[Congressional Bills 112th Congress]
[From the U.S. Government Publishing Office]
[S. 801 Introduced in Senate (IS)]

112th CONGRESS
  1st Session
                                 S. 801

   To amend chapter 113 of title 40, United States Code, to require 
executive agency participation in real-time transparency of investment 
  projects, to require performance and governance reviews of all cost 
overruns on Federal information technology investment projects, and for 
                            other purposes.


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

                             April 12, 2011

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

_______________________________________________________________________

                                 A BILL


 
   To amend chapter 113 of title 40, United States Code, to require 
executive agency participation in real-time transparency of investment 
  projects, to require performance and governance reviews of all cost 
overruns on Federal information technology investment projects, and for 
                            other purposes.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Information Technology Investment 
Management Act of 2011''.

SEC. 2. IT MANAGEMENT AND DEVELOPMENT PROGRAM.

    Section 11311 of title 40, United States Code is amended to read as 
follows:
``Sec. 11311. Responsibilities
    ``In fulfilling the responsibilities set forth in section 3506 of 
title 44, the head of each executive agency shall--
            ``(1) comply with the requirements under this subchapter;
            ``(2) develop an information technology management and 
        development program in accordance with guidance disseminated by 
        the Director of the Office of Management and Budget; and
            ``(3) enter into the website established under section 
        11302, not less frequently than monthly--
                    ``(A) cost, schedule, and performance information 
                regarding the agency's major IT investment projects, 
                using earned value management or another objective, 
                performance-based standard that has been approved by 
                the E-Government Administrator; and
                    ``(B) the planning information regarding core IT 
                investment projects described in section 
                11317(d)(2).''.

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

    Section 11302 of title 40, United States Code, is amended by adding 
at the end the following:
    ``(l) Real-Time Transparency of IT Investment Projects.--The 
Director shall--
            ``(1) ensure the effective operation of a website;
            ``(2) ensure that agency Chief Information Officers update 
        the website on a monthly basis, at a minimum;
            ``(3) include on the website, not later than 90 days after 
        the date of enactment of the Information Technology Investment 
        Management Act of 2011--
                    ``(A) the available, accurate, current and 
                historical cost, schedule, and performance information 
                of all major information technology investments, which 
                shall be reported in a manner consistent with policy 
                established by the Office of Management and Budget on 
                the use of earned-value management data, or another 
                objective performance-based management system approved 
                by the E-Government Administrator, based on the current 
                ANSI-EIA-748 standard.
                    ``(B) a graphical depiction of trend information, 
                to the extent practicable, since the commencement of 
                the major IT investment;
                    ``(C) a clear delineation of major IT investments 
                that have experienced a cost, schedule, or performance 
                variance greater than 10 percent over the life cycle of 
                the investment, including the extent of such variation;
                    ``(D) an explanation of the reasons the investment 
                deviated from the benchmark established at the 
                commencement of the project;
                    ``(E) the dates on which investments were 
                rebaselined; and
                    ``(F) any reports developed as a result of a 
                comprehensive agency review or a comprehensive Office 
                of Management and Budget review; and
            ``(4) ensure that the agency Chief Information Officers 
        prevent inconsistencies in cost, schedule, and performance 
        data.''.

