[Congressional Bills 111th Congress]
[From the U.S. Government Publishing Office]
[S. 920 Reported in Senate (RS)]

                                                       Calendar No. 364
111th CONGRESS
  2d Session
                                 S. 920

                          [Report No. 111-179]

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.


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

                             April 28, 2009

Mr. Carper (for himself, Ms. Collins, Mr. Lieberman, and Mr. Voinovich) 
introduced the following bill; which was read twice and referred to the 
        Committee on Homeland Security and Governmental Affairs

                              May 5, 2010

              Reported by Mr. Lieberman, with an amendment
 [Strike out all after the enacting clause and insert the part printed 
                               in italic]

_______________________________________________________________________

                                 A BILL


 
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,

<DELETED>SECTION 1. SHORT TITLE.</DELETED>

<DELETED>    This Act may be cited as the ``Information Technology (IT) 
Investment Oversight Enhancement and Waste Prevention Act of 
2009''.</DELETED>

<DELETED>SEC. 2. FINDINGS.</DELETED>

<DELETED>    Congress finds the following:</DELETED>
        <DELETED>    (1) The effective deployment of information 
        technology can make the Federal Government more efficient, 
        effective, and transparent.</DELETED>
        <DELETED>    (2) Historically, the Federal Government has 
        struggled to properly plan, manage, and deliver information 
        technology investments on time, on budget, and performing as 
        planned.</DELETED>
        <DELETED>    (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.</DELETED>
        <DELETED>    (4) Congress has limited knowledge of the actual 
        cost, schedule, and performance of agency information 
        technology investments and has difficulty providing the 
        necessary oversight.</DELETED>
        <DELETED>    (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--</DELETED>
                <DELETED>    (A) agencies self-report inaccurate and 
                unreliable project management data to the Office of 
                Management and Budget and Congress; and</DELETED>
                <DELETED>    (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.</DELETED>

<DELETED>SEC. 3. REAL-TIME TRANSPARENCY OF IT INVESTMENT 
              PROJECTS.</DELETED>

<DELETED>    Section 11302(c)(1) of title 40, United States Code, is 
amended by striking the period at the end and inserting the following: 
``, including establishing a Website, updating the Website on a 
quarterly basis, and including on the Website, 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--
</DELETED>
        <DELETED>    ``(1) the cost, schedule, and performance of all 
        major information technology investments using earned-value 
        management data based on the ANSI EIA-748-B standard;</DELETED>
        <DELETED>    ``(2) accurate quarterly information since the 
        commencement of the project;</DELETED>
        <DELETED>    ``(3) a graphical depiction of trend information 
        since the commencement of the project;</DELETED>
        <DELETED>    ``(4) a clear delineation of investments that have 
        experienced cost, schedule, or performance variance greater 
        than 10 percent over the life cycle of the 
        investment;</DELETED>
        <DELETED>    ``(5) an explanation of the reasons the investment 
        deviated from the benchmark established at the commencement of 
        the project; and</DELETED>
        <DELETED>    ``(6) the number of times investments were 
        rebaselined and the dates on which such rebaselines 
        occurred.''.</DELETED>

