[Congressional Bills 115th Congress]
[From the U.S. Government Publishing Office]
[H.R. 2227 Reported in House (RH)]
<DOC>
Union Calendar No. 79
115th CONGRESS
1st Session
H. R. 2227
[Report No. 115-129, Part I]
To modernize Government information technology, and for other purposes.
_______________________________________________________________________
IN THE HOUSE OF REPRESENTATIVES
April 28, 2017
Mr. Hurd (for himself, Mr. Connolly, Ms. Kelly of Illinois, Mr.
Chaffetz, Mr. Cummings, Mr. Ted Lieu of California, Mr. Khanna, Mr.
Kilmer, Mrs. Comstock, Mr. Yoder, Mr. Taylor, and Ms. Granger)
introduced the following bill; which was referred to the Committee on
Oversight and Government Reform, and in addition to the Committee on
Appropriations, for a period to be subsequently determined by the
Speaker, in each case for consideration of such provisions as fall
within the jurisdiction of the committee concerned
May 17, 2017
Additional sponsors: Mr. McCarthy, Mr. Hoyer, Mrs. Demings, Ms.
DelBene, Mr. Farenthold, Mr. Issa, and Mr. Ruppersberger
May 17, 2017
Reported from the Committee on Oversight and Government Reform
May 17, 2017
The Committee on Appropriations discharged; committed to the Committee
of the Whole House on the State of the Union and ordered to be printed
_______________________________________________________________________
A BILL
To modernize Government information technology, and for other purposes.
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the ``Modernizing Government Technology
Act of 2017'' or the ``MGT Act''.
SEC. 2. FINDINGS; PURPOSES.
(a) Findings.--The Congress finds the following:
(1) The Federal Government spends nearly 75 percent of its
annual information technology funding on operating and
maintaining existing legacy information technology systems.
These systems can pose operational risks, including rising
costs and inability to meet mission requirements. These systems
also pose security risks, including the inability to use
current security best practices, such as data encryption and
multi-factor authentication, making these systems particularly
vulnerable to malicious cyber activity.
(2) In 2015, the Government Accountability Office (GAO)
designated Improving the Management of IT Acquisitions and
Operations to its biannual High Risk List and identified as a
particular concern the increasing level of information
technology spending on operations and maintenance, making less
funding available for development or modernization. The GAO
also found the Government has spent billions on failed and
poorly performing information technology investments due to a
lack of effective oversight.
(3) The Federal Government must modernize Federal IT
systems to mitigate existing operational and security risks.
(4) The efficiencies, cost savings, and greater computing
power offered by modernized solutions, such as cloud computing,
have the potential to--
(A) eliminate inappropriate duplication and reduce
costs;
(B) address the critical need for cybersecurity by
design; and
(C) move the Federal Government into a broad,
digital-services delivery model that will transform the
ability of the Federal Government to meet mission
requirements and deliver services to the American
people.
(b) Purposes.--The purposes of this Act are the following:
(1) Assist the Federal Government in modernized Federal
information technology to mitigate current operational and
security risks.
(2) Incentivize cost savings in Federal information
technology through modernization.
(3) Accelerate the acquisition and deployment of modernized
information technology solutions, such as cloud computing, by
addressing impediments in the areas of funding, development,
and acquisition practices.
SEC. 3. ESTABLISHMENT OF AGENCY INFORMATION TECHNOLOGY SYSTEMS
MODERNIZATION AND WORKING CAPITAL FUNDS.
(a) Information Technology System Modernization and Working Capital
Funds.--
(1) Establishment.--The head of a covered agency may
establish within such agency an information technology system
modernization and working capital fund (in this section
referred to as the ``IT working capital fund'') for necessary
expenses described in paragraph (3).
(2) Source of funds.--The following amounts may be
deposited into an IT working capital fund:
(A) Reprogramming and transfer of funds made
available in appropriations Acts subsequent to the date
of the enactment of this Act, including transfer of any
funds for the operation and maintenance of legacy
information technology systems, in compliance with any
applicable reprogramming law or guidelines of the
Committees on Appropriations of the House of
Representatives and the Senate.
(B) Amounts made available to the IT working
capital fund through discretionary appropriations made
available subsequent to the date of the enactment of
this Act.
