- Committee’s Official Designation: The Committee shall be known as the Defense Business Board (hereafter referred to as the Board).
- Authority: The Secretary of Defense, under the provision of the Federal Advisory Committee Act (FACA) of 1972 (5 U.S.C., Appendix, as amended) and 41CFR §102-3.50(d) (agency authority), established the Board.
- Objectives and Scope of Activities: The Board shall provide independent advice and recommendations on critical matters concerning the Department of Defense (DoD) as set out in (4) below.
- Description of Duties: The Board, at the direction of the Secretary of Defense or the Deputy Secretary of Defense, and according to DoD policy shall examine and advise on overall DoD management and governance.
- Agency or Official to Whom the Committee Reports: The Board shall report to the Secretary of Defense or the Deputy Secretary of Defense, and the Deputy Secretary of Defense is authorized to act upon the Board’s advice and recommendations.
- Support: The Department of Defense, through the Office of the Secretary of Defense and the Washington Headquarters Services, shall provide support as deemed necessary for the Board’s functions, and shall ensure compliance with the requirement of the FACA, the Government in the Sunshine Act of 1976 (5 U.S.C. §552b), and governing federal regulations and DoD policies.
Additional information and assistance, as required and with DoD approval, may be obtained from other DoD Components with contracting authority, support contractors, including DoD Federally Funded Research and Development Centers for studies and analysis support.
- Estimated Annual Operating Costs and Staff Years: The estimated annual operating costs, to include travel costs and meeting and contract support, are approximately $1,020,000.00. The estimated annual personnel cost to the Department of Defense is 6.0 full-time equivalents (FTEs).
- Designated Federal Officer: The Board’s Designated Federal Officer, pursuant to DoD policy, shall be a full-time or permanent part-time DoD employee, and shall be appointed in accordance with governing DoD policies and procedures.
The Board’s Designated Federal Officer is required to be in attendance at all Board and subcommittee meetings for the entire duration of each and every meeting. However, in the absence of the Board’s Designated Federal Officer, an Alternate Designated Federal Officer, duly appointed to the Board according to DoD policies and procedures, shall attend the entire duration of the Board or subcommittee meetings.
The Designated Federal Officer, or the Alternate Designated Federal Officer, shall call all of the Board’s and subcommittee’s meetings, prepare and approve all meeting agendas, and adjourn any meeting, when the Designated Federal Officer, or the Alternated Designated Federal Officer, determines adjournment to be in the public’s interest or required by governing regulations or DoD policies/procedures.
- Estimated Number and Frequency of Meetings: The Board shall meet at the call of the Board’s Designated Federal Officer, in consultation with the Chairperson. The estimated number of Board meetings is four per year.
- Duration: The need for this advisory function is on a continuing basis; however this charter is subject to renewal every two years.
- Termination: The Board shall terminate upon completion of its mission or two years from the date this charter is filed, whichever is sooner, unless the Secretary of Defense or designee extends it.
- Membership and Designation:The Board shall be composed of not more than 25 members, who possess: (a) a proven track record of sound judgment in leading or governing large, complex private sector corporations or organizations; and (b) a wealth of top-level, global business experience in the areas of executive management, corporate governance, audit and finance, human resources, economics, technology and healthcare. Board members shall be appointed by the Secretary of Defense, with annual renewals.
Board members appointed by the Secretary of Defense, who are not full-time or permanent part-time federal officers or employees, shall be appointed to serve as experts and consultants under the authority of 5 U.S.C. § 3109, and to serve as special government employees. Board members, with the approval of the Secretary of Defense, may serve a term of service on the Board of one to four years; however, no member shall serve more than two consecutive terms of service on the Board. Regardless of the individual’s approved term of service, all appointments to the Board shall be renewed on an annual basis.
The Secretary of Defense shall select and appoint the Board’s chairperson from the total membership. With the exception of travel and per diem for official travel, Board members shall serve without compensation.
Board members are appointed to provide advice on behalf of the government on the basis of their best judgment without representing any particular point of view and in a manner that is free from conflict of interest.
The Chairpersons of the Defense Policy Board and the Defense Science Board may serve as non-voting ex-officio members of the Board. These individuals, when they attend, may provide advice to the Board membership only on the areas governed by their respective Boards and provided the information has been voted on by their membership and it is available to the general public.
The Secretary of Defense or the Deputy Secretary of Defense may appoint former Board members to serve as non-voting Senior Fellows. These individuals are appointed based upon their subject matter expertise and based upon the matters under deliberation by the Board. The Board may utilize non-voting Senior Fellows who, as former members, assist with institutional knowledge and provide continuity of operations.
The Director of the Office of Management and Budget and the Comptroller General of the General Accounting Office shall serve as non-voting observers of the Board. According to DoD policy and procedures, the Secretary of Defense may invite or appoint experts or consultants, with special expertise, to assist the Board on an ad hoc basis. These experts and consultants, appointed under the authority of 5 U.S.C. § 3109, shall serve as special government employees; however, they shall have no voting rights on the Board.
Non-voting ex-officio members, non-voting senior fellows, non-voting observers and those non-voting experts and consultants appointed by the Secretary of Defense shall not count toward the Board’s total membership.
- Subcommittees: The Department, when necessary, and consistent with the Board’s mission and DoD policies and procedures may establish subcommittees, task groups, or working groups deemed necessary to support the Board.
These subcommittees or working groups shall operate under the provisions of the FACA, the Government in the Sunshine Act of 1976 (5 U.S.C. § 552b, as amended), other governing Federal statutes and regulations, and governing DoD policies and procedures.
Such subcommittees or task groups shall not work independently of the chartered Board, and shall report all their recommendations and advice to the Board for full deliberation and discussion. Subcommittees have no authority to make decisions on behalf of the chartered Board; nor can any subcommittee or its members update or report directly to the Department of Defense or any Federal officers or employees.
All subcommittee members shall be appointed in the same manner as the Board members; that is, the Secretary of Defense shall appoint subcommittee members even if the member in question is already a Board member. Subcommittee members, with the approval of the Secretary of Defense, may serve a term of service on the subcommittee of one to four years; however, no member shall serve more than two consecutive terms of service on the subcommittee.
Subcommittee members, if not full-time or part-time government employees, shall be appointed to serve as experts and consultants under the authority of 5 U.S.C. § 3109, and to serve as special government employees, whose appointments must be renewed on an annual basis. With the exception of travel and per diem for official travel, subcommittee members shall serve without compensation.
- Recordkeeping: The records of the Board and its subcommittees shall be handled according to section 2, General Record Schedule 26 and appropriate Department of Defense policies and procedures. These records shall be available for public inspection and copying, subject to the Freedom of Information Act of 1966 (5 U.S.C. §552, as amended).
- Filing Date: January 20, 2012