[Congressional Record Volume 141, Number 101 (Tuesday, June 20, 1995)]
[Senate]
[Pages S8684-S8712]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]


          STATEMENTS ON INTRODUCED BILLS AND JOINT RESOLUTIONS

      By Mr. SIMON (for himself, Ms. Moseley-Braun, and Mr. Coats):
  S. 944. A bill to provide for the establishment of the Ohio River 
Corridor Study Commission, and for other purposes; to the Committee on 
Energy and Natural Resources.


         ohio river corridor study commission establishment act

  Mr. SIMON. Mr. President, today I am introducing a bill to provide 
for the establishment of the Ohio River Corridor Study Commission. The 
purpose of this legislation is to focus attention on the distinctive 
and nationally important resources of the Ohio River corridor. My 
intention is to provide for long-term preservation, betterment, 
enjoyment, and utilization of the opportunities in the Ohio River 
corridor.
  The Ohio River is a unique riverine system and is recognized as one 
of the great rivers of the world. In our Nation's early years, the Ohio 
was the way west; later the transportation opportunities provided by 
the river brought resources and people together to help build our 
country into a great industrial power.
  The Ohio River starts in Pittsburgh, PA, and flows to the west and to 
the south toward its confluence in my home State of Illinois at the 
Mississippi River at Cairo, IL. The Ohio River covers 981 miles and 
flows through or borders on the States of Pennsylvania, Ohio, West 
Virginia, Kentucky, Indiana, and Illinois.
  Our great American rivers even after years of neglect and abuse, 
remain [[Page S 8685]] among the most scenic areas of the country. 
After a preliminary investigation, the ad hoc Ohio River Group believes 
that an indepth study of the waterway would result in a favorable 
recommendation for a joint local, State, and national endeavor 
resulting in the designation of the river valley as a national heritage 
corridor.
  Mr. President, as with other national heritage corridors there is a 
high degree of coordination and cooperation required by the various 
governmental entities along the river if the project is to be 
successful. I believe that establishing the Ohio River Corridor Study 
Commission--whose membership would include the Director, or designee, 
of the National Park Service--would be the most appropriate mechanism 
to begin implementation of the conceptual study.
                                 ______

      By Mr. SIMON (for himself and Ms. Moseley-Braun):
  S. 945. A bill to amend the Illinois and Michigan Canal Heritage 
Corridor Act of 1984 to modify the boundaries of the corridor, and for 
other purposes; to the Committee on Energy and Natural Resources.


    illinois and michigan canal heritage corridor establishment act

  Mr. SIMON. Mr. President, today I am introducing a bill to provide 
for the Illinois & Michigan Canal Heritage Corridor. The purpose of 
this legislation is to preserve and enhance a corridor known for its 
nationally significant cultural and natural resources. My intention is 
to provide for long-term preservation, betterment, and utilization of 
the opportunities in the Illinois & Michigan Canal.
  The Illinois & Michigan Canal National Heritage Corridor extends 
itself over 120 miles from Chicago to LaSalle/Peru. The Illinois & 
Michigan Canal was the first to be designated as a National Heritage 
Corridor in 1984. For years Illinoisans have been able to appreciate 
not only the natural beauty of the canal but also its historical 
interest. On both banks of the river, forests, prairies, and bird 
sanctuaries have been preserved. The unique architecture of this area 
includes buildings constructed between 1836 and 1848, architecture 
which no longer existed farther east, destroyed by the Chicago Fire of 
1871.
  The Illinois & Michigan Corridor is an innovative concept. It is the 
first partnership park of its kind and it is now a model for such parks 
throughout the Nation.
  Mr. President, as with other national heritage corridors there is a 
high degree of coordination and cooperation required by the various 
governmental entities along the canal if the project is to be 
successful. The high historical, recreational, educational value of the 
canal is evident. It is my duty to seek to help preserving and 
protecting one of our national treasuries. I believe that extending the 
Illinois and Michigan Canal National Heritage Corridor Commission would 
be the most appropriate way to reach those goals.
                                 ______

      By Mr. COHEN (for himself and Mr. Levin):
  S. 946. A bill to facilitate, encourage, and provide for efficient 
and effective acquisition and use of modern information technology by 
executive agencies; to establish the position of Chief Information 
Officer of the United States in the Office of Management and Budget; to 
increase the responsibility and public accountability of the heads of 
the departments and agencies of the Federal Government for achieving 
substantial improvements in the delivery of services to the public and 
in other program activities through the use of modern information 
technology in support of agency missions; and for other purposes; to 
the Committee on Governmental Affairs.


           federal information technology reform act of 1995

  Mr. COHEN. Mr. President, today I rise to introduce the Federal 
Information Technology Reform Act of 1995. This legislation will 
provide much needed reform to the way the government acquires and uses 
computers and information technology. This legislation is critical to 
the future of Government as information technology becomes increasingly 
important in the way we manage Federal programs and responsibilities.
  It was not all that long ago--less than two decades--when the 
business tools in most offices consisted of rotary dial telephones, IBM 
Selectric typewriters, sheets of carbon paper, and gallons of white-
out. Today, however, it is a much different world. Offices now rely on 
digital telephone systems, voice and electronic mail, personal 
computers, and copy and fax machines. And while the office tools in 
Government and the private sector are similar, the Government is 
finding itself falling further and further behind the technology curve 
The disparity between the tools of the private sector and the tools of 
Government is growing daily; especially in the area of information 
management.
  The Government is the largest information manager in the world. The 
IRS collects more than 200 million tax forms a year. The Department of 
Defense has warehouses of information containing everything from 
declassified battle plans from the Spanish American War to financial 
records for the Aegis Destroyer.
  The Department of Veterans Affairs has medical, educational, and 
insurance records for tens of millions of veterans scattered throughout 
the country. The Social Security Administration has hundreds of 
millions of records dealing with disability claims, educational 
benefits and payment records. In addition, all of these agencies have 
records dealing with personnel, travel and supply expenses. The list is 
endless.
  The ability of Government to manage this information has a profound 
affect on the daily lives of all of us. When senior citizens receive 
their Social Security checks, it is because a Government computer told 
the Treasury Department to send a check.
  When we pay taxes or receive a refund, it is a Government computer 
that examines our tax forms, checks our math, and determines if we have 
paid the right amount or if we are due a refund.
  When we fly, we rely on Government computers to keep planes from
   crashing into one another. When we watch weather reports on the 
evening news, the information comes from Government computers.

  Government computers also keep track of patents, Government-insured 
loans, contractor payments, personnel and payroll records, criminal 
records, military inventory, and Medicaid and Medicare billings. In 
short, the Government keeps track of information that ensures our 
financial well being and is also critical to our public safety and 
national security needs.
  But these Government information systems are headed for catastrophic 
failure if we fail to address the challenge of modernization. The 
Federal Aviation Administration, for example, relies on 1950's vacuum 
tube technology to monitor the safety of millions of airline passengers 
on a daily basis. Occasionally this antiquated technology fails, 
potentially putting airline passengers at risk.
  Other Government computers are also failing to do the job such as 
failing to detect fraud in the Federal student loan program and 
preventing excess inventories at the Department of Defense. Inadequate 
technology is also largely to blame for the Justice Department's 
failure to collect millions in civil penalties, the Internal Revenue 
Service's failure to collect billions in overdue taxes, and the 
Department of Health and Human Service's failure to detect fraud in the 
Medicare program.
  The underlying theme in all of the examples is that the Government 
does not do a good job managing its information. Poor information 
management is, in fact, one of the biggest threats to the Government 
Treasury because it leaves Government programs susceptible to waste, 
fraud, and abuse.
  When the average taxpayer hears horror stories such as the Federal 
payroll clerk who was paying phantom employees and pocketing the money, 
or the case of the finance clerk who billed the Navy for ship parts 
that were never delivered, or the tax preparer who stole millions from 
the IRS through fictitious filings, they may not think about 
information management. But they certainly lose confidence in the 
Government's ability to manage.
  My purpose in relating these incidents is not to simply recite a 
litany of Government horror stories. We have all heard too many of 
those. Instead, my purpose is to highlight how Government technology 
affects the lives of ordinary citizens, and to demonstrate [[Page S 
8686]] that the common denominator in these examples is the 
Government's failure to effectively manage information.
  The problems are clear. It is equally clear that focusing on 
reforming how the Government approaches and acquires information 
technology can have
 a profound impact on the way Government does business in much the same 
way it has changed corporate America.

  Last fall, I issued a report examining the Government's purchase and 
use of information technology. While I do not want to rehash all of the 
findings and recommendations, I do think some key observations are 
worth repeating.
  Government is falling further behind the private sector in its 
ability to successfully apply information technology. First, the 
Federal Government rarely if ever examines how it does business before 
it automates. I recently held hearings which examined how the Pentagon 
could save more than $4 billion over 5 years simply by changing the way 
it processed travel vouchers. Automating the current voucher processing 
system will neither achieve the projected savings nor the efficiencies 
that are accomplished through reengineering.
  Second, the Federal Government has wasted billions of dollars by 
maintaining and updating so-called legacy or antiquated computers from 
the 1960's and 1970's which are ill-suited for the Government's needs 
and by today's standards will never be efficient or reliable.
  Third, the Government wastes additional billions when we do buy 
replacement systems because we try to do too much at one time. These 
so-called megasystems are difficult to manage and are rarely 
successful. Without exception, megasystems cost much more than 
envisioned and when completed, which is rare, are generally years 
behind schedule. The private sector recognizes the megasystem approach 
as too risky and instead takes an incremental and more manageable 
approach. We need only look to the IRS and FAA to see examples of old 
systems that continue to deteriorate but have yet to be replaced 
because of failed modernization efforts.
  Fourth, the process for buying Federal computer systems takes too 
long, largely because the process is inflexible and bureaucratic. In 
most cases, technology is obsolete by the time the new system is 
delivered. In a world where technology doubles every 18 months, 
Government can no longer afford systems that take 3 and 4 years to 
procure. In addition, once systems are finally delivered, agencies are 
then at the mercy of winning vendors for needed upgrades. These 
upgrades are purchased noncompetitively and any savings derived from 
the earlier competition are lost.
  Finally, protests and the threat of protests add further delay and 
cost. In some cases, protests are lodged to obtain information that was 
not disclosed at debriefings, to interrupt revenue flow to competitors, 
or to gain other competitive advantages.
  The current approach to buying computers is outdated and takes little 
account of the competitive and fast-changing nature of the global 
computer industry. Markets and prices change daily, yet Government 
often gets locked into paying today's prices for yesterday's 
technology.
  It is time to move Government information technology into the 21st 
century. That is why today I am introducing the Information Technology 
Management Reform Act of 1995. This legislation will significantly 
alter how the Government approaches and acquires information 
technology. The legislation would repeal the Brooks Act and establish a 
framework that will respond more efficiently to the needs of Government 
now and in the foreseeable future.
  Mr. President, this legislation will make it easier for the 
Government to buy technology. More importantly, it is intended to make 
sure that before investing a dime in information technology, Government 
agencies will have carefully planned and justified their expenditures. 
Federal spending on information technology will be treated like an 
investment. Similar to managing an investment portfolio, decisions on 
whether to invest will be made based on potential return, and decisions 
to terminate or make additional investments will be based on 
performance. Much like a broker, agency management and vendor 
performance will be measured and rewarded based on managing risk and 
achieving results.
  One of the most important features of the bill is that it changes the 
way Government approaches technology. Agencies will be encouraged--
indeed required--to take a hard look at how they do business before 
they can spend a dollar on information technology. The idea is to 
ensure that we are not automating for the sake of automation. The 
greatest benefit from an investment in information technology can come 
from automating efficient processes.
  The bill will make it easier to invest in information technology by 
replacing the current procurement system with one that is less 
bureaucratic and process driven. The new system is designed to allow 
Government to buy technology faster and for less money. This will 
enable us to make significant progress in replacing the inefficient and 
unreliable legacy systems which currently waste a significant portion 
of the Federal Government's $27 billion annual information technology 
budget.
  Specifically, the bill eliminates the delegation of procurement 
authority at the GSA, and establishes a National Chief Information 
Officer at OMB and Chief Information Officers at the major Federal 
agencies whose jobs are to emphasize up front planning, monitor risk 
management, and work with vendors to achieve workable solutions to the 
Federal Government's information needs.
  The legislation will also fundamentally change the Government's focus 
of information technology from a technical issue to a management issue. 
We have seen how failing to recognize information technology as a 
management issue has resulted in billions of dollars lost to 
inefficiency and abuse. From now on, Government information technology 
will have the attention of top management because the CIO's will have 
seats at the top levels of Government.
  My legislation will also discourage the so-called megasystem buys. 
Following the private sector model, agencies will be encouraged to take 
an incremental approach that is more manageable and less risky.
  We can no longer afford Government-unique systems. My bill makes it 
easy for agencies to buy commercially available products. While I 
understand that there are some unique needs, standard commercially 
available systems should be utilized for payroll and travel operations 
that are similar in both business and Government and for other 
operations whenever practicable.
  The bill eliminates the current system for resolving bid protests 
involving information technology. Consequently, all protests will be 
resolved by the agencies, General Accounting Office, or the courts. 
While some are concerned that without the current system fairness 
cannot be ensured, I believe that other improvements in the procurement 
process required by the legislation eliminate the need for this 
redundancy.
  I am excited about the prospect of this legislation to transform the 
way the Government does business. If Government is going to regain the 
confidence of taxpayers, it must successfully modernize. And, as you 
know, we cannot successfully modernize unless we can buy the tools 
which will enable us to automate. My legislation will lay the 
foundation to fundamentally change how the Government approaches the 
application and purchases of information technology.
  If passed and implemented properly, this legislation can save 
taxpayers hundreds of billions of dollars by reducing overhead expenses 
and enabling our Government to become significantly more efficient. 
Changing the way Government does business and realizing the full 
promise and potential of technology, we can reduce the financial burden 
for this and future generations of Americans.
  Mr. President, I urge my colleagues to support this legislation and 
move swiftly toward its adoption. We simply cannot afford to miss this 
opportunity to improve the delivery of services to the public; to 
increase detection of waste and fraud; and significantly reduce the 
cost of Government.
  I ask unanimous consent to have the full text of my statement and 
Senator Levin's statement printed in the [[Page S 8687]] Record as if 
read, and that the bill and section-by-section analysis be included in 
the Record.
  There being no objection, the material was ordered to be printed in 
the Record, as follows:
                                 S. 946

       Be it enacted by the Senate and House of Representatives of 
     the United States of America in Congress assembled,
     SECTION 1. SHORT TITLE; TABLE OF CONTENTS.
       (a) Short Title.--This Act may be cited as the 
     ``Information Technology Management Reform Act of 1995''.
       (b) Table of Contents.--The table of contents for this Act 
     is as follows:

Sec. 1. Short title; table of contents.
Sec. 2. Findings.
Sec. 3. Purposes.
Sec. 4. Definitions.

   TITLE I--RESPONSIBILITY FOR ACQUISITIONS OF INFORMATION TECHNOLOGY

                     Subtitle A--General Authority

Sec. 101. Authority of heads of executive agencies.
Sec. 102. Superior authority of Director of Office of Management and 
              Budget.
Sec. 103. Repeal of central authority of the Administrator of General 
              Services.

      Subtitle B--Director of the Office of Management and Budget

Sec. 121. Responsibility of Director.
Sec. 122. Specific responsibilities.
Sec. 123. Performance-based and results-based management.
Sec. 124. Standards and guidelines for Federal information systems.
Sec. 125. Contracting for performance of information resources 
              management functions.
Sec. 126. Regulations.

       Subtitle C--Chief Information Officer of the United States

Sec. 131. Office of the Chief Information Officer of the United States.
Sec. 132. Relationship of Chief Information Officer to Director of the 
              Office of Management and Budget; principal duties.
Sec. 133. Additional duties.
Sec. 134. Acquisitions under high-risk information technology programs.
Sec. 135. Electronic data base on contractor performance.

                     Subtitle D--Executive Agencies

Sec. 141. Responsibilities.
Sec. 142. Specific authority.
Sec. 143. Agency chief information officer.
Sec. 144. Accountability.
Sec. 145. Agency missions and the appropriateness of information 
              technology initiatives.
Sec. 146. Significant failures of programs to achieve cost, 
              performance, or schedule goals.
Sec. 147. Interagency support.
Sec. 148. Monitoring of modifications in information technology 
              acquisition programs.
Sec. 149. Special provisions for Department of Defense.
Sec. 150. Special provisions for Central Intelligence Agency.

                Subtitle E--Federal Information Council

Sec. 151. Establishment of Federal Information Council.
Sec. 152. Membership.
Sec. 153. Chairman; executive director.
Sec. 154. Duties.
Sec. 155. Software Review Council.

               Subtitle F--Interagency Functional Groups

Sec. 161. Establishment.
Sec. 162. Specific functions.

                  Subtitle G--Congressional Oversight

Sec. 171. Establishment and organization of Joint Committee on 
              Information.
Sec. 172. Responsibilities of Joint Committee on Information.
Sec. 173. Rulemaking authority of Congress.

                   Subtitle H--Other Responsibilities

Sec. 181. Responsibilities under the National Institute of Standards 
              and Technology Act.
Sec. 182. Responsibilities under the Computer Security Act of 1987.

      TITLE II--PROCESS FOR ACQUISITIONS OF INFORMATION TECHNOLOGY

                         Subtitle A--Procedures

Sec. 201. Procurement procedures.
Sec. 202. Agency process.
Sec. 203. Incremental acquisition of information technology.
Sec. 204. Authority to limit number of offerors.
Sec. 205. Exception from truth in negotiation requirements.
Sec. 206. Unrestricted competitive procurement of commercial off-the-
              shelf items of information technology.
Sec. 207. Task and delivery order contracts.
Sec. 208. Two-phase selection procedures.
Sec. 209. Contractor share of gains and losses from cost, schedule, and 
              performance experience.

                   Subtitle B--Acquisition Management

Sec. 221. Acquisition management team.
Sec. 222. Oversight of acquisitions.

      TITLE III--SPECIAL FISCAL SUPPORT FOR INFORMATION INNOVATION

                Subtitle A--Information Technology Fund

Sec. 301. Establishment.
Sec. 302. Accounts.

                  Subtitle B--Innovation Loan Account

Sec. 321. Availability of fund for loans in support of information 
              innovation.
Sec. 322. Repayment of loans.
Sec. 323. Savings from information innovations.
Sec. 324. Funding.

                     Subtitle C--Common Use Account

Sec. 331. Support of multiagency acquisitions of information 
              technology.
Sec. 332. Funding.

                   Subtitle D--Other Fiscal Policies

Sec. 341. Limitation on use of funds.
Sec. 342. Sense of Congress.
Sec. 343. Review by GAO and inspectors general.

      TITLE IV--INFORMATION TECHNOLOGY ACQUISITION PILOT PROGRAMS

                 Subtitle A--Conduct of Pilot Programs

Sec. 401. Requirement to conduct pilot programs.
Sec. 402. Tests of innovative procurement methods and procedures.
Sec. 403. Evaluation criteria and plans.
Sec. 404. Report.
Sec. 405. Recommended legislation.
Sec. 406. Rule of construction.

                  Subtitle B--Specific Pilot Programs

Sec. 421. Share-in-savings pilot program.
Sec. 422. Solutions-based contracting pilot program.
Sec. 423. Pilot program for contracting for performance of acquisition 
              functions.
Sec. 424. Major acquisitions pilot programs.

        TITLE V--OTHER INFORMATION RESOURCES MANAGEMENT REFORMS

Sec. 501. Transfer of responsibility for FACNET.
Sec. 502. On-line multiple award schedule ordering.
Sec. 503. Upgrading information equipment in agency field offices.
Sec. 504. Disposal of excess computer equipment.
Sec. 505. Leasing information technology.
Sec. 506. Continuation of eligibility of contractor for award of 
              information technology contract after providing design 
              and engineering services.
Sec. 507. Enhanced performance incentives for information technology 
              acquisition workforce.

  TITLE VI--ACTIONS REGARDING CURRENT INFORMATION TECHNOLOGY PROGRAMS

Sec. 601. Performance measurements.
Sec. 602. Independent assessment of programs.
Sec. 603. Current information technology acquisition program defined.

  TITLE VII--PROCUREMENT PROTEST AUTHORITY OF THE COMPTROLLER GENERAL

Sec. 701. Remedies.
Sec. 702. Period for processing protests.
Sec. 703. Definition.

 TITLE VIII--RELATED TERMINATIONS, CONFORMING AMENDMENTS, AND CLERICAL 
                               AMENDMENTS

                    Subtitle A--Related Terminations

Sec. 801. Office of Information and Regulatory Affairs.
Sec. 802. Senior information resources management officials.

                   Subtitle B--Conforming Amendments

Sec. 811. Amendments to title 10, United States Code.
Sec. 812. Amendments to title 28, United States Code.
Sec. 813. Amendments to title 31, United States Code.
Sec. 814. Amendments to title 38, United States Code.
Sec. 815. Provisions of title 44, United States Code, and other laws 
              relating to certain joint committees of Congress.
Sec. 816. Provisions of title 44, United States Code, relating to 
              paperwork reduction.
Sec. 817. Amendment to title 49, United States Code.
Sec. 818. Other laws.

                    Subtitle B--Clerical Amendments

Sec. 821. Amendment to title 10, United States Code.
Sec. 822. Amendment to title 38, United States Code.
Sec. 823. Amendments to title 44, United States Code.

                      TITLE IX--SAVINGS PROVISIONS

Sec. 901. Savings provisions.

                        TITLE X--EFFECTIVE DATES

Sec. 1001. Effective dates.
     SEC. 2. FINDINGS.

       Congress makes the following findings:
       (1) Federal information systems are critical to the lives 
     of every American.
       (2) The efficiency and effectiveness of the Federal 
     Government is dependent upon the effective use of 
     information.
       (3) The Federal Government annually spends billions of 
     dollars operating obsolete information systems.
       (4) The use of obsolete information systems severely limits 
     the quality of the services that the Federal Government 
     provides, the efficiency of Federal Government operations, 
     and the capabilities of the Federal Government to account for 
     how taxpayer dollars are spent. [[Page S 8688]] 
       (5) The failure to modernize Federal Government information 
     systems, despite efforts to do so, has resulted in the waste 
     of billions of dollars that cannot be recovered.
       (6) Despite improvements achieved through implementation of 
     the Chief Financial Officers Act of 1990, most Federal 
     agencies cannot track the expenditures of Federal dollars 
     and, thus, expose the taxpayers to billions of dollars in 
     waste, fraud, abuse, and mismanagement.
       (7) Weak oversight and a lengthy acquisition process have 
     resulted in the American taxpayers not getting their money's 
     worth from the expenditure of $200,000,000,000 on information 
     systems during the decade preceding the enactment of this 
     Act.
       (8) The Federal Government does an inadequate job of 
     planning for information technology acquisitions and how such 
     acquisitions will support the accomplishment of agency 
     missions.
       (9) Many Federal Government personnel lack the basic skills 
     necessary to effectively and efficiently use information 
     technology and other information resources in support of 
     agency programs and missions.
       (10) Federal regulations governing information technology 
     acquisitions are outdated, focus on process rather than 
     results, and prevent the Federal Government from taking 
     timely advantage of the rapid advances taking place in the 
     competitive and fast changing global information technology 
     industry.
       (11) Buying, leasing, or developing information systems 
     should be a top priority for Federal agency management 
     because the high potential for the systems to substantially 
     improve Federal Government operations, including the delivery 
     of services to the public.
       (12) Organizational changes are necessary in the Federal 
     Government in order to improve Federal information management 
     and to facilitate Federal Government acquisition of the 
     state-of-the-art information technology that is critical for 
     improving the efficiency and effectiveness of Federal 
     Government operations.

     SEC. 3. PURPOSES.

