[Congressional Bills 111th Congress]
[From the U.S. Government Publishing Office]
[S. 920 Referred in House (RFH)]

111th CONGRESS
  2d Session
                                 S. 920


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                              May 20, 2010

  Referred to the Committee on Oversight and Government Reform, and in 
    addition to the Committee on Armed Services, 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

_______________________________________________________________________

                                 AN ACT


 
To amend section 11317 of title 40, United States Code, to improve the 
 transparency of the status of information technology investments, to 
require greater accountability for cost overruns on Federal information 
   technology investment projects, to improve the processes agencies 
   implement to manage information technology investments, to reward 
    excellence in information technology acquisition, 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 ``Information Technology (IT) 
Investment Oversight Enhancement and Waste Prevention Act of 2009''.

SEC. 2. FINDINGS.

    Congress finds the following:
            (1) The effective deployment of information technology can 
        make the Federal Government more efficient, effective, and 
        transparent.
            (2) Historically, the Federal Government has struggled to 
        properly plan, manage, and deliver information technology 
        investments on time, on budget, and performing as planned.
            (3) The Office of Management and Budget has made 
        significant progress overseeing information technology 
        investments made by Federal agencies, but continues to struggle 
        to ensure that such investments meet cost, schedule, and 
        performance expectations.
            (4) Congress has limited knowledge of the actual cost, 
        schedule, and performance of agency information technology 
        investments and has difficulty providing the necessary 
        oversight.
            (5) In July 2008, an official of the Government 
        Accountability Office testified before the Subcommittee on 
        Federal Financial Management, Government Information, Federal 
        Services, and International Security of the Committee on 
        Homeland Security and Governmental Affairs of the Senate, 
        stating that--
                    (A) agencies self-report inaccurate and unreliable 
                project management data to the Office of Management and 
                Budget and Congress; and
                    (B) the Office of Management and Budget should 
                establish a mechanism that would provide real-time 
                project management information and force agencies to 
                improve the accuracy and reliability of the information 
                provided.

SEC. 3. REAL-TIME TRANSPARENCY OF IT INVESTMENT PROJECTS.

    Section 11302(c)(1) of title 40, United States Code, is amended by 
striking the period at the end and inserting the following: ``, 
including ensuring the effective operation of a Web site, updating the 
Web site, at a minimum, on a quarterly basis, and including on the Web 
site, not later than 90 days after the date of the enactment of the 
Information Technology (IT) Investment Oversight Enhancement and Waste 
Prevention Act of 2009--
            ``(1) the accurate cost, schedule, and performance 
        information since the commencement of the project of all major 
        information technology investments reported in a manner 
        consistent with policy established by the Office of Management 
        and Budget on the use of earned-value management data, which 
        should be based on the ANSI-EIA-748-B standard or another 
        objective performance-based management system approved by the 
        E-Government Administrator;
            ``(2) a graphical depiction of trend information, to the 
        extent practicable, since the commencement of the major IT 
        investment;
            ``(3) a clear delineation of major IT investments that have 
        experienced cost, schedule, or performance variance greater 
        than 10 percent over the life cycle of the investment, and the 
        extent of the variation;
            ``(4) an explanation of the reasons the investment deviated 
        from the benchmark established at the commencement of the 
        project; and
            ``(5) the number of times investments were rebaselined and 
        the dates on which such rebaselines occurred.''.

SEC. 4. IT INVESTMENT PROJECTS.

    (a) Significant and Gross Deviations.--Section 11317 of title 40, 
United States Code, is amended to read as follows:

``SEC. 11317. SIGNIFICANT AND GROSS DEVIATIONS.

