1. (a) Overall Supervision.—

   1. (1) The Secretary of Defense shall assign responsibility for the overall supervision of each Defense Agency and Department of Defense Field Activity designated under section 191(b) of this title—

      1. (A) to a civilian officer within the Office of the Secretary of Defense listed in section 131(b) of this title; or
      2. (B) to the Chairman of the Joint Chiefs of Staff.
   2. (2) An official assigned such a responsibility with respect to a Defense Agency or Department of Defense Field Activity shall advise the Secretary of Defense on the extent to which the program recommendations and budget proposals of such agency or activity conform with the requirements of the military departments and of the unified and specified combatant commands.
   3. (3) This subsection does not apply to the Defense Intelligence Agency or the National Security Agency.
2. (b) Program and Budget Review.— The Secretary of Defense shall establish procedures to ensure that there is full and effective review of the program recommendations and budget proposals of each Defense Agency and Department of Defense Field Activity.

3. (c) Periodic Review.—

   1. (1) Periodically (and not less often than every two years), the Secretary of Defense shall review the services and supplies provided by each Defense Agency and Department of Defense Field Activity to ensure that—

      1. (A) there is a continuing need for each such agency and activity; and
      2. (B) the provision of those services and supplies by each such agency and activity, rather than by the military departments, is a more effective, economical, or efficient manner of providing those services and supplies or of meeting the requirements for combat readiness of the armed forces.
   2. (2) Paragraph (1) shall apply to the National Security Agency as determined appropriate by the Secretary, in consultation with the Director of National Intelligence. The Secretary shall establish procedures under which information required for review of the National Security Agency shall be obtained.
4. (d) Special Rule for Defense Commissary Agency.— Notwithstanding the results of any periodic review under subsection (c) with regard to the Defense Commissary Agency, the Secretary of Defense may not transfer to the Secretary of a military department the responsibility to manage and fund the provision of services and supplies provided by the Defense Commissary Agency unless the transfer of the management and funding responsibility is specifically authorized by a law enacted after October 17, 1998.

5. (e) Special Rule for Defense Business Transformation Agency.—

   1. (1) The Defense Business Transformation Agency shall be supervised by the vice chairman of the Defense Business System Management Committee.
   2. (2) Notwithstanding the results of any periodic review under subsection (c) with regard to the Defense Business Transformation Agency, the Secretary of Defense shall designate that the Director of the Agency shall report directly to the Deputy Chief Management Officer of the Department of Defense.¹

(Added Pub. L. 99–433, title III, § 301(a)(2), Oct. 1, 1986, 100 Stat. 1020; amended Pub. L. 105–261, div. A, title III, § 361(a), Oct. 17, 1998, 112 Stat. 1984; Pub. L. 106–65, div. A, title X, § 1066(a)(3), Oct. 5, 1999, 113 Stat. 770; Pub. L. 109–163, div. A, title III, § 371, Jan. 6, 2006, 119 Stat. 3209; Pub. L. 110–181, div. A, title IX, §§ 904(c), 931(a)(1), Jan. 28, 2008, 122 Stat. 274, 285; Pub. L. 113–291, div. A, title IX, § 901(n)(1), Dec. 19, 2014, 128 Stat. 3469; Pub. L. 115–91, div. A, title X, § 1081(b)(1)(D), Dec. 12, 2017, 131 Stat. 1597.)

References in Text

The Deputy Chief Management Officer of the Department of Defense, referred to in subsec. (e)(2), was established by section 132a of this title prior to the general amendment of that section by Pub. L. 115–91, div. A, title IX, § 910(a)(1), Dec. 12, 2017, 131 Stat. 1516. As amended by Pub. L. 115–91, section 132a of this title established the Chief Management Officer of the Department of Defense.

Prior Provisions

A prior section 192, Pub. L. 98–215, title V, § 501(a), Dec. 9, 1983, 97 Stat. 1478, which related to benefits for certain personnel of the Defense Intelligence Agency, was redesignated as section 1605 of this title and amended by Pub. L. 99–145, title XIII, § 1302(a)(1), Nov. 8, 1985, 99 Stat. 737. Provisions of prior section 192 as related to members of the armed forces were enacted as section 431 (now 491) of Title 37, Pay and Allowances of the Uniformed Services, by section 1302(b)(1) of Pub. L. 99–145.

Amendments

2008—Subsec. (c)(2). Pub. L. 110–181, § 931(a)(1), substituted “Director of National Intelligence” for “Director of Central Intelligence”.

Subsec. (e)(2). Pub. L. 110–181, § 904(c), substituted “that the Director of the Agency shall report directly to the Deputy Chief Management Officer of the Department of Defense.” for “that the Agency be managed cooperatively by the Deputy Under Secretary of Defense for Business Transformation and the Deputy Under Secretary of Defense for Financial Management.”

2006—Subsec. (e). Pub. L. 109–163 added subsec. (e).

1999—Subsec. (d). Pub. L. 106–65 substituted “October 17, 1998” for “the date of the enactment of this subsection”.

1998—Subsec. (d). Pub. L. 105–261 added subsec. (d).

Change of Name

Reference to “Deputy Chief Management Officer of the Department of Defense” in subsec. (e)(2) was to be deemed to refer to “Under Secretary of Defense for Business Management and Information” after Feb. 1, 2017, pursuant to section 901(n)(1) of Pub. L. 113–291, formerly set out as a References note under section 131 of this title. Section 901(a)(1) of Pub. L. 113–291, which amended section 132a of this title, effective Feb. 1, 2017, to establish the Under Secretary of Defense for Business Management and Information, was repealed by Pub. L. 114–328, div. A, title IX, § 901(d), Dec. 23, 2016, 130 Stat. 2342, effective Dec. 23, 2016. Section 901(n)(1) of Pub. L. 113–291 was repealed by Pub. L. 115–91, div. A, title X, § 1081(b)(1)(D), Dec. 12, 2017, 131 Stat. 1597, effective Dec. 23, 2016.

First Review of Defense Agencies by Secretary of Defense

Pub. L. 99–433, title III, § 304(a), Oct. 1, 1986, 100 Stat. 1024, required the first review under subsec. (c) of this section to be completed not later than two years after the date that the report under Pub. L. 99–433, § 303(e), formerly set out as a note under section 191 of this title, was required to be submitted to Congress (Oct. 1, 1987).

¹ See References in Text note below.