms. (C) Rotational immersions and industry exchange program (i) In general The curriculum described in subparagraph (A) will include a formalized industry exchange program, through which contracting officers in the Training Program may complete temporary operational rotations with venture capital firms, defense prime contractors, commercial technology startups, and investment banks. (ii) Exchange period A temporary operational rotation shall last between six and 12 months. (iii) Purpose These rotations will provide contracting officers with firsthand experience in commercial business operations, rapid scaling methodologies, and private-sector risk allocation. (4) Administrative role of defense acquisition university The Defense Acquisition University shall serve the Training Program in a strictly administrative and coordinating capacity, to include the funding and management of travel, lodging, and enabling logistics for participants. (5) Performance metrics for Gold Tier Capital Certification (A) In general Any contracting officer who successfully completes the Training Program shall be awarded the Gold Tier Capital Certification. (B) Maintenance of designation To maintain the Gold Tier Capital Certification, an individual who completes the Training Program must meet or exceed the annual performance metrics, as set and evaluated by the relevant portfolio acquisition executive and Senior Commercial Acquisition Executive. (C) Forfeiture and replacement Any officer who fails to meet the metrics described under subparagraph (B) for two or more evaluation periods shall immediately forfeit the Gold Tier Capital Certification. (D) Replacement of officer Not later than 60 days after the forfeiture of a Gold Tier Capital Certification under subparagraph (C), the relevant service acquisition executive shall nominate a qualified replacement for the Training Program. (6) Personnel incentives and authorities The Secretary of Defense shall ensure that contracting officers holding a valid Gold Tier Capital Certification receive the incentives and operational authorities described in this paragraph. (A) Promotion considerations In procedures for military and civilian personnel evaluations, the Secretary shall consider the possession of a Gold Tier Capital Certification as an advanced professional qualification and give such certification positive weight for promotion and leadership selection. (B) Streamlined approvals The Secretary shall establish expedited, streamlined administrative review and approval pathways for non-traditional financing mechanisms executed by any officer with a Gold Tier Capital Certification. (C) Liaison status Any officer with a Gold Tier Capital Certification shall possess direct liaison status with the Economic Defense Unit. (D) Industry immersions The Secretary shall provide officers with a Gold Tier Capital Certification with priority access to official operational immersion opportunities within industry, including financial and investment entities and commercial startups. (7) Reporting requirements (A) Interim briefing Not later than two years after the date of the enactment of this Act, the Secretary of Defense shall provide to the congressional defense committees a briefing on the initial implementation of the Training Program, metrics achieved by the participants, and curriculum efficacy. (B) Interim report Not later than two years after the date of the enactment of this Act, and annually thereafter, the Under Secretary of Defense for Acquisition and Sustainment shall submit to the congressional defense committees a report that— (i) provides the number contracting officers that participated in the Training Program, and the portfolio and service designation of each such officer; (ii) describes the types of acquisitions in which such officers were involved; (iii) describes the extent to which the Training Program influenced acquisition strategy, contract structure, and pricing approaches; (iv) provides an assessment of the effectiveness of the Training Program in improving the use of commercial acquisition practices, including any impacts on cost, speed, and participation by nontraditional defense contractors; and (v) includes recommendations as to whether the authority under this section should be extended, modified, or made permanent. (C) Final report (i) In general Not later than 180 days prior to the termination date described in paragraph (8), the Secretary of Defense shall submit to the congressional defense committees a comprehensive report that evaluates the Training Program. (ii) Contents The report shall include an assessment of total cost avoidance, accelerated acquisition timelines, industry feedback, and a formal recommendation on whether to permanently codify the certification program. (8) Sunset The Training Program shall terminate on the date that is five years after the date of the enactment of this Act.