    ``(a) Definitions.--In this subchapter:
            ``(1) Agency head.--The term `Agency Head' means the head 
        of the Federal agency that is primarily responsible for the IT 
        investment project under review.
            ``(2) ANSI eia-748-b standard.--The term `ANSI EIA-748-B 
        Standard' means the measurement tool jointly developed by the 
        American National Standards Institute and the Electronic 
        Industries Alliance to analyze Earned Value Management systems.
            ``(3) Appropriate congressional committees.--The term 
        `appropriate congressional committees' means--
                    ``(A) the Committee on Homeland Security and 
                Governmental Affairs of the Senate;
                    ``(B) the Committee on Oversight and Government 
                Reform of the House of Representatives;
                    ``(C) the Committee on Appropriations of the 
                Senate;
                    ``(D) the Committee on Appropriations of the House 
                of Representatives; and
                    ``(E) any other relevant congressional committee 
                with jurisdiction over an agency required to take 
                action under this section.
            ``(4) Chief information officer.--The term `Chief 
        Information Officer' means the Chief Information Officer 
        designated under section 3506(a)(2) of title 44 of the 
        Executive department (as defined in section 101 of title 5) 
        that is primarily responsible for the IT investment project 
        under review.
            ``(5) Core it investment project.--The terms `core IT 
        investment project' and `core project' mean a mission critical 
        IT investment project designated as such by the Chief 
        Information Officer, with approval by the Agency Head under 
        subsection (b).
            ``(6) Director.--The term `Director' means the Director of 
        the Office of Management and Budget.
            ``(7) Earned value management.--The term `Earned Value 
        Management' means the cost, schedule, and performance data used 
        to determine project status and developed in accordance with 
        the ANSI EIA-748-B Standard.
            ``(8) Grossly deviated.--The term `grossly deviated' means 
        cost, schedule, or performance variance that is at least 40 
        percent from the Original Baseline.
            ``(9) Independent cost estimate.--The term `independent 
        cost estimate' means a pragmatic and neutral analysis, 
        assessment, and quantification of all costs and risks 
        associated with acquisitions related to an IT investment 
        project, which--
                    ``(A) is based on programmatic and technical 
                specifications provided by the office within the agency 
                with primary responsibility for the development, 
                procurement, and delivery of the project;
                    ``(B) is formulated and provided by an entity other 
                than the office within the agency with primary 
                responsibility for the development, procurement, and 
                delivery of the project;
                    ``(C) contains sufficient detail to inform the 
                selection of an Earned Value Management baseline 
                benchmark measure under the ANSI EIA-748-B standard; 
                and
                    ``(D) accounts for the full life cycle cost plus 
                associated operations and maintenance expenses over the 
                usable life of the project's deliverables.
            ``(10) Life cycle cost.--The term `life cycle cost' means 
        the total cost of an IT investment project for planning, 
        research and development, modernization, enhancement, 
        operation, and maintenance.
            ``(11) Major it investment project.--The terms `major IT 
        investment project' and `project' mean an information 
        technology system or information technology acquisition that--
                    ``(A) requires special management attention because 
                of its importance to the mission or function of the 
                agency, a component of the agency, or another 
                organization;
                    ``(B) is for financial management and obligates 
                more than $500,000 annually;
                    ``(C) has significant program or policy 
                implications;
                    ``(D) has high executive visibility;
                    ``(E) has high development, operating, or 
                maintenance costs;
                    ``(F) is funded through other than direct 
                appropriations; or
                    ``(G) is defined as major by the agency's capital 
                planning and investment control process.
            ``(12) Original baseline.--
                    ``(A) In general.--Except as provided under 
                subparagraph (B), the term `Original Baseline' means 
                the ANSI EIA-748-B Standard-compliant Earned Value 
                Management benchmark or an equivalent benchmark 
                approved by the Office of Management and Budget and 
                established at the commencement of an IT investment 
                project.
                    ``(B) Grossly deviated project.--If an IT 
                investment project grossly deviates from its Original 
                Baseline (as defined in subparagraph (A)), the term 
                `Original Baseline' means the ANSI EIA-748-B Standard-
                compliant Earned Value Management benchmark or an 
                equivalent benchmark approved by the Office of 
                Management and Budget and established under subsection 
                (e)(3)(C).
            ``(13) Significantly deviated.--The term `significantly 
        deviated' means cost, schedule, or performance variance that is 
        at least 20 percent from the Original Baseline.
    ``(b) Core IT Investment Projects Designation.--Each Chief 
Information Officer, with approval by the Agency Head, shall--
            ``(1) identify the major IT investments that are the most 
        critical to the agency; and
            ``(2) designate any project as a `core IT investment 
        project' or a `core project', upon determining that the project 
        is a mission critical IT investment project that--
                    ``(A) represents a significant high dollar value 
                relative to the average IT investment project in the 
                agency's portfolio;
                    ``(B) delivers a capability critical to the 
                successful completion of the agency mission, or a 
                portion of such mission;
                    ``(C) incorporates unproven or previously 
                undeveloped technology to meet primary project 
                technical requirements; or
                    ``(D) would have a significant negative impact on 
                the successful completion of the agency mission if the 
                project experienced significant cost, schedule, or 
                performance deviations.
    ``(c) Cost, Schedule, and Performance Reports.--
            ``(1) Quarterly reports.--Not later than 14 days after the 
        end of each fiscal quarter, the project manager designated by 
        the Agency Head for an IT investment project shall submit 
        information to the Chief Information Officer that includes, as 
        of the last day of the applicable quarter--
                    ``(A) a description of the cost, schedule, and 
                performance of all projects under the project manager's 
                supervision;
                    ``(B) the original and current project cost, 
