II
118THCONGRESS
1
STSESSION S. 2040
To reinstate the position of Chief Management Officer of the Department
of Defense, and for other purposes.
IN THE SENATE OF THE UNITED STATES
JUNE15, 2023
Mr. B
RAUN(for himself and Mr. MANCHIN) introduced the following bill;
which was read twice and referred to the Committee on Armed Services
A BILL
To reinstate the position of Chief Management Officer of
the Department of Defense, and for other purposes.
Be it enacted by the Senate and House of Representa-1
tives of the United States of America in Congress assembled, 2
SECTION 1. SHORT TITLE. 3
This Act may be cited as the ‘‘Pentagon Management 4
Oversight Act of 2023’’. 5
SEC. 2. REINSTATEMENT OF POSITION OF CHIEF MANAGE-6
MENT OFFICER OF DEPARTMENT OF DE-7
FENSE. 8
(a) R
EINSTATEMENT OF POSITION.— 9
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(1) IN GENERAL.—Chapter 4 of title 10, United 1
States Code, is amended by inserting after the item 2
relating to section 132 the following new item: 3
‘‘§ 132a. Chief Management Officer 4
‘‘(a) A
PPOINTMENT AND QUALIFICATIONS.—(1) 5
There is a Chief Management Officer of the Department 6
of Defense, appointed from civilian life by the President, 7
by and with the advice and consent of the Senate. 8
‘‘(2) The Chief Management Officer shall be ap-9
pointed from among persons who have an extensive man-10
agement or business background and experience with man-11
aging large or complex organizations. A person may not 12
be appointed as Chief Management Officer within seven 13
years after relief from active duty as a commissioned offi-14
cer of a regular component of an armed force. 15
‘‘(b) R
ESPONSIBILITIES.—Subject to the authority, 16
direction, and control of the Secretary of Defense and the 17
Deputy Secretary of Defense, the Chief Management Offi-18
cer shall perform such duties and exercise such powers as 19
the Secretary or the Deputy Secretary may prescribe, in-20
cluding the following: 21
‘‘(1) Serving as the chief management officer of 22
the Department of Defense with the mission of man-23
aging enterprise business operations and shared 24
services of the Department of Defense. 25
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‘‘(2) Serving as the principal advisor to the Sec-1
retary and the Deputy Secretary on establishing 2
policies for, and directing, all enterprise business op-3
erations of the Department, including planning and 4
processes, business transformation, and performance 5
measurement and management activities and pro-6
grams, including the allocation of resources for en-7
terprise business operations and unifying business 8
management efforts across the Department. 9
‘‘(3) Exercising authority, direction, and control 10
over the Defense Agencies and Department of De-11
fense Field Activities providing shared business serv-12
ices for the Department. 13
‘‘(4) Authority to direct the Secretaries of the 14
military departments and the heads of all other ele-15
ments of the Department with regard to matters for 16
which the Chief Management Officer has responsi-17
bility under this section. 18
‘‘(5) Serving as the official with principal re-19
sponsibility in the Department for minimizing the 20
duplication of efforts, maximizing efficiency and ef-21
fectiveness, and establishing metrics for performance 22
among and for all organizations and elements of the 23
Department. 24
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‘‘(c) BUDGETAUTHORITY.—(1)(A) Beginning in fis-1
cal year 2025, the Secretary of Defense, acting through 2
the Under Secretary of Defense (Comptroller), shall re-3
quire the head of each Defense Agency and Department 4
of Defense Field Activity (other than such agencies and 5
activities that are under the direction of the Director of 6
National Intelligence or are elements of the intelligence 7
community) to transmit the proposed budget of such 8
Agency or Activity for enterprise business operations for 9
a fiscal year, and for the period covered by the future- 10
years defense program submitted to Congress under sec-11
tion 221 of this title for that fiscal year, to the Chief Man-12
agement Officer for review under subparagraph (B) at the 13
same time the proposed budget is submitted to the Under 14
Secretary of Defense (Comptroller). 15
‘‘(B) The Chief Management Officer shall review 16
each proposed budget transmitted under subparagraph 17
(A) and, not later than January 31 of the year preceding 18
the fiscal year for which the budget is proposed, shall sub-19
mit to the Secretary a report containing the comments of 20
the Chief Management Officer with respect to all such pro-21
posed budgets, together with the certification of the Chief 22
Management Officer regarding whether each such pro-23
posed budget achieves the required level of efficiency and 24
effectiveness for enterprise business operations, consistent 25
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with guidance for budget review established by the Chief 1
Management Officer. 2
‘‘(C) Not later than March 31 each year, the Sec-3
retary shall submit to Congress a report that includes the 4
following: 5
‘‘(i) Each proposed budget for the enterprise 6
business operations of a Defense Agency or Depart-7
ment of Defense Field Activity that was transmitted 8
to the Chief Management Officer under subpara-9
graph (A). 10
‘‘(ii) Identification of each proposed budget con-11
