Requires each federal agency head primarily responsible for the information technology (IT) investment project under review, and the Director of the Office of Management and Budget (OMB), to jointly designate at least five of the agency's most mission critical IT investment projects (or fewer, under certain circumstances) as core IT investment projects or core projects, after considering specified criteria.

Requires the Chief Information Officer (CIO) of the federal agency primarily responsible for the IT investment project under review, after receiving a quarterly report from the project manager, to determine if the project has significantly deviated, in cost, schedule, or performance variance, at least 20% from the Original Baseline. Requires a report of any significant deviation to the appropriate congressional committees and to the Government Accountability Office (GAO).

Requires the agency's CIO, similarly, to: (1) determine if the project has grossly deviated, in cost, schedule, or performance variance, at least 40% from the Original Baseline; and (2) report such a deviation to the appropriate congressional committees and GAO if the agency head does not. Specifies remedial actions in the event of a gross deviation.

Requires each agency head to establish a program meeting specified requirements to improve the agency's IT processes.

Requires the Administrator of the Office of Electronic Government and Information and Technology at OMB (the E-Gov Administrator) to establish a small group of individuals (IT Strike Force) to assist agencies in avoiding significant and gross deviations in the cost, schedule, and performance of IT investment projects.

Requires the E-Gov Administrator to carry out certain activities upon determining that there is reasonable cause to believe that a major IT investment project is likely to significantly or grossly deviate, including the receipt of inconsistent or missing data.

Requires each Chief Information Officer of a federal agency to: (1) identify its major IT investments that are most critical; and (2) designate those most mission critical IT investment projects as core IT investment projects or core projects after considering specified factors. Defines "IT investment project" as an information technology system or acquisition that: (1) requires special management attention due to its importance to the mission or function of its agency; (2) is for financial management and obligates more than $500 million annually; (3) has significant program or policy implications; (4) has high executive visibility; (5) has high development, operating, or maintenance costs; (6) is funded through other than direct appropriations; or (7) is defined as major by the agency's capital planning and investment control process.

Requires the project manager for an IT investment project to submit a report to the Chief Information Officer not later than 14 days after the end of each fiscal quarter (or upon making a determination that a project has significantly or grossly deviated since the issuance of any quarterly report) that includes: (1) a description of the cost, schedule, and performance of such projects; (2) the original and current project cost, schedule, and performance benchmarks; (3) the quarterly and cumulative cost, schedule, and performance variance related to each project; (4) any known, expected or anticipated changes to project schedule milestones or project performance benchmarks; (5) the current cost, schedule, and performance status of all projects previously identified as significantly deviated or grossly deviated (i.e., more than 40% variance from the original baseline); and (6) any corrective actions taken.

Requires the Chief Information Officer, upon receiving such a report, to: (1) determine if any project has significantly or grossly deviated and report such determination to the agency head; (2) report any such significant or gross deviations to appropriate congressional committees, the Director of the Office of Management and Budget (OMB), and the Government Accountability Office (GAO); (3) develop and implement a remedial action plan to address gross deviations; and (4) establish a program to improve the information technology processes overseen by the Chief Information Officer.

Requires the Administrator of the Office of Electronic Government and Information and Technology at OMB (the E-Gov Administrator) to establish an IT Strike Force to assist agencies in avoiding significant and gross deviations in the cost, schedule, and performance of IT investment projects and take specified actions to avoid or reduce such deviations.

Requires the OMB Director to include in the annual report to Congress on the Benefits of E-Government Initiatives a summary of the composition and activities of the IT Strike Force and its effectiveness.