(3) Use of funds.--An IT working capital fund established
under paragraph (1) may be used, subject to the availability of
appropriations, only for the following:
(A) To improve, retire, or replace existing
information technology systems in the covered agency to
enhance cybersecurity and to improve efficiency and
effectiveness.
(B) To transition legacy information technology
systems at the covered agency to cloud computing and
other innovative platforms and technologies, including
those serving more than one covered agency with common
requirements.
(C) To assist and support covered agency efforts to
provide adequate, risk-based, and cost-effective
information technology capabilities that address
evolving threats to information security.
(D) To reimburse funds transferred to the covered
agency from the Technology Modernization Fund
established under section 4, with the approval of the
Chief Information Officer of the covered agency.
(4) Existing funds.--An IT working capital fund may not be
used to supplant funds provided for the operation and
maintenance of any system within an appropriation for the
covered agency at the time of establishment of the IT working
capital fund.
(5) Prioritization of funds.--The head of each covered
agency shall prioritize funds within the IT working capital
fund to be used initially for cost savings activities approved
by the Chief Information Officer of the covered agency, in
consultation with the Administrator of the Office of Electronic
Government. The head of each covered agency may reprogram and
transfer any amounts saved as a direct result of such
activities for deposit into the applicable IT working capital
fund, consistent with paragraph (2)(A).
(6) Return of funds.--Any funds deposited into an IT
working capital fund shall be available for obligation for
three years after the last day of the fiscal year in which such
funds were deposited.
(7) Agency cio responsibilities.--In evaluating projects to
be funded from the IT working capital fund, the Chief
Information Officer of the covered agency shall consider, to
the extent applicable, guidance issued pursuant to section
4(a)(1) to evaluate applications for funding from the
Technology Modernization Fund established under that section
that include factors such as a strong business case, technical
design, procurement strategy (including adequate use of
incremental software development practices), and program
management.
(b) Reporting Requirement.--
(1) In general.--Not later than one year after the date of
the enactment of this Act, and every six months thereafter, the
head of each covered agency shall submit to the Director the
following, with respect to the IT working capital fund for the
covered agency:
(A) A list of each information technology
investment funded with estimated cost and completion
date for each such investment.
(B) A summary by fiscal year of obligations,
expenditures, and unused balances.
(2) Public availability.--The Director shall make the
information submitted under paragraph (1) publicly available on
a website.
(c) Covered Agency Defined.--In this section, the term ``covered
agency'' means each agency listed in section 901(b) of title 31, United
States Code.
SEC. 4. ESTABLISHMENT OF TECHNOLOGY MODERNIZATION FUND AND BOARD.
(a) Technology Modernization Fund.--
(1) Establishment.--There is established in the Treasury a
Technology Modernization Fund (in this section referred to as
the ``Fund'') for technology-related activities, to improve
information technology, to enhance cybersecurity across the
Federal Government, and to be administered in accordance with
guidance issued by the Director.
(2) Administration of fund.--The Commissioner of the
Technology Transformation Service of the General Services
Administration, in consultation with the Chief Information
Officers Council and with the approval of the Director, shall
administer the Fund in accordance with this subsection.
(3) Use of funds.--The Commissioner shall, in accordance
with the recommendations of the Technology Modernization Board
established under subsection (b), use amounts in the Fund for
the following purposes:
(A) To transfer such amounts, to remain available
until expended, to the head of an agency to improve,
retire, or replace existing Federal information
technology systems to enhance cybersecurity and improve
efficiency and effectiveness.
(B) For the development, operation, and procurement
of information technology products, services, and
acquisition vehicles for use by agencies to improve
Governmentwide efficiency and cybersecurity in
accordance with the requirements of such agencies.
(C) To provide services or work performed in
support of the activities described under subparagraph
(A) or (B).
(4) Authorization of appropriations; credits; availability
of funds.--
(A) Authorization of appropriations.--There is
authorized to be appropriated to the Fund $250,000,000
for each of fiscal years 2018 and 2019.
(B) Credits.--In addition to any funds otherwise
appropriated, the Fund shall be credited with all
reimbursements, advances, or refunds or recoveries
relating to information technology or services provided
through the Fund.