tained in the most recent report submitted under 12
subparagraph (B) that the Chief Management Offi-13
cer did not certify as achieving the required level of 14
efficiency and effectiveness for enterprise business 15
operations. 16
‘‘(iii) A discussion of the actions that the Sec-17
retary proposes to take, together with any rec-18
ommended legislation that the Secretary considers 19
appropriate, to address inadequate levels of effi-20
ciency and effectiveness for enterprise business oper-21
ations achieved by the proposed budgets identified in 22
the report. 23
‘‘(iv) Any additional comments that the Sec-24
retary considers appropriate regarding inadequate 25
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levels of efficiency and effectiveness for enterprise 1
business operations achieved by the proposed budg-2
ets. 3
‘‘(2) Nothing in this subsection shall be construed to 4
modify or interfere with the budget-related responsibilities 5
of the Director of National Intelligence. 6
‘‘(d) P
RECEDENCE.—The Chief Management Officer 7
takes precedence in the Department of Defense after the 8
Secretary of Defense and the Deputy Secretary of De-9
fense. 10
‘‘(e) E
NTERPRISE BUSINESSOPERATION DE-11
FINED.—In this section, the term ‘enterprise business op-12
erations’ means those activities that constitute the cross- 13
cutting business operations used by multiple components 14
of the Department of Defense, but not those activities that 15
are directly tied to a single military department or Depart-16
ment of Defense component. The term includes business- 17
support functions designated by the Secretary of Defense 18
or the Deputy Secretary of Defense for purposes of this 19
section, such as aspects of financial management, 20
healthcare, acquisition and procurement, supply chain and 21
logistics, certain information technology, real property, 22
and human resources operations.’’. 23
(2) C
LERICAL AMENDMENT .—The table of sec-24
tions at the beginning of chapter 4 of such title is 25
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amended by inserting after the item relating to sec-1
tion 132 the following new item: 2
‘‘132a. Chief Management Officer.’’.
(b) MANAGEMENT AND OVERSIGHT OF DEFENSE 3
B
USINESSSYSTEMS.—Section 2222 of such title is 4
amended— 5
(1) in subsection (c)(2), by striking ‘‘the Chief 6
Information Officer of the Department of Defense’’ 7
and inserting ‘‘the Chief Management Officer of the 8
Department of Defense’’; 9
(2) in subsection (e)— 10
(A) in paragraph (1), by striking ‘‘the 11
Chief Information Officer’’ and inserting ‘‘the 12
Chief Management Officer’’; and 13
(B) in paragraph (6)— 14
(i) in subparagraph (A), in the matter 15
preceding clause (i)— 16
(I) in the first sentence, by strik-17
ing ‘‘The Chief Information Officer of 18
the Department of Defense, in coordi-19
nation with the Chief Data and Artifi-20
cial Intelligence Officer,’’ and insert-21
ing ‘‘The Chief Management Officer 22
of the Department of Defense’’; and 23
(II) in the second sentence, by 24
striking ‘‘the Chief Information Offi-25
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cer shall’’ and inserting ‘‘the Chief 1
Management Officer shall’’; and 2
(ii) in subparagraph (B), in the mat-3
ter preceding clause (i), by striking ‘‘The 4
Chief Information Officer’’ and inserting 5
‘‘The Chief Management Officer’’; 6
(3) in subsection (f)(1), in the second sentence, 7
by inserting ‘‘the Chief Management Officer and’’ 8
after ‘‘chaired by’’; 9
(4) in subsection (g)(2), by striking ‘‘the Chief 10
Information Officer of the Department of Defense’’ 11
each place it appears and inserting ‘‘the Chief Man-12
agement Officer of the Department of Defense’’; and 13
(5) in subsection (i)(5)(B), by striking ‘‘the 14
Chief Information Officer’’ and inserting ‘‘the Chief 15
Management Officer’’. 16
(c) C
ONFORMINGAMENDMENT.—Section 131(b) of 17
title 10, United States Code, is amended by inserting after 18
paragraph (1) the following new paragraph (2): 19
‘‘(2) The Chief Management Officer of the De-20
partment of Defense.’’. 21
(d) G
UIDANCEREQUIRED.—Not later than 30 days 22
after the date of the enactment of this Act, the Secretary 23
of Defense shall— 24
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(1) issue guidance to clearly delineate the au-1
thorities and responsibilities of the Chief Manage-2
ment Officer of the Department of Defense; and 3
(2) provide a charter for the position of the 4
Chief Management Officer to fully vest the authority 5
of the Chief Management Officer within the Depart-6
ment of Defense. 7
(e) R
EPORT ONEFFECT OFLAPSE INMANAGEMENT 8
O
VERSIGHT ONDEFENSEBUSINESSSYSTEMS.— 9
(1) I
N GENERAL.—Not later than 180 days 10
after the date of the enactment of this Act, the Dep-11
uty Secretary of Defense shall submit to the con-12
gressional defense committees a report on the effect 13
on defense business systems of the abolishment of 14
the position of Chief Management Officer and the 15
failure to reassign the responsibilities of the Chief 16
Management Officer with respect to defense business 17
systems for two years. 18
(2) D
EFENSE BUSINESS SYSTEM DEFINED .—In 19
this subsection, the term ‘‘defense business system’’ 20
has the meaning given that term in section 2222(i) 21
of title 10, United States Code. 22
Æ
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