U.S. Code > Title 10 Armed Forces > Subtitle A—General Military Law (§§ 101—2925) > PART IV—SERVICE, SUPPLY, AND PROCUREMENT (§§ 2201—2925) > CHAPTER 131—PLANNING AND COORDINATION (§§ 2201—2229a) > § 2222. Defense business systems: architecture, accountability, and modernization

§ 2222. Defense business systems: architecture, accountability, and modernization

(a) Conditions for Obligation of Funds for Defense Business System Modernization.— Funds appropriated to the Department of Defense may not be obligated for a defense business system modernization that will have a total cost in excess of $1,000,000 unless—
(1) the appropriate chief management officer for the defense business system modernization has determined whether or not—
(A) the defense business system modernization is in compliance with the enterprise architecture developed under subsection (c); and
(B) appropriate business process reengineering efforts have been undertaken to ensure that—
(i) the business process to be supported by the defense business system modernization will be as streamlined and efficient as practicable; and
(ii) the need to tailor commercial-off-the-shelf systems to meet unique requirements or incorporate unique interfaces has been eliminated or reduced to the maximum extent practicable;
(2) the approval authority designated for the defense business system certifies to the Defense Business Systems Management Committee established by section 186 of this title that the defense business system modernization—
(A) has been determined by the appropriate chief management officer to be in compliance with the requirements of paragraph (1);
(B) is necessary to achieve a critical national security capability or address a critical requirement in an area such as safety or security; or
(C) is necessary to prevent a significant adverse effect on a project that is needed to achieve an essential capability, taking into consideration the alternative solutions for preventing such adverse effect; and
(3) the certification by the approval authority and the determination by the chief management officer are approved by the Defense Business Systems Management Committee.
(b) Obligation of Funds in Violation of Requirements.— The obligation of Department of Defense funds for a business system modernization in excess of the amount specified in subsection (a) that has not been certified and approved in accordance with such subsection is a violation of section 1341 (a)(1)(A) of title 31.
(c) Enterprise Architecture for Defense Business Systems.— Not later than September 30, 2005, the Secretary of Defense, acting through the Defense Business Systems Management Committee, shall develop—
(1) an enterprise architecture to cover all defense business systems, and the functions and activities supported by defense business systems, which shall be sufficiently defined to effectively guide, constrain, and permit implementation of interoperable defense business system solutions and consistent with the policies and procedures established by the Director of the Office of Management and Budget, and
(2) a transition plan for implementing the enterprise architecture for defense business systems.
(d) Composition of Enterprise Architecture.— The defense business enterprise architecture developed under subsection (c)(1) shall include the following:
(1) An information infrastructure that, at a minimum, would enable the Department of Defense to—
(A) comply with all Federal accounting, financial management, and reporting requirements;
(B) routinely produce timely, accurate, and reliable financial information for management purposes;
(C) integrate budget, accounting, and program information and systems; and
(D) provide for the systematic measurement of performance, including the ability to produce timely, relevant, and reliable cost information.
(2) Policies, procedures, data standards, and system interface requirements that are to apply uniformly throughout the Department of Defense.
(e) Composition of Transition Plan.—
(1) The transition plan developed under subsection (c)(2) shall include the following:
(A) The acquisition strategy for new systems that are expected to be needed to complete the defense business enterprise architecture.
(B) A listing of the defense business systems as of December 2, 2002 (known as “legacy systems”), that will not be part of the objective defense business enterprise architecture, together with the schedule for terminating those legacy systems that provides for reducing the use of those legacy systems in phases.
(C) A listing of the legacy systems (referred to in subparagraph (B)) that will be a part of the objective defense business system, together with a strategy for making the modifications to those systems that will be needed to ensure that such systems comply with the defense business enterprise architecture.
(2) Each of the strategies under paragraph (1) shall include specific time-phased milestones, performance metrics, and a statement of the financial and nonfinancial resource needs.
(f) Approval Authorities and Accountability for Defense Business Systems.—
(1) The Secretary of Defense shall delegate responsibility for review, approval, and oversight of the planning, design, acquisition, deployment, operation, maintenance, and modernization of defense business systems as follows:
(A) The Under Secretary of Defense for Acquisition, Technology and Logistics shall be responsible and accountable for any defense business system the primary purpose of which is to support acquisition activities, logistics activities, or installations and environment activities of the Department of Defense.
(B) The Under Secretary of Defense (Comptroller) shall be responsible and accountable for any defense business system the primary purpose of which is to support financial management activities or strategic planning and budgeting activities of the Department of Defense.
(C) The Under Secretary of Defense for Personnel and Readiness shall be responsible and accountable for any defense business system the primary purpose of which is to support human resource management activities of the Department of Defense.
