PERFORMANCE BASED MANAGEMENT.

SEC. 5051. PERFORMANCE BASED MANAGEMENT. (a) Policy and Goals for Performance Based Management OF Programs.— Title III of the Federal Property and Administrative Services Act of 1949 (41 U.S.C. 301 et seq.), as amended by sections 1552 and 1553, is further amended by adding at the end the following new section: “SEC. 313. PERFORMANCE BASED MANAGEMENT: ACQUISITION PROGRAMS. “(a) Congressional Policy.— It is the policy of Congress that the head of each executive agency should achieve, on average, 90 percent of the cost and schedule goals established for major and nonmajor acquisition programs of the agency without reducing the performance or capabilities of the items being acquired. “(b) Establishment of Goals.— (1) The head of each executive agency shall approve or define the cost, performance, and schedule goals for major acquisition programs of the agency. “(2) The chief financial officer of an executive agency shall evaluate the cost goals proposed for each major acquisition program of the agency. “(c) Identification of Noncompliant Programs.— Whenever it is necessary to do so in order to implement the policy set out in subsection (a), the head of an executive agency 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.”. (b) Annual Reporting Requirement.— Section 6 of the Office of Federal Procurement Policy Act (41 U.S.C. 405), as amended by section 1091, is further amended by adding at the end the following new subsection: “(k) The Administrator shall submit to Congress, on an annual basis, an assessment of the progress made in executive agencies in implementing the policy stated in section 313(a) of the Federal Property and Administrative Services Act of 1949. The Administrator shall use data from existing management systems in making the assessment.”. (c) Enhanced System of Performance Incentives.— Within one year after the date of the enactment of this Act, the Deputy Director for Management of the Office of Management and Budget, in consultation with appropriate officials in other departments and agencies of the Federal Government, shall, to the maximum extent consistent with applicable law— (1) establish policies and procedures for the heads of such departments and agencies to designate acquisition positions and manage employees (including the accession, education, training and career development of employees) in the designated acquisition positions; and (2) review the incentives and personnel actions available to the heads of departments and agencies of the Federal Government for encouraging excellence in the acquisition workforce of the Federal Government and provide an enhanced 108 STAT. 3352system of incentives for the encouragement of excellence in such workforce which— (A) relates pay to performance (including the extent to which the performance of personnel in such workforce contributes to achieving the cost goals, schedule goals, and performance goals established for acquisition programs pursuant to section 313(b) of the Federal Property and Administrative Services Act of 1949, as added by subsection (a)); and (B) provides for consideration, in personnel evaluations and promotion decisions, of the extent to which the performance of personnel in such workforce contributes to achieving such cost goals, schedule goals, and performance goals. (d) Recommended Legislation.— Not later than one year after the date of the enactment of this Act, the Administrator for Federal Procurement Policy shall submit to Congress any recommended legislation that the Secretary considers necessary to carry out section 313 of the Federal Property and Administrative Services Act of 1949, as added by subsection (a), and otherwise to facilitate and enhance management of Federal Government acquisition programs and the acquisition workforce of the Federal Government on the basis of performance.