       The purposes of this Act are as follows:
       (1) To create incentives for the Federal Government to 
     strategically use information technology in order to achieve 
     efficient and effective operations of the Federal Government, 
     to provide cost effective and efficient delivery of Federal 
     Government services to the taxpayers, to provide greater 
     protection of the health and safety of Americans, and to 
     enhance the national security of the United States.
       (2) To provide for the cost effective and timely 
     acquisition, management, and use of effective information 
     technology solutions.
       (3) To transform the process-oriented procurement system of 
     the Federal Government, as it relates to the acquisition of 
     information technology, into a results-oriented procurement 
     system.
       (4) To increase the responsibility of officials of the 
     Office of Management and Budget and other Federal Government 
     agencies, and the accountability of such officials to 
     Congress and the public, for achieving agency missions, 
     including achieving improvements in the efficiency and 
     effectiveness of Federal Government programs through the use 
     of information technology and other information resources in 
     support of agency missions.
       (5) To ensure that the heads of Federal Government agencies 
     are responsible and accountable for acquiring, using, and 
     strategically managing information resources in a manner that 
     achieves significant improvements in the performance of 
     agency missions in pursuit of a goal of achieving service 
     delivery levels and project management performance comparable 
     to the best in the private sector.
       (6) To promote the development and operation of secure, 
     multiple-agency and Governmentwide, interoperable, shared 
     information resources to support the performance of Federal 
     Government missions.
       (7) To reduce fraud, waste, abuse, and errors resulting 
     from a lack of, or poor implementation of, Federal Government 
     information systems.
       (8) To increase the capability of Federal Government 
     agencies to restructure and improve processes before applying 
     information technology.
       (9) To increase the emphasis placed by Federal agency 
     managers on completing effective planning and mission 
     analysis before applying information technology to the 
     execution of plans and the performance of agency missions.
       (10) To coordinate, integrate, and, to the extent 
     practicable and appropriate, establish uniform Federal 
     information resources management policies and practices in 
     order to improve the productivity, efficiency, and 
     effectiveness of Federal Government programs and the delivery 
     of services to the public.
       (11) To strengthen the partnership between the Federal 
     Government and State, local, and tribal governments for 
     achieving Federal Government missions, goals, and objectives.
       (12) To provide for the development of a well-trained core 
     of professional Federal Government information resources 
     managers.

     SEC. 4. DEFINITIONS.

       In this Act:
       (1) Information resources.--The term ``information 
     resources'' means the resources used in the collection, 
     processing, maintenance, use, sharing, dissemination, or 
     disposition of information, including personnel, equipment, 
     funds, and information technology.
       (2) Information resources management.--The term 
     ``information resources management'' means the process of 
     managing information resources to accomplish agency missions 
     and to improve agency performance.
       (3) Information system.--The term ``information system'' 
     means a discrete set of information resources, whether 
     automated or manual, that are organized for the collection, 
     processing, maintenance, use, sharing, dissemination, or 
     disposition of information in accordance with defined 
     procedures and includes computer systems.
       (4) Information technology.--The term ``information 
     technology'', with respect to an executive agency--
       (A) means any equipment or interconnected system or 
     subsystem of equipment, including software, services, 
     satellites, sensors, an information system, or a 
     telecommunication system, that is used in the acquisition, 
     storage, manipulation, management, movement, control, 
     display, switching, interchange, transmission, or reception 
     of data or information by the executive agency or under a 
     contract with the executive agency which (i) requires the use 
     of such system or subsystem of equipment, or (ii) requires 
     the use, to a significant extent, of such system or subsystem 
     of equipment in the performance of a service or the 
     furnishing of a product; and
       (B) does not include any such equipment that is acquired by 
     a Federal contractor incidental to a Federal contract.
       (5) Information architecture.--The term ``information 
     architecture'', with respect to an executive agency, means a 
     framework or plan for evolving or maintaining existing 
     information technology, acquiring new information technology, 
     and integrating the agency's information technology to 
     achieve the agency's strategic goals and information 
     resources management goals.
       (6) Executive department.--The term ``executive 
     department'' means an executive department specified in 
     section 101 of title 5, United States Code.
       (7) Executive agency.--The term ``executive agency'' has 
     the meaning given the term in section 4(1) of the Office of 
     Federal Procurement Policy Act (41 U.S.C. 403(1)).
       (8) High-risk information technology program.--The term 
     ``high-risk information technology program'' means an 
     acquisition of an information system, or components of an 
     information system, that requires special management 
     attention because--
       (A) the program cost is at least $100,000,000;
       (B) the system being developed under the program is 
     critical to the success of an executive agency in fulfilling 
     the agency's mission;
       (C) there is a significant risk in the development of the 
     system because of--
       (i) the size or scope of the development project;
       (ii) the period necessary for completing the project;
       (iii) technical configurations;
       (iv) unusual security requirements;
       (v) the special management skills necessary for the 
     management of the project; or
       (vi) the highly technical expertise necessary for the 
     project; or
       (D) it is or will be necessary to allocate a significant 
     percentage of the information technology budget of an 
     executive agency to paying the costs of developing, 
     operating, or maintaining the system.
       (9) Commercial item.--The term ``commercial item'' has the 
     meaning given that term in section 4(12) of the Office of 
     Federal Procurement Policy Act (41 U.S.C. 403(12)).
       (10) Nondevelopmental item.--The term ``nondevelopmental 
     item'' has the meaning given that term in section 4(13) of 
     the Office of Federal Procurement Policy Act (41 U.S.C. 
     403(13)).
   TITLE I--RESPONSIBILITY FOR ACQUISITIONS OF INFORMATION TECHNOLOGY
                     Subtitle A--General Authority

     SEC. 101. AUTHORITY OF HEADS OF EXECUTIVE AGENCIES.

       The heads of the executive agencies may conduct 
     acquisitions of information technology pursuant to their 
     respective authorities under title III of the Federal 
     Property and Administrative Services Act of 1949 (41 U.S.C. 
     251, et seq.), chapters 4 and 137 of title 10, United States 
     Code, and the National Aeronautics and Space Act of 1958 (42 
     U.S.C. 2451 et seq.).
     SEC. 102. SUPERIOR AUTHORITY OF DIRECTOR OF OFFICE OF 
                   MANAGEMENT AND BUDGET.

       Notwithstanding section 101 and the authorities referred to 
     in such section, the conduct of an acquisition of information 
     technology by the head of an executive agency is subject to 
     (1) the authority, direction, and control of the Director of 
     the Office of Management and Budget and the Chief Information 
     Officer of the United States, and (2) the provisions of this 
     Act.

     SEC. 103. REPEAL OF CENTRAL AUTHORITY OF THE ADMINISTRATOR OF 
                   GENERAL SERVICES.

       Section 111 of the Federal Property and Administrative 
     Services Act of 1949 (40 U.S.C. 759) is repealed.
      Subtitle B--Director of the Office of Management and Budget

     SEC. 121. RESPONSIBILITY OF DIRECTOR.

       (a) In General.--The Director of the Office of Management 
     and Budget is responsible for [[Page S 8689]] the effective 
     and efficient acquisition, use, and disposal of information 
     technology and other information resources by the executive 
     agencies.
       (b) Goal.--It shall be a goal of the Director to maximize 
     the productivity, efficiency, and effectiveness of the 
     information resources of the Federal Government to serve 
     executive agency missions.
       (c) Actions To Be Taken Through Chief Information 
     Officer.--The Director shall act through the Chief 
     Information Officer of the United States in the exercise of 
     authority under this Act.
     SEC. 122. SPECIFIC RESPONSIBILITIES.

       (a) Responsibilities Stated.--The Director of the Office of 
     Management and Budget has the following responsibilities with 
     respect to the executive agencies:
       (1) To provide direction for, and oversee, the acquisition 
     and management of information resources.
       (2) To develop, coordinate, and supervise the 
     implementation of policies, principles, standards, and 
     guidelines for information resources, performance of 
     information resources management functions and activities, 
     and investment in information resources.
       (3) To determine the information resources that are to be 
     provided in common for executive agencies.
       (4) To designate (as the Director considers appropriate) 
     one or more heads of executive agencies as an executive agent 
     to contract for Governmentwide information technology.
       (5) To maintain a registry of most effective agency sources 
     of information technology program management and contracting 
     services, and to facilitate interagency use of such sources.
       (6) To promulgate standards and guidelines pertaining to 
     Federal information systems in accordance with section 124.
       (7) To carry out an information systems security and 
     privacy program for the information systems of the Federal 
     Government, including to administer the provisions of section 
     21 of the National Institute of Standards and Technology Act 
     (15 U.S.C. 278g-4) relating to the Computer System Security 
     and Privacy Advisory Board.
       (8) To provide for Federal information system security 
     training in accordance with section 5(c) of the Computer 
     Security Act of 1987 (40 U.S.C. 759(c)).
       (9) To encourage and advocate the adoption of national and 
     international information technology standards that are 
     technically and economically beneficial to the Federal 
     Government and the private sector.
       (b) Consultation With Federal Information Council.--(1) The 
     Director shall consult with the Federal Information Council 
     regarding actions to be taken under paragraphs (3) and (4) of 
     subsection (a).
       (2) The Director may consult with the Federal Information 
     Council regarding the performance of any other responsibility 
     of the Director under this Act.

     SEC. 123. PERFORMANCE-BASED AND RESULTS-BASED MANAGEMENT.

       (a) Evaluation of Agency Programs and Investments.--
       (1) Requirement.--The Director of the Office of Management 
     and Budget shall evaluate the information resources 
     management practices of the executive agencies and the 
     performance and results of the information technology 
     investments of executive agencies.
       (2) Consideration of advice and recommendations.--In 
     performing the evaluation, the Director shall consider any 
     advice and recommendations provided by the Federal 
     Information Council or in any interagency or independent 
     review or vendor or user survey conducted pursuant to this 
     section.
       (b) Continuous Review Required.--The Director shall ensure, 
     by reviewing each executive agency's budget proposals, 
     information resources management plans, and performance 
     measurements, and by other means, that--
       (1) the agency--
       (A) provides adequately for the integration of the agency's 
     information resources management plans, strategic plans 
     prepared pursuant to section 306 of title 5, United States 
     Code, and performance plans prepared pursuant to section 1115 
     of title 31, United States Code; and
       (B) budgets for the acquisition and use of information 
     technology;
       (2) the agency analyzes its missions and, based on the 
     analysis, revises its mission-related processes and 
     administrative processes as appropriate before making 
     significant investments in information technology to be used 
     in support of agency missions;
       (3) the agency's information resources management plan is 
     current and adequate and, to the maximum extent practicable, 
     specifically identifies how new information technology to be 
     acquired is expected to improve agency operations and 
     otherwise expected to benefit the agency;
       (4) efficient and effective interagency and Governmentwide 
     information technology investments are undertaken to improve 
     the accomplishment of common agency missions; and
       (5) agency information security is adequate.
       (c) Periodic Reviews.--
       (1) Reviews required.--The Director shall periodically 
     review selected information resources management activities 
     of the executive agencies in order to ascertain the 
     efficiency and effectiveness of such activities in improving 
     agency performance and the accomplishment of agency missions.
       (2) Independent reviewers.--(A) The Director may carry out 
     a review of an executive agency under this subsection 
     through--
       (i) the Comptroller General of the United States (with the 
     consent of the Comptroller General);
       (ii) the Inspector General of the agency (in the case of an 
     agency having an Inspector General); or
       (iii) in the case of a review requiring an expertise not 
     available to the Director for the review, a panel of 
     officials of executive agencies or a contractor.
       (B) The Director shall notify the head of a Federal agency 
     of any determination made by the Director to provide for a 
     review to be performed by an independent reviewer from 
     outside the agency.
       (C) A review of an executive agency by the Comptroller 
     General of the United States may be carried out only pursuant 
     to an interagency agreement entered into by the Director and 
     the Comptroller General. The agreement shall provide for the 
     Director to pay the Comptroller General the amount necessary 
     to reimburse the Comptroller General for the costs of 
     performing the review.
       (3) Funding.--Funds available to an executive agency for 
     acquisition or use of information technology shall be 
     available for paying the costs of a review of activity of 
     that agency under this subsection.
       (4) Report and response.--The Director shall transmit to 
     the head of an executive agency reviewed under this 
     subsection a report on the results of the review. Within 30 
     days after receiving the report, the head of the executive 
     agency shall submit to the Director a written plan (including 
     milestones) on the actions that the head of the executive 
     agency determines necessary in order--
       (A) to resolve any information resources management 
     problems identified in the report; and
       (B) to improve the performance of agency missions and other 
     agency performance.
       (d) Vendor Surveys.--The Director shall conduct surveys of 
     vendors and other sources of information technology acquired 
     by an executive agency in order to determine the level of 
     satisfaction of those sources with the performance of the 
     executive agency in conducting the acquisition or 
     acquisitions involved. The Director shall afford the sources 
     the opportunity to rate the executive agency anonymously.
       (e) User Surveys.--
       (1) Requirement.--The Director shall conduct surveys of 
     users of information technology acquired by an executive 
     agency in order to determine the level of satisfaction of the 
     users with the performance of the vendor.
       (2) Compilation of survey results.--The Director shall 
     compile the results of the surveys into an annual report and 
     make the annual report available electronically to the heads 
     of the executive agencies.
       (f) Enforcement of Accountability.--
       (1) In general.--The Director may take any action that the 
     Director considers appropriate, including an action involving 
     the budgetary process or appropriations management process, 
     to enforce accountability for poor performance of information 
     resources management in an executive agency.
       (2) Specific actions.--Actions taken by the Director in the 
     case of an executive agency may include such actions as the 
     following:
       (A) Reduce the amount proposed by the head of the executive 
     agency to be included for information resources in the budget 
     submitted to Congress under section 1105(a) of title 31, 
     United States Code.
       (B) Reduce or otherwise adjust apportionments and 
     reapportionments of appropriations for information resources.
       (C) Use other authorized administrative controls over 
     appropriations to restrict the availability of funds for 
     information resources.
       (D) Disapprove the commencement or continuance of an 
     information technology investment by the executive agency.
       (E) Designate for the executive agency an executive agent 
     to contract with private sector sources for--
       (i) the performance of information resources management 
     (subject to the approval and continued oversight of the 
     Director); or
       (ii) the acquisition of information technology.
       (F) Withdraw all or part of the head of the executive 
     agency's authority to contract directly for information 
     technology.
       (g) Enforcement Actions Related to Cost, Performance, and 
     Schedule Goals.--
       (1) Required terminations of acquisitions.--The Director 
     shall terminate any high-risk information technology program 
     or phase or increment of the program that--
       (A) is more than 50 percent over the cost goal established 
     for the program or a phase or increment of the program;
       (B) fails to achieve at least 50 percent of the performance 
     goals established for the program or a phase or increment of 
     a program; or
       (C) is more than 50 percent behind schedule as determined 
     in accordance with the schedule goal established for the 
     program or a phase or increment of the program.
       (2) Authorized terminations of acquisitions.--The Director 
     shall consider terminating any information technology 
     acquisition that-- [[Page S 8690]] 
       (A) is more than 10 percent over the cost goal established 
     for the program or a phase or increment of the program;
       (B) fails to achieve at least 90 percent of the performance 
     goals established for the program or a phase or increment of 
     a program; or
       (C) is more than 10 percent behind schedule as determined 
     in accordance with the schedule goal established for the 
     program or a phase or increment of the program.
     SEC. 124. STANDARDS AND GUIDELINES FOR FEDERAL INFORMATION 
                   SYSTEMS.

       (a) Promulgation Responsibility.--The Director of the 
     Office of Management and Budget shall, on the basis of 
     standards and guidelines developed pursuant to paragraphs (2) 
     and (3) of section 20(a) of the National Institute of 
     Standards and Technology Act (20 U.S.C. 278g-3(a)), 
     promulgate standards and guidelines pertaining to Federal 
     information systems, making such standards compulsory and 
     binding to the extent to which the Director determines 
     necessary to improve the efficiency of operation, 
     interoperability, security, and privacy of Federal 
     information systems. In promulgating standards, the Director 
     should minimize the use of unique standards and adopt market 
     standards to the extent practicable.
       (b) More Stringent Standards Authorized.--The head of an 
     executive agency may employ standards for the security and 
     privacy of sensitive information in a Federal information 
     system within or under the supervision of that agency that 
     are more stringent than the standards promulgated by the 
     Director, if such standards are approved by the Director, are 
     cost effective, maintain interoperability, and contain, at a 
     minimum, the provisions of those applicable standards made 
     compulsory and binding by the Director.
       (c) Waiver Authority.--The standards determined to be 
     compulsory and binding may be waived by the Director in 
     writing upon a determination that compliance would adversely 
     affect the accomplishment of the mission of an operator of a 
     Federal information system, or cause a major adverse 
     financial impact on the operator which is not offset by 
     Governmentwide savings.
       (d) Special Rule of Applicability.--(1) Security standards 
     promulgated by the Director of the Office of Management and 
     Budget do not apply to information systems of the Department 
     of Defense or the Central Intelligence Agency.
       (2) The Secretary of Defense shall prescribe security 
     standards applicable to the information systems of the 
     Department of Defense.
       (3) The Director of Central Intelligence shall prescribe 
     security standards applicable to the information systems of 
     the Central Intelligence Agency.

     SEC. 125. CONTRACTING FOR PERFORMANCE OF INFORMATION 
                   RESOURCES MANAGEMENT FUNCTIONS.

       The Director of the Office of Management and Budget may 
     contract for the performance of an information resources 
     management function for the executive branch.

     SEC. 126. REGULATIONS.

       (a) Authority.--The Director of the Office of Management 
     and Budget may prescribe regulations to carry out the 
     provisions of this Act.
       (b) Simplicity of Regulations.--To the maximum extent 
     practicable, the Director shall minimize the length and 
     complexity of the regulations and establish clear and concise 
     implementing regulations.
       (c) Incorporation Into FAR.--The regulations shall be made 
     a part of the Federal Acquisition Regulation.
       (d) Prohibition Against Agency Supplemental Regulations.--
     The head of an executive agency may not prescribe 
     supplemental regulations for the regulations prescribed by 
     the Director under subsection (a).
       Subtitle C--Chief Information Officer of the United States

     SEC. 131. OFFICE OF THE CHIEF INFORMATION OFFICER OF THE 
                   UNITED STATES.

       (a) Establishment.--There is established in the Office of 
     Management and Budget an Office of the Chief Information 
     Officer of the United States.
       (b) Chief Information Officer of the United States.--
       (1) Appointment.--The Chief Information Officer of the 
     United States is appointed by the President, by and with the 
     advice and consent of the Senate, from among persons who have 
     demonstrated the knowledge, skills, and abilities in 
     management and in information resources management that are 
     necessary to perform the functions of the Office of the Chief 
     Information Officer of the United States effectively. The 
     qualifications considered shall include education, work 
     experience, and professional activities related to 
     information resources management.
       (2) Head of office.--The Chief Information Officer is the 
     head of the Office of the Chief Information Officer of the 
     United States.
       (3) Executive level ii.--Section 5313 of title 5, United 
     States Code, is amended by adding at the end the following:
       ``Chief Information Officer of the United States.''.
       (c) Administrative Provisions.--
       (1) Appointment of employees.--The Chief Information 
     Officer appoints the employees of the office.
       (2) Employee qualifications.--In selecting a person for 
     appointment as an employee in an information resources 
     management position, the Chief Information Officer shall 
     afford special attention to the person's demonstrated 
     abilities to perform the information resources management 
     functions of the position. The qualifications considered 
     shall include education, work experience, and professional 
     activities related to information resources management.
       (3) Pay for performance.--(A) The Chief Information Officer 
     shall establish a pay for performance system for the 
     employees of the office and pay the employees in accordance 
     with that system.
       (B) Subject to the approval of the Director of the Office 
     of Management and Budget, the Chief Information Officer may 
     submit to Congress any recommendations for legislation that 
     the Chief Information Officer considers necessary to 
     implement fully the pay for performance system.
       (4) Support from other agencies.--Upon the request of the 
     Chief Information Officer, the head of an executive agency 
     (other than an independent regulatory agency) shall, to the 
     extent practicable, make services, personnel, or facilities 
     of the agency available to the Office of the Chief 
     Information Officer of the United States for the performance 
     of functions of the Chief Information Officer.

     SEC. 132. RELATIONSHIP OF CHIEF INFORMATION OFFICER TO 
                   DIRECTOR OF THE OFFICE OF MANAGEMENT AND 
                   BUDGET; PRINCIPAL DUTIES.

       (a) Reporting Authority.--The Chief Information Officer of 
     the United States reports directly to the Director.
       (b) Principal Adviser to Director of OMB on Information 
     Resources Management.--The Chief Information Officer is the 
     principal adviser to the Director on information resources 
     management policy, including policy on acquisition of 
     information technology for the Federal Government.
       (c) Performance of Duties of Director of OMB.--
       (1) In general.--The Chief Information Officer shall 
     perform the responsibilities of the Director under this Act.
       (2) Continued responsibility of director.--Paragraph (1) 
     does not relieve the Director of responsibility and 
     accountability for the performance of such responsibilities.
       (d) Authority Subject to Control of Director of OMB.--The 
     performance of duties and exercise of authority by the Chief 
     Information Officer is subject to the authority, direction, 
     and control of the Director of the Office of Management and 
     Budget.
     SEC. 133. ADDITIONAL DUTIES.

       The Chief Information Officer has the following additional 
     duties:
       (1) To encourage the executive agencies to develop and use 
     the best practices in information resources management and in 
     acquisitions of information technology by--
       (A) identifying and collecting information regarding the 
     best practices, including information on the development and 
     implementation of the best practices by the executive 
     agencies; and
       (B) providing the executive agencies with information on 
     the best practices and with advice and assistance regarding 
     use of the best practices.
       (2) To assess, on a continuing basis, the experiences of 
     executive agencies, State and local governments, 
     international organizations, and the private sector in 
     managing information resources.
       (3) To compare the performances of the executive agencies 
     in using information resources and to disseminate the 
     comparisons to the executive agencies.
       (4) To develop and maintain a Governmentwide strategic plan 
     for information resources management and acquisitions of 
     information technology, including guidelines and standards 
     for the development of an information resources management 
     plan to be used by the executive agencies.
       (5) To ensure that the information resources management 
     plan and the information systems of executive agencies 
     conform to the guidelines and standards set forth in the 
     Governmentwide strategic plan.
       (6) To develop and submit to the Director of the Office of 
     Management and Budget proposed legislation and proposed 
     changes or additions to regulations and agency procedures as 
     the Chief Information Officer considers necessary in order to 
     improve information resources management by the executive 
     agencies.
       (7) To review the regulations, policies, and practices of 
     executive agencies regarding information resources management 
     and acquisitions of information technology in order to 
     identify the regulations, policies, and practices that should 
     be eliminated or adjusted so as not to hinder or impede 
     information resources management or acquisitions of 
     information technology.
       (8) To monitor the development and implementation of 
     training in information resources management for executive 
     agency management personnel and staff.
       (9) To keep Congress fully informed on high-risk 
     information technology programs of the executive agencies, 
     and the extent to which the executive agencies are improving 
     program performance and the accomplishment of agency missions 
     through the use of the best practices in information 
     resources management.
       (10) To review Federal procurement policies on acquisitions 
     of information technology and to coordinate with the 
     Administrator for Federal Procurement Policy regarding the 
     development of Federal procurement policies for such 
     acquisitions.
       (11) To facilitate the establishment and maintenance of an 
     electronic clearinghouse [[Page S 8691]] of information on 
     the availability of nondevelopmental items of information 
     technology for the Federal Government.
       (12) To perform the functions of the Director of the Office 
     of Management and Budget under chapter 35 of title 44, United 
     States Code.

     SEC. 134. ACQUISITIONS UNDER HIGH-RISK INFORMATION TECHNOLOGY 
                   PROGRAMS.

       (a) Advance Program Review.--The Chief Information Officer 
     of the United States shall review each proposed high-risk 
     information technology program.
       (b) Advance Approval Required.--No program referred to in 
     subsection (a) may be carried out by the head of an executive 
     agency without the advance approval of the Chief Information 
     Officer of the United States.

     SEC. 135. ELECTRONIC DATA BASE ON CONTRACTOR PERFORMANCE.

       (a) Establishment.--The Chief Information Officer of the 
     United States shall establish in the Office of the Chief 
     Information Officer of the United States an electronic data 
     base containing a record of the performance of each 
     contractor under a Federal Government contract for the 
     acquisition of information technology or other information 
     resources.
       (b) Reporting of Information to Data Base.--
       (1) Requirement.--The head of each executive agency shall, 
     in accordance with regulations prescribed by the Director of 
     the Office of Management and Budget, report to the Chief 
     Information Officer information on contractor performance 
     that is to be included in the data base.
       (2) When submitted.--The head of an executive agency shall 
     submit to the Director--
       (A) an annual report on contractor performance during the 
     year covered by the report; and
       (B) upon the completion or termination of performance under 
     a contract, a report on the contractor performance under that 
     contract.
       (c) Period for Information To Be Maintained.--Information 
     on the performance of a contractor under a contract shall be 
     maintained in the data base for five years following 
     completion of the performance under that contract. 
     Information not required to be maintained under the preceding 
     sentence shall be removed from the data base or rendered 
     inaccessible.
                     Subtitle D--Executive Agencies

     SEC. 141. RESPONSIBILITIES.