<DELETED>SEC. 4. IT INVESTMENT PROJECTS.</DELETED>

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

<DELETED>``SEC. 11317. SIGNIFICANT AND GROSS DEVIATIONS.</DELETED>

<DELETED>    ``(a) Definitions.--In this subchapter:</DELETED>
        <DELETED>    ``(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.</DELETED>
        <DELETED>    ``(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.</DELETED>
        <DELETED>    ``(3) Appropriate congressional committees.--The 
        term `appropriate congressional committees' means--</DELETED>
                <DELETED>    ``(A) the Committee on Homeland Security 
                and Governmental Affairs of the Senate;</DELETED>
                <DELETED>    ``(B) the Committee on Oversight and 
                Government Reform of the House of 
                Representatives;</DELETED>
                <DELETED>    ``(C) the Committee on Appropriations of 
                the Senate;</DELETED>
                <DELETED>    ``(D) the Committee on Appropriations of 
                the House of Representatives; and</DELETED>
                <DELETED>    ``(E) any other relevant congressional 
                committee with jurisdiction over an agency required to 
                take action under this section.</DELETED>
        <DELETED>    ``(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 Federal 
        agency that is primarily responsible for the IT investment 
        project under review.</DELETED>
        <DELETED>    ``(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).</DELETED>
        <DELETED>    ``(6) Director.--The term `Director' means the 
        Director of the Office of Management and Budget.</DELETED>
        <DELETED>    ``(7) Earned value management.--The term `Earned 
        Value Management' means the cost, performance, and schedule 
        data used to determine project status and developed in 
        accordance with the ANSI EIA-748-B Standard.</DELETED>
        <DELETED>    ``(8) Grossly deviated.--The term `grossly 
        deviated' means cost, schedule, or performance variance that is 
        at least 40 percent from the Original Baseline.</DELETED>
        <DELETED>    ``(9) Independent government cost estimate.--The 
        term `independent government cost estimate' means a pragmatic 
        and neutral analysis, assessment, and quantification of all 
        costs and risks associated with the acquisition of an IT 
        investment project, which--</DELETED>
                <DELETED>    ``(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;</DELETED>
                <DELETED>    ``(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;</DELETED>
                <DELETED>    ``(C) contains sufficient detail to inform 
                the selection of an Earned Value Management baseline 
                benchmark measure under the ANSI EIA-748-B standard; 
                and</DELETED>
                <DELETED>    ``(D) accounts for the full life cycle 
                cost plus associated operations and maintenance 
                expenses over the usable life of the project's 
                deliverables.</DELETED>
        <DELETED>    ``(10) IT investment project.--The terms `IT 
        investment project' and `project' mean an information 
        technology system or information technology acquisition that--
        </DELETED>
                <DELETED>    ``(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;</DELETED>
                <DELETED>    ``(B) is for financial management and 
                obligates more than $500,000 annually;</DELETED>
                <DELETED>    ``(C) has significant program or policy 
                implications;</DELETED>
                <DELETED>    ``(D) has high executive 
                visibility;</DELETED>
                <DELETED>    ``(E) has high development, operating, or 
                maintenance costs;</DELETED>
                <DELETED>    ``(F) is funded through other than direct 
                appropriations; or</DELETED>
                <DELETED>    ``(G) is defined as major by the agency's 
                capital planning and investment control 
                process.</DELETED>
        <DELETED>    ``(11) 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.</DELETED>
        <DELETED>    ``(12) Original baseline.--</DELETED>
                <DELETED>    ``(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 established at the 
                commencement of an IT investment project.</DELETED>
                <DELETED>    ``(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 established 
                under subsection (e)(3)(C).</DELETED>
        <DELETED>    ``(13) Significantly deviated.--The term 
        `significantly deviated' means Earned Value Management variance 
        that is at least 20 percent from the Original 
        Baseline.</DELETED>
<DELETED>    ``(b) Core IT Investment Projects Designation.--Each Chief 
Information Officer, with approval by the Agency Head, shall--
</DELETED>
        <DELETED>    ``(1) identify the major IT investments that are 
        the most critical to the agency; and</DELETED>
        <DELETED>    ``(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--
        </DELETED>
                <DELETED>    ``(A) represents a significant high dollar 
                value relative to the average IT investment project in 
                the agency's portfolio;</DELETED>
                <DELETED>    ``(B) delivers a capability critical to 
                the successful completion of the agency mission, or a 
                portion of such mission;</DELETED>
                <DELETED>    ``(C) incorporates unproven or previously 
                undeveloped technology to meet primary project 
                technical requirements; or</DELETED>
                <DELETED>    ``(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.</DELETED>
<DELETED>    ``(c) Cost, Schedule, and Performance Reports.--</DELETED>
        <DELETED>    ``(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 a written report to the Chief Information Officer 
        that includes, as of the last day of the applicable quarter--
        </DELETED>
                <DELETED>    ``(A) a description of the cost, schedule, 
                and performance of all projects under the project 
                manager's supervision;</DELETED>
                <DELETED>    ``(B) the original and current project 
                cost, schedule, and performance benchmarks for each 
                project under the project manager's 
                supervision;</DELETED>
                <DELETED>    ``(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;</DELETED>
                <DELETED>    ``(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;</DELETED>
                <DELETED>    ``(E) the current cost, schedule, and 
                performance status of all projects under supervision 
                that were previously identified as significantly 
                deviated or grossly deviated; and</DELETED>
                <DELETED>    ``(F) any corrective actions taken to 
                address problems discovered under subparagraphs (C) 
                through (E).</DELETED>
        <DELETED>    ``(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 14 days 
        after such determination, a report on the project that 
        includes, as of the date of the report--</DELETED>
                <DELETED>    ``(A) a description of the original and 
                current program cost, schedule, and performance 
                benchmarks;</DELETED>
                <DELETED>    ``(B) the cost, schedule, or performance 
                variance related to the IT investment project since the 
                commencement of the project;</DELETED>
                <DELETED>    ``(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;</DELETED>