SEC. 4. REVIEW OF MAJOR 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 
        major IT investment project under review.
            ``(2) Agency performance and governance review.--The term 
        `agency performance and governance review' means a systematic 
        review of investments experiencing performance problems that--
                    ``(A) is conducted by relevant agency leadership 
                and the Chief Information Officer; and
                    ``(B) includes an analysis and discussion of--
                            ``(i) the project's overall intent and 
                        purpose and measurable goals and objectives;
                            ``(ii) rationale for the project's variance 
                        from the original goals and performance 
                        measures;
                            ``(iii) any additional scope that may have 
                        been added to the project, including cost, 
                        schedule, and performance impact;
                            ``(iv) any previous corrective action plans 
                        and outcomes and forward thinking plans to 
                        prevent subsequent variances;
                            ``(v) a presentation of significant risks 
                        with mitigation strategies and assignment of 
                        risk owners; and
                            ``(vi) the Chief Information Officer's 
                        concerns with the investment and assessment of 
                        whether the project is viable.
            ``(3) ANSI eia-748 standard.--The term `ANSI EIA-748 
        Standard' means the measurement tool jointly developed by the 
        American National Standards Institute and the Electronic 
        Industries Alliance to analyze Earned Value Management systems.
            ``(4) 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.
            ``(5) Chief information officer.--The term `Chief 
        Information Officer' means the Chief Information Officer 
        designated under section 3506(a)(2) of title 44 of the 
        Executive department (as defined in section 101 of title 5) 
        that is primarily responsible for the major IT investment 
        project under review.
            ``(6) Core it investment project.--The terms `core IT 
        investment project' and `core project' mean a mission critical 
        major IT investment project so designated in accordance with 
        subsection (d).
            ``(7) Director.--The term `Director' means the Director of 
        the Office of Management and Budget.
            ``(8) Earned value management.--The term `Earned Value 
        Management' means the cost, schedule, and performance data used 
        to determine project status and developed in accordance with 
        the ANSI EIA-748 Standard.
            ``(9) Grossly deviated.--The term `grossly deviated' means 
        cost, schedule, or performance variance that is at least 40 
        percent from the original baseline.
            ``(10) Life cycle cost.--The term `life cycle cost' means 
        the total cost of a major IT investment project for planning, 
        research and development, modernization, enhancement, 
        operation, and maintenance.
            ``(11) Major it investment project.--The term `major IT 
        investment project' means an information technology system or 
        information technology acquisition that--
                    ``(A) requires special management attention because 
                of its importance to the mission or function of the 
                agency, a component of the agency, or another 
                organization;
                    ``(B) is for financial management and obligates 
                more than $500,000 annually;
                    ``(C) has significant program or policy 
                implications;
                    ``(D) has high executive visibility;
                    ``(E) has high development, operating, or 
                maintenance costs;
                    ``(F) is funded through other than direct 
                appropriations; or
                    ``(G) is defined as major by the agency's capital 
                planning and investment control process.
            ``(12) Office of management and budget performance and 
        governance review.--The term `Office of Management and Budget 
        performance and governance review' means a systematic review of 
        investments experiencing performance problems that--
                    ``(A) is conducted by relevant agency leadership, 
                the Chief Information Officer, and the E-Government 
                Administrator; and
                    ``(B) includes an analysis and discussion of--
                            ``(i) the project's overall intent and 
                        purpose and measurable goals and objectives;
                            ``(ii) rationale for the project's variance 
                        from the original goals and performance 
                        measures;
                            ``(iii) any additional scope that may have 
                        been added to the project, including cost, 
                        schedule, and performance impact;
                            ``(iv) any previous corrective action plans 
                        and outcomes and forward thinking plans to 
                        prevent subsequent variances;
                            ``(v) a presentation of significant risks 
                        with mitigation strategies and assignment of 
                        risk owners; and
                            ``(vi) the concerns of the Chief 
                        Information Officer and the E-Government 
                        Administrator with the investment and their 
                        assessment of whether the project is viable.
            ``(13) Original baseline.--
                    ``(A) In general.--Except as provided under 
                subparagraphs (B) and (C), the term `original baseline' 
                means--
                            ``(i) the ANSI EIA-748 Standard-compliant 
                        Earned Value Management benchmark; or
                            ``(ii) an equivalent benchmark approved by 
                        the Office of Management and Budget and 
                        established at the commencement of an IT 
                        investment project.