       (a) In General.--The head of an executive agency is 
     responsible for--
       (1) carrying out the information resources management 
     activities of the agency in a manner that fulfills the 
     agency's missions and improves agency productivity, 
     efficiency, and effectiveness; and
       (2) complying with the requirements of this Act and the 
     policies, regulations, and directives issued by the Director 
     of the Office of Management and Budget or the Chief 
     Information Officer of the United States under the provisions 
     of this Act.
       (b) Information Resources Management Plan.--
       (1) Plan required.--The head of an executive agency shall 
     develop, maintain, and oversee the implementation of an 
     agency-wide information resources management plan that is 
     consistent with the strategic plan prepared by the head of 
     the agency pursuant to section 306 of title 5, United States 
     Code, and the agency head's mission analysis, and ensure that 
     the agency information systems conform to those plans.
       (2) Content of plan.--The information resources management 
     plan shall provide for applying information technology and 
     other information resources in support of the performance of 
     the missions of the agency and shall include the following:
       (A) A statement of goals for improving the contribution of 
     information resources to program productivity, efficiency, 
     and effectiveness.
       (B) Methods for measuring progress toward achieving the 
     goals.
       (C) Assignment of clear roles, responsibilities, and 
     accountability for achieving the goals.
       (D) Identification of--
       (i) the existing and planned information technology 
     components (such as information systems and telecommunication 
     networks) of the agency and the relationship among the 
     information technology components; and
       (ii) the information architecture for the agency.
       (c) Agency Records.--The head of an executive agency shall 
     periodically evaluate and, as necessary, improve the 
     accuracy, completeness, and reliability of data and records 
     in the information systems of the agency.
       (d) Budgeting.--The head of an executive agency shall use 
     the strategic plan, performance plans, and information 
     resources management plan of the agency in preparing and 
     justifying the agency's budget proposals to the Director of 
     the Office of Management and Budget and to Congress.

     SEC. 142. SPECIFIC AUTHORITY.

       The authority of the head of an executive agency under 
     section 101 and the authorities referred to in such section 
     includes the following authorities:
       (1) To acquire information technology--
       (A) in the case of an acquisition of less than 
     $100,000,000, without the advance approval of the Chief 
     Information Officer of the United States; and
       (B) in the case of an acquisition of a high-risk 
     information technology program, with the advance approval of 
     the Director of the Office of Management and Budget.
       (2) To enter into a contract that provides for multi-agency 
     acquisitions of information technology subject to the 
     approval and guidance of the Federal Information Council.
       (3) If the Federal Information Council and the heads of the 
     executive agencies concerned find that it would be 
     advantageous for the Federal Government to do so, to enter 
     into a multi-agency contract for procurement of commercial 
     items that requires each agency covered by the contract, when 
     procuring such items, either to procure the items under that 
     contract or to justify an alternative procurement of the 
     items.
       (4) To establish one or more independent technical review 
     committees, composed of diverse agency personnel (including 
     users) and outside experts selected by the head of the 
     executive agency, to advise the head of the executive agency 
     about information systems programs.

     SEC. 143. AGENCY CHIEF INFORMATION OFFICER.

       (a) Designation of Chief Information Officers.--
       (1) Agencies required to have chief information officers.--
     There shall be a chief information officer within each 
     executive agency named in section 901(b) of title 31, United 
     States Code. The head of the executive agency shall designate 
     the chief information officer for the executive agency.
       (2) Agencies authorized to have chief information 
     officers.--The head of any executive agency not required by 
     paragraph (1) to have a chief information officer may 
     designate a chief information officer for the executive 
     agency.
       (b) Relationship to Agency Head.--
       (1) Principal adviser.--The chief information officer of an 
     executive agency is the principal adviser to the head of the 
     executive agency regarding acquisition of information 
     technology and management of information resources for the 
     agency.
       (2) Reporting authority.--The chief information officer of 
     an executive agency reports directly to the head of the 
     executive agency.
       (3) Control by agency head.--The performance of duties and 
     exercise of authority by the chief information officer of an 
     executive agency is subject to the authority, direction, and 
     control of the head of the executive agency.
       (c) Duties.--
       (1) In general.--The chief information officer of an 
     executive agency shall provide advice and other assistance to 
     the head of the executive agency and other senior management 
     personnel of the executive agency to ensure that information 
     technology is acquired and information resources are managed 
     for the agency in a manner that--
       (A) maximizes--
       (i) the benefits derived by the agency and the public 
     served by the agency from use of information technology; and
       (ii) the public accountability of the agency for delivery 
     of services and accomplishment of the agency's mission; and
       (B) is consistent with the policies, requirements, and 
     procedures that are applicable in accordance with this Act to 
     the acquisition and management of information technology.
       (2) Establishment of goals.--The chief information officer 
     of an executive agency shall--
       (A) establish goals for improving the efficiency and 
     effectiveness of agency operations and the delivery of 
     services to the public through the effective use of 
     information resources; and
       (B) submit to the head of the executive agency an annual 
     report, to be included in the budget submission for the 
     executive agency, on the progress in achieving the goals.
       (3) Information resources management.--(A) The chief 
     information officer of an executive agency shall administer 
     the information resources management functions, including the 
     acquisition functions, of the head of the executive agency.
       (B) Subparagraph (A) does not relieve the head of an 
     executive agency of responsibility and accountability for the 
     administration of such functions.
       (4) Agency policies.--The chief information officer shall 
     prescribe policies and procedures that--
       (A) minimize the layers of review for acquisitions of 
     information technology within the executive agency;
       (B) foster timely communications between vendors of 
     information technology and the agency; and
       (C) set forth and require the use of information resources 
     management practices and information technology acquisition 
     practices that the chief information officer considers as 
     being among the best of such practices.
       (5) Agency planning.--The chief information officer shall--
       (A) develop and maintain an information resources 
     management plan for management of information resources and 
     acquisition of information technology for the executive 
     agency; and
       (B) ensure that there is adequate advance planning for 
     acquisitions of information technology, including assessing 
     and revising the mission-related processes and administrative 
     processes of the agency as determined appropriate before 
     making information system investments.
       (6) Performance measurements.--(A) The chief information 
     officer shall ensure that--
       (i) performance measurements are prescribed for information 
     technology used by [[Page S 8692]] or to be acquired for the 
     executive agency; and
       (ii) the performance measurements measure how well the 
     information technology supports agency programs.
       (B) In carrying out the duty set forth in subparagraph (A), 
     the chief information officer shall consult with the head of 
     the executive agency, agency managers, users, and program 
     managers regarding the performance measurements that are to 
     be prescribed for information technology.
       (7) Monitoring of program performance.--The chief 
     information officer shall monitor the performance of 
     information technology programs of the executive agency, 
     evaluate the performance on the basis of the applicable 
     performance measurements, and advise the head of the 
     executive agency regarding whether to continue or terminate 
     programs.
       (8) Program performance reports.--(A) Not later than 
     February 1, 1997, and not later than February 1 of each year 
     thereafter, the chief information officer of an executive 
     agency shall prepare and submit to the head of the executive 
     agency an annual program performance report for the 
     information technology programs of the executive agency. The 
     report shall satisfy the requirements of section 1116(d) of 
     title 31, United States Code.
       (B) The head of the executive agency shall transmit a copy 
     of the annual report to the Chief Information Officer of the 
     United States.
       (9) Additional assigned duties.--A chief information 
     officer designated under subsection (a)(1) may not be 
     assigned any duty that is not related to information 
     resources management.
       (d) Office of Chief Information Officer.--
       (1) Establishment.--The head of an executive agency 
     designating a chief information officer shall establish 
     within the agency an Office of the Chief Information Officer.
       (2) Head of office.--The chief information officer of the 
     executive agency shall be the head of the office.
       (3) Staff.--(A) The head of the executive agency appoints 
     the employees of the office. The chief information officer of 
     the executive agency may make recommendations for 
     appointments to positions in the office.
       (B) In selecting a person for appointment to an information 
     resources management position in the office, the head of the 
     executive agency shall afford special attention to the 
     demonstrated abilities of the person to perform the 
     information resources management functions of the position. 
     To the maximum extent practicable, the head of the executive 
     agency shall appoint to the position a person who has direct 
     and substantial experience in successfully achieving major 
     improvements in organizational performance through the use of 
     information technology.
       (e) Executive Level IV.--Section 5315 of title 5, United 
     States Code, is amended by adding at the end the following:
       ``Chief information officers designated under section 143 
     of the Information Technology Management Reform Act of 
     1995.''.

     SEC. 144. ACCOUNTABILITY.

       (a) Information Technology Investments.--The head of an 
     executive agency shall be accountable to the Director of the 
     Office of Management and Budget, through the budget process 
     and otherwise as the Director may prescribe, for attaining or 
     failing to attain success in the achievement of the program 
     objectives established for the information technology 
     investments of the agency.
       (b) System of Controls.--The head of an executive agency, 
     in consultation with the chief financial officer of the 
     agency (or, in the case of an agency without a chief 
     financial officer, any comparable official) shall establish 
     policies and procedures that--
       (1) provide for sound management of expenditures for 
     information technology investments of the agency;
       (2) ensure that the accounting, financial, and asset 
     management systems and other information systems of the 
     agency are designed, developed, maintained, and used 
     effectively to provide financial or program performance data 
     for financial statements of the agency;
       (3) ensure that financial and related program performance 
     data are provided on a reliable, consistent, and timely basis 
     to agency financial management systems;
       (4) ensure that there is a full and accurate accounting for 
     information technology expenditures, including expenditures 
     for related expenses, and for the results derived by the 
     agency from the expenditures; and
       (5) ensure that financial statements support--
       (A) assessment and revision of mission-related processes 
     and administrative processes of the agency; and
       (B) performance measurement in the case of information 
     system investments made by the agency.
       (c) Protection of Sensitive Information.--Section 6 of the 
     Computer Security Act of 1987 (Public Law 100-235; 101 Stat. 
     1729) is amended--
       (1) in subsection (a), by striking out ``Within 6 months 
     after the date of enactment of this Act, each'' and inserting 
     in lieu thereof ``Each''; and
       (2) in the first sentence of subsection (b)--
       (A) by striking out ``Within one year after the date of 
     enactment of this Act, each'' and inserting in lieu thereof 
     ``Each''; and
       (B) by striking out ``section 111(d) of the Federal 
     Property and Administrative Services Act of 1949'' and 
     inserting in lieu thereof ``section 124 of the Information 
     Technology Management Reform Act of 1995''.

     SEC. 145. AGENCY MISSIONS AND THE APPROPRIATENESS OF 
                   INFORMATION TECHNOLOGY INITIATIVES.

       (a) Providing for Appropriate Initiatives.--Before making 
     investments in information technology or other information 
     resources for the performance of agency missions, the head of 
     each executive agency shall--
       (1) identify opportunities to revise mission-related 
     processes and administrative processes, assess the 
     desirability of making the revisions, and, if determined 
     desirable, take appropriate action to make and complete the 
     revisions; and
       (2) determine the most efficient and effective manner for 
     carrying out the agency missions.
       (b) Mission Analysis.--
       (1) Continuous studies.--In order to be prepared to carry 
     out subsection (a) in an efficient, effective, and timely 
     manner, the head of an executive agency shall provide for 
     studies to be conducted on a continuing basis within the 
     agency for the purpose of analyzing the missions of the 
     agency.
       (2) Analysis.--The purpose of an analysis of a mission 
     under subsection (a) is to determine--
       (A) whether the mission should be performed in the private 
     sector rather than by an agency of the Federal Government 
     and, if so, whether the component of the agency performing 
     that function should be converted from a governmental 
     organization to a private sector organization; or
       (B) whether the mission should be performed by the 
     executive agency and, if so, whether the mission should be 
     performed by--
       (i) a private sector source under a contract entered into 
     by head of the executive agency; or
       (ii) executive agency personnel.
       (c) Process Improvement Studies.--The head of the executive 
     agency shall require that studies be conducted of ways to 
     improve processes used in the performance of missions 
     determined, in accordance with subsection (b) or otherwise, 
     as being appropriate for the agency to perform.

     SEC. 146. SIGNIFICANT FAILURES OF PROGRAMS TO ACHIEVE COST, 
                   PERFORMANCE, OR SCHEDULE GOALS.

       (a) In General.--The head of an executive agency shall 
     monitor the performance of information technology acquisition 
     programs of the executive agency with regard to meeting the 
     cost, performance, and schedule goals approved or defined for 
     the programs pursuant to section 313(b) of the Federal 
     Property and Administrative Services Act of 1949 (41 U.S.C. 
     263(b)) or section 2220(a) of title 10, United States Code.
       (b) Required Terminations of Acquisitions.--The head of an 
     executive agency shall terminate any information technology 
     acquisition program of the executive agency, or any phase or 
     increment of such a program, that--
       (1) is more than 50 percent over the cost goal established 
     for the program or any phase or increment of the program;
       (2) fails to achieve at least 50 percent of the performance 
     goals established for the program or any phase or increment 
     of the program; or
       (3) is more than 50 percent behind schedule as determined 
     in accordance with the schedule goal established for the 
     program or any phase or increment of the program.
       (c) Acquisitions Required To Be Considered for 
     Termination.--The head of an executive agency shall consider 
     for termination any information technology acquisition 
     program of the executive agency, or any phase or increment of 
     such a program, that--
       (1) is more than 10 percent over the cost goal established 
     for the program or any phase or increment of the program;
       (2) fails to achieve at least 90 percent of the performance 
     goals established for the program or any phase or increment 
     of the program; or
       (3) is more than 10 percent behind schedule as determined 
     in accordance with the schedule goal established for the 
     program or any phase or increment of the program.

     SEC. 147. INTERAGENCY SUPPORT.

       The head of an executive agency shall make personnel of the 
     agency and other forms of support available for 
     Governmentwide independent review committees and interagency 
     groups established under this Act.

     SEC. 148. MONITORING OF MODIFICATIONS IN INFORMATION 
                   TECHNOLOGY ACQUISITION PROGRAMS.

       (a) Requirement To Monitor and Report.--The program manager 
     for an information technology acquisition program of an 
     executive agency shall monitor the modifications made in the 
     program or any phase or increment of the program, including 
     modifications of cost, schedule, or performance goals, and 
     shall periodically report on such modifications to the chief 
     information officer of the agency.
       (b) Determinations of high risk.--The number and type of 
     the modifications in a program shall be a critical 
     consideration in determinations of whether the program is a 
     high-risk information technology program (without regard to 
     the cost of the program).
       (c) Assessments of Agency Performance.--The Chief 
     Information Officer of the United States shall consider the 
     number and [[Page S 8693]] type of the modifications in an 
     information technology acquisition program of an executive 
     agency for purposes of assessing agency performance.
       (d) Contract Terminations.--The chief information officer 
     of an executive agency shall--
       (1) closely review the modifications in an information 
     technology acquisition program of the agency;
       (2) consider whether the frequency and extent of the 
     modifications justify termination of a contract under the 
     program; and
       (3) if a termination is determined justified, submit to the 
     head of the executive agency a recommendation to terminate 
     the contract.

     SEC. 149. SPECIAL PROVISIONS FOR DEPARTMENT OF DEFENSE.

       (a) Oversight of Implementation Within the Department of 
     Defense.--
       (1) Delegation of authority for individual programs and 
     systems.--(A) Subject to subparagraph (B), the Director of 
     the Office of Management and Budget shall delegate to the 
     Secretary of Defense the authority to perform the 
     responsibilities of the Director for supervision of the 
     implementation of the requirements of this Act and the 
     policies, regulations, and procedures prescribed by the 
     Director under this Act in the case of individual information 
     technology programs, including acquisition programs, and 
     information systems of the Department of Defense.
       (B) The Director may revoke, in whole or in part, the 
     delegation of authority under subparagraph (A) at any time 
     that the Director determines that it is in the interests of 
     the United States to do so. In considering whether to revoke 
     the authority, the Director shall take into consideration the 
     reports received under subsection (d).
       (2) Responsibility of director of omb.--The Director of the 
     Office of Management and Budget shall continue to exercise 
     overall responsibility for compliance by the Department of 
     Defense with the provisions of this Act and the policies, 
     regulations, and procedures prescribed by the Director under 
     this Act.
       (b) Implementation.--
       (1) Requirement.--The Secretary of Defense shall implement 
     the provisions of this Act within the Department of Defense.
       (2) Covered programs.--The Secretary of Defense shall 
     ensure that the provisions of this Act and the policies and 
     regulations prescribed by the Director of the Office of 
     Management and Budget are applied to all information 
     technology programs of the Department of Defense, including--
       (A) all such programs that are acquisition programs, 
     including major defense acquisition programs;
       (B) programs that involve intelligence activities, 
     cryptologic activities related to national security, command 
     and control of military forces, and information technology 
     integral to a weapon or weapons system; and
       (C) programs that are critical to the direct fulfillment of 
     military or intelligence missions.
       (c) Chief Information Officer.--
       (1) Designation.--The Secretary of Defense shall--
       (A) designate the Under Secretary of Defense for 
     Acquisition and Technology as the chief information officer 
     of the Department of Defense; and
       (B) delegate to the Under Secretary the duty to perform the 
     responsibilities of the Secretary under this Act.
       (2) Other duties.--Section 143(c)(9) does not apply to the 
     chief information officer of the Department of Defense.
       (d) Annual Report.--The Secretary of Defense shall submit 
     to the Director of the Office of Management and Budget an 
     annual report on the implementation of this Act within the 
     Department of Defense.
       (e) Pilot Programs.--
       (1) Recommendations by secretary of defense.--The Secretary 
     of Defense may submit to the Chief Information Officer of the 
     United States a recommendation that a specific information 
     technology pilot program be carried out under section 401.
       (2) Oversight of recommended program.--If the Chief 
     Information Officer determines to carry out a pilot program 
     in the Department of Defense under section 401, the Director 
     of the Office of Management and Budget shall supervise the 
     pilot program without regard to any delegation of authority 
     under subsection (a).

     SEC. 150. SPECIAL PROVISIONS FOR CENTRAL INTELLIGENCE AGENCY.

       (a) Oversight of Implementation Within the CIA.--
       (1) Delegation of authority for individual programs and 
     systems.--(A) Subject to subparagraph (B), the Director of 
     the Office of Management and Budget shall delegate to the 
     Director of Central Intelligence the authority to perform the 
     responsibilities of the Director of the Office of Management 
     and Budget for supervision of the implementation of the 
     requirements of this Act and the policies, regulations, and 
     procedures prescribed by the Director of the Office of 
     Management and Budget under this Act in the case of 
     individual information technology programs (including 
     acquisition programs) and information systems of the Central 
     Intelligence Agency.
       (B) The Director of the Office of Management and Budget may 
     revoke, in whole or in part, the delegation of authority 
     under subparagraph (A) at any time that the Director 
     determines that it is in the interests of the United States 
     to do so. In considering whether to revoke the authority, the 
     Director shall take into consideration the reports received 
     under subsection (d).
       (2) Responsibility of director of omb.--The Director of the 
     Office of Management and Budget shall continue to exercise 
     overall responsibility for compliance by the Central 
     Intelligence Agency with the provisions of this Act and the 
     policies, regulations, and procedures prescribed by the 
     Director under this Act.
       (b) Implementation.--
       (1) Requirement.--The Director of Central Intelligence 
     shall implement the provisions of this Act within the Central 
     Intelligence Agency.
       (2) Covered programs.--The Director of Central Intelligence 
     shall ensure that the provisions of this Act and the policies 
     and regulations prescribed by the Director of the Office of 
     Management and Budget are applied to all information 
     technology programs of the Central Intelligence Agency, 
     including information technology acquisition programs.
       (c) Chief Information Officer.--
       (1) Designation.--The Director of Central Intelligence 
     shall--
       (A) designate the Deputy Director of Central Intelligence 
     as the chief information officer of the Central Intelligence 
     Agency; and
       (B) delegate to the Deputy Director the duty to perform the 
     responsibilities of the Director of Central Intelligence 
     under this Act.
       (2) Other duties.--Section 143(c)(9) does not apply to the 
     chief information officer of the Central Intelligence Agency.
       (d) Annual Report.--The Director of Central Intelligence 
     shall submit to the Director of the Office of Management and 
     Budget an annual report on the implementation of this Act 
     within the Central Intelligence Agency.
       (e) Pilot Programs.--
       (1) Recommendations by director of central intelligence.--
     The Director of Central Intelligence may submit to the Chief 
     Information Officer of the United States a recommendation 
     that a specific information technology pilot program be 
     carried out under section 401.
       (2) Oversight of recommended program.--If the Chief 
     Information Officer determines to carry out a pilot program 
     in the Central Intelligence Agency under section 401, the 
     Director of the Office of Management and Budget shall 
     supervise the pilot program without regard to any delegation 
     of authority under subsection (a).
                Subtitle E--Federal Information Council

     SEC. 151. ESTABLISHMENT OF FEDERAL INFORMATION COUNCIL.

       There is established in the executive branch a ``Federal 
     Information Council''.

     SEC. 152. MEMBERSHIP.

       The members of the Federal Information Council are as 
     follows:
       (1) The chief information officer of each executive 
     department.
       (2) The chief information officer or senior information 
     resources management official of each executive agency who is 
     designated as a member of the Council by the Director of the 
     Office of Management and Budget.
       (3) Other officers or employees of the Federal Government 
     designated by the Director.

     SEC. 153. CHAIRMAN; EXECUTIVE DIRECTOR.

       (a) Chairman.--The Director of the Office of Management and 
     Budget is the Chairman of the Federal Information Council.
       (b) Executive Director.--The Chief Information Officer of 
     the United States is the Executive Director of the Council. 
     The Executive Director provides administrative and other 
     support for the Council.

     SEC. 154. DUTIES.

       The duties of the Federal Information Council are as 
     follows:
       (1) To obtain advice on information resources, information 
     resources management, and information technology from State, 
     local, and tribal governments and from the private sector.
       (2) To make recommendations to the Director of the Office 
     of Management and Budget regarding Federal policies and 
     practices on information resources management.
       (3) To establish strategic direction and priorities for a 
     Governmentwide information infrastructure.
       (4) To assist the Chief Information Officer of the United 
     States in developing and maintaining the Governmentwide 
     strategic information resources management plan.
       (5) To coordinate Governmentwide and multi-agency programs 
     and projects for achieving improvements in the performance of 
     Federal Government missions, including taking such actions 
     as--
       (A) identifying program goals and requirements that are 
     common to several agencies;
       (B) establishing interagency functional groups under 
     section 161;
       (C) establishing an interagency group of senior managers of 
     information resources to review high-risk information 
     technology programs;
       (D) identifying opportunities for undertaking information 
     technology programs on a shared basis or providing 
     information technology services on a shared basis;
       (E) providing for the establishment of temporary special 
     advisory groups, composed of senior officials from industry 
     and the Federal Government, to review Governmentwide 
     information technology programs, high-risk information 
     technology acquisitions, and issues of information technology 
     policy;
       (F) coordinating budget estimates and information 
     technology acquisitions in order [[Page S 8694]] to develop a 
     coordinated approach for meeting common information 
     technology goals and requirements; and
       (G) reviewing agency programs and processes, to identify 
     opportunities for consolidation of activities or cooperation.
       (6) To coordinate the provision, planning, and acquisition 
     of common infrastructure services, such as 
     telecommunications, Governmentwide E-mail, electronic 
     benefits transfer, electronic commerce, and Governmentwide 
     data sharing, by--
       (A) making recommendations to the Director of the Office of 
     Management and Budget regarding services that can be provided 
     in common;
       (B) making recommendations to the Director regarding 
     designation of an executive agent to contract for common 
     infrastructure services on behalf of the Federal Government;
       (C) approving overhead charges by executive agents;
       (D) approving a surcharge which may be imposed on selected 
     common infrastructure services and is to be credited to the 
     Common Use Account established by section 331; and
       (E) monitoring and providing guidance for the 
     administration of the Common Use Account established by 
     section 331 and the Innovation Loan Account established by 
     section 321 for purposes of encouraging innovation by making 
     financing available for high-opportunity information 
     technology programs, including common infrastructure systems 
     and services.
       (7) To assess ways to revise and reorganize Federal 
     Government mission-related and administrative processes 
     before acquiring information technology in support of agency 
     missions.
       (8) To monitor and provide guidance for the development of 
     performance measures for agency information resources 
     management activities for Governmentwide applicability.
       (9) To submit to the Chief Information Officer of the 
     United States recommendations for conducting pilot projects 
     for the purpose of identifying better ways for Federal 
     Government agencies to plan for, acquire, and manage 
     information resources.
       (10) To identify opportunities for sharing information at 
     the Federal, State, and local levels of government and to 
     improve information sharing and communications.
       (11) To ensure that United States interests in 
     international information-related activities are served, 
     including coordinating United States participation in the 
     activities of international information organizations.