                <DELETED>    ``(D) the major reasons underlying the 
                significant or gross deviation of the project; 
                and</DELETED>
                <DELETED>    ``(E) a corrective action plan to correct 
                such deviations.</DELETED>
<DELETED>    ``(d) Determination of Significant Deviation.--</DELETED>
        <DELETED>    ``(1) Chief information officer.--Upon receiving a 
        report under subsection (c), the Chief Information Officer 
        shall--</DELETED>
                <DELETED>    ``(A) determine if any IT investment 
                project has significantly deviated; and</DELETED>
                <DELETED>    ``(B) report such determination to the 
                Agency Head.</DELETED>
        <DELETED>    ``(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 issued a report 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 a 
        report to the appropriate congressional committees, the 
        Director, and the Government Accountability Office that 
        includes--</DELETED>
                <DELETED>    ``(A) written notification of such 
                determination;</DELETED>
                <DELETED>    ``(B) the date on which such determination 
                was made;</DELETED>
                <DELETED>    ``(C) the amount of the cost increases and 
                the extent of the schedule delays with respect to such 
                project;</DELETED>
                <DELETED>    ``(D) any requirements that--</DELETED>
                        <DELETED>    ``(i) were added subsequent to the 
                        original contract; or</DELETED>
                        <DELETED>    ``(ii) were originally contracted 
                        for, but were changed by deferment or deletion 
                        from the original schedule, or were otherwise 
                        no longer included in the requirements 
                        contracted for;</DELETED>
                <DELETED>    ``(E) an explanation of the differences 
                between--</DELETED>
                        <DELETED>    ``(i) the estimate at completion 
                        between the project manager, any contractor, 
                        and any independent analysis; and</DELETED>
                        <DELETED>    ``(ii) the original budget at 
                        completion;</DELETED>
                <DELETED>    ``(F) a statement of the reasons 
                underlying the project's significant deviation; 
                and</DELETED>
                <DELETED>    ``(G) a summary of the plan of action to 
                remedy the significant deviation.</DELETED>
        <DELETED>    ``(3) Deadline.--</DELETED>
                <DELETED>    ``(A) Notification based on quarterly 
                report.--If the determination of significant deviation 
                is based on a report 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 report is 
                based.</DELETED>
                <DELETED>    ``(B) Notification based on interim 
                report.--If the determination of significant deviation 
                is based on a report 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 report.</DELETED>
<DELETED>    ``(e) Determination of Gross Deviation.--</DELETED>
        <DELETED>    ``(1) Chief information officer.--Upon receiving a 
        report under subsection (c), the Chief Information Officer 
        shall--</DELETED>
                <DELETED>    ``(A) determine if any IT investment 
                project has grossly deviated; and</DELETED>
                <DELETED>    ``(B) report any such determination to the 
                Agency Head.</DELETED>
        <DELETED>    ``(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 issued a report 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 a report to the 
        appropriate congressional committees, the Director, and the 
        Government Accountability Office that includes--</DELETED>
                <DELETED>    ``(A) written notification of such 
                determination, which--</DELETED>
                        <DELETED>    ``(i) identifies the date on which 
                        such determination was made; and</DELETED>
                        <DELETED>    ``(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;</DELETED>
                <DELETED>    ``(B) incorporations by reference of all 
                prior reports to Congress on the project required under 
                this section;</DELETED>
                <DELETED>    ``(C) updated accounts of the items 
                described in subparagraphs (C) through (G) of 
                subsection (d)(2);</DELETED>
                <DELETED>    ``(D) the original estimate at completion 
                for the project manager, any contractor, and any 
                independent analysis;</DELETED>
                <DELETED>    ``(E) a graphical depiction that shows 
                monthly planned expenditures against actual 
                expenditures since the commencement of the 
                project;</DELETED>
                <DELETED>    ``(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;</DELETED>
                <DELETED>    ``(G) the project manager's estimated cost 
                at completion and estimated completion date for the 
                project if current requirements are not 
                modified;</DELETED>
                <DELETED>    ``(H) the project manager's estimated cost 
                at completion and estimated completion date for the 
                project based on reasonable modification of such 
                requirements;</DELETED>
                <DELETED>    ``(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;</DELETED>
                <DELETED>    ``(J) a statement regarding previous or 
                anticipated rebaselining or replanning of the project 
                and the names of the individuals responsible for 
                approval;</DELETED>
                <DELETED>    ``(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</DELETED>
                <DELETED>    ``(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.</DELETED>
        <DELETED>    ``(3) Remedial action.--</DELETED>
                <DELETED>    ``(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--</DELETED>
                        <DELETED>    ``(i) a report that--</DELETED>
                                <DELETED>    ``(I) describes the 
                                primary business case and key 
                                functional requirements for the 
                                project;</DELETED>
                                <DELETED>    ``(II) describes any 
                                portions of the project that have 
                                technical requirements of sufficient 
                                clarity that such portions may be 
                                feasibly procured under firm, fixed-
                                price type contract;</DELETED>
                                <DELETED>    ``(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;</DELETED>
                                <DELETED>    ``(IV) describes any 
                                changes to the primary business case or 
                                key functional requirements which have 
                                occurred since project inception; 
                                and</DELETED>
                                <DELETED>    ``(V) includes an 
                                independent government cost estimate 
                                for the project conducted by an entity 
                                approved by the Director;</DELETED>
                        <DELETED>    ``(ii) an analysis that--
