[Congressional Bills 114th Congress]
[From the U.S. Government Publishing Office]
[H.R. 6004 Referred in Senate (RFS)]

<DOC>
114th CONGRESS
  2d Session
                                H. R. 6004


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

                           September 26, 2016

Received; read twice and referred to the Committee on Homeland Security 
                        and Governmental Affairs

_______________________________________________________________________

                                 AN ACT


 
To modernize Government information technology, and for other purposes.

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

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Modernizing Government Technology 
Act of 2016'' or the ``MGT Act''.

SEC. 2. FINDINGS; PURPOSES.

    (a) Findings.--The Congress finds the following:
            (1) The Federal Government spends nearly 75 percent of its 
        annual information technology funding on operating and 
        maintaining existing, legacy information technology systems. 
        These systems can pose operational risks, including rising 
        costs and inability to meet mission requirements. These systems 
        also pose security risks, including the inability to use 
        current security best practices, such as data encryption and 
        multi-factor authentication, making these systems particularly 
        vulnerable to malicious cyber activity.
            (2) In 2015, the Government Accountability Office (GAO) 
        designated Improving the Management of IT Acquisitions and 
        Operations to its biannual High Risk List and identified as a 
        particular concern the increasing level of information 
        technology spending on Operations and Maintenance making less 
        funding available for development or modernization. The GAO 
        also found the Government has spent billions on failed and 
        poorly performing IT investments due to a lack of effective 
        oversight.
            (3) The Federal Government must modernize Federal IT 
        systems to mitigate existing operational and security risks.
            (4) The efficiencies, cost savings, and greater computing 
        power, offered by modernized solutions, such as cloud 
        computing, have the potential to--
                    (A) eliminate inappropriate duplication and reduce 
                costs;
                    (B) address the critical need for cyber security by 
                design; and
                    (C) move the Federal Government into a broad, 
                digital-services delivery model that will transform the 
                Federal Government's ability to meet mission 
                requirements and deliver services to the American 
                people.
    (b) Purposes.--The purposes of this Act are the following:
            (1) Assist the Federal Government in modernized Federal 
        information technology to mitigate current operational and 
        security risks.
            (2) Incentivize cost savings in Federal information 
        technology through modernization.
            (3) Accelerate the acquisition and deployment of modernized 
        information technology solutions, such as cloud computing, by 
        addressing impediments in the areas of funding, development, 
        and acquisition practices.

SEC. 3. ESTABLISHMENT OF AGENCY INFORMATION TECHNOLOGY SYSTEMS 
              MODERNIZATION AND WORKING CAPITAL FUNDS.