     SEC. 155. SOFTWARE REVIEW COUNCIL.

       (a) Establishment.--The Federal Information Council shall 
     establish a Federal Software Review Council.
       (b) Membership.--
       (1) Composition.--The Federal Information Council, in 
     consultation with the Chief Information Officer of the United 
     States, shall determine the membership of the Federal 
     Software Council. The number of members of the Council may 
     not exceed 10 members.
       (2) Certain representation required.--The Federal 
     Information Council shall provide for the Government, private 
     industry, and college and universities to be represented on 
     the membership of the Software Review Council.
       (c) Chairman.--The Chief Information Officer of the United 
     States shall serve as Chairman of the Federal Software Review 
     Council.
       (d) Duties.--
       (1) Clearinghouse function.--(A) The Federal Software 
     Review Council shall act as a clearinghouse of information on 
     the software that--
       (i) is commercially available to the Federal Government; 
     and
       (ii) has been uniquely developed for use by one or more 
     executive agencies.
       (B) The Federal Software Review Council shall provide 
     advice to heads of executive agencies regarding recommended 
     software engineering techniques and commercial software 
     solutions appropriate to the agency's needs.
       (2) Software for use in development of agency systems.--The 
     Federal Software Review Council shall submit to the Federal 
     Information Council proposed guidelines and standards 
     regarding the use of commercial software, nondevelopmental 
     items of software, and uniquely developed software in the 
     development of executive agency information systems.
       (3) Integration of multiple software.--The Federal Software 
     Review Council shall submit to the Federal Information 
     Council proposed guidance regarding integration of multiple 
     software components into executive agency information 
     systems.
       (4) Review of proposals for uniquely developed items of 
     software.--(A) In each case in which an executive agency 
     undertakes to acquire a uniquely developed item of software 
     for an information system used or to be used by the agency, 
     the Federal Software Review Council shall--
       (i) determine whether it would be more beneficial to the 
     executive agency to use commercial items or nondevelopmental 
     items to meet the needs of the executive agency; and
       (ii) submit the Federal Software Review Council's 
     determination to the head of the executive agency.
       (B) Subparagraph (A) applies to an information technology 
     acquisition program in excess of $1,000,000.
               Subtitle F--Interagency Functional Groups

     SEC. 161. ESTABLISHMENT.

       (a) In General.--The heads of executive agencies may 
     jointly establish one or more interagency groups, known as 
     ``functional groups''--
       (1) to examine issues that would benefit from a 
     Governmentwide or multi-agency perspective;
       (2) to submit to the Federal Information Council proposed 
     solutions for problems in specific common operational areas; 
     and
       (3) to promote cooperation among agencies on information 
     technology matters.
       (b) Requirement for Common Interests.--The representatives 
     of the executive agencies participating in a functional group 
     shall have the following common interests:
       (1) Involvement in the same or similar functional areas of 
     agency operations.
       (2) Mission-related processes or administrative processes 
     that would benefit from common or similar applications of 
     information technology.
       (3) The same or similar requirements for--
       (A) information technology; or
       (B) meeting needs of the common recipients of services of 
     the agencies.

     SEC. 162. SPECIFIC FUNCTIONS.

       The functions of an interagency functional group are as 
     follows:
       (1) To identify common goals and requirements for common 
     agency programs.
       (2) To develop a coordinated approach to meeting agency 
     requirements, including coordinated budget estimates and 
     procurement programs.
       (3) To identify opportunities to share information for 
     improving the quality of the performance of agency functions, 
     for reducing the cost of agency programs, and for reducing 
     burdens of agency activities on the public.
       (4) To coordinate activities and the sharing of information 
     with other functional groups.
       (5) To make recommendations to the heads of executive 
     agencies and to the Director of the Office of Management and 
     Budget regarding the selection of protocols and other 
     standards for information technology, including security 
     standards.
       (6) To support interoperability among information systems.
       (7) To perform other functions, related to the purposes set 
     forth in section 161(a), that are assigned by the Federal 
     Information Council.
                  Subtitle G--Congressional Oversight

     SEC. 171. ESTABLISHMENT AND ORGANIZATION OF JOINT COMMITTEE 
                   ON INFORMATION.

       (a) Establishment.--There is established in Congress a 
     Joint Committee on Information composed of eight members as 
     follows:
       (1) Four members of the Committee on Governmental Affairs 
     of the Senate appointed by the Chairman of that committee.
       (2) Four members of the Committee on Government Reform and 
     Oversight of the House of Representatives appointed by the 
     Chairman of that committee.
       (b) Term of Appointment.--The term of service of a member 
     on the joint committee shall expire immediately before the 
     convening of the Congress following the Congress during which 
     the member is appointed. A member may be reappointed to serve 
     on the joint committee.
       (c) Vacancies.--A vacancy in the membership of the joint 
     committee does not affect the power of the remaining members 
     to carry out the responsibilities of the joint committee. The 
     vacancy shall be filled in the same manner as the original 
     appointment.
       (d) Chairman and Vice Chairman.--
       (1) Election by committee.--The chairman and vice chairman 
     of the joint committee shall be elected by the members of the 
     joint committee from among the members of the joint 
     committee.
       (2) Bicameral committee leadership.--The chairman and vice 
     chairman may not be members of the same house of Congress.
       (3) Rotation of leadership positions between houses.--The 
     eligibility for election as chairman and for election as vice 
     chairmanship shall alternate annually between the members of 
     one house of Congress and the members of the other house of 
     Congress.

     SEC. 172. RESPONSIBILITIES OF JOINT COMMITTEE ON INFORMATION.

       (a) In General.--The Joint Committee on Information has the 
     following responsibilities:
       (1) To review information-related operations of the Federal 
     Government, including the acquisition and management of 
     information technology and other information resources.
       (2) To perform studies of major information resources 
     management issues regarding such matters as the following:
       (A) Compatibility and interoperability of systems.
       (B) Electronic commerce.
       (C) Performance measurement.
       (D) Process improvement.
       (E) Paperwork and regulatory burdens imposed on the public.
       (F) Statistics.
       (G) Management and disposition of records.
       (H) Privacy and confidentiality.
       (I) Security and protection of information resources.
       (J) Accessibility and dissemination of Government 
     information.
       (K) Information technology, including printing and other 
     media.
       (L) Information technology procurement policy, training, 
     and personnel.
       (3) To submit to the Committees on Governmental Affairs and 
     on Appropriations of [[Page S 8695]] the Senate and the 
     Committees on Government Reform and Oversight and on 
     Appropriations of the House of Representatives 
     recommendations for legislation developed on the basis of the 
     reviews and studies.
       (4) To carry out the responsibilities of the joint 
     committee under chapter 1 of title 44, United States Code.
       (5) To carry out responsibilities regarding the Library of 
     Congress as provided by the Senate and the House of 
     Representatives.
       (b) Study Required.--Upon the organization of the Joint 
     Committee on Information, the joint committee shall consider 
     and develop policies and procedures providing for cooperation 
     among the committees of Congress having jurisdiction over 
     authorizations of appropriations, appropriations, and 
     oversight of departments and agencies of the Federal 
     Government in order to provide incentives for such 
     departments and agencies to maximize effectiveness in the 
     administration of this Act and the amendments made by this 
     Act.
       (c) Transfers.--
       (1) Functions.--The functions of the Joint Committee on 
     Printing and the functions of the Joint Committee of Congress 
     on the Library are transferred to the Joint Committee on 
     Information.
       (2) Records.--The records of the Joint Committee on 
     Printing and the records of the Joint Committee of Congress 
     on the Library are transferred to the Joint Committee on 
     Information.
       (d) Termination of Superseded Joint Committees.--The Joint 
     Committee on Printing and the Joint Committee of Congress on 
     the Library are terminated.

     SEC. 173. RULEMAKING AUTHORITY OF CONGRESS.

       This subtitle is enacted--
       (1) as an exercise of the rulemaking power of the Senate 
     and House of Representatives, respectively, and as such it is 
     deemed a part of the rules of each House, respectively, and 
     it supersedes other rules only to the extent that it is 
     inconsistent with such rules; and
       (2) with full recognition of the constitutional right of 
     either House to change the rules (so far as the rules relate 
     to that House) at any time, in the same manner, and to the 
     same extent as in the case of any other rule of that House.
                   Subtitle H--Other Responsibilities

     SEC. 181. RESPONSIBILITIES UNDER THE NATIONAL INSTITUTE OF 
                   STANDARDS AND TECHNOLOGY ACT.

       (a) Standards Program.--
       (1) Mission and duties.--Subsection (a) of section 20 of 
     the National Institute of Standards and Technology Act (15 
     U.S.C. 278g-3) is amended--
       (A) by striking out ``The Institute--'' in the matter 
     preceding paragraph (1) and inserting in lieu thereof ``To 
     the extent authorized by the Director of the Office of 
     Management and Budget, the Director of the Institute shall--
     '' ;
       (B) in paragraph (3), by striking out ``have responsibility 
     within the Federal Government'' and inserting in lieu thereof 
     ``carry out the responsibility of the Director of the Office 
     of Management and Budget''; and
       (C) in paragraph (4), by striking out ``to the Secretary of 
     Commerce for promulgation under section 111(d) of the Federal 
     Property and Administrative Services Act of 1949'' and 
     inserting in lieu thereof ``to the Director of the Office of 
     Management and Budget under section 124 of the Information 
     Technology Management Reform Act of 1995''
       (2) Authority.--Subsection (b) of such section is amended--
       (A) by striking out ``In fulfilling subsection (a) of this 
     section, the Institute is authorized'' in the matter 
     preceding paragraph (1) and inserting in lieu thereof ``In 
     order to carry out duties authorized under subsection (a), 
     the Director of the Institute may, to the extent authorized 
     by the Director of the Office of Management and Budget--'';
       (B) in paragraph (2), by striking out ``Administrator of 
     General Services on policies and regulations proposed 
     pursuant to section 111(d) of the Federal Property and 
     Administrative Services Act of 1949'' and inserting in lieu 
     thereof ``Director of the Office of Management and Budget on 
     policies and regulations proposed pursuant section 124 of the 
     Information Technology Management Reform Act of 1995'';
       (C) in paragraph (3), by striking out ``section 111(d) of 
     the Federal Property and Administrative Services Act of 
     1949'' and inserting in lieu thereof ``section 124 of the 
     Information Technology Management Reform Act of 1995''; and
       (D) in paragraph (4), by striking out ``Office of Personnel 
     Management in developing regulations pertaining to training, 
     as required by'' and inserting in lieu thereof ``Director of 
     the Office of Management and Budget in carrying out the 
     responsibilities regarding training regulations provided 
     under''.
       (3) Authority of director of omb.--Such section is 
     amended--
       (A) by redesignating subsection (d) as subsection (e); and
       (B) by inserting after subsection (c) the following new 
     subsection (d):
       ``(d) Authority of Director of OMB.--The Director of the 
     Office of Management and Budget may--
       ``(1) authorize the Director of the Institute to perform 
     any of the functions and take any of the actions provided in 
     subsections (a), (b), or (c), or limit, withdraw, or withhold 
     such authority;
       ``(2) perform any of the functions and take any of the 
     actions provided in subsections (a), (b), or (c); and
       ``(3) designate any other officer of the Federal Government 
     in the executive branch to perform any of such functions and 
     exercise any of such authorities.''.
       (4) Terminology.--Such section is further amended by 
     striking out ``computer system'' each place it appears and 
     inserting in lieu thereof ``information system''.
       (5) Definitions.--Subsection (e) of such section, as 
     redesignated by paragraph (3), is amended--
       (A) in paragraph (1)(B)(v) by striking out ``Administrator 
     of General Services pursuant to section 111 of the Federal 
     Property and Administrative Services Act of 1949'' and 
     inserting in lieu thereof ``Director of the Office of 
     Management and Budget''; and
       (B) in paragraph (2)(B), by striking out ``as that term is 
     defined in section 111(a)(2) of the Federal Property and 
     Administrative Services Act of 1949''.
       (b) Information System Security and Privacy Advisory 
     Board.--
       (1) Establishment.--Subsection (a) of section 21 of the 
     National Institute of Standards and Technology Act (15 U.S.C. 
     278g-4) is amended--
       (A) by striking out ``within the Department of Commerce'' 
     in the first sentence and inserting in lieu thereof ``within 
     the Office of the Chief Information Officer of the United 
     States''; and
       (B) by striking out ``Secretary of Commerce'' both places 
     it appears and inserting in lieu thereof ``Director of the 
     Office of Management and Budget''.
       (2) Recipients of advice and reports from board.--
     Subsection (b) of such section is amended--
       (A) by striking out ``Institute and the Secretary of 
     Commerce'' in paragraph (2) and inserting in lieu thereof 
     ``Director of the Office of Management and Budget''; and
       (B) by striking out ``the Secretary of Commerce,'' in 
     paragraph (3).
       (3) Terminology.--Such section is further amended by 
     striking out ``computer system'' each place it appears and 
     inserting in lieu thereof ``information system''.
       (4) Definitions.--Subsection (g) of such section is amended 
     by striking out ``section 20(d)'' and inserting in lieu 
     thereof ``section 20(e)''.

     SEC. 182. RESPONSIBILITIES UNDER THE COMPUTER SECURITY ACT OF 
                   1987.

       (a) Responsibility for Training Regulations.--Section 5(c) 
     of the Computer Security Act of 1987 (Public Law 100-235; 101 
     Stat. 1729) is amended by striking out ``Within six months 
     after the date of the enactment of this Act, the Director of 
     the Office of Personnel Management'' and inserting in lieu 
     thereof ``The Director of the Office of Management and 
     Budget''.
       (b) Repeal of Executed Provision.--Section 5(b) of such Act 
     is amended by striking out ``shall be started within 60 days 
     after the issuance of the regulations described in subsection 
     (c). Such training''.
      TITLE II--PROCESS FOR ACQUISITIONS OF INFORMATION TECHNOLOGY
                         Subtitle A--Procedures

     SEC. 201. PROCUREMENT PROCEDURES.

       (a) Responsibility.--The Director of the Office of 
     Management and Budget of the United States shall prescribe in 
     regulations the procedures to be used in conducting 
     information technology acquisitions. The procedures shall be 
     made a part of the Federal Acquisition Regulation.
       (b) Standards for Procedures.--The Director shall ensure 
     that the process for acquisition of information technology 
     is, in general, a simplified, clear, and understandable 
     process that, for higher cost and higher risk acquisitions, 
     provides progressively more stringent precautions for 
     ensuring that there is full and open competition in an 
     acquisition and that each acquisition timely and effectively 
     satisfies the needs of the Federal Government.
       (c) Performance Measurements.--The regulations shall 
     include performance measurements and other performance 
     requirements that the Director determines appropriate.
       (d) Use of Commercial Items.--The regulations shall require 
     the head of each executive agency to use, to the maximum 
     extent practicable, commercial items to meet the information 
     technology requirements of the executive agency.
       (e) Differentiated Procedures and Requirements.--Subject to 
     subsection (b), the Director shall prescribe different sets 
     of procedures and requirements for acquisitions in each of 
     the following categories of acquisitions:
       (1) Acquisitions not in excess of $5,000,000.
       (2) Acquisitions in excess of $5,000,000 and not in excess 
     of $25,000,000.
       (3) Acquisitions in excess of $25,000,000 and not in excess 
     of $100,000,000.
       (4) Acquisitions in excess of $100,000,000.
       (5) Acquisitions considered as high-risk acquisitions.
       (f) Differentiation on the Basis of Other Factors.--In 
     prescribing regulations under this title, the Director shall 
     consider whether and, to the extent appropriate, how to 
     differentiate in the treatment and conduct of acquisitions of 
     information technology on any of the following additional 
     bases:
       (1) The information technology to be acquired, including 
     such considerations as whether the item is a commercial item 
     or an item being developed or modified uniquely for use by 
     one or more executive agencies. [[Page S 8696]] 
       (2) The complexity of the information technology 
     acquisition, including such considerations as size and scope.
       (3) The level of risk (at levels other than high risk 
     covered by procedures and requirements prescribed pursuant to 
     subsection (e)), including technical and schedule risks.
       (4) The level of experience or expertise of the critical 
     personnel in the program office, mission unit, or office of 
     the chief information officer of the executive agency 
     concerned.
       (5) The extent to which the information technology may be 
     used Government wide or by several agencies.
       (g) Required Actions.--The regulations shall require the 
     heads of executive agencies, in planning for and undertaking 
     acquisitions of information technology, to apply sound 
     methodologies and approaches that result in realistic and 
     comprehensive advance assessments of risks, reasonable 
     management of the risks, and maximization of the benefit 
     derived by the Federal Government toward meeting the 
     requirements for which the technology is acquired.

     SEC. 202. AGENCY PROCESS.

       (a) Responsibility.--The head of each executive agency 
     shall, consistent with the regulations prescribed under 
     section 201, design and apply in the executive agency a 
     process for maximizing the value and assessing and managing 
     the risks of the information technology acquisitions of the 
     agency.
       (b) Design of Process.--The process shall--
       (1) provide for the selection, control, and evaluation of 
     the results of information technology investments of the 
     agency;
       (2) be integrated with budget, financial, and program 
     management decisions of the agency; and
       (3) incorporate the procedures and satisfy the 
     requirements, including procedures and requirements 
     applicable under various threshold criteria, that are 
     prescribed pursuant to section 201.
       (c) Benefit and Risk Measurements.--
       (1) Requirement.--The process shall provide for clearly 
     identifying in advance of the acquisition quantifiable 
     measurements for determining the net benefits and risks of 
     each proposed information technology investment.
       (2) Examples of measures.--(A) Measurements of net benefits 
     could include such measures as cost reductions, decreases in 
     program cycle time, return on investment, increases in 
     productivity, enhanced capability, reductions in the 
     paperwork burden imposed on the public, and improvements in 
     the level of public satisfaction with services provided.
       (B) Measures of risk could include such measures as project 
     size and scope, project longevity, technical configurations, 
     unusual security requirements, special project management 
     skills, software complexity, system integration requirements, 
     and existing technical and management expertise.
       (d) Evaluation of Value of Proposed Investments.--The 
     process shall require evaluation of the value of a proposed 
     information technology investment to the performance of 
     agency missions, including the provision of services to the 
     public, on the basis of--
       (1) the measurements applicable under subsection (c) as 
     well as other applicable criteria and standards; and
       (2) a comparison of that investment with other information 
     technology investments proposed to be undertaken by or for 
     the agency.
       (e) Periodic Review by Senior Managers.--
       (1) In general.--The process shall provide for senior 
     managers of the executive agency--
       (A) to review on a periodic basis the development, 
     implementation, and operation of information technology 
     investments undertaken or to be undertaken by the agency and 
     the information technology acquired under such investments; 
     and
       (B) in the case of each investment, to make recommendations 
     to the head of the executive agency regarding actions that 
     should be taken in order to ensure that suitable progress is 
     made toward achieving the goals established for the 
     investment or that the investment, if not making suitable 
     progress, is terminated in a timely manner.
       (2) Reviews after implementation.--The implementation and 
     operation reviews provided for under paragraph (1) shall 
     include provisions for senior managers of the executive 
     agency--
       (A) upon the implementation of the investment, to evaluate 
     the results of the investment in order to determine whether 
     the benefits projected for the investment were achieved; and
       (B) after operation of information systems under the 
     investment begins, to conduct periodic reviews of the systems 
     in order--
       (i) to determine whether the benefits to mission 
     performance resulting from the use of such systems are 
     satisfactory; and
       (ii) to identify opportunities for additional improvement 
     in mission performance that can be derived from use of such 
     systems.
       (f) Specific Acquisition Procedures.--In the awarding of 
     contracts for the acquisition of information technology, the 
     head of an executive agency shall consider the information on 
     the past performance of offerors that is available from the 
     Director of the Office of Management and Budget.

     SEC. 203. INCREMENTAL ACQUISITION OF INFORMATION TECHNOLOGY.

       (a) In General.--The regulations prescribed under section 
     201 shall require that, to the maximum extent practicable, an 
     executive agency's needs for information technology be 
     satisfied in successive, incremental acquisitions of 
     interoperable systems the characteristics of which comply 
     with readily available standards and, therefore, can be 
     connected to other systems that comply with such standards.
       (b) Division of Acquisitions Into Increments.--Under the 
     successive, incremental acquisition process, an extensive 
     acquisition of information technology shall be divided into 
     several smaller acquisition increments that--
       (1) are easier to manage individually than would be one 
     extensive acquisition;
       (2) address complex information technology problems 
     incrementally in order to enhance the likelihood of achieving 
     workable solutions for those problems;
       (3) provide for delivery, implementation, and testing of 
     workable systems or solutions in discrete increments each of 
     which comprises a system or solution that is not dependent on 
     any other increment in order to be workable for the purposes 
     for which acquired; and
       (4) provide an opportunity for later increments of the 
     acquisition to take advantage of any evolution in technology 
     or needs that occurs during conduct of the earlier 
     increments.
       (c) Timely Acquisitions.--
       (1) Award of contract.--If a contract for an increment of 
     an information technology acquisition is not awarded within 
     180 days after the date on which the solicitation is issued, 
     that increment of the acquisition shall be canceled. A 
     subsequent solicitation for that increment of the 
     solicitation, or for a revision of that increment, may be 
     issued. A contract may be awarded on the basis of offers 
     received in response to a subsequent solicitation.
       (2) Delivery.--(A) The information technology provided for 
     in a contract for acquisition of information technology shall 
     be delivered within 18 months after the date on which the 
     solicitation resulting in award of the contract was issued.
       (B) The Chief Information Officer of the United States may 
     waive the requirement under subparagraph (A) in the case of a 
     particular contract. The Chief Information Officer shall 
     notify Congress in writing of each waiver granted under this 
     subparagraph.
       (C) If the information technology to be acquired under a 
     contract is not timely delivered as provided in subparagraph 
     (A) and a waiver is not granted in such case, the contract 
     shall be terminated and the contracting official concerned 
     may issue a new solicitation that--
       (i) provides for taking advantage of advances in 
     information technology that have occurred during the 18-month 
     period described in subparagraph (A) and advances in 
     information technology that are anticipated to occur within 
     the period necessary for completion of the acquisition; and
       (ii) adjusts for any changes in identified mission 
     requirements to be satisfied by the information technology.
       (d) Full-Increment Funding for Major and High-Risk 
     Acquisitions.--
       (1) Submission of program increment details to congress.--
     Before initial funding is made available for an information 
     technology acquisition program that is in excess of 
     $100,000,000, the head of the executive agency for which the 
     program is carried out shall submit to Congress information 
     about the objectives and plans for the conduct of that 
     acquisition program and the funding requirements for each 
     increment of the acquisition program. The information shall 
     identify the intended user of the information technology 
     items to be acquired under the program and each increment and 
     shall include objective, quantifiable criteria for assessing 
     the extent to which the objectives and goals established for 
     the program are achieved.
       (2) Requirement for full increment funding.--(A) In 
     authorizing appropriations for an increment of an information 
     technology acquisition program, Congress shall provide an 
     authorization of appropriations for the program increment in 
     a single amount that is sufficient for carrying out that 
     increment of the program. Each such authorization of 
     appropriations shall be stated in the authorization law as a 
     specific item.
       (B) In each law making appropriations for an increment of 
     information technology acquisition program, Congress shall 
     specify the program increment for which an appropriation is 
     made and the amount appropriated for that program increment.
       (e) Commercial Items.--
       (1) Source.--Except as provided in paragraph (2), a 
     commercial item used in the development of an information 
     system or otherwise being acquired for an executive agency 
     shall be acquired through any of the following means 
     available for the agency that can supply an item satisfying 
     the needs of the agency for the acquisition:
       (A) A multiple award schedule contract.
       (B) A task or delivery order contract.
       (C) A Federal Government on-line purchasing network 
     established by the Chief Information Officer of the United 
     States.
       (2) Exception.--A commercial item need not be acquired from 
     a source referred to in paragraph (1) if an item satisfying 
     such needs is available at a lower cost from another source.
     [[Page S 8697]]
     
     SEC. 204. AUTHORITY TO LIMIT NUMBER OF OFFERORS.