                schedule, and performance benchmarks for each project 
                under the project manager's supervision;
                    ``(C) the quarterly and cumulative cost, schedule, 
                and performance variance related to each IT investment 
                project under the project manager's supervision since 
                the commencement of the project;
                    ``(D) for each project under the project manager's 
                supervision, any known, expected, or anticipated 
                changes to project schedule milestones or project 
                performance benchmarks included as part of the original 
                or current baseline description;
                    ``(E) the current cost, schedule, and performance 
                status of all projects under supervision that were 
                previously identified as significantly deviated or 
                grossly deviated; and
                    ``(F) any corrective actions taken to address 
                problems discovered under subparagraphs (C) through 
                (E).
            ``(2) Interim reports.--If the project manager for an IT 
        investment project determines that there is reasonable cause to 
        believe that an IT investment project has significantly 
        deviated or grossly deviated since the issuance of the latest 
        quarterly report, the project manager shall submit to the Chief 
        Information Officer, not later than 21 days after such 
        determination, information on the project that includes, as of 
        the date of the report--
                    ``(A) a description of the original and current 
                program cost, schedule, and performance benchmarks;
                    ``(B) the cost, schedule, or performance variance 
                related to the IT investment project since the 
                commencement of the project;
                    ``(C) any known, expected, or anticipated changes 
                to the project schedule milestones or project 
                performance benchmarks included as part of the original 
                or current baseline description;
                    ``(D) the major reasons underlying the significant 
                or gross deviation of the project; and
                    ``(E) a corrective action plan to correct such 
                deviations.
    ``(d) Determination of Significant Deviation.--
            ``(1) Chief information officer.--Upon receiving 
        information under subsection (c), the Chief Information Officer 
        shall--
                    ``(A) determine if any IT investment project has 
                significantly deviated; and
                    ``(B) report such determination to the Agency Head.
            ``(2) Congressional notification.--If the Chief Information 
        Officer determines under paragraph (1) that an IT investment 
        project has significantly deviated and the Agency Head has not 
        submitted information to the appropriate congressional 
        committees of a significant deviation for that project under 
        this section since the project was last required to be 
        rebaselined under this section, the Agency Head shall submit 
        information to the appropriate congressional committees, the 
        Director, and the Government Accountability Office that 
        includes--
                    ``(A) notification of such determination;
                    ``(B) the date on which such determination was 
                made;
                    ``(C) the amount of the cost increases and the 
                extent of the schedule delays with respect to such 
                project;
                    ``(D) any requirements that--
                            ``(i) were added subsequent to the original 
                        baseline; or
                            ``(ii) were originally contracted for, but 
                        were changed by deferment or deletion from the 
                        original baseline, or were otherwise no longer 
                        included in the requirements contracted for;
                    ``(E) an explanation of the differences between--
                            ``(i) the estimate at completion between 
                        the project manager, any contractor, and any 
                        independent analysis; and
                            ``(ii) the original budget at completion;
                    ``(F) a statement of the reasons underlying the 
                project's significant deviation; and
                    ``(G) a summary of the plan of action to remedy the 
                significant deviation.
            ``(3) Deadline.--
                    ``(A) Notification based on quarterly report.--If 
                the determination of significant deviation is based on 
                information submitted under subsection (c)(1), the 
                Agency Head shall notify Congress and the Director in 
                accordance with paragraph (2) not later than 21 days 
                after the end of the quarter upon which such 
                information is based.
                    ``(B) Notification based on interim report.--If the 
                determination of significant deviation is based on 
                information submitted under subsection (c)(2), the 
                Agency Head shall notify Congress and the Director in 
                accordance with paragraph (2) not later than 21 days 
                after the submission of such information.
    ``(e) Determination of Gross Deviation.--
            ``(1) Chief information officer.--Upon receiving 
        information under subsection (c), the Chief Information Officer 
        shall--
                    ``(A) determine if any IT investment project has 
                grossly deviated; and
                    ``(B) report any such determination to the Agency 
                Head.
            ``(2) Congressional notification.--If the Chief Information 
        Officer determines under paragraph (1) that an IT investment 
        project has grossly deviated and the Agency Head has not 
        submitted information to the appropriate congressional 
        committees of a gross deviation for that project under this 
        section since the project was last required to be rebaselined 
        under this section, the Agency Head shall submit information to 
        the appropriate congressional committees, the Director, and the 
        Government Accountability Office that includes--
                    ``(A) notification of such determination, which--
                            ``(i) identifies the date on which such 
                        determination was made; and
                            ``(ii) indicates whether or not the project 
                        has been previously reported as a significant 
                        or gross deviation by the Chief Information 
                        Officer, and the date of any such report;
                    ``(B) incorporations by reference of all prior 
                reports to Congress on the project required under this 
                section;
                    ``(C) updated accounts of the items described in 
                subparagraphs (C) through (G) of subsection (d)(2);
                    ``(D) the original estimate at completion for the 
                project manager, any contractor, and any independent 
                analysis;
                    ``(E) a graphical depiction that shows monthly 
                planned expenditures against actual expenditures since 
                the commencement of the project;
                    ``(F) the amount, if any, of incentive or award 
                fees any contractor has received since the commencement 