(C) Availability of funds.--Amounts deposited,
credited, or otherwise made available to the Fund shall
be available, as provided in appropriations Acts, until
expended for the purposes described in paragraph (3).
(5) Reimbursement.--
(A) Payment by agency.--For a product or service
developed under paragraph (3)(B), including any
services or work performed in support of such
development under paragraph (3)(C), the head of an
agency that uses such product or service shall pay an
amount fixed by the Commissioner in accordance with
this paragraph.
(B) Reimbursement by agency.--The head of an agency
shall reimburse the Fund for any transfer made under
paragraph (3)(A), including any services or work
performed in support of such transfer under paragraph
(3)(C), in accordance with the terms established in a
written agreement described in paragraph (6).
Notwithstanding any other provision of law, an agency
may make a reimbursement required by this subparagraph
from any appropriation made available subsequent to the
date of the enactment of this Act for information
technology activities, consistent with any applicable
reprogramming law or guidelines of the Committees on
Appropriations of the House of Representatives and the
Senate. An obligation to make a payment under a written
agreement described in paragraph (6) in a fiscal year
after the date of the enactment of this Act shall be
recorded pursuant to section 1501 of title 31, United
States Code, in the fiscal year in which the payment is
due.
(C) Prices fixed by commissioner.--The
Commissioner, in consultation with the Director, shall
establish amounts to be paid by an agency and terms of
repayment for use of a product or service developed
under paragraph (3)(B), including any services or work
performed in support of such development under
paragraph (3)(C), at levels sufficient to ensure the
solvency of the Fund, including operating expenses.
Before making any changes to the established amounts
and terms of repayment, the Commissioner shall conduct
a review and obtain approval from the Director.
(D) Failure to make timely reimbursement.--The
Commissioner may obtain reimbursement by the issuance
of transfer and counterwarrants, or other lawful
transfer documents, supported by itemized bills, if
payment is not made by an agency--
(i) within 90 days after the expiration of
a repayment period described in a written
agreement described in paragraph (6); or
(ii) within 45 days after the expiration of
the time period to make a payment under a
payment schedule for a product or service
developed under paragraph (3)(B).
(6) Written agreement.--
(A) In general.--Before the transfer of funds to an
agency under paragraph (3)(A), the Commissioner (in
consultation with the Director) and the head of the
requisitioning agency shall enter into a written
agreement documenting the purpose for which the funds
will be used and the terms of repayment, which may not
exceed five years unless approved by the Director. An
agreement made pursuant to this subparagraph shall be
recorded as an obligation as provided in paragraph
(5)(B).
(B) Requirement for use of incremental development
practices.--For any funds transferred to an agency
under paragraph (3)(A), in the absence of compelling
circumstances documented by the Commissioner at the
time of transfer, such funds shall be transferred only
on an incremental basis, tied to metric-based
development milestones achieved by the agency, to be
described in a written agreement required under
subparagraph (A).
(7) Reporting requirement.--Not later than six months after
the date of the enactment of this Act, the Director shall
publish and maintain a list of each project funded by the Fund
on a public website, to be updated not less than quarterly,
that includes a description of the project, project status
(including any schedule delay and cost overruns), and financial
expenditure data related to the project.
(b) Technology Modernization Board.--
(1) Establishment.--There is established a Technology
Modernization Board (in this section referred to as the
``Board'') to evaluate proposals submitted by agencies for
funding authorized under the Fund.
(2) Responsibilities.--The responsibilities of the Board
are the following:
(A) Provide input to the Director for the
development of processes for agencies to submit
modernization proposals to the Board and to establish
the criteria by which such proposals are evaluated,
which shall include addressing the greatest security
and operational risks, having the greatest
Governmentwide impact, and having a high probability of
success based on factors such as a strong business
case, technical design, procurement strategy (including
adequate use of incremental software development
practices), and program management.
(B) Make recommendations to the Commissioner to
assist agencies in the further development and
refinement of select submitted modernization proposals,
based on an initial evaluation performed with the
assistance of the Commissioner.
(C) Review and prioritize, with the assistance of
the Commissioner and the Director, modernization
proposals based on criteria established pursuant to
subparagraph (A).
