Responsibilities and authorities of portfolio acquisition executives with respect to contractors

To issue a performance improvement notice to any contractor that, as documented in any contractor past performance database used by the Department of Defense, has received a rating indicating a deficiency (such as marginal or unsatisfactory) in two or more consecutive assessment periods, or in three or more assessment periods within a period of five years. Such a notice shall specify, with particularity, the deficiencies identified in such ratings and shall establish measurable corrective action benchmarks and a remediation period not to exceed 180 days. The portfolio acquisition executive shall ensure that the notice is provided contemporaneously to the contractor and the component acquisition executive or service acquisition executive of the military department concerned, as applicable, and is documented in any contractor past performance database used by the Department.

To initiate a contract restructuring action, including an action to adjust a performance metric, milestone schedule, deliverable specification, or associated incentive fee structure, without the prior approval of the component acquisition executive or the service acquisition executive of the military department concerned, as long as the total value of the restructured contract does not exceed any applicable threshold. The portfolio acquisition executive shall provide written notification to the component acquisition executive or service acquisition executive, as applicable, not later than 15 days after initiating such an action.

To recommend to the component acquisition executive or the service acquisition executive of the military department concerned that a contract be terminated for cause. The service acquisition executive shall act on such recommendation, or determine not to act on such recommendation, not later than 30 days after receiving the recommendation.

not later than 15 days after such override or determination, make a written documentation of the override or determination that cites the specific statutory, regulatory, or policy basis for the override or determination; and

provide a copy of such written documentation to the portfolio acquisition executive and the Under Secretary of Defense for Acquisition and Sustainment.

authorize a portfolio acquisition executive to terminate a contract for cause without the approval of the component acquisition executive or service acquisition executive, as applicable; or

supersede any right of the contractor to notice and opportunity to respond under applicable provisions of law or regulation.

a consolidated list of all actions taken by a portfolio acquisition executive under paragraphs (1), (2), and (3) of subsection (a);

a consolidated list of all overrides and determinations by a component acquisition executive or service acquisition executive under subsection (b); and

an assessment of the effectiveness of the actions taken under paragraphs (1), (2), and (3) of subsection (a).

specify metrics that must be used by each portfolio acquisition executive to assess each defense acquisition program assigned to such executive;

for each such metric, establish minimum thresholds for reporting; and

provide for consistency and comparability of contractor performance data across the Department while preserving the flexibility of each portfolio acquisition executive to tailor specific indicators and thresholds to the defense acquisition programs assigned to such executive.

for each category established under subsection (b), develop additional metrics and thresholds tailored to the defense acquisition programs assigned to such portfolio acquisition executive;

submit such additional metrics and thresholds to the Under Secretary of Defense for Acquisition and Sustainment; and

upon approval of the Under Secretary of Defense for Acquisition and Sustainment, file such additional metrics and thresholds with the Office of the Under Secretary of Defense for Acquisition and Sustainment.

to the Committee on Armed Services of the Senate and the Committee on Armed Services of the House of Representatives not later than 30 days after approving such metrics and thresholds; and

to the Comptroller General upon request.

The Under Secretary of Defense for Acquisition and Sustainment shall ensure that the metrics and thresholds under this section—

This section does not require the assessment of the individual performance of any member of the acquisition workforce.

as documented in the contractor past performance database used by the Department of Defense, has received a rating of exceptional or very good for not fewer than three consecutive assessment periods under the defense acquisition programs assigned to such executive; and

has met or exceeded all key performance parameters applicable to such programs during such period.

Except as provided in paragraph (2), a designation under subsection (a) shall remain in effect for a period not to exceed three years from the date on which the designation is made, at which time a new designation under subsection (a) may be made if the requirements of subsection (a) are met.

A portfolio acquisition executive may revoke a designation under subsection (a) at any time upon a determination that the contractor no longer satisfies a requirement in subsection (a). The portfolio acquisition executive shall make the revocation in writing, ensure that it is documented in any contractor past performance database used by the Department, and report the revocation not later than 30 days after making the revocation to the Under Secretary of Defense for Acquisition and Sustainment and the component acquisition executive or service acquisition executive of the military department concerned, as applicable.

constitute a sole-source justification or otherwise relieve the contracting officer of the obligation to conduct full and open competition as required by applicable law, regulation, and policy; or

be used to evaluate the past performance of an offeror in a source selection under a defense acquisition program not assigned to the portfolio acquisition executive that made the designation, except with the prior written concurrence of the porfolio acquisition executive to whom the defense acquisition program is assigned.