                of the contract and the reasons for receiving such 
                incentive or award fees;
                    ``(G) the project manager's estimated cost at 
                completion and estimated completion date for the 
                project if current requirements are not modified;
                    ``(H) the project manager's estimated cost at 
                completion and estimated completion date for the 
                project based on reasonable modification of such 
                requirements;
                    ``(I) an explanation of the most significant 
                occurrence contributing to the variance identified, 
                including cost, schedule, and performance variances, 
                and the effect such occurrence will have on future 
                project costs and program schedule;
                    ``(J) a statement regarding previous or anticipated 
                rebaselining or replanning of the project and the names 
                of the individuals responsible for approval;
                    ``(K) the original life cycle cost of the 
                investment and the expected life cycle cost of the 
                investment expressed in constant base year dollars and 
                in current dollars; and
                    ``(L) a comprehensive plan of action to remedy the 
                gross deviation, and milestones established to control 
                future cost, schedule, and performance deviations in 
                the future.
            ``(3) Remedial action.--
                    ``(A) In general.--If the Chief Information Officer 
                determines under paragraph (1)(A) that an IT investment 
                project has grossly deviated, the Agency Head, in 
                consultation with the Chief Information Officer and the 
                appropriate project manager, shall develop and 
                implement a remedial action plan that includes--
                            ``(i) a report that--
                                    ``(I) describes the primary 
                                business case and key functional 
                                requirements for the project;
                                    ``(II) describes any portions of 
                                the project that have technical 
                                requirements of sufficient clarity that 
                                such portions may be feasibly procured 
                                under fixed-price contracts;
                                    ``(III) includes a certification by 
                                the Agency Head, after consultation 
                                with the Chief Information Officer, 
                                that all technical and business 
                                requirements have been reviewed and 
                                validated to ensure alignment with the 
                                reported business case;
                                    ``(IV) describes any changes to the 
                                primary business case or key functional 
                                requirements which have occurred since 
                                project inception; and
                                    ``(V) includes an independent 
                                government cost estimate for the 
                                project conducted by an entity approved 
                                by the Director;
                            ``(ii) an analysis that--
                                    ``(I) describes agency business 
                                goals that the project was originally 
                                designed to address;
                                    ``(II) includes a gap analysis of 
                                what project deliverables remain in 
                                order for the agency to accomplish the 
                                business goals referred to in subclause 
                                (I);
                                    ``(III) identifies the 3 most cost-
                                effective alternative approaches to the 
                                project which would achieve the 
                                business goals referred to in subclause 
                                (I); and
                                    ``(IV) includes a cost-benefit 
                                analysis, which compares--
                                            ``(aa) the completion of 
                                        the project with the completion 
                                        of each alternative approach, 
                                        after factoring in future costs 
                                        associated with the termination 
                                        of the project; and
                                            ``(bb) the termination of 
                                        the project without pursuit of 
                                        alternatives, after factoring 
                                        in foregone benefits; and
                            ``(iii) a new baseline of the project is 
                        established that is consistent with the 
                        independent government cost estimate required 
                        under clause (i)(V); and
                            ``(iv) the project is designated as a core 
                        IT investment project and subjected to the 
                        requirements under subsection (f).
                    ``(B) Submission to congress.--The remedial action 
                plan and all corresponding reports, analyses, and 
                actions under this paragraph shall be submitted to the 
                appropriate congressional committees and the Director.
                    ``(C) Reporting and analysis exemptions.--
                            ``(i) In general.--The Chief Information 
                        Officer, in coordination with the Agency Head 
                        and the Director, may forego the completion of 
                        any element of a report or analysis under 
                        clause (i) or (ii) of subparagraph (A) if the 
                        Chief Information Officer determines that such 
                        element is not relevant to the understanding of 
                        the challenges facing the project or that such 
                        element does not further the remedial steps 
                        necessary to ensure that the project is 
                        completed in a timely and cost-efficient 
                        manner.
                            ``(ii) Identification of reasons.--The 
                        Chief Information Officer shall include the 
                        reasons for not including any element referred 
                        to in clause (i) in the report submitted to 
                        Congress under subparagraph (B).
            ``(4) Deadline and funding contingency.--
                    ``(A) Notification and remedial action based on 
                quarterly report.--
                            ``(i) In general.--If the determination of 
                        gross deviation is based on a report submitted 
                        under subsection (c)(1), the Agency Head 
                        shall--
                                    ``(I) not later than 45 days after 
                                the end of the quarter upon which such 
                                report is based, notify the appropriate 
                                congressional committees and the 