(D) Identify, with the assistance of the
Commissioner, opportunities to improve or replace
multiple information technology systems with a smaller
number of information technology systems common to
multiple agencies.
(E) Recommend the funding of modernization
projects, in accordance with the uses described in
subsection (a)(3), to the Commissioner.
(F) Monitor, in consultation with the Commissioner,
progress and performance in executing approved projects
and, if necessary, recommend the suspension or
termination of funding for projects based on factors
such as failure to meet the terms of a written
agreement described in subsection (a)(6).
(G) Monitor operating costs of the Fund.
(3) Membership.--The Board shall consist of eight voting
members.
(4) Chair.--The Chair of the Board shall be the
Administrator of the Office of Electronic Government.
(5) Permanent members.--The permanent members of the Board
shall be the following:
(A) The Administrator of the Office of Electronic
Government.
(B) A senior official from the General Services
Administration having technical expertise in
information technology development, appointed by the
Administrator of General Services, with the approval of
the Director.
(6) Additional members of the board.--
(A) Appointment.--The other members of the Board
shall be appointed as follows:
(i) One employee of the National Protection
and Programs Directorate of the Department of
Homeland Security, appointed by the Secretary
of Homeland Security.
(ii) One employee of the Department of
Defense, appointed by the Secretary of Defense.
(iii) Four Federal employees primarily
having technical expertise in information
technology development, financial management,
cybersecurity and privacy, and acquisition,
appointed by the Director.
(B) Term.--Each member of the Board described in
paragraph (A) shall serve a term of one year, which
shall be renewable up to three times, at the discretion
of the appointing Secretary or Director, as applicable.
(7) Prohibition on compensation.--Members of the Board may
not receive additional pay, allowances, or benefits by reason
of their service on the Board.
(8) Staff.--Upon request of the Chair of the Board, the
Director and the Administrator of General Services may detail,
on a nonreimbursable basis, any of the personnel of the Office
of Management and Budget or the General Services Administration
(as the case may be) to the Board to assist the Board in
carrying out its functions under this Act.
(c) Responsibilities of Commissioner.--
(1) In general.--In addition to the responsibilities
described in subsection (a), the Commissioner shall support the
activities of the Board and provide technical support to, and,
with the concurrence of the Director, oversight of, agencies
that receive transfers from the Fund.
(2) Responsibilities.--The responsibilities of the
Commissioner are the following:
(A) Provide direct technical support in the form of
personnel services or otherwise to agencies transferred
amounts under subsection (a)(3)(A) and for products,
services, and acquisition vehicles funded under
subsection (a)(3)(B).
(B) Assist the Board with the evaluation,
prioritization, and development of agency modernization
proposals.
(C) Perform regular project oversight and
monitoring of approved agency modernization projects,
in consultation with the Board and the Director, to
increase the likelihood of successful implementation
and reduce waste.
(D) Provide the Director with information necessary
to meet the requirements of subsection (a)(7).
(d) Agency Defined.--In this section, the term ``agency'' has the
meaning given that term in section 551 of title 5, United States Code.
SEC. 5. DEFINITIONS.
In this Act:
(1) Cloud computing.--The term ``cloud computing'' has the
meaning given that term by the National Institute of Standards
and Technology in NIST Special Publication 800-145 and any
amendatory or superseding document thereto.
(2) Commissioner.--The term ``Commissioner'' means the
Commissioner of the Technology Transformation Service of the
General Services Administration.
(3) Director.--The term ``Director'' means the Director of
the Office of Management and Budget.
(4) Information technology.--The term ``information
technology'' has the meaning given that term in section 3502 of
title 44, United States Code.
(5) Legacy information technology system.--The term
``legacy information technology system'' means an outdated or
obsolete system of information technology.
Union Calendar No. 79
115th CONGRESS
1st Session
H. R. 2227
[Report No. 115-129, Part I]
_______________________________________________________________________
A BILL
To modernize Government information technology, and for other purposes.
_______________________________________________________________________
May 17, 2017
Reported from the Committee on Oversight and Government Reform
May 17, 2017
The Committee on Appropriations discharged; committed to the Committee
of the Whole House on the State of the Union and ordered to be printed