    (a) Information Technology System Modernization and Working Capital 
Funds.--
            (1) Establishment.--There is established in each covered 
        agency an information technology system modernization and 
        working capital fund (in this section referred to as the ``IT 
        working capital fund'') for necessary expenses for the agency 
        described in paragraph (3).
            (2) Source of funds.--Amounts may be deposited into an IT 
        working capital fund as follows:
                    (A) Reprogramming of funds, including reprogramming 
                of any funds available on the date of the enactment of 
                this Act for the operation and maintenance of legacy 
                information technology systems, in compliance with any 
                applicable reprogramming law or guidelines of the 
                Committees on Appropriations of the House of 
                Representatives and the Senate.
                    (B) Transfer of funds, including transfer of any 
                funds available on the date of the enactment of this 
                Act for the operation and maintenance of legacy 
                information technology systems, but only if transfer 
                authority is specifically provided for by law.
                    (C) Amounts made available through discretionary 
                appropriations.
            (3) Use of funds.--An IT working capital fund established 
        under paragraph (1) may be used, subject to the availability of 
        appropriations, only for the following:
                    (A) To improve, retire, or replace existing 
                information technology systems to improve efficiency 
                and effectiveness.
                    (B) To transition to cloud computing and innovative 
                platforms and technologies.
                    (C) To assist and support covered agency efforts to 
                provide adequate, risk-based, and cost-effective 
                information technology capabilities that address 
                evolving threats to information security.
                    (D) Reimbursement of funds transferred from the 
                Information Technology Modernization Fund established 
                under section 4, with the approval of the agency Chief 
                Information Officer.
            (4) Existing funds.--An IT working capital fund may not be 
        used to supplant funds provided for the operation and 
        maintenance of any system already within an appropriation for 
        the covered agency at the time of establishment of the IT 
        working capital fund.
            (5) Reprogramming and transfer of funds.--The head of each 
        covered agency shall prioritize funds within the IT working 
        capital fund to be used initially for cost savings activities 
        approved by the covered agency Chief Information Officer, in 
        consultation with the Administrator of the Office of Electronic 
        Government. The head of each covered agency may--
                    (A) reprogram any amounts saved as a direct result 
                of such activities for deposit into the applicable IT 
                working capital fund, consistent with paragraph (2)(A); 
                and
                    (B) transfer any amounts saved as a direct result 
                of such activities for deposit into the applicable IT 
                working capital fund, consistent with paragraph (2)(B).
            (6) Return of funds.--Any funds deposited into an IT 
        working capital fund shall be available for obligation for 3 
        years after the date of such deposit.
            (7) Agency cio responsibilities.--In evaluating projects to 
        be funded from the IT working capital fund, the covered agency 
        Chief Information Officer shall consider, to the extent 
        applicable, guidance established pursuant to section 4(a)(1) to 
        evaluate applications for funding from the Information 
        Technology Modernization Fund that include factors such as a 
        strong business case, technical design, procurement strategy 
        (including adequate use of incremental software development 
        practices), and program management.
    (b) Reporting Requirement.--
            (1) In general.--Not later than 1 year after the date of 
        the enactment of this Act, and every 6 months thereafter, the 
        head of each covered agency shall submit to the Director the 
        following, with respect to the IT working capital fund for that 
        covered agency:
                    (A) A list of each information technology 
                investment funded with estimated cost and completion 
                date for each such investment.
                    (B) A summary by fiscal year of the obligations, 
                expenditures, and unused balances.
            (2) Public availability.--The Director shall make the 
        information required pursuant to paragraph (1) publicly 
        available on a website.
    (c) Covered Agency Defined.--In this section, the term ``covered 
agency'' means each agency listed in section 901(b) of title 31, United 
States Code.

SEC. 4. ESTABLISHMENT OF INFORMATION TECHNOLOGY MODERNIZATION FUND AND 
              BOARD.