                                Director in accordance with paragraph 
                                (2); and
                                    ``(II) not later than 180 days 
                                after the end of the quarter upon which 
                                such report is based, ensure the 
                                completion of remedial action under 
                                paragraph (3).
                            ``(ii) Failure to meet deadlines.--If the 
                        Agency Head fails to meet the deadline 
                        described in clause (i)(II), additional funds 
                        may not be obligated to support expenditures 
                        associated with the project until the 
                        requirements of this subsection have been 
                        fulfilled, except for expenditures to address 
                        reporting notifications, remedial actions, and 
                        other requirements under this Act.
                    ``(B) Notification and remedial action based on 
                interim report.--
                            ``(i) In general.--If the determination of 
                        gross deviation is based on a report submitted 
                        under subsection (c)(2), the Agency Head 
                        shall--
                                    ``(I) not later than 45 days after 
                                the submission of such report, notify 
                                the appropriate congressional 
                                committees in accordance with paragraph 
                                (2); and
                                    ``(II) not later than 180 days 
                                after the submission of such report, 
                                ensure the completion of remedial 
                                action in accordance with paragraph 
                                (3).
                            ``(ii) Failure to meet deadlines.--If the 
                        Agency Head fails to meet the deadline 
                        described in clause (i)(II), additional funds 
                        may not be obligated to support expenditures 
                        associated with the project until the 
                        requirements of this subsection have been 
                        fulfilled, except for expenditures to address 
                        reporting notifications, remedial actions, and 
                        other requirements under this Act.
    ``(f) Additional Requirements for Core IT Investment Project 
Reports.--
            ``(1) Initial report.--If a remedial action plan described 
        in subsection (e)(3)(A) has not been submitted for a core IT 
        investment project, the Agency Head, in coordination with the 
        Chief Information Officer and responsible program managers, 
        shall prepare an initial report for inclusion in the first 
        budget submitted to Congress under section 1105(a) of title 31, 
        United States Code, after the designation of a project as a 
        core IT investment project, which includes--
                    ``(A) a description of the primary business case 
                and key functional requirements for the project;
                    ``(B) an identification and description of any 
                portions of the project that have technical 
                requirements of sufficient clarity that such portions 
                may be feasibly procured under fixed-price contracts;
                    ``(C) an independent cost estimate for the project;
                    ``(D) certification by the Chief Information 
                Officer that all technical and business requirements 
                have been reviewed and validated to ensure alignment 
                with the reported business case; and
                    ``(E) any changes to the primary business case or 
                key functional requirements which have occurred since 
                project inception.
            ``(2) Quarterly review of business case.--The Agency Head, 
        in coordination with the Chief Information Officer and 
        responsible program managers, shall--
                    ``(A) monitor the primary business case and core 
                functionality requirements reported to Congress and the 
                Director for designated core IT investment projects; 
                and
                    ``(B) if changes to the primary business case or 
                key functional requirements for a core IT investment 
                project occur in any fiscal quarter, submit a report to 
                Congress and the Director not later than 14 days after 
                the end of such quarter that details the changes and 
                describes the impact the changes will have on the cost 
                and ultimate effectiveness of the project.
            ``(3) Alternative significant deviation determination.--If 
        the Chief Information Officer determines, subsequent to a 
        change in the primary business case or key functional 
        requirements, that without such change the project would have 
        significantly deviated--
                    ``(A) the Chief Information Officer shall notify 
                the Agency Head of the significant deviation; and
                    ``(B) the Agency Head shall fulfill the 
                requirements under subsection (d)(2) in accordance with 
                the deadlines under subsection (d)(3).
            ``(4) Alternative gross deviation determination.--If the 
        Chief Information Officer determines, subsequent to a change in 
        the primary business case or key functional requirements, that 
        without such change the project would have grossly deviated--
                    ``(A) the Chief Information Officer shall notify 
                the Agency Head of the gross deviation; and
                    ``(B) the Agency Head shall fulfill the 
                requirements under subsections (e)(2) and (e)(3) in 
                accordance with subsection (e)(4).
    ``(g) Method of Delivery.--Reports and other information required 
under this section may be submitted through the Web site established 
under section 11302(c)(1) in a manner consistent with guidance from the 
Office of Management and Budget to satisfy reporting requirements and 
to reduce paperwork.
    ``(h) Department of Defense Acquisitions.--The requirements of 
section 2445a of title 10, United States Code, shall apply to the 
information technology investment projects of the Department of Defense 
instead of the requirements under this section.''.
    (b) Inclusion in the Budget Submitted to Congress.--Section 1105(a) 
of title 31, United States Code, is amended--
            (1) in the matter preceding paragraph (1), by striking 
        ``include in each budget the following:'' and inserting 
        ``include in each budget--'';
            (2) by redesignating the second paragraph (33) (as added by 
        section 889(a) of Public Law 107-296) as paragraph (35);
            (3) in each of paragraphs (1) through (34), by striking the 
        period at the end and inserting a semicolon;
            (4) in paragraph (35), as redesignated by paragraph (2), by 
        striking the period at the end and inserting ``; and''; and
            (5) by adding at the end the following:
            ``(36) the reports prepared under section 11317(f) of title 
        40, United States Code, relating to the core IT investment 
        projects of the agency.''.
    (c) Improvement of Information Technology Acquisition and 
Development.--Subchapter II of chapter 113 of title 40, United States 
Code, is amended by adding at the end the following:

``SEC. 11319. ACQUISITION AND DEVELOPMENT.

    ``(a) Purpose.--The objective of this section is to significantly 
reduce--
            ``(1) cost overruns and schedule slippage from the 
        estimates established at the time the program is initially 
        approved;
            ``(2) the number of requirements and business objectives at 
        the time the program is approved that are not met by the 
        delivered products; and
            ``(3) the number of critical defects and serious defects in 
        delivered information technology.
    ``(b) OMB Guidance.--The Director of the Office of Management and 
Budget shall--
            ``(1) not later than 180 days after the date of the 
        enactment of this section, prescribe uniformly applicable 
        guidance for agencies to implement the requirements of this 
        section, which shall not include any exemptions to such 
        requirements not specifically authorized under this section; 
        and
            ``(2) take any actions that are necessary to ensure that 
        Federal agencies are in compliance with the guidance prescribed 
        pursuant to paragraph (1) not later than 1 year after the date 
        of the enactment of this section.
    ``(c) Establishment of Program.--Not later than 180 days after the 
date of the enactment of this section, each Agency Head (as defined in 
section 11317(a) of title 40, United States Code) shall establish a 
program to improve the information technology (referred to in this 
section as `IT') processes overseen by the Chief Information Officer.
    ``(d) Program Requirements.--Each program established pursuant to 
this section shall include--
            ``(1) a documented process for IT acquisition planning, 
        requirements development and management, project management and 
        oversight, earned-value management, and risk management;
            ``(2) the development of appropriate metrics that can be 
        implemented and monitored on a real-time dashboard for 
        performance measurement of--
                    ``(A) processes and development status of 
                investments;
                    ``(B) continuous process improvement of the 
                program; and
                    ``(C) achievement of program and investment 
                outcomes;
            ``(3) a process to ensure that key program personnel have 
        an appropriate level of experience, training, and education, at 
        an institution or institutions approved by the Director, in the 
        planning, acquisition, execution, management, and oversight of 
        IT;
            ``(4) a process to ensure that the agency implements and 
        adheres to established processes and requirements relating to 
        the planning, acquisition, execution, management, and oversight 
        of IT programs and developments; and
            ``(5) a process for the Chief Information Officer to 
        intervene or stop the funding of an IT investment if it is at 
        risk of not achieving major project milestones.
    ``(e) Annual Report to OMB.--Not later than the last day of 
February of each year, the Agency Head shall submit a report to the 
Office of Management and Budget that includes--
            ``(1) a detailed summary of the accomplishments of the 
        program established by the Agency Head pursuant to this 
        section;
            ``(2) the status of completeness of implementation of each 
        of the program requirements, and the date each such requirement 
        was deemed to be completed;
            ``(3) the percentage of Federal IT projects covered under 
        the program compared to all of the IT projects of the agency, 
        listed by number of programs and by annual dollars expended;
            ``(4) a detailed breakdown of the sources and uses of the 
        amounts spent by the agency during the previous fiscal year to 
        support the activities of the program;
            ``(5) a copy of any guidance issued under the program and a 
        statement regarding whether each such guidance is mandatory;
            ``(6) the identification of the metrics developed in 
        accordance with subsection (b)(2);
            ``(7) a description of how paragraphs (3) and (4) of 
        subsection (b) have been implemented and any related agency 
        guidance; and
            ``(8) a description of how agencies will continue to review 
        and update the implementation and objectives of such guidance.
    ``(f) Annual Report to Congress.--The Director of the Office of 
Management and Budget shall provide an annual report to Congress on the 
status and implementation of the program established pursuant to this 
section.
    ``(g) Department of Defense Acquisitions.--The requirements of 
section 2223a of title 10, United States Code, shall apply to the 
information technology investment projects of the Department of Defense 
instead of the requirements under this section.''.
    (d) Clerical Amendments.--The table of sections for chapter 113 of 
title 40, United States Code, is amended--
            (1) by striking the item relating to section 11317 and 
        inserting the following:

``11317. Significant and gross deviations.''; and
            (2) by inserting after the item relating to section 11318 
        the following:

``11319. Acquisition and development.''.

SEC. 5. MAJOR AUTOMATED INFORMATION SYSTEM PROGRAMS OF THE DEPARTMENT 
              OF DEFENSE.

    (a) Program To Improve Information Technology Processes.--Chapter 
131 of title 10, United States Code, is amended by adding after section 
2223 the following:
``Sec. 2223a. Information technology acquisition planning and oversight 
              requirements
    ``(a) Establishment of Program.--The Secretary of Defense shall 
establish a program to improve the planning and oversight processes for 
the acquisition of major automated information systems by the 
Department of Defense.
    ``(b) Program Components.--The program established under subsection 
(a) shall include--
            ``(1) a documented process for information technology 
        acquisition planning, requirements development and management, 
        project management and oversight, earned value management, and 
        risk management;
            ``(2) the development of appropriate metrics that can be 
        implemented and monitored on a real-time basis for performance 
        measurement of--
                    ``(A) processes and development status of 
                investments in major automated information system 
                programs;
                    ``(B) continuous process improvement of the 
                program; and
                    ``(C) achievement of program and investment 
                outcomes;
            ``(3) a process to ensure that key program personnel have 
        an appropriate level of experience, training, and education in 
        the planning, acquisition, execution, management, and oversight 
        of information technology systems;
            ``(4) a process to ensure that military departments and 
        defense agencies adhere to established processes and 
        requirements relating to the planning, acquisition, execution, 
        management, and oversight of information technology programs 
        and developments; and
            ``(5) a process under which an appropriate Department of 
        Defense official may intervene or terminate the funding of an 
        information technology investment if the investment is at risk 
        of not achieving major project milestones.''.
    (b) Annual Report to Congress.--Section 2445b(b) of title 10, 
United States Code is amended by adding at the end the following:
            ``(5) For each major automated information system program 
        for which such information has not been provided in a previous 
        annual report--
                    ``(A) a description of the primary business case 
                and key functional requirements for the program;
                    ``(B) a description of the analysis of alternatives 
                conducted with regard to the program;
                    ``(C) an assessment of the extent to which the 
                program, or portions of the program, have technical 
                requirements of sufficient clarity that the program, or 
                portions of the program, may be feasibly procured under 
                firm, fixed-price contracts;
                    ``(D) the most recent independent cost estimate or 
                cost analysis for the program provided by the Director 
                of Cost Assessment and Program Evaluation in accordance 
                with section 2334(a)(6);
                    ``(E) a certification by a Department of Defense 
                acquisition official with responsibility for the 
                program that all technical and business requirements 
                have been reviewed and validated to ensure alignment 
                with the business case; and
                    ``(F) an explanation of the basis for the 
                certification described in subparagraph (E).
            ``(6) For each major automated information system program 
        for which the information required under paragraph (5) has been 
        provided in a previous annual report, a summary of any 
        significant changes to the information previously provided.''.

SEC. 6. IT SWAT TEAM.

    (a) Purpose.--The Director of the Office of Management of Budget 
(referred to in this section as the ``Director''), in consultation with 
the Administrator of the Office of Electronic Government and 
Information and Technology at the Office of Management and Budget 
(referred to in this section as the ``E-Gov Administrator''), shall 
assist agencies in avoiding significant and gross deviations in the 
cost, schedule, and performance of IT investment projects (as such 
terms are defined in section 11317(a) of title 40, United States Code).
    (b) IT SWAT Team.--
            (1) Establishment.--Not later than 180 days after the date 
        of the enactment of this Act, the Director shall promulgate 
        policy and guidance for the head of each Federal agency that 
        establishes procedures for the creation of a small group of 
        individuals (referred to in this section as the ``IT SWAT 
        Team'') to carry out the purpose described in subsection (a).
            (2) Qualifications.--Individuals selected for the IT SWAT 
        Team--
                    (A) shall be certified at the Senior/Expert level 
                according to the Federal Acquisition Certification for 
                Program and Project Managers (FAC-P/PM);
                    (B) shall have comparable education, certification, 
                training, and experience to successfully manage high-
                risk IT investment projects; or
                    (C) shall have expertise in the successful 
                management or oversight of planning, architecture, 
                process, integration, or other technical and management 
                aspects using proven process best practices on high-
                risk IT investment projects.
            (3) Number.--The Director, in consultation with the E-Gov 
        Administrator and the head of the agency primarily responsible 
        for the IT investment, shall determine the number of 
        individuals who will be selected for the IT SWAT Team.
    (c) Outside Consultants.--
            (1) Identification.--The E-Gov Administrator and 
        representatives of the Chief Information Officers Council shall 
        identify consultants in the private sector who have expert 
        knowledge in IT program management and program management 
        review teams. Not more than 20 percent of such consultants may 
        be formally associated with any 1 of the following types of 
        entities:
                    (A) Commercial firms.
                    (B) Nonprofit entities.
                    (C) Federally funded research and development 
                centers.
            (2) Use of consultants.--
                    (A) In general.--Consultants identified under 
                paragraph (1) may be used to assist the IT SWAT Team in 
                assessing and improving IT investment projects.
                    (B) Limitation.--Consultants with a formally 
                established relationship with an organization may not 
                participate in any assessment involving an IT 
                investment project for which such organization is under 
                contract to provide technical support.
                    (C) Exception.--The limitation described in 
                subparagraph (B) may not be construed as precluding 
                access to anyone having relevant information helpful to 
                the conduct of the assessment.
            (3) Contracts.--The E-Gov Administrator, in conjunction 
        with the Administrator of the General Services Administration 
        (GSA), may establish competitively bid contracts with 1 or more 
        qualified consultants, independent of any GSA schedule.
    (d) Initial Response to Anticipated Significant or Gross 
Deviation.--If the head of the Federal agency primarily responsible for 
the major IT investment or the E-Gov Administrator determines that 
there is reasonable cause to believe that a major IT investment project 
is likely to significantly or grossly deviate (as defined in section 
11317(a) of title 40, United States Code), including the receipt of 
inconsistent or missing data, or if such agency head or the E-Gov 
Administrator determines that the assignment of 1 or more members of 
the IT SWAT Team could meaningfully reduce the possibility of 
significant or gross deviation, such agency head or the E-Gov 
Administrator shall carry out the following activities:
            (1) Recommend the assignment of 1 or more members of the IT 
        SWAT Team to assess the project in accordance with the scope 
        and time period described in section 11317(c)(1) of title 40, 
        United States Code, beginning not later than 14 days after such 
        recommendation. No member of the SWAT Team who is associated 
        with the department or agency whose IT investment project is 
        the subject of the assessment may be assigned to participate in 
        this assessment. Such limitation may not be construed as 
        precluding access to anyone having relevant information helpful 
        to the conduct of the assessment.
            (2) If such agency head or the E-Gov Administrator 
        determines that 1 or more qualified consultants are needed to 
        support the efforts of the IT SWAT Team under paragraph (1), 
        negotiate a contract with the consultant to provide such 
        support during the period in which the IT SWAT Team is 
        conducting the assessment described in paragraph (1).
            (3) Ensure that the costs of an assessment under paragraph 
        (1) and the support services of 1 or more consultants under 
        paragraph (2) are paid for by the agency being assessed.
            (4) Monitor the progress made by the IT SWAT Team in 
        assessing the project.
    (e) Reduction of Significant or Gross Deviation.--If the agency 
head described in subsection (d) or the E-Gov Administrator determines 
that the assessment conducted under subsection (d) confirms that a 
major IT investment project is likely to significantly or grossly 
deviate, such agency head or the E-Gov Administrator shall take steps 
to reduce the deviation, which may include--
            (1) providing training, education, or mentoring to improve 
        the qualifications of the program manager;
            (2) replacing the program manager or other staff;
            (3) supplementing the program management team with Federal 
        Government employees or independent contractors;
            (4) terminating the project; or
            (5) hiring an independent contractor to report directly to 
        senior management and the E-Gov Administrator.
    (f) Enforcement of Accountability.--The Director may use the 
actions directed under section 11303(b)(5) of title 5, United States 
Code, to enforce accountability of the head of the agency and for the 
investments made by the agency in information technology.
    (g) Report to Congress.--The Director shall include in the annual 
Report to Congress on the Benefits of E-Government Initiatives a 
detailed summary of the composition and activities of the IT SWAT Team, 
including--
            (1) the number and qualifications of individuals on the IT 
        SWAT Team;
            (2) a description of the IT investment projects that the IT 
        SWAT Team has worked during the previous fiscal year;
            (3) the major issues that necessitated the involvement of 
        the IT SWAT Team to assist agencies with assessing and managing 
        IT investment projects and whether such issues were 
        satisfactorily resolved;
            (4) if the issues referred to in paragraph (3) were not 
        satisfactorily resolved, the issues still needed to be resolved 
        and the Agency Head's plan for resolving such issues;
            (5) a detailed breakdown of the sources and uses of the 
        amounts spent by the Office of Management and Budget and other 
        Federal agencies during the previous fiscal year to support the 
        activities of the IT SWAT Team; and
            (6) a determination of whether the IT SWAT Team has been 
        effective in--
                    (A) preventing projects from deviating from the 
                original baseline; and
                    (B) assisting agencies in conducting appropriate 
                analysis and planning before a project is funded.