       (a) Civilian Agency Acquisitions.--Section 303B(d) of the 
     Federal Property and Administrative Services Act of 1949 (41 
     U.S.C. 253b(d)) is amended by adding at the end the 
     following:
       ``(3) Under regulations prescribed by the Director of the 
     Office of Management and Budget, a contracting officer of an 
     executive agency receiving more than three competitive 
     proposals for a proposed contract for acquisition of 
     information technology may solicit best and final offers from 
     the three offerors who submitted the best offers within the 
     competitive range, as determined on the basis of the 
     evaluation factors established for the procurement. 
     Notwithstanding paragraph (1)(A), the contracting officer 
     should first conduct discussions with all of the responsible 
     parties that submit offers within the competitive range.''.
       (b) Armed Services Acquisitions.--Section 2305(b) of title 
     10, United States Code, is amended by adding at the end the 
     following:
       ``(5) Under regulations prescribed by the Director of the 
     Office of Management and Budget, a contracting officer of an 
     agency receiving more than three competitive proposals for a 
     proposed contract for acquisition of information technology 
     may solicit best and final offers from the three offerors who 
     submitted the best offers within the competitive range. 
     Notwithstanding paragraph (4)(A)(i), the contracting officer 
     should first conduct discussions with all of the responsible 
     parties that submit offers within the competitive range.''.

     SEC. 205. EXCEPTION FROM TRUTH IN NEGOTIATION REQUIREMENTS.

       (a) Civilian Agency Acquisitions.--Section 304A of the 
     Federal Property and Administrative Services Act of 1949 is 
     amended--
       (1) by redesignating subsection (i) as subsection (j) and, 
     as so redesignated, is amended by adding at the end the 
     following:
       ``(4) The term `information technology' has the meaning 
     given that term in section 4 of the Information Technology 
     Management Reform Act of 1995.''; and
       (2) by inserting after subsection (h) the following new 
     subsection (i):
       ``(i) Additional Exception for Information Technology 
     Commercial Items.--The head of an executive agency may not 
     require the submission of cost or pricing data in a 
     procurement of any information technology that is a 
     commercial item. However, the head of the executive agency 
     shall seek to obtain from each offeror or contractor the 
     information described in subsection (d)(2)(A)(ii) for the 
     procurement.''.
       (b) Armed Services Acquisitions.--Section 2306a of title 
     10, United States Code, is amended--
       (1) by redesignating subsection (i) as subsection (j) and, 
     as so redesignated, is amended by adding at the end the 
     following:
       ``(4) The term `information technology' has the meaning 
     given that term in section 4 of the Information Technology 
     Management Reform Act of 1995.''; and
       (2) by inserting after subsection (h) the following new 
     subsection (i):
       ``(i) Additional Exception for Information Technology 
     Commercial Items.--The head of an agency may not require the 
     submission of cost or pricing data in a procurement of any 
     information technology that is a commercial item. However, 
     the head of an agency shall seek to obtain from each offeror 
     or contractor the information described in subsection 
     (d)(2)(A)(ii) for the procurement''.

     SEC. 206. UNRESTRICTED COMPETITIVE PROCUREMENT OF COMMERCIAL 
                   OFF-THE-SHELF ITEMS OF INFORMATION TECHNOLOGY.

       (a) Full and Open Competition Required.--Full and open 
     competition shall be used for each procurement of commercial 
     off-the-shelf items of information technology by or for an 
     executive agency.
       (b) Inapplicability of Certain Procurement Laws.--
       (1) FAR list.--The Federal Acquisition Regulation shall 
     include a list of provisions of law that are inapplicable to 
     contracts for the procurement of commercial, off-the-shelf 
     items of information technology. A provision of law that is 
     properly included on the list pursuant to paragraph (2) may 
     not be construed as being applicable to such contracts. 
     Nothing in this section shall be construed to render 
     inapplicable to such contracts any provision of law that is 
     not included on such list.
       (2) Provisions to be included.--A provision of law 
     described in subsection (c) shall be included on the list of 
     inapplicable provisions of law required by paragraph (1) 
     unless the Chief Information Officer of the United States, in 
     consultation with the Federal Information Council, makes a 
     written determination that it would not be in the best 
     interest of the United States to exempt such contracts from 
     the applicability of that provision of law.
       (c) Covered Law.--The list referred to in subsection (b)(1) 
     shall include each provision of law that, as determined by 
     the Chief Information Officer, sets forth policies, 
     procedures, requirements, or restrictions for the procurement 
     of property or services by the Federal Government, except the 
     following:
       (1) A provision of this Act.
       (2) A provision of law that is amended by this Act.
       (3) A provision of law that is made applicable to 
     procurements of commercial, off-the-shelf items of 
     information technology by this Act.
       (4) A provision of law that prohibits or limits the use of 
     appropriated funds.
       (5) A provision of law that specifically refers to this 
     section and provides that, notwithstanding this section, such 
     provision of law shall be applicable to contracts for the 
     procurement of commercial off-the-shelf items of information 
     technology.
       (d) Petition To Include Omitted Provision.--
       (1) Petition authorized.--Any person may submit to the 
     Chief Information Officer a petition to include on the list 
     referred to in subsection (b)(1) a provision of law not 
     included on that list.
       (2) Action on petition.--The Federal Acquisition Regulatory 
     Council shall amend the Federal Acquisition Regulation to 
     include the item on the list unless the Chief Information 
     Officer, in consultation with the Federal Information 
     Council--
       (A) has made a written determination described in 
     subsection (b)(2) with respect to that provision of law 
     before receiving the request; or
       (B) within 60 days after the date of receipt of the 
     request, makes a such a written determination regarding the 
     provision of law.
       (e) Definition.--In this subsection, the term ``commercial, 
     off-the-shelf item of information technology'' means an item 
     of information technology that--
       (A) is a commercial item described in section 4(12)(A) of 
     the Office of Federal Procurement Policy Act (41 U.S.C. 403);
       (B) is sold in substantial quantities in the commercial 
     marketplace; and
       (C) is offered to the Government, without modification, in 
     the same form in which it is sold in the commercial 
     marketplace.

     SEC. 207. TASK AND DELIVERY ORDER CONTRACTS.

       (a) Civilian Agency Acquisitions.--
       (1) Requirement for multiple awards.--Section 303H(d) of 
     the Federal Property and Administrative Services Act of 1949 
     (41 U.S.C. 253h(d)) is amended by adding at the end the 
     following new paragraph:
       ``(4) In exercising the authority under this section for 
     procurement of information technology, the head of an 
     executive agency shall award at least two task or delivery 
     order contracts for the same or similar information 
     technology services or property unless the Chief Information 
     Officer of the United States determines that, because of 
     unusual circumstances, it is not in the best interests of the 
     United States to award two such contracts.''.
       (2) Definition.--Section 303K of such Act (41 U.S.C. 253k) 
     is amended by adding at the end the following new paragraph:
       ``(3) The term `information technology' has the meaning 
     given that term in section 4 of the Information Technology 
     Management Reform Act of 1995.''.
       (b) Armed Services Acquisitions.--
       (1) Requirement for multiple awards.--Section 2304a(d) of 
     title 10, United States Code, is amended by adding at the end 
     the following new paragraph:
       ``(4) In exercising the authority under this section for 
     procurement of information technology, the head of an 
     executive agency shall award at least two task or delivery 
     order contracts for the same or similar information 
     technology services or property unless the Chief Information 
     Officer of the United States determines that, because of 
     unusual circumstances, it is not in the best interests of the 
     United States to award two such contracts.''.
       (2) Definition.--Section 2304d of title 10, United States 
     Code, is amended by adding at the end the following new 
     paragraph:
       ``(3) The term `information technology' has the meaning 
     given that term in section 4 of the Information Technology 
     Management Reform Act of 1995.''.
     SEC. 208. TWO-PHASE SELECTION PROCEDURES.

       (a) Civilian Agencies.--
       (1) Procedures authorized.--Title III of the Federal 
     Property and Administrative Services Act of 1949 (41 U.S.C. 
     251 et seq.) is amended by inserting after section 303H the 
     following new section:


                    ``two-phase selection procedures

       ``Sec. 303I. (a) Procedures Authorized.--The head of an 
     executive agency may use two-phase selection procedures for 
     entering into a contract for the acquisition of information 
     technology when the agency head determines that three or more 
     offers will be received for such contract, substantial design 
     work must be performed before an offeror can develop a 
     reliable price or cost proposal for such contract, and the 
     offerors will incur a substantial amount of expenses in 
     preparing the offers.
       ``(b) Procedures Described.--Two-phase selection procedures 
     consist of the following:
       ``(1) The agency head solicits proposals that--
       ``(A) include information on the offerors'--
       ``(i) technical approach; and
       ``(ii) technical and management qualifications; and
       ``(B) do not include--
       ``(i) detailed design information; or
       ``(ii) cost or price information.
       ``(2) The agency head evaluates the proposals on the basis 
     of evaluation criteria set forth in the solicitation, except 
     that the agency head does not consider cost-related or price-
     related evaluation factors. [[Page S 8698]] 
       ``(3) The agency head selects at least three offerors as 
     the most highly qualified to provide the property or services 
     under the contract and requests the selected offerors to 
     submit competitive proposals that include cost and price 
     information.
       ``(4) The agency head awards the contract in accordance 
     with section 303B(d).
       ``(c) Resource Comparison Criteria Required.--In using two-
     phase selection procedures for entering into a contract, the 
     agency head shall establish resource criteria and financial 
     criteria applicable to the contract in order to provide a 
     consistent basis for comparing the offerors and their 
     proposals.
       ``(d) Two-Phase Selection Procedures Defined.--In this 
     section, the term `two-phase selection procedures' means 
     procedures described in subsection (b) that are used for the 
     selection of a contractor on the basis of cost and price and 
     other evaluation criteria to provide property or services in 
     accordance with the provisions of a contract which requires 
     the contractor to design the property to be acquired under 
     the contract and produce or construct such property.
       ``(e) Definition.--In this section, the term `information 
     technology' has the meaning given the term in section 4 of 
     the Information Technology Management Reform Act of 1995.''.
       (2) Clerical amendment.--The table of contents in the first 
     section of such Act is amended by inserting after the item 
     relating to section 303H the following new item:

``Sec. 303I. Two-phase selection procedures.''.

       (b) Department of Defense.--
       (1) Procedures authorized.--Chapter 137 of title 10, United 
     States Code, is amended by inserting after section 2305 the 
     following new section:

     ``Sec. 2305a. Two-phase selection procedures

       ``(a) Procedures Authorized.--The head of an agency may use 
     two-phase selection procedures for entering into a contract 
     for the acquisition of information technology when the head 
     of the agency determines that three or more offers will be 
     received for such contract, substantial design work must be 
     performed before an offeror can develop a reliable price or 
     cost proposal for such contract, and the offerors will incur 
     a substantial amount of expenses in preparing the offers.
       ``(b) Procedures Described.--Two-phase selection procedures 
     consist of the following:
       ``(1) The head of the agency solicits proposals that--
       ``(A) include information on the offerors'--
       ``(i) technical approach; and
       ``(ii) technical and management qualifications; and
       ``(B) do not include--
       ``(i) detailed design information; and
       ``(ii) cost or price information.
       ``(2) The head of the agency evaluates the proposals on the 
     basis of evaluation criteria set forth in the solicitation, 
     except that the head of the agency does not consider cost-
     related or price-related evaluation factors.
       ``(3) The head of the agency selects at least three 
     offerors as the most highly qualified to provide the property 
     or services under the contract and requests the selected 
     offerors to submit competitive proposals that include cost 
     and price information.
       ``(4) The head of the agency awards the contract in 
     accordance with section 2305(b)(4) of this title.
       ``(c) Resource Comparison Criteria Required.--In using two-
     phase selection procedures for entering into a contract, the 
     head of the agency shall establish resource criteria and 
     financial criteria applicable to the contract in order to 
     provide a consistent basis for comparing the offerors and 
     their proposals.
       ``(d) Two-Phase Selection Procedures Defined.--In this 
     section, the term `two-phase selection procedures' means 
     procedures described in subsection (b) that are used for the 
     selection of a contractor on the basis of cost and price and 
     other evaluation criteria to provide property or services in 
     accordance with the provisions of a contract which requires 
     the contractor to design the property to be acquired under 
     the contract and produce or construct such property.
       ``(e) Definition.--In this section, the term `information 
     technology' has the meaning given the term in section 4 of 
     the Information Technology Management Reform Act of 1995.''.
       (2) Clerical amendment.--The table of sections at the 
     beginning of such chapter is amended by inserting after the 
     item relating to section 2305 the following:

``2305a. Two-phase selection procedures.''.
     SEC. 209. CONTRACTOR SHARE OF GAINS AND LOSSES FROM COST, 
                   SCHEDULE, AND PERFORMANCE EXPERIENCE.

       The Director of the Office of Management and Budget shall 
     prescribe in regulations a clause, to be included in each 
     cost-type or incentive-type contract for procurement of 
     information technology for an executive agency, that provides 
     a system for the contractor--
       (1) to be rewarded for contract performance exceeding the 
     contract cost, schedule, or performance goals to the benefit 
     of the United States; and
       (2) to be penalized for failing--
       (A) to adhere to cost, schedule, or performance goals to 
     the detriment of the United States; or
       (B) to provide an operationally effective solution for the 
     information technology problem covered by the contract.
                   Subtitle B--Acquisition Management

     SEC. 221. ACQUISITION MANAGEMENT TEAM.

       (a) In General.--
       (1) Use of agency personnel.--The head of each executive 
     agency planning an acquisition of information technology 
     shall determine whether agency personnel satisfying the 
     requirements of subsection (b) are available and are to be 
     used for carrying out the acquisition.
       (2) Use of outside acquisition team.--If the head of the 
     executive agency determines that such personnel are not 
     available for carrying out the acquisition, the head of that 
     agency shall consider designating a capable executive agent 
     to carry out the acquisition.
       (b) Capabilities of Agency Personnel.--
       (1) In general.--The head of each executive agency shall 
     ensure that the agency personnel involved in an acquisition 
     of information technology have the experience, and have 
     demonstrated the skills and knowledge, necessary to carry out 
     the acquisition competently.
       (2) high-risk information technology program 
     acquisitions.--For an acquisition under a high-risk 
     information technology program--
       (A) each of the members of the acquisition program 
     management team (including the management, technical, 
     program, procurement, and legal personnel) shall have 
     experience and demonstrated competence in the team member's 
     area of responsibility; and
       (B) the team manager, deputy team manager, and each 
     procurement official on the acquisition management team shall 
     have demonstrated competence in participating in other major 
     information system acquisitions or have other comparable 
     experience.
       (c) Acquisition Workforce Training.--The head of each 
     executive agency shall ensure that agency personnel used for 
     information technology acquisitions of the agency receive 
     continuing training in management of information resources 
     and the acquisition of information technology in order to 
     maintain the competence of such personnel in the skills and 
     knowledge necessary for carrying out such acquisitions 
     successfully.

     SEC. 222. OVERSIGHT OF ACQUISITIONS.

       It is the sense of Congress that the Director of the Office 
     of Management and Budget, the Chief Information Officer of 
     the United States, the heads of executive agencies, and the 
     inspectors general of executive agencies, in performing 
     responsibilities for oversight of information technology 
     acquisitions, should emphasize reviews of the operational 
     justifications for the acquisitions, the results of the 
     acquisition programs, and the performance measurements 
     established for the information technology rather than 
     reviews of the acquisition process.
      TITLE III--SPECIAL FISCAL SUPPORT FOR INFORMATION INNOVATION
                Subtitle A--Information Technology Fund

     SEC. 301. ESTABLISHMENT.

       There is established on the books of the Treasury a fund to 
     be known as the ``Information Technology Fund''.

     SEC. 302. ACCOUNTS.

       The Information Technology Fund shall have two accounts as 
     follows:
       (1) The Innovation Loan Account.
       (2) The Common Use Account.
                  Subtitle B--Innovation Loan Account

     SEC. 321. AVAILABILITY OF FUND FOR LOANS IN SUPPORT OF 
                   INFORMATION INNOVATION.

       Amounts in the Innovation Loan Account shall be available 
     to the Director of the Office of Management and Budget, 
     without fiscal year limitation, for lending to an executive 
     agency for carrying out an information innovation program to 
     improve the productivity of the agency.

     SEC. 322. REPAYMENT OF LOANS.

       (a) Repayment Required.--The head of an executive agency 
     shall repay the Innovation Loan Account the amount loaned to 
     the executive agency.
       (b) Terms and Conditions.--The Director of the Office of 
     Management and Budget shall prescribe the terms and 
     conditions for repayment of the loan.
       (c) Repayment out of Savings.--The funds to be used by the 
     head of an executive agency for repaying a loan shall be 
     derived as provided in section 323 from savings realized by 
     the agency through increases in the productivity of the 
     agency that result from the information innovation funded (in 
     whole or in part) by the loan. The Director shall prescribe 
     guidelines for computing the amount of the savings.

     SEC. 323. SAVINGS FROM INFORMATION INNOVATIONS.

       (a) Disposition of Savings.--Of the total amount saved by 
     an executive agency in a fiscal year through increases in the 
     productivity of the agency that result from information 
     innovations funded (in whole or in part) by loans from the 
     Innovation Loan Account 50 percent shall be credited to the 
     Innovation Loan Account in repayment of loans to the agency 
     from the Fund.
       (b) Employee Incentives.--The head of an executive agency 
     is authorized to pay monetary incentives to agency personnel 
     who made significant contributions to the achievement of 
     increases in agency productivity that resulted in the 
     savings.
       (c) Computation of Savings.--For purposes of this section, 
     the amount saved by an executive agency in a fiscal year as a 
     result of increases in the productivity of the agency that 
     are attributable to information innovations funded (in whole 
     or in part) by loans from the Innovation Loan Account shall 
     be computed by the head of the agency in consultation with 
     the chief information officer and chief financial officer of 
     the agency and [[Page S 8699]] in accordance with the 
     guidelines prescribed pursuant to section 322(c).

     SEC. 324. FUNDING.

       (a) Initial Capitalization.--The head of each executive 
     agency shall transfer to the Innovation Loan Account at the 
     beginning of each fiscal year for fiscal years 1996 through 
     2000 the amount equal to 5 percent of the total amount 
     available to that executive agency for such fiscal year for 
     information resources, as determined by the Chief Information 
     Officer of the United States.
       (b) Authorization of Appropriations.--There is authorized 
     to be appropriated to the Innovation Loan Account, to be 
     available without fiscal year limitation, such sums as may be 
     necessary for making loans authorized by section 321.
                     Subtitle C--Common Use Account

     SEC. 331. SUPPORT OF MULTIAGENCY ACQUISITIONS OF INFORMATION 
                   TECHNOLOGY.

       (a) In General.--Amounts in the Common Use Account shall be 
     available to the Director of the Office of Management and 
     Budget, without fiscal year limitation for the following 
     purposes:
       (1) Acquisitions of information technology to be used by 
     two or more executive agencies.
       (2) Expenses, including cost of personal services, incurred 
     for developing and implementing information technology for 
     support of two or more executive agencies.
       (b) Projects Funded.--The Director of the Office of 
     Management and Budget shall select for funding out of the 
     Common Use Account projects that are projected to meet the 
     following requirements:
       (1) Demonstrate the innovative use of information 
     technology to reorganize and improve work processes or to 
     integrate programs and link the information systems of 
     executive agencies.
       (2) Provide substantial benefits to the public, such as 
     improved dissemination of information, increased timeliness 
     in delivery of services, and increased quality of services.
       (3) Substantially lower the operating costs of two or more 
     executive agencies or programs.
       (c) Limitation of Funding.--Funding for a particular 
     project shall ordinarily be limited to two fiscal years.
       (d) Additional Requirement for Selection.--In addition to 
     meeting the requirements in subsection (b), the proposal for 
     a project shall include a transition plan for proceeding from 
     a pilot program or the initial stage of the project into 
     operation of the information technology. The transition plan 
     shall identify funding sources for the transition and for the 
     sustainment of operations.

     SEC. 332. FUNDING.

       (a) Initial Capitalization.--
       (1) Transfer of funds.--The initial capitalization of the 
     Common Use Account shall be accomplished by transfer of funds 
     under paragraph (2).
       (2) Amount and source.--For purposes of paragraph (1), the 
     Administrator of General Services shall transfer, out of the 
     Information Technology Fund established by section 110 of the 
     Federal Property and Administrative Services Act of 1949 (40 
     U.S.C. 757), the amount equal to the excess of--
       (A) the amount of the unobligated balance in that Fund, 
     over
       (B) the portion of that unobligated balance that the 
     Administrator, with the approval of the Director of the 
     Office of Management and Budget, determines is necessary to 
     retain for meeting the requirements of the fund for the 
     remainder of the fiscal year in which this Act takes effect 
     under section 1001(a) and the next fiscal year.
       (3) Termination of information technology fund.--Effective 
     at the end of the fiscal year immediately following the 
     fiscal year in which this Act takes effect under section 
     1001(a)--
       (A) section 110 of the Federal Property and Administrative 
     Services Act (40 U.S.C. 757) is repealed; and
       (B) the Information Technology Fund established by that 
     section is terminated.
       (b) Charges for Common Infrastructure Services.--The 
     Director of the Office of Management and Budget may impose on 
     executive agencies a charge for common infrastructure 
     services to fund the Common Use Account.
       (c) Authorization of Appropriations.--There is authorized 
     to be appropriated to the Common Use Account, to be available 
     without fiscal year limitation, such sums as may be necessary 
     to fund multiagency acquisitions of information technology.
                   Subtitle D--Other Fiscal Policies

     SEC. 341. LIMITATION ON USE OF FUNDS.

       Funds available to an executive agency for information 
     technology may not be expended for a proposed information 
     technology acquisition until the head of the agency certifies 
     in writing in the agency records of that acquisition that the 
     head of the agency has completed a review of the agency's 
     mission-related processes and administrative processes to be 
     supported by the proposed investment in information 
     technology and has established performance measurements for 
     determining improvements in agency performance.

     SEC. 342. SENSE OF CONGRESS.

       It is the sense of Congress that executive agencies should 
     achieve a 5 percent per year decrease in the cost incurred by 
     the agency for operating and maintaining information 
     technology, and a 5 percent per year increase in the 
     efficiency of the agency operations, by reason of 
     improvements in information resources management by the 
     agency.

     SEC. 343. REVIEW BY GAO AND INSPECTORS GENERAL.

       (a) Review Required.--During fiscal year 1996 and each of 
     the first four fiscal years following that fiscal year, the 
     Comptroller General of the United States and the Inspector 
     General of each executive agency or (in the case of an 
     executive agency that does not have an Inspector General) an 
     appropriate audit agency shall, in coordination with each 
     other, review the plans of the executive agency for 
     acquisitions of information technology, the information 
     technology acquisition programs being carried out by the 
     executive agency, and the information resources management of 
     the executive agency.
       (b) Purpose of Reviews.--The purpose of each of the reviews 
     of an executive agency is to determine, for each of the 
     agency's functional areas supported by information 
     technology, the following:
       (1) Whether the cost of operating and maintaining 
     information technology for the agency has decreased below the 
     cost incurred by the agency for operating and maintaining 
     information technology for the agency for fiscal year 1995 by 
     at least 5 percent (in constant fiscal year 1995 dollars) for 
     each of five fiscal years.
       (2) Whether, in terms of the applicable performance 
     measurements established by the head of the executive agency, 
     the efficiency of the operations of the agency has increased 
     over the efficiency of the operations of the agency in fiscal 
     year 1995 by at least 5 percent by reason of improvements in 
     information resources management by the agency for each of 
     five fiscal years.
      TITLE IV--INFORMATION TECHNOLOGY ACQUISITION PILOT PROGRAMS
                 Subtitle A--Conduct of Pilot Programs

     SEC. 401. REQUIREMENT TO CONDUCT PILOT PROGRAMS.