    (a) Information Technology Modernization Fund.--
            (1) Establishment.--There is established in the Treasury an 
        Information Technology Modernization Fund (in this section 
        referred to as the ``Fund'') for technology related activities, 
        to improve information technology, to enhance cybersecurity 
        across the Federal Government, and to be administered in 
        accordance with guidance established by the Director of the 
        Office of Management of Budget.
            (2) Administration of fund.--The Administrator of General 
        Services, in consultation with the Chief Information Officers 
        Council and with the concurrence of the Director, shall 
        administer the Fund in accordance with this subsection.
            (3) Use of funds.--The Administrator of General Services 
        shall, in accordance with the recommendations of the 
        Information Technology Modernization Board established under 
        subsection (b), use amounts in the Fund for the following 
        purposes:
                    (A) To transfer such amounts, to remain available 
                until expended, to the head of an agency to improve, 
                retire, or replace existing information technology 
                systems to enhance cybersecurity and improve efficiency 
                and effectiveness.
                    (B) For the development, operation, and procurement 
                of information technology products, services, and 
                acquisition vehicles for use by agencies to improve 
                Governmentwide efficiency and cybersecurity in 
                accordance with the requirements of the agencies.
                    (C) To provide services or work performed in 
                support of the activities described under subparagraph 
                (A) or (B).
            (4) Credits; availability of funds.--
                    (A) Credits.--In addition to any funds otherwise 
                appropriated, the Fund shall be credited with all 
                reimbursements, advances, or refunds or recoveries 
                relating to information technology or services provided 
                through the Fund.
                    (B) Availability of funds.--Amounts deposited, 
                credited, or otherwise made available to the Fund shall 
                be available, as provided in appropriations Acts, until 
                expended for the purposes described in paragraph (3).
            (5) Reimbursement.--
                    (A) Payment by agency.--For a product or service 
                developed under paragraph (3), the head of an agency 
                that uses such product or service shall pay an amount 
                fixed by the Administrator of General Services in 
                accordance with this subsection.
                    (B) Reimbursement by agency.--The head of an agency 
                shall reimburse the Fund for any transfer made under 
                paragraph (3)(A) in accordance with the terms 
                established in the written agreement described in 
                paragraph (6). Notwithstanding any other provision of 
                law, an agency may make a reimbursement required by 
                this subparagraph from any appropriation available for 
                information technology activities. An obligation to 
                make a payment under an agreement described in 
                paragraph (6) in a future fiscal year shall be recorded 
                pursuant to section 1501 of title 31, United States 
                Code, in the fiscal year in which the payment is due.
                    (C) Prices fixed by administrator of general 
                services.--The Administrator of General Services, in 
                consultation with the Director, shall establish amounts 
                to be paid by an agency and terms of repayment for use 
                of a product or service developed under paragraph (3) 
                at levels sufficient to ensure the solvency of the 
                Fund, including operating expenses. Before making any 
                changes to the established amounts and terms of 
                repayment, the Administrator of General Services shall 
                conduct a review and obtain approval from the Director.
                    (D) Failure to make timely reimbursement.--The 
                Administrator of General Services may obtain 
                reimbursement by the issuance of transfer and 
                counterwarrants, or other lawful transfer documents, 
                supported by itemized bills, if payment is not made by 
                an agency--
                            (i) within 90 days after the expiration of 
                        a repayment period described in the written 
                        agreement described in paragraph (6)(A); or
                            (ii) within 45 days after the expiration of 
                        the time period to make a payment under a 
                        payment schedule for a product or service 
                        developed under paragraph (3).
            (6) Written agreement.--
                    (A) In general.--Before the transfer of funds to an 
                agency under paragraph (3)(A), the Administrator of 
                General Services (in consultation with the Director) 
                and the head of the requisitioning agency shall enter 
                into a written agreement documenting the purpose for 
                which the funds will be used and the terms of 
                repayment. An agreement made pursuant to this 
                subparagraph shall be recorded as an obligation as 
                provided in paragraph (5)(B).
                    (B) Requirement for use of incremental development 
                practices.--For any funds transferred to an agency 
                under paragraph (3)(A), in the absence of compelling 
                circumstances documented by the Administrator of 
                General Services at the time of transfer, such funds 
                shall be transferred only on an incremental basis, tied 
                to metric-based development milestones achieved by the 
                agency, to be described in the written agreement 
                required pursuant to subparagraph (A).
            (7) Reporting requirement.--Not later than 6 months after 
        the date of the enactment of this Act, the Director shall 
        publish and maintain a list of each project funded by the Fund 
        on a public website to be updated not less than quarterly, that 
        includes a description of the project, project status 
        (including any schedule delay and cost overruns), and financial 
        expenditure data related to the project.
    (b) Information Technology Modernization Board.--
            (1) Establishment.--There is established an Information 
        Technology Modernization Board (in this section referred to as 
        the ``Board'') which shall evaluate proposals submitted by 
        agencies for funding authorized under the Fund.
            (2) Responsibilities.--The responsibilities of the Board 
        are the following:
                    (A) Provide input to the Director for the 
                development of processes for agencies to submit 