                        </DELETED>
                                <DELETED>    ``(I) describes agency 
                                business goals that the project was 
                                originally designed to 
                                address;</DELETED>
                                <DELETED>    ``(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);</DELETED>
                                <DELETED>    ``(III) identifies the 3 
                                most cost-effective alternative 
                                approaches to the project which would 
                                achieve the business goals referred to 
                                in subclause (I); and</DELETED>
                                <DELETED>    ``(IV) includes a cost-
                                benefit analysis, which compares--
                                </DELETED>
                                        <DELETED>    ``(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</DELETED>
                                        <DELETED>    ``(bb) the 
                                        termination of the project 
                                        without pursuit of 
                                        alternatives, after factoring 
                                        in foregone benefits; 
                                        and</DELETED>
                        <DELETED>    ``(iii) a new baseline of the 
                        project is established that is consistent with 
                        the independent government cost estimate 
                        required under clause (i)(V); and</DELETED>
                        <DELETED>    ``(iv) the project is designated 
                        as a core IT investment project and subjected 
                        to the requirements under subsection 
                        (f).</DELETED>
                <DELETED>    ``(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.</DELETED>
                <DELETED>    ``(C) Reporting and analysis exemptions.--
                </DELETED>
                        <DELETED>    ``(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 
                        difficulties 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.</DELETED>
                        <DELETED>    ``(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).</DELETED>
        <DELETED>    ``(4) Deadline and funding contingency.--
        </DELETED>
                <DELETED>    ``(A) Notification and remedial action 
                based on quarterly report.--</DELETED>
                        <DELETED>    ``(i) In general.--If the 
                        determination of gross deviation is based on a 
                        report submitted under subsection (c)(1), the 
                        Agency Head shall--</DELETED>
                                <DELETED>    ``(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</DELETED>
                                <DELETED>    ``(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).</DELETED>
                        <DELETED>    ``(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.</DELETED>
                <DELETED>    ``(B) Notification and remedial action 
                based on interim report.--</DELETED>
                        <DELETED>    ``(i) In general.--If the 
                        determination of gross deviation is based on a 
                        report submitted under subsection (c)(2), the 
                        Agency Head shall--</DELETED>
                                <DELETED>    ``(I) not later than 45 
                                days after the submission of such 
                                report, notify the appropriate 
                                congressional committees in accordance 
                                with paragraph (2); and</DELETED>
                                <DELETED>    ``(II) not later than 180 
                                days after the submission of such 
                                report, ensure the completion of 
                                remedial action in accordance with 
                                paragraph (3).</DELETED>
                        <DELETED>    ``(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.</DELETED>
<DELETED>    ``(f) Additional Requirements for Core IT Investment 
Project Reports.--</DELETED>
        <DELETED>    ``(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--
        </DELETED>
                <DELETED>    ``(A) a description of the primary 
                business case and key functional requirements for the 
                project;</DELETED>
                <DELETED>    ``(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 firm, fixed-price 
                contracts;</DELETED>
                <DELETED>    ``(C) an independent government cost 
                estimate for the project;</DELETED>
                <DELETED>    ``(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</DELETED>
                <DELETED>    ``(E) any changes to the primary business 
                case or key functional requirements which have occurred 
                since project inception.</DELETED>
        <DELETED>    ``(2) Quarterly review of business case.--The 
        Agency Head, in coordination with the Chief Information Officer 
        and responsible program managers, shall--</DELETED>
                <DELETED>    ``(A) monitor the primary business case 
                and core functionality requirements reported to 
                Congress and the Director for designated core IT 
                investment projects; and</DELETED>
                <DELETED>    ``(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.</DELETED>
        <DELETED>    ``(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--</DELETED>
                <DELETED>    ``(A) the Chief Information Officer shall 
                notify the Agency Head of the significant deviation; 
                and</DELETED>
                <DELETED>    ``(B) the Agency Head shall fulfill the 
                requirements under subsection (d)(2) in accordance with 
                the deadlines under subsection (d)(3).</DELETED>
        <DELETED>    ``(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--</DELETED>
                <DELETED>    ``(A) the Chief Information Officer shall 
                notify the Agency Head of the gross deviation; 
                and</DELETED>
                <DELETED>    ``(B) the Agency Head shall fulfill the 
                requirements under subsections (e)(2) and (e)(3) in 
                accordance with subsection (e)(4).''.</DELETED>
<DELETED>    (b) Inclusion in the Budget Submitted to Congress.--
Section 1105(a) of title 31, United States Code, is amended--</DELETED>
        <DELETED>    (1) in the matter preceding paragraph (1), by 
        striking ``include in each budget the following:'' and 
        inserting ``include in each budget--'';</DELETED>
        <DELETED>    (2) by redesignating the second paragraph (33) (as 
        added by section 889(a) of Public Law 107-296) as paragraph 
        (35);</DELETED>
        <DELETED>    (3) in each of paragraphs (1) through (34), by 
        striking the period at the end and inserting a 
        semicolon;</DELETED>
        <DELETED>    (4) in paragraph (35), as redesignated by 
        paragraph (2), by striking the period at the end and inserting 
        ``; and''; and</DELETED>
        <DELETED>    (5) by adding at the end the following:</DELETED>
        <DELETED>    ``(36) the reports prepared under section 11317(f) 
        of title 40, United States Code, relating to the core IT 
        investment projects of the agency.''.</DELETED>
<DELETED>    (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:</DELETED>