       (a) In general.--
       (1) Purpose.--The Chief Information Officer of the United 
     States shall conduct pilot programs in order to test 
     alternative approaches for acquisition of information 
     technology and other information resources by executive 
     agencies.
       (2) Multiagency, multi-activity conduct of each program.--
     Except as otherwise provided in this title, each pilot 
     program conducted under this title shall be carried out in 
     not more than two procuring activities in each of two 
     executive agencies designated by the Chief Information 
     Officer. The head of each designated executive agency shall, 
     with the approval of the Chief Information Officer, select 
     the procuring activities of the agency to participate in the 
     test and shall designate a procurement testing official who 
     shall be responsible for the conduct and evaluation of the 
     pilot program within the agency.
       (b) Limitations.--
       (1) Number.--Not more than five pilot programs shall be 
     conducted under the authority of this title, including one 
     pilot program each pursuant to the requirements of sections 
     421, 422, and 423, and two pilot programs pursuant to section 
     424.
       (2) Amount.--The total amount obligated for contracts 
     entered into under the pilot programs conducted under the 
     authority of this title may not exceed $1,500,000,000. The 
     Chief Information Officer shall monitor such contracts and 
     ensure that contracts are not entered into in violation of 
     the limitation in the preceding sentence.
       (c) Involvement of Federal Information Council.--The Chief 
     Information Officer may--
       (1) conduct pilot programs recommended by the Federal 
     Information Council; and
       (2) consult with the Federal Information Council regarding 
     development of pilot programs to be conducted under this 
     section.
       (d) Period of Programs.--
       (1) In general.--Subject to paragraph (2), the Chief 
     Information Officer shall conduct a pilot program for the 
     period, not in excess of five years, that is determined by 
     the Chief Information Officer to be sufficient to establish 
     reliable results.
       (2) Continuing validity of contracts.--A contract entered 
     into under the pilot program before the expiration of that 
     program shall remain in effect according to the terms of the 
     contract after the expiration of the program.

     SEC. 402. TESTS OF INNOVATIVE PROCUREMENT METHODS AND 
                   PROCEDURES.

       (a) In general.--The Chief Information Officer of the 
     United States shall exercise the authority of the 
     Administrator for Federal Procurement Policy under section 15 
     of the Office of Federal Procurement Policy Act (41 U.S.C. 
     413) with regard to the acquisition of information technology 
     and other information resources by executive agencies.
       (b) Relationship to Pilot Program Authority.--The authority 
     under paragraph (1) is in addition to the authority provided 
     in this title to conduct pilot programs. A test program 
     conducted under subsection (a), and each contract awarded 
     under such test program, are not subject to the limitations 
     on pilot programs provided in this title.

     SEC. 403. EVALUATION CRITERIA AND PLANS.

       (a) Measurable Test Criteria.--The Chief Information 
     Officer of the United States shall require the head of each 
     executive agency conducting a pilot program under section 401 
     or a test program under section [[Page S 8700]] 402 to 
     establish, to the maximum extent practicable, measurable 
     criteria for evaluating the effects of the procedures or 
     techniques to be tested under the program.
       (b) Test Plan.--Before a pilot program or a test program 
     may be conducted under section 401 or 402, respectively, the 
     Chief Information Officer shall submit to the Committee on 
     Governmental Affairs of the Senate and the Committee on 
     Government Reform and Oversight of the House of 
     Representatives a detailed test plan for the program, 
     including a detailed description of the procedures to be used 
     and a list of any regulations that are to be waived.

     SEC. 404. REPORT.

       (a) Requirement.--Not later than 180 days after the 
     completion of a pilot program conducted under this title or a 
     test program conducted under section 402, the Chief 
     Information Officer of the United States shall--
       (A) submit to the Director of the Office of Management and 
     Budget a report on the results and findings under the 
     program; and
       (B) provide a copy of the report to the Committee on 
     Governmental Affairs of the Senate and the Committee on 
     Government Reform and Oversight of the House of 
     Representatives.
       (b) Content.--The report shall include the following:
       (1) A detailed description of the results of the program, 
     as measured by the criteria established for the program.
       (2) A discussion of any legislation that the Chief 
     Information Officer recommends, or changes in regulations 
     that the Chief Information Officer considers necessary, in 
     order to improve overall information resources management 
     within the Federal Government.

     SEC. 405. RECOMMENDED LEGISLATION.

       If the Director of the Office of Management and Budget 
     determines that the results and findings under a pilot 
     program under this title indicate that legislation is 
     necessary or desirable in order to improve the process for 
     acquisition of information technology, the Director shall 
     transmit the Director's recommendations for such legislation 
     to the Committee on Governmental Affairs of the Senate and 
     the Committee on Government Reform and Oversight of the House 
     of Representatives.

     SEC. 406. RULE OF CONSTRUCTION.

       Nothing in this title shall be construed as authorizing the 
     appropriation or obligation of funds for the pilot programs 
     or test programs conducted pursuant to this title.
                  Subtitle B--Specific Pilot Programs

     SEC. 421. SHARE-IN-SAVINGS PILOT PROGRAM.

       (a) Requirement.--The Chief Information Officer of the 
     United States shall carry out a pilot program to test the 
     feasibility of--
       (1) contracting on a competitive basis with a private 
     sector source to provide the Federal Government with an 
     information technology solution for improving mission-related 
     or administrative processes of the Federal Government; and
       (2) paying the private sector source an amount equal to a 
     portion of the savings derived by the Federal Government from 
     any improvements in mission-related processes and 
     administrative processes that result from implementation of 
     the solution, as determined by the Chief Information Officer.
       (b) Program Contracts.--Up to five contracts for one 
     project each may be entered into under the pilot program.
       (c) Selection of Projects.--The projects shall be selected 
     by the Chief Information Officer from among projects 
     recommended by the Federal Information Council.

     SEC. 422. SOLUTIONS-BASED CONTRACTING PILOT PROGRAM.

       (a) In General.--The Chief Information Officer shall carry 
     out a pilot program to test the feasibility of the use of 
     solutions-based contracting for acquisition of information 
     technology.
       (b) Solutions-Based Contracting Defined.--For purposes of 
     this section, solutions-based contracting is an acquisition 
     method under which the Federal Government user of the 
     technology to be acquired defines the acquisition objectives, 
     uses a streamlined contractor selection process, and allows 
     industry sources to provide solutions that attain the 
     objectives effectively. The emphasis of the method is on 
     obtaining from industry an optimal solution.
       (c) Process.--The Chief Information Officer shall require 
     use of the following process for acquisitions under the pilot 
     program:
       (1) Acquisition plan emphasizing desired result.--
     Preparation of an acquisition plan that defines the 
     functional requirements of the intended users of the 
     information technology to be acquired, identifies the 
     operational improvement results to be achieved, and defines 
     the performance measurements to be applied in determining 
     whether the information technology acquired satisfies the 
     defined requirements and attains the identified results.
       (2) Results-oriented statement of work.--Use of a statement 
     of work that is limited to an expression of the end results 
     or performance capabilities desired under the acquisition 
     plan.
       (3) Small acquisition organization.--Assembly of small 
     acquisition organization consisting of the following:
       (A) An acquisition management team, the members of which 
     are to be evaluated and rewarded under the pilot program for 
     contributions toward attainment of the desired results 
     identified in the acquisition plan.
       (B) A small source selection team composed of 
     representatives in the specific mission or administrative 
     area to be supported by the information technology to be 
     acquired, a contracting officer, and persons with relevant 
     expertise.
       (4) Use of source selection factors emphasizing source 
     qualifications.--Use of source selection factors that are 
     limited to determining the qualifications of the offeror, 
     including such factors as personnel skills, previous 
     experience in providing other private or public sector 
     organizations with solutions for attaining objectives similar 
     to the objectives to be attained in the acquisition, past 
     contract performance, qualifications of the proposed program 
     manager, and the proposed management plan.
       (5) Open communications with contractor community.--Open 
     availability of the following information to potential 
     offerors:
       (A) The agency mission to be served by the acquisition.
       (B) The functional process to be performed by use of 
     information technology.
       (C) The process improvements to be attained.
       (6) Simple solicitation.--Use of a simple solicitation that 
     sets forth only the functional work description, source 
     selection factors, the required terms and conditions, 
     instructions regarding submission of offers, and the estimate 
     of the Federal Government's budget for the desired work.
       (7) Simple proposals.--Submission of oral proposals and 
     acceptance of written supplemental submissions that are 
     limited in size and scope and contain information on the 
     offeror's qualifications to perform the desired work together 
     with information of past contract performance.
       (8) Simple evaluation.--Use of a simple evaluation process, 
     to be completed within 45 days after receipt of proposals, 
     which consists of the following:
       (A) Identification of the offerors that are within the 
     competitive range of most of the qualified offerors.
       (B) Issuance of invitations for at least three and not more 
     than five of the identified offerors to make oral 
     presentations to, and engage in discussions with, the 
     evaluating personnel regarding the qualifications of the 
     offerors, including how the qualifications of each offeror 
     relate to the approaches proposed to be taken by the offeror 
     in the acquisition.
       (C) Evaluation of the qualifications of the identified 
     offerors on the basis of submissions required under the 
     process and any oral presentations made by, and any 
     discussions with, the offerors.
       (9) Selection of most qualified offeror.--A selection 
     process consisting of the following:
       (A) Identification of the most qualified source, and 
     ranking of alternative sources, primarily on the basis of the 
     oral proposals, presentations, and discussions, but taking 
     into consideration supplemental written submissions.
       (B) Conduct for 30 to 60 days of a program definition 
     phase, funded by the Federal Government--
       (i) during which the selected source, in consultation with 
     one or more intended users, develops a conceptual system 
     design and technical approach, defines logical phases for the 
     project, and estimates the total cost and the cost for each 
     phase; and
       (ii) after which a contract for performance of the work may 
     be awarded to that source on the basis of cost, the 
     responsiveness, reasonableness, and quality of the proposed 
     performance, and a sharing of risk and benefits between the 
     source and the Government.
       (C) Conduct of as many successive program definition phases 
     with the alternative sources (in the order ranked) as is 
     necessary in order to award a contract in accordance with 
     subparagraph (B).
       (10) System implementation phasing.--System implementation 
     to be executed in phases that are tailored to the solution, 
     with various contract arrangements being used, as 
     appropriate, for various phases and activities.
       (11) Mutual authority to terminate.--Authority for the 
     Federal Government or the contractor to terminate the 
     contract without penalty at the end of any phase defined for 
     the project.
       (12) Time management discipline.--Application of a standard 
     for awarding a contract within 60 to 90 days after issuance 
     of the solicitation.
       (d) Pilot Program Design.--
       (1) Joint public-private working group.--The Chief 
     Information Officer shall establish a joint working group of 
     Federal Government personnel and representatives of the 
     information technology industry to design a plan for conduct 
     of the pilot program.
       (2) Content of plan.--The plan shall provide for use of 
     solutions-based contracting in the Department of Defense and 
     not more than two other executive agencies for a total of--
       (A) 10 projects, each of which has an estimated cost of 
     between $25,000,000 and $100,000,000; and
       (B) 10 projects, each of which has an estimated cost of 
     between $1,000,000 and $5,000,000, to be set aside for small 
     business concerns.
       (3) Complexity of projects.--(A) Subject to subparagraph 
     (C), each acquisition project under the pilot program shall 
     be sufficiently complex to provide for meaningful evaluation 
     of the use of solutions-based contracting for acquisition of 
     information technology for executive agencies. [[Page S 
     8701]] 
       (B) In order for an acquisition project to satisfy the 
     requirement in subparagraph (A)--
       (i) the solution for attainment of the executive agency's 
     objectives under the project should not be obvious, but 
     rather shall involve a need for some innovative development; 
     and
       (ii) the project shall incorporate all elements of system 
     integration.
       (C) An acquisition project should not be so extensive or 
     lengthy as to result in undue delay in the evaluation of the 
     use of solutions-based contracting.
       (e) Use of Experienced Federal Personnel.--Only Federal 
     Government personnel who are experienced, and have 
     demonstrated success, in managing or otherwise performing 
     significant functions in complex acquisitions shall be used 
     for evaluating offers, selecting sources, and carrying out 
     the performance phases in an acquisition under the pilot 
     program.
       (f) Monitoring by GAO.--
       (1) Requirement.--The Comptroller General of the United 
     States shall--
       (A) monitor the conduct, and review the results, of 
     acquisitions under the pilot program; and
       (B) submit to Congress periodic reports containing the 
     views of the Comptroller General on the activities, results, 
     and findings under the pilot program.
       (2) Expiration of requirement.--The requirement under 
     paragraph (1)(B) shall terminate after submission of the 
     report that contains the final views of the Comptroller 
     General on the last of the acquisition projects completed 
     under the pilot program.

     SEC. 423. PILOT PROGRAM FOR CONTRACTING FOR PERFORMANCE OF 
                   ACQUISITION FUNCTIONS.

       (a) Requirement.--The Chief Information Officer of the 
     United States shall carry out a pilot program which provides 
     for the head of an executive agency, or an executive agent 
     acting for the head of an executive agency, to contract for 
     the performance of the contracting and program management 
     functions for an information technology acquisition for the 
     agency.
       (b) Participating Agencies.--The Chief Information Officer 
     shall select five executive agencies to participate, with the 
     consent of the head of the agency, in the pilot program.
       (c) Obligation of Funds To Be by Federal Officials.--Funds 
     of the United States may not be obligated by a contractor in 
     the performance of contracting or program management 
     functions of an executive agency under the pilot program.
       (d) GAO Review and Analysis.--The Comptroller General of 
     the United States shall--
       (1) monitor and review the results of the pilot program;
       (2) compare the use of contract personnel for performance 
     of the contracting and program management functions for an 
     information technology acquisition under the pilot program 
     with the use of agency personnel to perform such functions; 
     and
       (3) submit to the Committee on Governmental Affairs of the 
     Senate and the Committee on Government Reform and Oversight a 
     report on the comparison, including any conclusions of the 
     Comptroller General.

     SEC. 424. MAJOR ACQUISITIONS PILOT PROGRAMS.

       (a) Flexible Acquisitions Pilot Programs.--The Chief 
     Information Officer of the United States shall carry out two 
     pilot programs, one in the Department of Defense and one in 
     another executive agency, to test and demonstrate for use in 
     major information technology acquisition programs flexible 
     acquisition procedures that accommodate the following during 
     the conduct of the acquisition:
       (1) Continuous refinement of--
       (A) the agency information architecture for which the 
     information technology is being procured; and
       (B) the requirements to be satisfied by such technology 
     within that information architecture.
       (2) Incremental development of system capabilities.
       (3) Integration of new technology as it becomes available.
       (4) Rapid fielding of effective systems.
       (5) Completion of the operational increments of the 
     acquisition within 18 months (subject to supplementation or 
     further evolution of the agency information system through 
     follow-on procurements).
       (b) Covered Acquisition Programs.--Each pilot program shall 
     involve one acquisition of information technology that 
     satisfies the following requirements:
       (1) The acquisition is in an amount greater than 
     $100,000,000, but the amount of the increments of the 
     acquisition covered by the pilot program does not exceed 
     $300,000,000.
       (2) The information technology is to be procured for 
     support of one or more agency processes or missions that have 
     been, or are being, reevaluated and substantially revised to 
     improve the efficiency with which the agency performs agency 
     missions or delivers services.
       (3) The acquisition is to be conducted as part of a 
     sustained effort of the executive agency concerned to attain 
     a planned overall information architecture for the agency 
     that is designed to support improved performance of the 
     agency missions and improved delivery of services.
       (4) The acquisition program provides for an evolution of an 
     information system that is guided by the overall information 
     architecture planned for the agency.
       (5) The acquisition is being conducted with a goal of 
     completing two or more major increments in the evolution of 
     the agency's information system within a 3-year period.
       (c) Waiver of Procurement Laws.--
       (1) Waiver authority.--The head of an executive agency 
     carrying out a pilot program under this section may, with the 
     approval of the Chief Information Officer of the United 
     States, waive any provision of procurement law referred to in 
     paragraph (2) to the extent that the head of the agency 
     considers necessary to carry out the pilot program in 
     accordance with this section.
       (2) Covered procurement laws.--The waiver authority under 
     paragraph (1) applies to the following procurement laws:
       (A) Title III of the Federal Property and Administrative 
     Services Act of 1949 (41 U.S.C. 251 et seq.).
       (B) Chapter 137 of title 10, United States Code.
       (C) The Office of Federal Procurement Policy Act (41 U.S.C. 
     401 et seq.).
       (D) Sections 8, 9, and 15 of the Small Business Act (15 
     U.S.C. 637, 638, and 644).
       (E) Any provision of law that, pursuant to section 34 of 
     the Office of Federal Procurement Policy Act (41 U.S.C. 430), 
     is listed in the Federal Acquisition Regulation as being 
     inapplicable--
       (i) to contracts for the procurement of commercial items; 
     or
       (ii) in the case of a subcontract under the pilot program, 
     to subcontracts for the procurement of commercial items.
       (F) Any other provision of law that imposes requirements, 
     restrictions, limitations, or conditions on Federal 
     Government contracting (other than a limitation on use of 
     appropriated funds), as determined by the Chief Information 
     Officer of the United States.
       (d) OMB Involvement.--
       (1) In general.--The Chief Information Officer of the 
     United States shall closely and continuously monitor the 
     conduct of the pilot programs carried out under this section.
       (2) Assignment of omb personnel to program team.--In order 
     to carry out paragraph (1) effectively, the Chief Information 
     Officer of the United States shall assign one or more 
     representatives to the acquisition program management team 
     for each pilot program.
       (e) Termination of Pilot Program for Unsatisfactory 
     Performance.--The Chief Information Officer of the United 
     States shall terminate a pilot program under this section at 
     any time that the Chief Information Officer determines that 
     the acquisition under the program has failed to a significant 
     extent to satisfy cost, schedule, and performance 
     requirements established for the acquisition.
       (f) Reports to Congress.--
       (1) Requirement.--The Director of the Office of Management 
     and Budget shall submit to Congress reports on each pilot 
     program carried out under this section as follows:
       (A) An interim report upon the completion of each increment 
     of the acquisition under the pilot program.
       (B) A final report upon completion of the pilot program.
       (2) Content of final report.--The final report on a pilot 
     program shall include any recommendations for waiver of the 
     applicability of procurement laws to further evolution of 
     information systems acquired under the pilot program.
        TITLE V--OTHER INFORMATION RESOURCES MANAGEMENT REFORMS

     SEC. 501. TRANSFER OF RESPONSIBILITY FOR FACNET.

       Section 30 of the Office of Federal Procurement Policy Act 
     (41 U.S.C. 426) is amended--
       (1) in subsection (a), by striking out ``Administrator'' 
     the first place it appears inserting in lieu thereof ``Chief 
     Information Officer of the United States''; and
       (2) by striking out ``Administrator'' each place it appears 
     and inserting in lieu thereof ``Chief Information Officer''.

     SEC. 502. ON-LINE MULTIPLE AWARD SCHEDULE ORDERING.

       (a) Development and Implementation of System Designs.--In 
     order to provide for the economic and efficient procurement 
     of commercial information technology, the Chief Information 
     Officer of the United States shall establish competing 
     programs for the development and testing of up to three 
     system designs for providing for Governmentwide, on-line 
     computer purchasing of commercial items of information 
     technology.
       (b) Required System Capabilities.--Each of the system 
     designs shall be established as an element of the Federal 
     acquisition computer network (FACNET) architecture and shall, 
     at a minimum--
       (1) provide basic information on the prices, features, and 
     performance of all commercial items of information technology 
     available for purchasing;
       (2) provide for updating that information to reflect 
     changes in prices, features, and performance as soon as 
     information on the changes becomes available;
       (3) enable users to make on-line computer comparisons of 
     the prices, features, and performance of similar products and 
     services offered by various vendors;
       (4) enable users to place, and vendors to receive, on-line 
     computer orders for products and services available for 
     purchasing;
       (5) enable ordering users to make payments to vendors by 
     bank card, electronic funds transfer, or other automated 
     methods in cases in which it is practicable and in the 
     interest of the Federal Government to do so; and [[Page S 
     8702]] 
       (6) archive data relating to each order placed against 
     multiple award schedule contracts using such system, 
     including, at a minimum, data on--
       (A) the agency or office placing the order;
       (B) the vendor receiving the order;
       (C) the products or services ordered; and
       (D) the total price of the order.
       (c) Use of Systems.--Under guidelines and procedures 
     prescribed pursuant to subsection (d), the head of an 
     executive agency may use a system developed and tested under 
     this section to make purchases in a total amount of not more 
     than $5,000,000 for each order.
       (d) Guidelines and Procedures.--The Chief Information 
     Officer shall prescribe guidelines and procedures for making 
     purchases authorized by subsection (c). The guidelines and 
     procedures shall ensure that orders placed on the system 
     referred to in that subsection do not place any requirements 
     on vendors that are not customary for transactions involving 
     sales of the purchased commodities to private sector 
     purchasers.
       (e) Report to Congress.--Not later than one year after the 
     date of the enactment of this Act, the Chief Information 
     Officer shall submit to Congress a report on the Chief 
     Information Officer's decision on implementation of an 
     electronic marketplace for information technology. The report 
     shall contain a description of the results of the programs 
     established under subsection (a).
     SEC. 503. UPGRADING INFORMATION EQUIPMENT IN AGENCY FIELD 
                   OFFICES.

       (a) Authority To Use Micro-Purchase Procedures.--Under the 
     authority, direction, and control of the head of an executive 
     agency and subject to subsection (b), the head of a field 
     office of that agency may use micro-purchase procedures to 
     procure up to $20,000 of upgrades for the computer equipment 
     of that office each year in increments not exceeding $2,500 
     each. Procurements within that limitation shall not be 
     counted against the $20,000 annual limitation provided under 
     section 32(c)(2) of the Office of Federal Procurement Policy 
     Act (41 U.S.C. 428(c)(2)).
       (b) Certification Requirement.--The head of a field office 
     may procure an upgrade for computer equipment in accordance 
     with subsection (a) only if the head of the field office 
     determines in writing that the cost of the upgrade does not 
     exceed 50 percent of the cost of purchasing replacement 
     equipment for the equipment to be upgraded. The head of the 
     field office shall include a written record of the 
     determination in the agency records of the procurement.
       (c) Micro-Purchase Procedures Defined.--In this section, 
     the term ``micro-purchase procedures'' means the procedures 
     prescribed under section 32 of the Office of Federal 
     Procurement Policy Act (41 U.S.C. 428) for purchases not in 
     excess of the micro-purchase threshold (as defined in that 
     section).
     SEC. 504. DISPOSAL OF EXCESS COMPUTER EQUIPMENT.

       (a) Authority To Donate.--The head of an executive agency 
     may, without regard to the procedures otherwise applicable 
     under title II of the Federal Property and Administrative 
     Services Act of 1949 (40 U.S.C. 481 et seq.), convey without 
     consideration all right, title, and interest of the United 
     States in any computer equipment under the control of such 
     official that is determined under title II of such Act as 
     being excess property or surplus property to a recipient in 
     the following order of priority:
       (1) Elementary and secondary schools under the jurisdiction 
     of a local educational agency and schools funded by the 
     Bureau of Indian Affairs.
       (2) Public libraries.
       (3) Public colleges and universities.
       (b) Inventory Required.--Upon the enactment of this Act, 
     the head of an executive agency shall inventory all computer 
     equipment under the control of that official and identify in 
     accordance with title II of the Federal Property and 
     Administrative Services Act of 1949 (40 U.S.C. 481 et seq.) 
     the equipment, if any, that is excess property or surplus 
     property.
       (c) Definitions.--In this section:
       (1) The terms ``excess property'' and ``surplus property'' 
     have the meanings given such terms in section 3 of the 
     Federal Property and Administrative Services Act of 1949 (40 
     U.S.C. 472).
       (2) The terms ``local educational agency'', ``elementary 
     school'', and ``secondary school'' have the meanings given 
     such terms in section 14101 of the Elementary and Secondary 
     Education Act of 1965 (20 U.S.C. 8801).

     SEC. 505. LEASING INFORMATION TECHNOLOGY.