                    ``(B) Grossly deviated project.--If a major IT 
                investment project grossly deviates from its original 
                baseline (as defined in subparagraph (A)), the term 
                `original baseline' means--
                            ``(i) the ANSI EIA-748 Standard-compliant 
                        Earned Value Management benchmark; or
                            ``(ii) an equivalent benchmark approved by 
                        the Office of Management and Budget after the 
                        commencement of an IT investment project.
                    ``(C) Statutory or budgetary changes.--If a project 
                significantly or grossly deviates solely as a result of 
                a substantial statutory change or a substantial 
                reduction in Federal funding for the project, and the 
                deviation cannot be prevented through proper project 
                management, the Agency Head may authorize the Chief 
                Information Officer to establish a new baseline. The 
                Agency Head shall notify Congress of any new baselines 
                authorized under this subparagraph not later than 30 
                days after such authorization.
            ``(14) Significantly deviated.--The term `significantly 
        deviated' means cost, schedule, or performance variance that 
        has deviated at least 20 percent from the original baseline.
    ``(b) Response to Significant Deviation.--
            ``(1) Responsibilities of chief information officer.--If a 
        Chief Information Officer, while entering project data under 
        section 11311(3)(A), determines that a major IT investment 
        project of an agency has significantly deviated, the Chief 
        Information Officer shall--
                    ``(A) notify the Agency Head of such deviation; and
                    ``(B) conduct an agency performance and governance 
                review.
            ``(2) Report.--
                    ``(A) In general.--Using the results of the review 
                conducted under paragraph (1)(B), the Agency Head shall 
                submit a report containing the information described in 
                subparagraph (B), not later than 30 days after the end 
                of the month upon which such information is based, to 
                the appropriate congressional committees, the Director, 
                and the Comptroller General of the United States.
                    ``(B) Contents of report.--The report submitted 
                under subparagraph (A) shall contain the results of the 
                review conducted under paragraph (1)(B), including--
                            ``(i) the challenges and causes of the 
                        variance from the project baseline;
                            ``(ii) a summary of risks, mitigation 
                        strategies, and clear lines of responsibility 
                        and accountability for project deviations;
                            ``(iii) enhanced contractor performance 
                        metrics and controls for existing contracts;
                            ``(iv) a revised acquisition plan for 
                        contracts expected to be executed during the 
                        following fiscal year that address the issues 
                        identified in the report;
                            ``(v) a high-level schedule that 
                        articulates critical path items;
                            ``(vi) a description of how--
                                    ``(I) the project's governance will 
                                be more rigorous because of the 
                                improvement plan laid out in the 
                                report; and
                                    ``(II) the agency will improve the 
                                internal oversight of contract and 
                                program management to ensure better 
                                performance; and
                            ``(vii) a list of specific corrective 
                        actions to turn around the project.
            ``(3) Exemption.--
                    ``(A) In general.--A Chief Information Officer is 
                exempt from conducting an agency performance and 
                governance review of a project experiencing a 
                significant deviation if the Agency Head certifies 
                that--
                            ``(i) the deviation was solely the result 
                        of--
                                    ``(I) a substantial change in 
                                project requirements due to a Federal 
                                law that was enacted after the 
                                commencement of the project; or
                                    ``(II) a substantial reduction in 
                                Federal funding for the project because 
                                of congressional action; and
                            ``(ii) the significant deviation could not 
                        have been prevented through proper project 
                        management.
                    ``(B) Congressional notification.--Not later than 
                30 days after the discovery of a significant deviation 
                about which the Agency Head certifies that an exemption 
                is warranted under subparagraph (A), the Agency Head 
                shall notify Congress of such significant deviation and 
                the reason for such exemption.
    ``(c) Response to Gross Deviation.--
            ``(1) Responsibilities of chief information officer.--If a 
        Chief Information Officer, while entering project data under 
        section 11311(3)(A), determines that a major IT investment 
        project of an agency has grossly deviated or that a core IT 
        investment project has significantly deviated, the E-Government 
        Administrator shall--
                    ``(A) conduct an Office of Management and Budget 
                performance and governance review of the project; and
                    ``(B) using the results of such review, submit a 
                report containing the information described in 
                paragraph (2), not later than 30 days after the end of 
                the month upon which such information is based, to the 