<DELETED>``SEC. 11319. ACQUISITION AND DEVELOPMENT.</DELETED>

<DELETED>    ``(a) Purpose.--The objective of this section is to 
significantly reduce--</DELETED>
        <DELETED>    ``(1) cost overruns and schedule slippage from the 
        estimates established at the time the program is initially 
        approved;</DELETED>
        <DELETED>    ``(2) the number of requirements and business 
        objectives at the time the program is approved that are not met 
        by the delivered products; and</DELETED>
        <DELETED>    ``(3) the number of critical defects and serious 
        defects in delivered information technology.</DELETED>
<DELETED>    ``(b) OMB Guidance.--The Director of the Office of 
Management and Budget shall--</DELETED>
        <DELETED>    ``(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</DELETED>
        <DELETED>    ``(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.</DELETED>
<DELETED>    ``(c) Establishment of Program.--Not later than 120 days 
after the date of the enactment of this section, each Chief Information 
Officer, upon the approval of the 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.</DELETED>
<DELETED>    ``(d) Program Requirements.--Each program established 
pursuant to this section shall include--</DELETED>
        <DELETED>    ``(1) a documented process for IT acquisition 
        planning, requirements development and management, project 
        management and oversight, earned-value management, and risk 
        management;</DELETED>
        <DELETED>    ``(2) the development of appropriate metrics that 
        can be implemented and monitored on a real-time dashboard for 
        performance measurement of--</DELETED>
                <DELETED>    ``(A) processes and development status of 
                investments;</DELETED>
                <DELETED>    ``(B) continuous process improvement of 
                the program; and</DELETED>
                <DELETED>    ``(C) achievement of program and 
                investment outcomes;</DELETED>
        <DELETED>    ``(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;</DELETED>
        <DELETED>    ``(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</DELETED>
        <DELETED>    ``(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.</DELETED>
<DELETED>    ``(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--</DELETED>
        <DELETED>    ``(1) a detailed summary of the accomplishments of 
        the program established by the Agency Head pursuant to this 
        section;</DELETED>
        <DELETED>    ``(2) the status of completeness of implementation 
        of each of the program requirements, and the date each such 
        requirement was deemed to be completed;</DELETED>
        <DELETED>    ``(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;</DELETED>
        <DELETED>    ``(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;</DELETED>
        <DELETED>    ``(5) a copy of any guidance issued under the 
        program and a statement regarding whether each such guidance is 
        mandatory;</DELETED>
        <DELETED>    ``(6) the identification of the metrics developed 
        in accordance with subsection (b)(2);</DELETED>
        <DELETED>    ``(7) a description of how paragraphs (3) and (4) 
        of subsection (b) have been implemented and any related agency 
        guidance; and</DELETED>
        <DELETED>    ``(8) a description of how agencies will continue 
        to review and update the implementation and objectives of such 
        guidance.</DELETED>
<DELETED>    ``(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.''.</DELETED>
<DELETED>    (d) Clerical Amendments.--The table of sections for 
chapter 113 of title 40, United States Code, is amended--</DELETED>
        <DELETED>    (1) by striking the item relating to section 11317 
        and inserting the following:</DELETED>

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

<DELETED>``11319. Acquisition and development.''.

<DELETED>SEC. 5. IT TIGER TEAM.</DELETED>

<DELETED>    (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).</DELETED>
<DELETED>    (b) IT Tiger Team.--</DELETED>
        <DELETED>    (1) Establishment.--Not later than 180 days after 
        the date of the enactment of this Act, the E-Gov Administrator 
        shall establish a small group of individuals (referred to in 
        this section as the ``IT Tiger Team'') to carry out the purpose 
        described in subsection (a).</DELETED>
        <DELETED>    (2) Qualifications.--Individuals selected for the 
        IT Tiger Team--</DELETED>
                <DELETED>    (A) shall be certified at the Senior/
                Expert level according to the Federal Acquisition 
                Certification for Program and Project Managers (FAC-P/
                PM);</DELETED>
                <DELETED>    (B) shall have comparable education, 
                certification, training, and experience to successfully 
                manage high-risk IT investment projects; or</DELETED>
                <DELETED>    (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.</DELETED>
        <DELETED>    (3) Number.--The Director, in consultation with 
        the E-Gov Administrator, shall determine the number of 
        individuals who will be selected for the IT Tiger 
        Team.</DELETED>
<DELETED>    (c) Outside Consultants.--</DELETED>
        <DELETED>    (1) Identification.--The E-Gov Administrator 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:</DELETED>
                <DELETED>    (A) Commercial firms.</DELETED>
                <DELETED>    (B) Nonprofit entities.</DELETED>
                <DELETED>    (C) Federally funded research and 
                development centers.</DELETED>
        <DELETED>    (2) Use of consultants.--</DELETED>
                <DELETED>    (A) In general.--Consultants identified 
                under paragraph (1) may be used to assist the IT Tiger 
                Team in assessing and improving IT investment 
                projects.</DELETED>
                <DELETED>    (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.</DELETED>
                <DELETED>    (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.</DELETED>
        <DELETED>    (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.</DELETED>
<DELETED>    (d) Initial Response to Anticipated Significant or Gross 
Deviation.--If the E-Gov Administrator determines 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 the E-Gov Administrator determines that the 
assignment of 1 or more members of the IT Tiger Team could meaningfully 
reduce the possibility of significant or gross deviation, the E-Gov 
Administrator shall carry out the following activities:</DELETED>
        <DELETED>    (1) Recommend the assignment of 1 or more members 
        of the IT Tiger 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 Tiger 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.</DELETED>
        <DELETED>    (2) If the E-Gov Administrator determines that 1 
        or more qualified consultants are needed to support the efforts 
        of the IT Tiger Team under paragraph (1), negotiate a contract 
        with the consultant to provide such support during the period 
        in which the IT Tiger Team is conducting the assessment 
        described in paragraph (1).</DELETED>
        <DELETED>    (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 by the major IT investment project 
        being assessed.</DELETED>
        <DELETED>    (4) Monitor the progress made by the IT Tiger Team 
        in assessing the project.</DELETED>
<DELETED>    (e) Reduction of Significant or Gross Deviation.--If 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, the E-Gov Administrator shall 
recommend that the Agency Head (as defined in section 11317(a)(1) of 
title 40, United States Code) take steps to reduce the deviation, which 
may include--</DELETED>
        <DELETED>    (1) providing training, education, or mentoring to 
        improve the qualifications of the program manager;</DELETED>
        <DELETED>    (2) replacing the program manager or other 
        staff;</DELETED>
        <DELETED>    (3) supplementing the program management team with 
        Federal Government employees or independent 
        contractors;</DELETED>
        <DELETED>    (4) terminating the project; or</DELETED>
        <DELETED>    (5) hiring an independent contractor to report 
        directly to senior management and the E-Gov 
        Administrator.</DELETED>
<DELETED>    (f) Reprogramming of Funds.--</DELETED>
        <DELETED>    (1) Authorization.--The Director may direct an 
        Agency Head to reprogram amounts which have been appropriated 
        for such agency to pay for an assessment under subsection 
        (d).</DELETED>
        <DELETED>    (2) Notification.--An Agency Head who reprograms 
        appropriations under paragraph (1) shall notify the Committee 
        on Appropriations of the Senate and the Committee on 
        Appropriations of the House of Representatives of any such 
        reprogramming.</DELETED>
<DELETED>    (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 Tiger 
Team, including--</DELETED>
        <DELETED>    (1) the number and qualifications of individuals 
        on the IT Tiger Team;</DELETED>
        <DELETED>    (2) a description of the IT investment projects 
        that the IT Tiger Team has worked during the previous fiscal 
        year;</DELETED>
        <DELETED>    (3) the major issues that necessitated the 
        involvement of the IT Tiger Team to assist agencies with 
        assessing and managing IT investment projects and whether such 
        issues were satisfactorily resolved;</DELETED>
        <DELETED>    (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;</DELETED>
        <DELETED>    (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 Tiger Team; and</DELETED>
        <DELETED>    (6) a determination of whether the IT Tiger Team 
        has been effective in--</DELETED>
                <DELETED>    (A) preventing projects from deviating 
                from the original baseline; and</DELETED>
                <DELETED>    (B) assisting agencies in conducting 
                appropriate analysis and planning before a project is 
                funded.</DELETED>