                modernization proposals to the Board and to establish 
                the criteria by which such proposals are evaluated, 
                which shall include addressing the greatest security 
                and operational risks, having the greatest 
                Governmentwide impact, and having a high probability of 
                success based on factors such as a strong business 
                case, technical design, procurement strategy (including 
                adequate use of incremental software development 
                practices), and program management.
                    (B) Make recommendations to the Administrator of 
                General Services to assist agencies in the further 
                development and refinement of select submitted 
                modernization proposals, based on an initial evaluation 
                performed with the assistance of the Administrator of 
                General Services.
                    (C) review and prioritize, with the assistance of 
                the Administrator of General Services and the Director, 
                modernization proposals based on criteria established 
                pursuant to subparagraph (A).
                    (D) Identify, with the assistance of the 
                Administrator of General Services, opportunities to 
                improve or replace multiple information technology 
                systems with a smaller number of information technology 
                systems common to multiple agencies.
                    (E) Recommend the funding of modernization 
                projects, in accordance with the uses described in 
                subsection (a)(3), to the Administrator of General 
                Services.
                    (F) Monitor, in consultation with the Administrator 
                of General Services, progress and performance in 
                executing approved projects and, if necessary, 
                recommend the suspension or termination of funding for 
                projects based on factors such as failure to meet the 
                terms of the written agreement described in subsection 
                (a)(6).
                    (G) Monitor operating costs of the Fund.
            (3) Membership.--The Board shall consist of 8 voting 
        members.
            (4) Chair.--The Chair of the Board shall be the 
        Administrator of the Office of Electronic Government.
            (5) Permanent members.--The permanent members of the Board 
        shall be the following:
                    (A) The Administrator of the Office of Electronic 
                Government.
                    (B) A senior official from the General Services 
                Administration, who shall be appointed by the 
                Administrator of General Services.
            (6) Additional members of the board.--
                    (A) Appointment.--The other members of the Board 
                shall be appointed as follows:
                            (i) One employee of the National Institute 
                        of Standards and Technology of the Department 
                        of Commerce, appointed by the Secretary of 
                        Commerce.
                            (ii) One employee of the National 
                        Protection and Programs Directorate of the 
                        Department of Homeland Security, appointed by 
                        the Secretary of Homeland Security.
                            (iii) One employee of the Department of 
                        Defense, appointed by the Secretary of Defense.
                            (iv) Three Federal employees primarily 
                        having technical expertise in information 
                        technology development, financial management, 
                        cybersecurity and privacy, and acquisition, 
                        appointed by the Director.
                    (B) Term.--Each member of the Board described in 
                paragraph (A) shall serve a term of 1 year, which shall 
                be renewable up to 3 times, at the discretion of the 
                appointing Secretary or Director, as applicable.
            (7) Prohibition on compensation.--Members of the Board may 
        not receive additional pay, allowances, or benefits by reason 
        of their service on the Board.
            (8) Staff.--Upon request of the Chair of the Board, the 
        Director and the Administrator of General Services may detail, 
        on a nonreimbursable basis, any of the personnel of the Office 
        of Management and Budget or the General Services Administration 
        (as the case may be) to the Board to assist it in carrying out 
        its functions under this Act.
    (c) Responsibilities of the Administrator of General Services.--
            (1) In general.--In addition to the responsibilities 
        described in subsection (a), the Administrator of General 
        Services shall support the activities of the Board and provide 
        technical support to, and, with the concurrence of the 
        Director, oversight of, agencies that receive transfers from 
        the Fund.
            (2) Responsibilities.--The responsibilities of the 
        Administrator of General Services are to--
                    (A) provide direct technical support in the form of 
                personnel services or otherwise to agencies transferred 
                amounts under subsection (a)(3)(A) and for products, 
                services, and acquisition vehicles funded under 
                subsection (a)(3)(B);
                    (B) assist the Board with the evaluation, 
                prioritization, and development of agency modernization 
                proposals;
                    (C) perform regular project oversight and 
                monitoring of approved agency modernization projects, 
                in consultation with the Board and the Director, to 
                increase the likelihood of successful implementation 
                and reduce waste; and
                    (D) provide the Director with information necessary 
                to meet the requirements of subsection (a)(7).
    (d) Agency Defined.--In this section, the term ``agency'' has the 
meaning given that term in section 551 of title 5, United States Code.

SEC. 5. DEFINITIONS.

    In this Act:
            (1) Cloud computing.--The term ``cloud computing'' has the 
        meaning given that term by the National Institute of Standards 
        and Technology in NIST Special Publication 800-145 and any 
        amendatory or superseding document thereto.
            (2) Director.--The term ``Director'' means the Director of 
        the Office of Management and Budget.
            (3) Information technology.--The term ``information 
        technology'' has the meaning given that term in section 3502 of 
        title 44, United States Code.
            (4) Legacy information technology system.--The term 
        ``legacy information technology system'' means an outdated or 
        obsolete system of information technology.

            Passed the House of Representatives September 22, 2016.

            Attest:

                                                 KAREN L. HAAS,

                                                                 Clerk.