SEC. 7. AWARDS FOR PERSONNEL FOR EXCELLENCE IN THE ACQUISITION OF 
              INFORMATION SYSTEMS AND INFORMATION TECHNOLOGY.

    (a) In General.--Not later than 180 days after the enactment of 
this Act, the Director of the Office of Personnel Management shall 
develop policy and guidance for agencies to develop a program to 
recognize excellent performance by Federal Government employees and 
teams of such employees in the acquisition of information systems and 
information technology for the agency.
    (b) Elements.--The program referred to in subsection (a) shall, to 
the extent practicable--
            (1) obtain objective outcome measures; and
            (2) include procedures for--
                    (A) the nomination of Federal Government employees 
                and teams of such employees for eligibility for 
                recognition under the program; and
                    (B) the evaluation of nominations for recognition 
                under the program by 1 or more agency panels of 
                individuals from government, academia, and the private 
                sector who have such expertise, and are appointed in 
                such a manner, as the Director of the Office of 
                Personal Management shall establish for purposes of the 
                program.
    (c) Award of Cash Bonuses and Other Incentives.--As part of the 
program referred to in subsection (a), the Director of the Office of 
Personnel Management, in consultation with the Director of the Office 
of Management and Budget, shall establish policies and guidance for 
agencies to reward any Federal Government employee or teams of such 
employees recognized pursuant to the program--
            (1) by awarding a cash bonus authorized by any other 
        provision of law to the extent that the performance of such 
        individual so recognized warrants the award of such bonus under 
        such provision of law;
            (2) through promotions and other nonmonetary awards;
            (3) by publicizing acquisition accomplishments by 
        individual employees and, as appropriate, the tangible end 
        benefits that resulted from such accomplishments; and
            (4) through other awards, incentives, or bonuses that the 
        head of the agency considers appropriate.

            Passed the Senate May 19, 2010.

            Attest:

                                                NANCY ERICKSON,

                                                             Secretary.