<DELETED>SEC. 6. AWARDS FOR PERSONNEL FOR EXCELLENCE IN THE ACQUISITION 
              OF INFORMATION SYSTEMS AND INFORMATION 
              TECHNOLOGY.</DELETED>

<DELETED>    (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.</DELETED>
<DELETED>    (b) Elements.--The program referred to in subsection (a) 
shall, to the extent practicable--</DELETED>
        <DELETED>    (1) obtain objective outcome measures; 
        and</DELETED>
        <DELETED>    (2) include procedures for--</DELETED>
                <DELETED>    (A) the nomination of Federal Government 
                employees and teams of such employees for eligibility 
                for recognition under the program; and</DELETED>
                <DELETED>    (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.</DELETED>
<DELETED>    (c) Award of Cash Bonuses.--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 award to any Federal Government employee or teams of such 
employees recognized pursuant to the program 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.</DELETED>

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 establishing 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 cost, schedule, and performance of all major 
        information technology investments using earned-value 
        management data based on the ANSI-EIA-748-B standard;
            ``(2) accurate quarterly information since the commencement 
        of the project;
            ``(3) a graphical depiction of trend information since the 
        commencement of the project;
            ``(4) a clear delineation of investments that have 
        experienced cost, schedule, or performance variance greater 
        than 10 percent over the life cycle of the investment;
            ``(5) an explanation of the reasons the investment deviated 
        from the benchmark established at the commencement of the 
        project; and
            ``(6) 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 Federal 
        agency 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, performance, and schedule 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 government cost estimate.--The term 
        `independent government cost estimate' means a pragmatic and 
        neutral analysis, assessment, and quantification of all costs 
        and risks associated with the acquisition of 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) IT investment project.--The terms `IT investment 
        project' and `project' mean an information technology system or 
        information technology acquisition, excluding systems or 
        acquisitions of the Department of Defense, 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.
            ``(11) 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.
            ``(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 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 established 
                under subsection (e)(3)(C).
            ``(13) Significantly deviated.--The term `significantly 
        deviated' means Earned Value Management 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 a 
        written report 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 14 days after such 
        determination, a report 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 a report 
        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 
        issued a report 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 a report to the 
        appropriate congressional committees, the Director, and the 
        Government Accountability Office that includes--
                    ``(A) written 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 
                a report 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 report is 
                based.
                    ``(B) Notification based on interim report.--If the 
                determination of significant deviation is based on a 
                report 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 report.
    ``(e) Determination of Gross Deviation.--
            ``(1) Chief information officer.--Upon receiving a report 
        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 issued 
        a report 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 a report to the appropriate 
        congressional committees, the Director, and the Government 
        Accountability Office that includes--
                    ``(A) written 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.
                    ``(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.
    ``(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 government 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).''.
    (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 120 days after the 
date of the enactment of this section, each Chief Information Officer, 
upon the approval of the 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.''.
    (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.