                appropriate congressional committees and the 
                Comptroller General of the United States.
            ``(2) Contents of report.--The report submitted under 
        paragraph (1)(B) shall contain the results of the review 
        conducted under paragraph (1)(A), including--
                    ``(A) all the information required under subsection 
                (b)(2);
                    ``(B) the original and expected life cycle costs of 
                the investment, expressed in constant base year dollars 
                and in current dollars;
                    ``(C) 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 
                business case;
                    ``(D) a recommendation from the Office of 
                Management and Budget on whether the scope of the 
                project should be substantively changed or terminated;
                    ``(E) a new baseline for the project;
                    ``(F) the number of times the project has been 
                rebaselined and the former baselines; and
                    ``(G) a referral to the agency Inspector General to 
                review the project.
            ``(3) Project designation.--After a Chief Information 
        Officer determines that a major IT investment project has 
        grossly deviated, the project shall be treated as a core IT 
        investment project in accordance with subsection (d).
            ``(4) Exemption.--
                    ``(A) In general.--The E-Government Administrator 
                is exempt from conducting an Office of Management and 
                Budget performance and governance review for a project 
                experiencing a gross deviation if the E-Government 
                Administrator certifies that--
                            ``(i) the deviation was solely the result 
                        of--
                                    ``(I) a substantial change in 
                                project requirements due to a Federal 
                                law that was enacted after the 
                                commencement of the project; or
                                    ``(II) a substantial reduction in 
                                Federal funding for the project because 
                                of congressional action; and
                            ``(ii) the gross deviation could not have 
                        been prevented through proper project 
                        management.
                    ``(B) Congressional notification.--Not later than 
                30 days after the discovery of a gross deviation about 
                which the E-Government Administrator certifies that an 
                exemption is warranted under subparagraph (A), the E-
                Government Administrator shall notify Congress of such 
                gross deviation and the reason for such exemption.
    ``(d) Core IT Investment Projects.--
            ``(1) Designation.--Each Agency Head, in consultation with 
        the Chief Information Officer of the agency, shall designate 
        the most costly and critical major IT investment projects 
        within the agency as core IT investment projects after weighing 
        the following factors:
                    ``(A) The project's ability to deliver a capability 
                that is critical to the successful completion of the 
                agency's mission or a portion of such mission.
                    ``(B) The relative dollar value of the project 
                relative to the average IT investment project in the 
                agency's portfolio.
                    ``(C) The incorporation of unproven or previously 
                undeveloped technology to meet primary project 
                technical requirements.
                    ``(D) The likelihood that significant cost, 
                schedule, or performance deviations would have a 
                considerable negative impact on the successful 
                completion of the agency mission.
                    ``(E) The cruciality of management and oversight to 
                prevent the negative impacts that would result from the 
                project's failure.
            ``(2) Submission of additional planning information.--While 
        entering project data under section 11311(3)(A), the Chief 
        Information Officer shall submit additional planning 
        information regarding core projects to the IT Dashboard, 
        including--
                    ``(A) a description of the primary business case 
                and key functional performance capabilities for the 
                core project;
                    ``(B) an identification and description of mission 
                benefits, key milestones, and lifecycle costs for the 
                core project;
                    ``(C) an independent cost estimate for the core 
                project;
                    ``(D) a 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 performance capabilities that have 
                occurred since project inception.
    ``(e) Effect of Agency Noncompliance.--If an Agency Head fails to 
timely submit the information required under section 11311 for a major 
IT investment project or conduct a review required under subsection 
(b)(1)(A) of such project in a timely manner, the Director may prohibit 
additional expenditures for the project (other than expenditures needed 
to meet the requirements of this chapter) until such requirements have 
been met.''.

SEC. 5. PERSONNEL AWARDS FOR EXCELLENCE IN THE ACQUISITION OF 
              INFORMATION SYSTEMS AND INFORMATION TECHNOLOGY.

    (a) In General.--Not later than 180 days after the date of 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.--In carrying out 
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) with a cash bonus, to the extent that the performance 
        of such individual or team warrants the award of such bonus and 
        is authorized by any provision of law;
            (2) through promotions and other nonmonetary awards;
            (3) by publicizing--
                    (A) acquisition accomplishments by individual 
                employees; and
                    (B) the tangible end benefits that resulted from 
                such accomplishments, as appropriate; and
            (4) through other awards, incentives, or bonuses that the 
        head of the agency considers appropriate.
                                 <all>