§ 263. — Performance based management: acquisition programs.
[Laws in effect as of January 24, 2002]
[Document not affected by Public Laws enacted between
January 24, 2002 and December 19, 2002]
[CITE: 41USC263]
TITLE 41--PUBLIC CONTRACTS
CHAPTER 4--PROCUREMENT PROCEDURES
SUBCHAPTER IV--PROCUREMENT PROVISIONS
Sec. 263. 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, performance, and
schedule goals established for major acquisition programs of the agency.
(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) of this section, 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.
(June 30, 1949, ch. 288, title III, Sec. 313, as added Pub. L. 103-355,
title V, Sec. 5051(a), Oct. 13, 1994, 108 Stat. 3351; amended Pub. L.
105-85, div. A, title VIII, Sec. 851(a), Nov. 18, 1997, 111 Stat. 1851.)
Amendments
1997--Subsec. (a). Pub. L. 105-85 amended heading and text of
subsec. (a) generally. Prior to amendment, text read as follows: ``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.''
Enhanced System of Performance Incentives
Section 5051(c) of Pub. L. 103-355 provided that: ``Within one year
after the date of the enactment of this Act [Oct. 13, 1994], 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 system 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) [41 U.S.C. 263(b)]); 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.''
Recommended Legislation
Section 5051(d) of Pub. L. 103-355 provided that: ``Not later than
one year after the date of the enactment of this Act [Oct. 13, 1994],
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) [41
U.S.C. 263], 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.''
Section Referred to in Other Sections
This section is referred to in sections 405, 433 of this title.