       (a) Analysis by GAO.--The Comptroller General of the United 
     States shall perform a comparative analysis of--
       (1) the costs and benefits of purchasing new information 
     technology for executive agencies;
       (2) the costs and benefits of leasing new information 
     technology for executive agencies;
       (3) the costs and benefits of leasing used information 
     technology for executive agencies; and
       (4) the costs and benefits of purchasing used information 
     technology.
       (b) Leasing Guidelines.--Based on the analysis, the 
     Comptroller General shall develop recommended guidelines for 
     leasing information technology for executive agencies.

     SEC. 506. CONTINUATION OF ELIGIBILITY OF CONTRACTOR FOR AWARD 
                   OF INFORMATION TECHNOLOGY CONTRACT AFTER 
                   PROVIDING DESIGN AND ENGINEERING SERVICES.

       Notwithstanding any other provision of law, a contractor 
     that provides architectural design and engineering services 
     for an information system under an information technology 
     program of an executive agency is not, solely by reason of 
     having provided such services, ineligible for award of a 
     contract for procurement of information technology under that 
     program or for a subcontract under such a contract.

     SEC. 507. ENHANCED PERFORMANCE INCENTIVES FOR INFORMATION 
                   TECHNOLOGY ACQUISITION WORKFORCE.

       (a) Armed Services Acquisitions.--
       (1) Clarification of requirements for system of 
     incentives.--Subsection (b) of section 5001 of the Federal 
     Acquisition Streamlining Act of 1994 (Public Law 103-355; 108 
     Stat. 3350; 10 U.S.C. 2220 note) is amended--
       (A) by redesignating paragraphs (1) and (2) as 
     subparagraphs (A) and (B), respectively;
       (B) by designating the second sentence as paragraph (2);
       (C) by inserting ``(1)'' after ``(b) Enhanced System of 
     Performance Incentives.--''; and
       (D) by adding at the end the following:
       ``(3) The Secretary shall include in the enhanced system of 
     incentives, to the extent that the system applies with 
     respect to programs for the acquisition of information 
     technology (as defined in section 4 of the Information 
     Technology Management Reform Act of 1995), the following:
       ``(A) Pay bands.
       ``(B) Significant and material pay and performance 
     incentives to be awarded, and significant and material 
     unfavorable personnel actions to be imposed, under the system 
     exclusively, or primarily, on the basis of the contributions 
     of personnel to the performance of the information technology 
     acquisition program in relation to cost goals, performance 
     goals, and schedule goals.
       ``(C) Provisions for pay incentives and performance 
     incentives to be awarded under the system only if--
       ``(i) the cost of the information technology acquisition 
     program is less than 90 percent of the baseline established 
     for the cost of the program;
       ``(ii) the period for completion of the information 
     technology program is less than 90 percent of the period 
     provided under the baseline established for the program 
     schedule; and
       ``(iii) the results of the phase of the information 
     technology program being executed exceed the performance 
     baselines established for the system by more than 10 percent.
       ``(D) Provisions for unfavorable personnel actions to be 
     taken under the system only if the information technology 
     acquisition program performance for the phase being executed 
     exceeds by more than 10 percent the cost and schedule 
     parameters established for the program phase and the 
     performance of the system acquired or to be acquired under 
     the program fails to achieve at lease 90 percent of the 
     baseline goals established for performance of the program.''.
       (2) Recommended legislation.--Subsection (c) of such 
     section is amended by adding at the end the following: ``The 
     Secretary shall include in the recommendations provisions 
     necessary to implement the requirements of subsection 
     (b)(3).''.
       (3) Implementation of incentives system.--Section 5001 of 
     the Federal Acquisition Streamlining Act of 1994 is further 
     amended by adding at the end the following:
       ``(d) Implementation of Incentives System.--(1) The 
     Secretary shall complete the review required by subsection 
     (b) and take such actions as are necessary to provide an 
     enhanced system of incentives in accordance with such 
     subsection not later than October 1, 1997.
       ``(2) Not later than October 1, 1996, the Secretary shall 
     submit to the Committees on Armed Services and on 
     Governmental Affairs of the Senate and the Committees on 
     National Security and on Government Reform and Oversight of 
     the House of Representatives a report on the actions taken to 
     satisfy the requirements of paragraph (1).''.
       (b) Civilian Agency Acquisitions.--
       (1) Clarification of requirements for system of 
     incentives.--Subsection (b) of section 5051 of the Federal 
     Acquisition Streamlining Act of 1994 (Public Law 103-355; 108 
     Stat. 3351; 41 U.S.C. 263 note) is amended--
       (A) by redesignating paragraphs (1) and (2) as 
     subparagraphs (A) and (B), respectively;
       (B) by designating the second sentence as paragraph (2);
       (C) by inserting ``(1)'' after ``(b) Enhanced System of 
     Performance Incentives.--''; and
       (D) by adding at the end the following:
       ``(3) The Deputy Director shall include in the enhanced 
     system of incentives, to the extent that the system applies 
     with respect to programs for the acquisition of information 
     technology (as defined in section 4 of the Information 
     Technology Management Act of 1995), the following:
       ``(A) Pay bands.
       ``(B) Significant and material pay and performance 
     incentives to be awarded, and significant and material 
     unfavorable personnel actions to be imposed, under the system 
     exclusively, or primarily, on the basis of the contributions 
     of personnel to the performance of the information technology 
     acquisition program in relation to cost goals, performance 
     goals, and schedule goals.
       ``(C) Provisions for pay incentives and performance 
     incentives to be awarded under the system only if--
       ``(i) the cost of the information technology acquisition 
     program is less than 90 percent of [[Page S 8703]] the amount 
     established as the cost goal for the program under section 
     313 of the Federal Property and Administrative Services Act 
     of 1949 (41 U.S.C. 263);
       ``(ii) the period for completion of the program is less 
     than 90 percent of the period established as the schedule 
     goal for the program under such section; and
       ``(iii) the results of the phase of the program being 
     executed exceed the performance goal established for the 
     program under such section by more than 10 percent.
       ``(D) Provisions for unfavorable personnel actions to be 
     taken under the system only if the information technology 
     acquisition program performance for the phase being executed 
     exceeds by more than 10 percent the cost and schedule goals 
     established for the program phase under section 313 of the 
     Federal Property and Administrative Services Act of 1949 (41 
     U.S.C. 263) and the performance of the system acquired or to 
     be acquired under the program fails to achieve at lease 90 
     percent of the performance goal established for the program 
     under such section.''.
       (2) Recommended legislation.--Subsection (c) of such 
     section is amended by adding at the end the following: ``The 
     Deputy Director shall include in the recommendations 
     provisions necessary to implement the requirements of 
     subsection (b)(3).''.
       (3) Implementation of incentives system.--Section 5051 of 
     the Federal Acquisition Streamlining Act of 1994 is further 
     amended by adding at the end the following:
       ``(d) Implementation of Incentives System.--(1) The Deputy 
     Director shall complete the review required by subsection (b) 
     and take such actions as are necessary to provide an enhanced 
     system of incentives in accordance with such subsection not 
     later than October 1, 1997.
       ``(2) Not later than October 1, 1996, the Deputy Director 
     shall submit to the Committee on Governmental Affairs of the 
     Senate and the Committee on Government Reform and Oversight 
     of the House of Representatives a report on the actions taken 
     to satisfy the requirements of paragraph (1).''.
  TITLE VI--ACTIONS REGARDING CURRENT INFORMATION TECHNOLOGY PROGRAMS

     SEC. 601. PERFORMANCE MEASUREMENTS.

       (a) Implementation of Requirement for Performance 
     Measurements.--The chief information officer of an executive 
     agency shall ensure that performance measurements are 
     prescribed for each significant current information 
     technology acquisition program of the agency.
       (b) Quality of Measurements.--The performance measurements 
     shall be sufficient to provide--
       (1) the head of the executive agency with adequate 
     information for making determinations for purposes of 
     subsections (b)(2) and (c)(2) of section 146; and
       (2) the Director of the Office of Management and Budget 
     with adequate information for making determinations for 
     purposes of paragraphs (1)(B) and (2)(B) of section 123(g).

     SEC. 602. INDEPENDENT ASSESSMENT OF PROGRAMS.

       (a) Assessment Required.--The head of each executive agency 
     shall provide for an assessment to be made of each of the 
     current information technology acquisition programs of the 
     agency that exceed $100,000,000.
       (b) Independence of Assessment.--The head of the executive 
     agency shall provide for the assessment to be carried out by 
     the Inspector General of the agency (in the case of an agency 
     having an Inspector General), a contractor, or another entity 
     who is independent of the head of the executive agency.
       (c) Purposes.--The purposes of the assessment of a program 
     are to determine the following:
       (1) To determine the status of the program in terms of 
     performance objectives and cost and schedule baselines.
       (2) To identify any need or opportunity for improving the 
     process to be supported by the program.
       (3) To determine the potential for use of the information 
     technology by other executive agencies on a shared basis or 
     otherwise.
       (4) To determine the adequacy of the program plan, the 
     architecture of the information technology being acquired, 
     and the program management.

     SEC. 603. CURRENT INFORMATION TECHNOLOGY ACQUISITION PROGRAM 
                   DEFINED.

       For purposes of this title, a current information 
     technology acquisition program is--
       (1) an information technology acquisition program being 
     carried out on the date of the enactment of this Act; and
       (2) any other information technology acquisition program 
     that is carried out through any contract entered into on the 
     basis of offers received in response to a solicitation of 
     offers issued before such date.
  TITLE VII--PROCUREMENT PROTEST AUTHORITY OF THE COMPTROLLER GENERAL

     SEC. 701. REMEDIES.

       Section 3554(b) of title 31, United States Code, is amended 
     by adding at the end the following:
       ``(4) If the Comptroller General makes a determination 
     described in paragraph (1) in the case of a protest in a 
     procurement of information technology, the Comptroller 
     General may submit to the Chief Information Officer of the 
     United States a recommendation to suspend the procurement 
     authority of a Federal agency for the protested 
     procurement.''.

     SEC. 702. PERIOD FOR PROCESSING PROTESTS.

       Section 3554(a) of title 31, United States Code, is 
     amended--
       (1) in paragraph (1), by striking out ``paragraph (2)'' in 
     the second sentence and inserting in lieu thereof 
     ``paragraphs (2) and (5)''; and
       (2) by adding at the end the following:
       ``(5)(A) The requirements and restrictions set forth in 
     this paragraph apply in the case of a protest in a 
     procurement of information technology.
       ``(B) The Comptroller General shall issue a final decision 
     concerning a protest referred to in subparagraph (A) within 
     45 days after the date the protest is submitted to the 
     Comptroller General.
       ``(C) The disposition under this subchapter of a protest in 
     a procurement referred to in subparagraph (A) bars any 
     further protest under this subchapter by the same interested 
     party on the same procurement.''.

     SEC. 703. DEFINITION.

       Section 3551 of title 31, United States Code, is amended by 
     adding at the end the following:
       ``(4) The term `information technology' has the meaning 
     given that term in section 4 of the Information Technology 
     Management Reform Act of 1995.''.
 TITLE VIII--RELATED TERMINATIONS, CONFORMING AMENDMENTS, AND CLERICAL 
                               AMENDMENTS
                    Subtitle A--Related Terminations

     SEC. 801. OFFICE OF INFORMATION AND REGULATORY AFFAIRS.

       The Office of Information and Regulatory Affairs in the 
     Office of Management and Budget is terminated.

     SEC. 802. SENIOR INFORMATION RESOURCES MANAGEMENT OFFICIALS.

       In each executive agency for which a chief information 
     officer is designated under section 143(a), the designation 
     of a senior information resources management official under 
     section 3506(a)(2) of title 44, United States Code, is 
     terminated.
                   Subtitle B--Conforming Amendments

     SEC. 811. AMENDMENTS TO TITLE 10, UNITED STATES CODE.

       (a) Multiyear Contracts.--Section 2306b(k) of title 10, 
     United States Code, is amended by striking out ``property to 
     which section 111 of the Federal Property and Administrative 
     Services Act of 1949 (40 U.S.C. 759) applies'' and inserting 
     in lieu thereof ``information technology (as defined in 
     section 4 of the Information Technology Management Reform Act 
     of 1995''.
       (b) Sensitive Defense Activities.--Section 2315 of such 
     title is repealed.

     SEC. 812. AMENDMENTS TO TITLE 28, UNITED STATES CODE.

       Section 612 of title 28, United States Code, is amended--
       (1) in subsection (f), by striking out ``section 111 of the 
     Federal Property and Administrative Services Act of 1949 (40 
     U.S.C. 759)'' and inserting in lieu thereof ``the provisions 
     of law, policies, and regulations applicable to executive 
     agencies under the Information Technology Management Reform 
     Act of 1995'';
       (2) in subsection (g), by striking out ``sections 111 and 
     201 of the Federal Property and Administrative Services Act 
     of 1949 (40 U.S.C. 481 and 759)'' and inserting in lieu 
     thereof ``section 201 of the Federal Property and 
     Administrative Services Act of 1949 (40 U.S.C. 481)'';
       (3) by striking out subsection (l); and
       (4) by redesignating subsection (m) as subsection (l).

     SEC. 813. AMENDMENTS TO TITLE 31, UNITED STATES CODE.

       (a) Availability of Funds Following Resolution of a 
     Protest.--Section 1558(b) of title 31, United States Code, is 
     amended by striking out ``or under section 111(f) of the 
     Federal Property and Administrative Services Act of 1949 (40 
     U.S.C. 759(f))''.
       (b) GAO Procurement Protest System.--Section 3552 of such 
     title is amended by striking out the second sentence.

     SEC. 814. AMENDMENTS TO TITLE 38, UNITED STATES CODE.

       Section 310 of title 38, United States Code,is amended to 
     read as follows:

     ``Sec. 310. Chief information officer

       ``(a) The Secretary shall designate a chief information 
     officer for the Department in accordance with section 143(a) 
     of the Information Technology Management Reform Act of 1995.
       ``(b) The chief information officer shall perform the 
     duties provided for chief information officers of executive 
     agencies under the Information Technology Management Reform 
     Act of 1995.''.

     SEC. 815. PROVISIONS OF TITLE 44, UNITED STATES CODE, AND 
                   OTHER LAWS RELATING TO CERTAIN JOINT COMMITTEES 
                   OF CONGRESS.

       (a) Joint Committee on Information.--
       (1) Replacement of joint committee on printing.--Chapter 1 
     of title 44, United States Code, is amended by striking out 
     the chapter heading and all that follows through the heading 
     for section 103 and inserting in lieu thereof the following:
              ``CHAPTER 1--JOINT COMMITTEE ON INFORMATION
``Sec.
``101. Joint Committee on Information.
``102. Remedial powers.
     ``Sec. 101. Joint Committee on Information

       ``There is a Joint Committee on Information established by 
     section 101 of the Information Technology Management Reform 
     Act of 1995.
     [[Page S 8704]]
     
     ``Sec. 102. Remedial powers''.

       (2) References to joint committee.--The provisions of title 
     44, United States Code, are amended by striking out ``Joint 
     Committee on Printing'' each place it appears and inserting 
     in lieu thereof ``Joint Committee on Information''.
       (b) References to Joint Committee of Congress on the 
     Library.--
       (1) Miscellaneous references.--Section 82 of the Revised 
     Statutes (2 U.S.C. 132a), section 203(i) of the Legislative 
     Reorganization Act of 1946 (2 U.S.C. 166(i)), section 1831 of 
     the Revised Statutes (40 U.S.C. 188), and section 801(b)(2) 
     of Public Law 100-696 (102 Stat. 4608; 40 U.S.C. 188a(b)(2)) 
     are amended by striking out ``Joint Committee of Congress on 
     the Library'' and inserting in lieu thereof ``Joint Committee 
     on Information''.
       (2) Superseded provision.--Section 223 of the Legislative 
     Reorganization Act of 1946 (2 U.S.C. 132b) is repealed.
       (3) Continuation of authority.--Section 2 of the Act of 
     March 3, 1883 (22 Stat. 587) is amended under the heading 
     ``SENATE.'' by striking out the undesignated paragraph 
     relating to the exercise of powers and discharge of duties of 
     the Joint Committee of Congress upon the Library by the 
     Senate members of the joint committee during the recess of 
     Congress (22 Stat. 592; 2 U.S.C. 133).
       (c) Other References.--A reference to a joint committee of 
     Congress terminated by section 102(d) in any law or in any 
     document of the Federal Government shall be deemed to refer 
     to the Joint Committee on Information established by section 
     101.

     SEC. 816. PROVISIONS OF TITLE 44, UNITED STATES CODE, 
                   RELATING TO PAPERWORK REDUCTION.

       (a) Definition.--Section 3502 of title 44, United States 
     Code, is amended by striking out paragraph (9) and inserting 
     in lieu thereof the following:
       ``(9) the term `information technology' has the meaning 
     given that term in section 4 of the Information Technology 
     Management Reform Act of 1995;''.
       (b) Office of Information and Regulatory Affairs.--Chapter 
     35 of such title is amended--
       (1) by striking out section 3503 and inserting in lieu 
     thereof the following:

     ``Sec. 3503. Chief Information Officer of the United States

       ``The Director of the Office of Management and Budget shall 
     delegate to the Chief Information Officer of the United 
     States the authority to administer all functions under this 
     chapter, except that any such delegation shall not relieve 
     the Director of responsibility for the administration of such 
     functions.''; and
       (2) by striking out section 3520.
       (c) Development of Standards and Guidelines by NIST.--
     Section 3504(h)(1)(B) of such title is amended by striking 
     out ``section 111(d) of the Federal Property and 
     Administrative Services Act of 1949 (40 U.S.C. 759(d))'' and 
     inserting in lieu thereof ``paragraphs (2) and (3) of section 
     20(a) of the National Institute of Standards and Technology 
     Act (20 U.S.C. 278g-3(a))''.
       (d) Compliance With Directives.--Section 3504(h)(2) of such 
     title is amended by striking out ``sections 110 and 111 of 
     the Federal Property and Administrative Services Act of 1949 
     (40 U.S.C. 757 and 759)'' and inserting in lieu thereof ``the 
     Information Technology Management Reform Act of 1995 and 
     directives issued under section 110 of the Federal Property 
     and Administrative Services Act of 1949 (40 U.S.C. 757)''.
       (e) Senior Information Resources Management Officials.--
     Section 3506(a)(2) of such title is amended--
       (1) in subparagraph (A), by striking out ``subparagraph 
     (B)'' and inserting in lieu thereof ``subparagraphs (B) and 
     (C)''; and
       (2) by adding at the end the following:
       ``(C) An agency for which a chief information officer is 
     designated under section 143(a) of the Information Technology 
     Management Reform Act of 1995 may not designate a senior 
     official under this paragraph.''.

     SEC. 817. AMENDMENT TO TITLE 49, UNITED STATES CODE.

       Section 40112(a) of title 49, United States Code, is 
     amended by striking out ``or a contract to purchase property 
     to which section 111 of the Federal Property and 
     Administrative Services Act of 1949 (40 U.S.C. 759) 
     applies''.

     SEC. 818. OTHER LAWS.

       (a) Computer Security Act of 1987.--Section 2(b)(2) of the 
     Computer Security Act of 1987 (Public Law 100-235; 101 Stat. 
     1724) is amended by striking out ``by amending section 111(d) 
     of the Federal Property and Administrative Services Act of 
     1949 (40 U.S.C. 759(d))''.
       (b) Public Law 101-520.--Section 306(b) of Public Law 101-
     520 (40 U.S.C. 166 note) is amended by striking out paragraph 
     (1) and inserting in lieu thereof the following:
       ``(1) the Information Technology Management Reform Act of 
     1995; and''.
       (c) National Energy Conservation Policy Act.--Section 
     801(b)(3) of the National Energy Conservation Policy Act (42 
     U.S.C. 8287(b)(3)) is amended by striking out the second 
     sentence.
       (d) National Security Act of 1947.--Section 3 of the 
     National Security Act of 1947 (50 U.S.C. 403c) is amended by 
     striking out subsection (e).
                    Subtitle B--Clerical Amendments

     SEC. 821. AMENDMENT TO TITLE 10, UNITED STATES CODE.

       The table of sections at the beginning of chapter 137 of 
     title 10, United States Code, is amended by striking out the 
     item relating to section 2315.

     SEC. 822. AMENDMENT TO TITLE 38, UNITED STATES CODE.

       The table of sections at the beginning of chapter 3 of 
     title 38, United States Code, is amended by striking out the 
     item relating to section 310 and inserting in lieu thereof 
     the following:

``310. Chief information officer.''.
     SEC. 823. AMENDMENTS TO TITLE 44, UNITED STATES CODE.

       (a) Chapter 1.--The item relating to chapter 1 in the table 
     of chapters at the beginning of title 44, United States Code, 
     is amended to read as follows:

``1. Joint Committee on Information..........................101''.....
       (b) Chapter 35.--The table of sections at the beginning of 
     chapter 35 of such title is amended--
       (1) by striking out the item relating to section 3503 and 
     inserting in lieu thereof the following:

``3503. Chief Information Officer of the United States.'';

     and
       (2) by striking out the item relating to section 3520.
                      TITLE IX--SAVINGS PROVISIONS

     SEC. 901. SAVINGS PROVISIONS.

       (a) Regulations, Instruments, Rights, and Privileges.--All 
     rules, regulations, contracts, orders, determinations, 
     permits, certificates, licenses, grants, and privileges--
       (1) which have been issued, made, granted, or allowed to 
     become effective by the Administrator of General Services or 
     the General Services Administration Board of Contract 
     Appeals, or by a court of competent jurisdiction, in 
     connection with an acquisition activity carried out under the 
     section 111 of the Federal Property and Administrative 
     Services Act of 1949 (40 U.S.C. 759), and
       (2) which are in effect on the effective date of this 
     title,

     shall continue in effect according to their terms until 
     modified, terminated, superseded, set aside, or revoked in 
     accordance with law by the Director of the Office of 
     Management and Budget, the Chief Information Officer of the 
     United States, any other authorized official, by a court of 
     competent jurisdiction, or by operation of law.
       (b) Proceedings and Applications.--
       (1) Transfers of functions not to affect proceedings.--This 
     Act and the amendments made by this Act shall not affect any 
     proceeding, including any proceeding involving a claim or 
     application, in connection with an acquisition activity 
     carried out under section 111 of the Federal Property and 
     Administrative Services Act of 1949 (40 U.S.C. 759) that is 
     pending before the Administrator of General Services or the 
     General Services Administration Board of Contract Appeals on 
     the effective date of this Act.
       (2) Orders in proceedings.--Orders may be issued in any 
     such proceeding, appeals may be taken therefrom, and payments 
     may be made pursuant to such orders, as if this Act had not 
     been enacted. An order issued in any such proceeding shall 
     continue in effect until modified, terminated, superseded, or 
     revoked by the Director of the Office of Management and 
     Budget, the Chief Information Officer of the United States, 
     or any other authorized official, by a court of competent 
     jurisdiction, or by operation of law.
       (3) Discontinuance or modification of proceedings not 
     prohibited.--Nothing in this subsection prohibits the 
     discontinuance or modification of any such proceeding under 
     the same terms and conditions and to the same extent that 
     such proceeding could have been discontinued or modified if 
     this Act had not been enacted.
       (4) Regulations for transfer of proceedings.--The Director 
     of the Office of Management and Budget may prescribe 
     regulations providing for the orderly transfer of proceedings 
     continued under paragraph (1).
                        TITLE X--EFFECTIVE DATES
     SEC. 1001. EFFECTIVE DATES.