    (a) Definitions.--Section 2445a of title 10, United States Code, is 
amended--
            (1) by amending the section heading to read as follows:
``Sec. 2445a. Definitions'';
            (2) in subsection (a)--
                    (A) in paragraph (1), by striking ``or'' at the 
                end;
                    (B) in paragraph (2), by striking the period at the 
                end and inserting ``; or''; and
                    (C) by adding at the end the following:
            ``(3) the Chief Information Officer, with the approval of 
        the Secretary of Defense, determines that the program--
                    ``(A) delivers a capability critical to the 
                successful completion of the mission of the Department 
                of Defense, or a portion of such mission;
                    ``(B) incorporates unproven or previously 
                undeveloped technology to meet primary program 
                technical requirements; or
                    ``(C) would have a significant negative impact on 
                the successful completion of the mission of the 
                Department of Defense if the program experienced 
                significant cost, schedule, or performance 
                deviations.''; and
            (3) by adding at the end the following:
    ``(d) Definitions.--In this chapter:
            ``(1) Chief information officer.--The term `Chief 
        Information Officer' means the Chief Information Officer of the 
        Department of Defense, designated under section 3506(a)(2) of 
        title 44.
            ``(2) Earned value management.--The term `Earned Value 
        Management' means the cost, performance, and schedule data used 
        to determine the status of a major automated information system 
        program that has been developed in accordance with the ANSI 
        EIA-748-B Standard.
            ``(3) Independent government cost assessment.--The term 
        `independent government cost assessment' means a pragmatic and 
        neutral analysis, assessment, and quantification of all costs 
        and risks associated with a major automated information system 
        program developed and submitted by the Director of Independent 
        Cost Assessment.''.
    (b) Cost, Schedule, and Performance Information.--Section 2445b of 
title 10, United States Code, is amended--
            (1) in subsection (a), by striking ``Congress'' and 
        inserting ``the Office of Management and Budget, the Government 
        Accountability Office, the Committee on Homeland Security and 
        Governmental Affairs of the Senate, and the Committee on 
        Oversight and Government Reform of the House of 
        Representatives'';
            (2) in subsection (b), by adding at the end the following:
            ``(5) A description of the primary business case and key 
        functional requirements for the program, including an analysis 
        of alternatives;
            ``(6) An identification and description of any portions of 
        the program that have technical requirements of sufficient 
        clarity that such portions may be feasibly procured under firm, 
        fixed-price contracts;
            ``(7) An independent government cost assessment for the 
        project provided by the Director of Independent Cost 
        Assessment;
            ``(8) 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
            ``(9) Any changes to the primary business case or key 
        functional requirements which have occurred since the inception 
        of the program.''; and
            (3) in subsection (c)--
                    (A) in paragraph (1), by striking ``to Congress''; 
                and
                    (B) in paragraph (3), by striking ``the 
                congressional defense committees'' and inserting ``the 
                Office of Management and Budget, the Government 
                Accountability Office, the Committee on Armed Services 
                of the Senate, the Committee on Armed Services of the 
                House of Representatives, the Committee on Homeland 
                Security and Governmental Affairs of the Senate, and 
                the Committee on Oversight and Government Reform of the 
                House of Representatives''.
    (c) Quarterly Reports.--Section 2445c of title 10, United States 
Code, is amended--
            (1) in subsection (a)--
                    (A) by striking ``identifying'' and inserting the 
                following: ``that--
            ``(1) identifies'';
                    (B) by striking ``to Congress'';
                    (C) by striking the period at the end and inserting 
                a semicolon; and
                    (D) by adding at the end the following:
            ``(2) describes the cost, schedule, and performance of all 
        programs under the program manager's supervision;
            ``(3) provides the original and current program cost, 
        schedule, and performance benchmarks for each program under the 
        program manager's supervision; and
            ``(4) for each program under the program manager's 
        supervision, any known, expected, or anticipated changes to 
        program schedule milestones or program performance benchmarks 
        included as part of the original or current baseline 
        description.'';
            (2) in subsection (c)--
                    (A) in paragraph (1), by striking ``the 
                congressional defense committees'' and inserting ``the 
                Office of Management and Budget, the Government 
                Accountability Office, the Committee on Armed Services 
                of the Senate, the Committee on Armed Services of the 
                House of Representatives, the Committee on Homeland 
                Security and Governmental Affairs of the Senate, and 
                the Committee on Oversight and Government Reform of the 
                House of Representatives''; and
                    (B) in paragraph (2), by striking ``to Congress'' 
                each place it appears; and
            (3) in subsection (d)--
                    (A) in paragraph (1)(B), by striking ``the 
                congressional defense committees'' and inserting ``the 
                Office of Management and Budget, the Government 
                Accountability Office, the Committee on Armed Services 
                of the Senate, the Committee on Armed Services of the 
                House of Representatives, the Committee on Homeland 
                Security and Governmental Affairs of the Senate, and 
                the Committee on Oversight and Government Reform of the 
                House of Representatives''; and
                    (B) in paragraph (2), by striking ``to Congress'' 
                each place it appears.
    (d) Report on Significant Changes in Program.--Section 2445c(c) of 
title 10, United States Code, is amended--
            (1) in paragraph (2)--
                    (A) in subparagraph (B), by striking ``or'' at the 
                end;
                    (B) in subparagraph (C), by striking the period at 
                the end and inserting ``; or''; and
                    (C) by adding at the end the following:
                    ``(D) the Earned Value Management of the program 
                has changed by at least 15 percent, but less than 25 
                percent.''; and
            (2) by adding at the end the following:
            ``(3) Notification requirements.--The notification required 
        under paragraph (1) shall include--
                    ``(A) the date on which the determination described 
                in paragraph (2) was made;
                    ``(B) the amount of the cost increases and the 
                extent of the schedule delays with respect to such 
                program;
                    ``(C) any requirements that--
                            ``(i) were added subsequent to the original 
                        contract; or
                            ``(ii) were part of the original contract, 
                        but were changed by deferment or deletion from 
                        the original schedule, or were otherwise no 
                        longer included in the contract;
                    ``(D) an explanation of the differences between--
                            ``(i) the estimate at completion between 
                        the program manager, any contractor, and any 
                        independent analysis; and
                            ``(ii) the original budget at completion;
                    ``(E) a statement of the reasons underlying the 
                program's significant changes; and
                    ``(F) a summary of the plan of action to remedy the 
                significant changes.
            ``(4) Alternative significant changes determination.--If 
        the program manager determines, subsequent to a change in the 
        primary business case or key functional requirements, that 
        without such change the program would undergo significant 
        changes--
                    ``(A) the program manager shall notify the 
                Secretary of Defense of the significant changes; and
                    ``(B) the Secretary of Defense shall notify the 
                congressional defense committees in accordance with the 
                requirements of this subsection.''.
    (e) Report on Critical Changes in Program.--Section 2445c(d) of 
title 10, United States Code, is amended--
            (1) in paragraph (2)--
                    (A) in subparagraph (C), by striking ``or'' at the 
                end;
                    (B) in subparagraph (D), by striking the period at 
                the end and inserting ``; or''; and
                    (C) by adding at the end the following:
                    ``(E) the Earned Value Management of the program 
                has changed by at least 25 percent.''; and
            (2) by adding at the end the following:
            ``(3) Alternative critical changes determination.--If the 
        program manager determines, subsequent to a change in the 
        primary business case or key functional requirements, that 
        without such change the program would undergo critical 
        changes--
                    ``(A) the program manager shall notify the 
                Secretary of Defense of the critical changes; and
                    ``(B) the Secretary of Defense shall fulfill the 
                requirements described in subparagraphs (A) and (B) of 
                paragraph (1).''.
    (f) Program Evaluation.--Section 2445c(e) of title 10, United 
States Code, is amended by striking ``cost and schedule'' in paragraphs 
(1) and (2) and inserting ``schedule and an independent government cost 
assessment provided by the Director of Independent Cost Assessment''.
    (g) Report on Critical Program Changes.--Section 2445c(f) of title 
10, United States Code, is amended--
            (1) by redesignating paragraphs (1), (2), (3), and (4) as 
        subparagraphs (A), (B), (C), and (D), respectively;
            (2) by striking ``include a written certification'' and 
        inserting the following: ``include--
            ``(1) a written certification'';
            (3) by striking the period at the end and inserting ``; 
        and''; and
            (4) by adding at the end the following:
                    ``(E) all technical and business requirements have 
                been reviewed and validated to ensure alignment with 
                the reported business case; and
            ``(2) a description of--
                    ``(A) the primary business case and key functional 
                requirements for the program, including an analysis of 
                alternatives;
                    ``(B) any portions of the program that have 
                technical requirements of sufficient clarity that such 
                portions may be feasibly procured under firm, fixed-
                price type contract; and
                    ``(C) any changes to the primary business case or 
                key functional requirements which have occurred since 
                the inception of the program.''.
    (h) Clerical Amendment.--The table of sections for chapter 144a of 
title 10, United States Code, is amended by striking the item relating 
to section 2445a and inserting the following:

``2445a. Definitions.''.

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 E-Gov Administrator shall 
        establish 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, shall determine the number of individuals who 
        will be selected for the IT SWAT Team.
    (c) Outside Consultants.--
            (1) Identification.--The E-Gov Administrator 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 E-Gov Administrator determines 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 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, 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 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 by the major IT investment project 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 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, the E-Gov Administrator shall 
recommend that the Agency Head (as defined in section 11317(a)(1) of 
title 40, United States Code) 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) Reprogramming of Funds.--
            (1) Authorization.--The Director may direct an Agency Head 
        to reprogram amounts which have been appropriated for such 
        agency to pay for an assessment under subsection (d).
            (2) Notification.--An Agency Head who reprograms 
        appropriations under paragraph (1) shall notify the Committee 
        on Appropriations of the Senate and the Committee on 
        Appropriations of the House of Representatives of any such 
        reprogramming.
    (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.
                                                       Calendar No. 364

111th CONGRESS

  2d Session

                                 S. 920

                          [Report No. 111-179]

_______________________________________________________________________

                                 A BILL

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.

_______________________________________________________________________

                              May 5, 2010

                       Reported with an amendment