(D) The Assistant Secretary of Defense for Networks and Information Integration and the Chief Information Officer of the Department of Defense shall be responsible and accountable for any defense business system the primary purpose of which is to support information technology infrastructure or information assurance activities of the Department of Defense.
(E) The Deputy Secretary of Defense or an Under Secretary of Defense, as designated by the Secretary of Defense, shall be responsible for any defense business system the primary purpose of which is to support any activity of the Department of Defense not covered by subparagraphs (A) through (D).
(2) For purposes of subsection (a), the appropriate chief management officer for a defense business system modernization is as follows:
(A) In the case of an Army program, the Chief Management Officer of the Army.
(B) In the case of a Navy program, the Chief Management Officer of the Navy.
(C) In the case of an Air Force program, the Chief Management Officer of the Air Force.
(D) In the case of a program of a Defense Agency, the Deputy Chief Management Officer of the Department of Defense.
(E) In the case of a program that will support the business processes of more than one military department or Defense Agency, the Deputy Chief Management Officer of the Department of Defense.
(g) Defense Business System Investment Review.—
(1) The Secretary of Defense shall require each approval authority designated under subsection (f) to establish, not later than March 15, 2005, an investment review process, consistent with section 11312 of title 40, to review the planning, design, acquisition, development, deployment, operation, maintenance, modernization, and project cost benefits and risks of all defense business systems for which the approval authority is responsible. The investment review process so established shall specifically address the responsibilities of approval authorities under subsection (a).
(2) The review of defense business systems under the investment review process shall include the following:
(A) Review and approval by an investment review board of each defense business system as an investment before the obligation of funds on the system.
(B) Periodic review, but not less than annually, of every defense business system investment.
(C) Representation on each investment review board by appropriate officials from among the armed forces, combatant commands, the Joint Chiefs of Staff, and Defense Agencies.
(D) Use of threshold criteria to ensure an appropriate level of review within the Department of Defense of, and accountability for, defense business system investments depending on scope, complexity, and cost.
(E) Use of procedures for making certifications in accordance with the requirements of subsection (a).
(F) Use of procedures for ensuring consistency with the guidance issued by the Secretary of Defense and the Defense Business Systems Management Committee, as required by section 186 (c) of this title, and incorporation of common decision criteria, including standards, requirements, and priorities that result in the integration of defense business systems.
(h) Budget Information.— In the materials that the Secretary submits to Congress in support of the budget submitted to Congress under section 1105 of title 31 for fiscal year 2006 and fiscal years thereafter, the Secretary of Defense shall include the following information:
(1) Identification of each defense business system for which funding is proposed in that budget.
(2) Identification of all funds, by appropriation, proposed in that budget for each such system, including—
(A) funds for current services (to operate and maintain the system); and
(B) funds for business systems modernization, identified for each specific appropriation.
(3) For each such system, identification of the official to whom authority for such system is delegated under subsection (f).
(4) For each such system, a description of each certification made under subsection (d) with regard to such system.
(i) Congressional Reports.— Not later than March 15 of each year from 2005 through 2013, the Secretary of Defense shall submit to the congressional defense committees a report on Department of Defense compliance with the requirements of this section. The first report shall define plans and commitments for meeting the requirements of subsection (a), including specific milestones and performance measures. Subsequent reports shall—
(1) describe actions taken and planned for meeting the requirements of subsection (a), including—
(A) specific milestones and actual performance against specified performance measures, and any revision of such milestones and performance measures; and
(B) specific actions on the defense business system modernizations submitted for certification under such subsection;
(2) identify the number of defense business system modernizations so certified;
(3) identify any defense business system modernization with an obligation in excess of $1,000,000 during the preceding fiscal year that was not certified under subsection (a), and the reasons for the waiver; and
(4) discuss specific improvements in business operations and cost savings resulting from successful defense business systems modernization efforts.
(j) Definitions.— In this section:
(1) The term “approval authority”, with respect to a defense business system, means the Department of Defense official responsible for the defense business system, as designated by subsection (f).
(2) The term “defense business system” means an information system, other than a national security system, operated by, for, or on behalf of the Department of Defense, including financial systems, mixed systems, financial data feeder systems, and information technology and information assurance infrastructure, used to support business activities, such as acquisition, financial management, logistics, strategic planning and budgeting, installations and environment, and human resource management.
(3) The term “defense business system modernization” means—
(A) the acquisition or development of a new defense business system; or
(B) any significant modification or enhancement of an existing defense business system (other than necessary to maintain current services).
(4) The term “enterprise architecture” has the meaning given that term in section 3601 (4) of title 44.
(5) The terms “information system” and “information technology” have the meanings given those terms in section 11101 of title 40.
(6) The term “national security system” has the meaning given that term in section 3542 (b)(2) of title 44.