       (a) In General.--Except as provided in subsection (b), this 
     Act and the amendments made by this Act shall take effect one 
     year after the date of the enactment of this Act.
       (b) Title VI.--Title VI shall take effect on the date of 
     the enactment of this Act.
                                                                    ____

      Synopsis of the Information Technology Management Reform Act

       The Act reflects the growing importance that information 
     resources management plays in contributing to efficient 
     government operations and provides more appropriate 
     procedures for the procurement of information technology 
     given today's realities. The Act places focus on the 
     management of information technology as well as the processes 
     supported by that technology, rather than simply on the 
     procedures and process used to acquire information 
     technology. Key features of this bill include the 
     establishment of a national Chief Information Officer (CIO) 
     within the Office of Management and Budget, creation of CIOs 
     within each executive agency; simplification of the 
     acquisition process; and emphasis on improving mission-
     related and administrative processes before acquiring 
     information technology or automation. There are 10 titles to 
     the bill which are summarized below.
       Title I (Responsibility for Acquisition of Information 
     Technology) contains Subtitle A (General Authority) repeals 
     the Brooks Act and provides the heads of executive [[Page S 
     8705]] agencies with direct authority to procure information 
     technology. This authority is subject to the direction and 
     control of the Director of the Office of Management and 
     Budget (OMB).
       Subtitle B (Director of the Office of Management and 
     Budget) assigns responsibility for the efficient use and 
     acquisition of information resources by the executive 
     agencies to the Director of OMB. The Director is to act 
     through the CIO defined in Subtitle C of this title.
       The Director is responsible for maximizing the 
     productivity, efficiency, effectiveness of information 
     resources in the government, and for establishing policies 
     and guidelines related to improving the performance of 
     information resources functions and activities; investing in 
     and acquiring information resources; and reviewing and 
     revising (reengineering) mission-related and administrative 
     processes. Concise, simple regulations to implement the above 
     requirements and other provisions of the Act should be made 
     part of the Federal Acquisition Regulations. The Director is 
     responsible for reviewing overall agency information 
     resources management performance and for establishing 
     information technology standards for the government with the 
     exception of those information system security requirements 
     required by the Department of Defense and Central 
     Intelligence Agency which shall be developed by the 
     Department of Defense and Central Intelligence Agency.
       The Director of OMB has the authority and responsibility 
     and is required to terminate any high risk information 
     technology program or program phase or increment that exceeds 
     its established goals for cost or schedule by 50 percent or 
     does not achieve at least 50 percent of its performance 
     goals; and requires the Director to consider terminating any 
     high risk information technology program or program phase or 
     increment that exceeds its established goals for cost or 
     schedule by 10 percent or does not achieve at least 90 
     percent of its performance goals.
       Subtite C (Chief Information Office of the United States) 
     establishes the Office of the CIO within OMB. The CIO is 
     appointed by the President, at Executive Level II, with 
     Senate confirmation. The CIO is the principal advisor to the 
     Director of OMB on matters of information resources 
     management, and is delegated the responsibilities of the 
     Director under this Act. The CIO` is responsible for, among 
     other things, developing and maintaining a governmentwide 
     strategic information resources management plan; developing 
     proposed legislative or regulatory changes needed to improve 
     government information resources management; reviewing agency 
     information resources management regulations and practices; 
     and coordinating with the Administrator of the Office of 
     Federal Procurement Policy on federal information technology 
     procurement policies. The CIO is required to review all high 
     risk information technology programs before an agency may 
     carry out or proceed with that program.
       Subtitle D (Executive Agencies) assigns responsibility and 
     accountability for carrying out agency information resources 
     management activities and for complying with the requirements 
     of this Act and related policies established by the national 
     CIO to the head of each executive agency. Agencies are 
     allowed to procure information technology costing under $100 
     million without OMB approval, while the national CIO must 
     approve all information technology acquisitions over $100 
     million. Each agency is required to establish an agency CIO. 
     The agency CIO is responsible for ensuring that agency 
     mission-related and administrative processes are reviewed and 
     improvement opportunities identified, and appropriate changes 
     made to those processes before investing in supporting 
     information technology.
       The head of the agency is required to terminate any 
     information technology program or program phase or increment 
     that exceeds it established goals for cost or schedule by 50 
     percent or does not achieve at least 50 percent of its 
     performance goals; and consider terminating any program or 
     program phase or increment that exceeds its established goals 
     for cost or schedule by 10 percent or does not achieve at 
     least 90 percent of its performance goals. The agency CIO is 
     required to monitor program cost, schedule and performance 
     goal modifications, and consider the number and impact of 
     such changes when deciding whether to continue or terminate 
     the program.
       The Department of Defense and Central Intelligence Agency 
     are each delegated total responsibility for this Act, 
     including that for high risk information technology programs. 
     The delegation may be revoked, in whole or part, by the 
     Director of OMB. Both agencies are required to provide the 
     Director of OMB with an annual report on the status of their 
     implementation of this Act.
       Subtitle E (Federal Information Council) establishes a 
     council composed of agency CIOs and others designated by the 
     Director of OMB who shall serve as chairperson. The Council 
     will establish strategic direction for the federal 
     information infrastructure, offer information resources 
     management advice and recommendations to the Director, and 
     establish a committee of senior managers to review high risk 
     information technology programs. A Software Review Council is 
     established under the Federal Information Council to develop 
     guidelines related to software engineering, integration of 
     software systems, and use of commercial-off-the-shelf 
     software.
       Subtitle F (Interagency Functional Groups) authorizes 
     agencies to jointly create governmentwide or multi-agency 
     groups which will focus on functions, processes, or 
     activities which are common to more than one agency and 
     facilitate common information technology solutions for common 
     problems and processes. Recommendations of the functional 
     groups are provided to the Director of OMB or Federal 
     Information Council as appropriate.
       Subtitle G (Congressional Oversight) creates the Joint 
     Committee on Information; composed of eight members, four 
     appointed by the chair of both the Senate Committee on 
     Governmental Affairs and the House of Representatives 
     Committee on Government Reform and Oversight. Members serve 
     for one Congress but may be reappointed. The Committee is 
     responsible for reviewing the acquisition and management of 
     information resources issues. This Act transfers functions 
     and records of the Joint Committee on Printing and the Joint 
     Committee of Congress on the Library to the Joint Committee 
     on Information and terminates those Joint Committees.
       Subtitle H (Other Responsibilities) transfers 
     responsibilities related to development of information 
     standards identified in the Computer Security Act of 1987 and 
     the National Institute for Standards and Technology Act to 
     the Director of OMB, and transfers responsibility for the 
     Information Systems Security and Privacy Advisory board to 
     the national CIO.
       Title II (Process for Acquisitions of Information 
     Technology) contains two subtitles. Subtitle A (Procedures) 
     requires the Director of OMB to develop clear, concise 
     information technology acquisition procedures and guidelines. 
     The acquisition procedures and guidelines will be based on 
     the following cost thresholds: under $5 million, $5-$25 
     million, $25-100 million, and $100 million and above. The 
     procedures should reflect the increasing program risk 
     associated with higher dollar acquisitions, the type of 
     information technology procured (e.g., commodity, services), 
     and other information technology issues. The procedures must 
     include guidance for developing performance measures for 
     information technology programs and using commercial items 
     where appropriate.
       Executive agencies are required to implement agency-wide 
     acquisition procedures and guidelines which are based on and 
     consistent with the above OMB-developed procedures, and 
     establish a mechanism to periodically review agency 
     information technology acquisitions. Agency acquisition 
     procedures must include methods for determining program risks 
     and benefits, guidelines for incremental acquisition and 
     implementation of information technology, and establish an 18 
     month deadline for delivery of information technology program 
     increments. Procurements of commercial off the shelf (COTS) 
     information technology will be exempt from all procurement 
     laws (identified by the national CIO in consultation with the 
     Federal Information Council) except those which require full 
     and open competition. Agencies will be allowed to limit to 
     three the number of offerors who can submit best and final 
     offers; use a two-phase solicitation process; and reward or 
     penalize vendors based on contract performance measures.
       Subtitle B (Acquisition Management) requires the head of an 
     executive agency to establish minimum qualifications for 
     information technology acquisition personnel and to provide 
     for continuous training of those personnel. The head of each 
     executive agency is required to determine whether agency 
     personnel are available or whether an executive agent should 
     be used to carry out an information technology acquisition. 
     The subtitle expresses the sense of Congress that management 
     oversight should focus on the mission-related and 
     administrative processes supported by information technology 
     and the results or effects of information technology 
     acquisitions on those processes, rather than focus on the 
     acquisition process and its procedures.
       Title III (Special Fiscal Support for Information 
     Innovation) contains four subtitles which address funding 
     issues associated with this Act. Subtitle A (Information 
     Technology Fund) establishes an information technology fund 
     with two separate accounts in the Treasury, the Innovation 
     Loan Account and the Common Use Account.
       Subtitle B (Innovation Loan Account) directs that funds 
     contained in the Innovation Loan Account be available for 
     providing loans to agencies which have identified an 
     innovative information technology solution to an agency 
     problem. Loans are to be repaid by the agency by reimbursing 
     the Account with 50 percent of the annual savings achieved by 
     the information technology program funded by the such loans. 
     This account will initially be funded by transferring five 
     percent of each agency's information technology budget to the 
     account for each of five fiscal years beginning in FY96.
       Funds to support multi-agency and governmentwide 
     information infrastructure services or acquisition programs 
     will be funded by the second information technology fund 
     account as defined in Subtitle C (Common Use Account). In 
     selecting programs to be funded using the Common Use Account, 
     the Director of OMB will consider criteria such as whether 
     the program provides an innovative solution for reorganizing 
     processes; supports interoperability among two or more 
     agencies; or improves service to the public. Funding from 
     this account is limited to two fiscal years. The Common Use 
     Account will [[Page S 8706]] be funded initially by the 
     transfer of unobligated funds held in the existing GSA 
     Information Technology Fund and in the future by fees 
     assessed users of the common information technology service 
     or program.
       Subtitle D (Other Fiscal Policies) requires the head of 
     each executive agency to certify that mission-related and/or 
     administrative process(es) have been reviewed and revised 
     (reengineered) before funds may be expended to acquire an 
     information technology program that supports those 
     process(es). The subtitle states that improvements in 
     information resources management should enable agencies to 
     decrease information technology operation and maintenance 
     costs by five percent and increase efficiency of agency 
     operations by five percent. The Comptroller General, agency 
     Inspector General or other audit agency is required to 
     conduct an independent review of the executive agency's 
     information resources plans, acquisitions, and management for 
     five fiscal years beginning in FY96 to determine whether the 
     agency's information technology operating and maintenance 
     costs have decreased by at least five percent annually and 
     whether agency operational efficiency, as measured by 
     performance goals, has increased at least five percent.
       Title IV (Information Technology Acquisition Pilot 
     Programs) contains two subtitles related to pilot programs 
     authorized under this Act. Subtitle A (Conduct of Pilot 
     Programs) authorizes the National CIO to conduct, with advice 
     of the federal Information Council, five pilot programs 
     designed to evaluate alternative approaches for acquiring and 
     implementing information technology programs. The CIO is 
     limited to a total of $1.5 billion for the conduct of the 
     pilot programs. Agencies selected to carry out a pilot 
     program acquisition are required to develop criteria which 
     can be used to measure the success of the effort, and the 
     national CIO must submit to Congress a test plan that 
     identifies how the pilot effort will be measured against its 
     objectives. The national CIO to provide the results of pilot 
     programs conducted under this Act to the Director, OMB and 
     Congress within six (6) months of their completion, and 
     recommendations regarding information technology legislation 
     to Congress.
       Subtitle B (Specific Pilot Programs) identifies the five 
     specific pilot programs authorized under this Act. The first, 
     the Share-in-Savings Pilot Program, is designed for 
     information technology acquisitions in which the government 
     seeks a creative or innovative solution from industry. Up to 
     five contracts are authorized under the pilot. The savings 
     achieved by the vendor's innovative solution will be shared 
     between the vendor and government.
       The second pilot, the Solutions-Based Contracting Pilot 
     Program, is designed for programs in which the information 
     technology need or problem is similar to one found in the 
     private sector, and is based on industry providing proven 
     business solutions to government problems. Contractors will 
     be selected based primarily on the contractor's 
     qualifications and past performance. A maximum of 10 programs 
     valued between $25 million and $100 million and 10 programs 
     valued between $1 million and $5 million for small business 
     are authorized under this pilot program, and will be carried 
     out by up to two civilian agencies and one defense agency.
       Third, the Pilot Program for Contracting for Performance of 
     Acquisition Functions, will allow up to five agencies to 
     contract with the private sector to conduct procurement and 
     management functions related to an information technology 
     acquisition. An agency selected for this pilot program will 
     award a contract to a vendor who will be responsible for 
     performing all the work associated with procuring and 
     managing an information technology acquisition.
       The final two pilot programs, the Major Acquisitions Pilot 
     Program, are authorized for acquisitions of information 
     technology over $100 million. The pilots will be carried out 
     by a selected civilian agency and by a defense agency, and 
     will be limited to a 3 year test period and $300 million 
     total funding limit. The two pilots initiated under this 
     pilot program are intended to, among other things, identify 
     ways to incrementally build information systems, allow 
     systems to keep pace with technology advancements.
       Title V (Other Information Resources Management Reforms) 
     contains seven sections related to various information 
     technology initiatives. This title transfers responsibility 
     for the Federal Acquisition System Network (FACNET) to the 
     national CIO, and authorizes the nation CIO to establish up 
     to three competing programs for the development and testing 
     of system designs which will be part of FACNET and which 
     support the electronic purchase of commercial information 
     technology items. Based on the results of the design and 
     test, the CIO is to report recommendations regarding 
     implementation of an electronic marketplace for purchasing 
     commercial information technology to Congress.
       The title authorizes the head of a field office, under 
     authority and direction of the head of the executive agency 
     for that field office, to sue micro-purchase procedures to 
     procure up to $20,000 per year for computer hardware upgrades 
     in increments of $2,500, in addition to the $20,000 limit 
     provided under the Federal Acquisition Streamlining Act of 
     1994.
       The title authorizes the head of an executive agency to 
     give excess or surplus information technology equipment to 
     public elementary and secondary schools, public libraries, or 
     public universities or colleges, and requires agencies to 
     maintain an inventory of its equipment to support this 
     process.
       The Comptroller General of the U.S. is required to analyze 
     the costs and benefits of buying versus leasing new or used 
     information technology and develop guidelines for agencies 
     based on that analysis. The title authorizes contractors who 
     provide the design or engineering support for an information 
     system design, to also compete for or be part of a contractor 
     team which bids on and/or wins the contract for implementing 
     the information system. Finally, the title contains 
     provisions for pay and performance incentives for personnel 
     involved in information technology acquisitions.
       Title VI (Actions Regarding Current Information Technology 
     Programs) contains three subsections related to ongoing or 
     existing information technology programs. The title requires 
     the head of an executive agency to establish performance 
     measures for all ongoing agency information technology 
     programs and requires that such measures be used to support 
     decisions regarding program continuation or termination. The 
     head of an executive agency is also required to obtain an 
     independent assessment of each current agency information 
     technology program over $100 million to identify 
     opportunities for improving or reengineering the process 
     supported by the information technology program; and 
     determine whether the program is meeting current agency needs 
     and strategic plans.
       Title VII (Procurement Protests) amends current law to 
     allow the Comptroller General, in the case of information 
     technology acquisition protests, to recommend that an 
     agency's procurement authority be suspended for that 
     acquisition. This title also requires the Comptroller General 
     to issue a decision relating to an information technology 
     protest within 45 days and bars further protest to the 
     Comptroller General under this subchapter once a decision is 
     made.
       Title VII (Conforming and Clerical Amendments) contains 
     three subtitles. Subtitle A (Related Terminations) eliminates 
     the Office of the Information and Regulatory Affairs (OIRA) 
     within OMB, and eliminates the position of Senior Information 
     Resources Management Official in agencies which are required 
     to have a CIO under this Act. Subtitle B (Conforming 
     Amendments) identifies conforming amendments that modify 
     Titles 10, 28, 31, 38, 44, 49 of the United States Code; the 
     Computer Security Act of 1987; the National Security Act of 
     1947; National Energy Conservation Policy Act; and Public Law 
     101-520 for consistency with the provisions of this Act. 
     Subtitle C (Clerical Amendments) provides clerical changes to 
     Title 10, Title 38 and Title 44 of United States Code which 
     provide consistency with this Act.
       Title IX (Savings Provisions) allows selected information 
     technology actions and acquisition proceedings, including 
     claims or applications, which have been initiated by or are 
     pending before the Administrator of the General Services 
     Administration or the General Services Administration Board 
     of Contract Appeals to be continued under their original 
     terms until terminated, revoked, or superseded in accordance 
     with law by the Director of OMB, the national CIO, by a 
     court, or operation of law. The Director of OMB is authorized 
     to establish regulations for transferring such actions and 
     proceedings.
       Title X (Enactment) makes this Act and amendments made by 
     this Act, with the exception of Title VI, effective one (1) 
     year after enactment. Title VI will take effect on the date 
     of the enactment of this Act.

  Mr. LEVIN. Mr. President, I am pleased to join my colleague, Senator 
Cohen, in cosponsoring the Information Technology Management Reform Act 
of 1995. This bill is the product of months of work by Senator Cohen 
and his staff, who have engaged in an extensive review of problems with 
Government purchases of information technology systems and endeavored 
to come up with a comprehensive legislative solution to those problems.
  The bill that they have put together would dramatically revise 
federal procurement procedures for information technology products and 
services by repealing the Brooks Act of 1965, eliminating the 
requirement for a ``delegation of procurement authority'' by the 
General Services Administration, and ending the unique role of the 
General Services Board of Contract Appeals in information technology 
bid protests.
  In the place of these laws, the Cohen bill would establish a new 
Chief Information Officer, or CIO in the Office of Management and 
Budget and in each of the 23 major Federal agencies and give them 
responsibility for information management and the acquisition of 
information technology. It would create a Federal Information Council 
to coordinate governmentwide and multiagency information technology 
acquisitions and a Software Review Council to act as a clearinghouse 
for commercial and off-the-shelf software programs that could meet 
agency needs.
  The bill would require governmentwide guidelines to assist agencies 
in assessing their information technology [[Page S 8707]] needs, 
mandate up-front acquisition planning and risk management, establish 
goals for information technology costs and efficiency improvements, and 
provide performance incentives for vendors and agency personnel who 
perform well. It would favor incremental purchases of information 
technology over a period of years, streamline contracting requirements, 
establish a series of pilot programs to test innovative procedures, and 
consolidate administrative bid protests in the General Accounting 
Office.
  Mr. President, much has changed in the 30 years since Congress 
adopted the Brooks Act. In 1965, we were buying main frame computers, 
which were centrally located, managed, and acquired by a small core of 
Government computer experts. Today, by contrast, every Government 
agency is trying to take advantage of a rapidly evolving commercial 
marketplace for personal computers, packaged software, and other 
information technology products and services. Our rigid and centralized 
Government computer acquisition systems are having increasing 
difficulty keeping up.
  So it is very much time for us to reexamine those acquisition systems 
from the ground up. It is appropriate for us to ask why bid protest 
procedures and standards that have met our needs for products ranging 
from toasters to fighter aircraft cannot also meet our needs in the 
area of computer procurement. It is appropriate for us to ask whether 
we still need the centralized approach of the Brooks Act, under which 
the General Services Administration is responsible for approving 
computer purchases by other Federal agencies.
  Just as important, I think it is time for us to take another look at 
the increasingly complex and unwieldy Government specifications used in 
computer procurements today. Does it really make sense that in an era 
of rapidly evolving commercial technology, the Government is still 
trying to design its own computer systems? Isn't there some way that we 
can better harness the know-how of the private sector to do this for 
us? The bill we are introducing today takes some steps in this 
direction; I hope that as we consider this issue in hearings and 
markup, we will be able to do even more.
  So I congratulate Senator Cohen and his staff for the leadership they 
have shown in putting these issues on the table. I congratulate them 
for the bold and comprehensive approach that they have taken to the 
problems of acquiring information technology.
  At the same time, Mr. President, there are some provisions in this 
bill which I do not support in their current form. For example, several 
provisions call for the automatic termination of contracts and 
solicitations, and even automatic pay adjustments for Federal 
employees, based on artificial formulas which are intended to reflect 
the performance of agency employees and contractors. I believe that 
every acquisition program presents its own unique challenges, which 
cannot be evaluated with a single mechanistic formula. For this reason, 
I do not think that business judgments about contract terminations and 
pay adjustments can or should be made on the basis of such formulas.
  Similarly, I am concerned by provisions of the bill that would 
overturn the prohibition on organizational conflicts of interest in 
acquisitions of information technology. I agree that we need to 
consider new types of competition, including design-build contracts and 
two-step procurements, in purchases of information technology. That 
does not mean, however, that we should abandon all concern about 
providing a level playing field for all participants in such purchases.
  I am also reserving judgment on the new organizational structures 
established by the bill, including the chief information officers in 
OMB and each of the 23 major Federal agencies, and the two new 
councils. We recently passed the reauthorization of the Paperwork 
Reduction Act, which places responsibility for information management 
in the Office of Information and Regulatory Affairs. This bill would 
take those functions out of that office and establish a new position 
and a new office. I want to carefully review the consequences of such a 
proposal to determine whether this possible enlargement of the 
bureaucracy brings sufficient benefits to justify the cost.
  Finally, I do not look with favor on the establishment of a new Joint 
Committee on Information. At a time when we are trying to down-size our 
own committee system, with particular attention being paid to the role 
of joint committees, I am very leery of creating a whole new 
congressional entity just to oversee information management. I believe 
it is fair for us to ask whether we need to establish new oversight 
structures, or whether we could instead trust Federal agencies to make 
their own information technology purchases pursuant existing 
congressional and agency oversight mechanisms and the streamlined 
policies and procedures established in the bill.
  I hope that we will continue to work on these and other aspects of 
the bill in hearings and at markup. Overall, however, the Cohen bill is 
an impressive effort to address some very real problems with the way we 
purchase and manage information technology in the Federal Government 
today. I may not agree with everything in the bill, but I do believe 
that it points us in the right direction. I am pleased to be an 
original cosponsor of the bill, and I look forward to working with 
Senator Cohen as we move forward to modernize our information 
technology acquisition laws.
                                 ______

      By Mr. PRESSLER (for himself and Mr. Daschle):
  S. 947. A bill to amend title VIII of the Elementary and Secondary 
Education Act of 1965 regarding impact aid payments, and for other 
purposes; to the Committee on Labor and Human Resources.


              IMPACT AID PROGRAM TECHNICAL AMENDMENTS ACT

  Mr. PRESSLER. Mr. President, today I am introducing a bill to make 
technical improvements in the Impact Aid Program. Last year, I was 
pleased to be the lead sponsor of the initial Impact Aid 
reauthorization. That bill was incorporated into the Improving 
America's Schools Act, now Public Law 103-382.
  As my colleagues know, the Impact Aid Program is an ongoing Federal 
responsibility. More than 2,600 school districts enrolling more than 20 
million children depend on the program. In South Dakota for example, 
Impact Aid is the lifeblood of more than 55 school districts. Without 
it, these districts could not recoup the lost tax base caused by a 
Federal presence.
  As with any legislation of this scope, corrections often need to be 
made. The bill I am introducing today fine-tunes last year's 
reauthorization in several ways. The bill first makes technical changes 
in section 8002, which reimburses districts for Federal land. During 
the reauthorization, language was omitted which permitted districts 
which had been formerly consolidated to retain their eligibility. It 
was not the intent of the authorizing committees to exclude these 
districts. The provision in my bill would restore eligibility to more 
than 80 school districts, allowing them to receive the revenue they had 
planned on.
  Second, a hold harmless agreement for section 8002 school districts 
also would be put in place. The reauthorization made dramatic changes 
in the formula for section 8002. The hold harmless provision would 
prevent a district's payment from being decreased below 85 percent of 
its payment for the previous year. This agreement would protect section 
8002 school districts and expedite payments while the Department of 
Education works out the new calculations. This brings section 8002 into 
line with the other sections of the law, which also contain hold 
harmless provisions.
  Third, the bill would make several clarifications in section 8003, 
the section which authorizes funding for heavily impacted districts. 
One of these provisions clarifies the legal use of supplemental funds 
received by section 8003 districts from the Department of Defense. 
These school districts should not have these supplemental payments 
counted against their regular section 8003 payments. The Department of 
Defense payments were intended as additional payments for capital 
outlay expenses, not as funds for day-to-day operations.
  Fourth, the bill amends the law regarding ``civilian b'' students. 
``B'' students are those whose parents either live or work on Federal 
property. In [[Page S 8708]] the past, school districts could be 
eligible for ``b'' funds if either 15 percent or 2,000 students in 
impacted average daily attendance [ADA] are ``b'' students. The 
reauthorization changed this language so that only school districts 
with 15 percent impacted ADA and 2,000 impacted students may qualify. 
This change excluded many previously eligible schools from the program, 
especially in small States such as South Dakota. This change tilts the 
program in favor of large urban areas at the expense of small rural 
areas. Many, if not most, school districts in South Dakota do not have 
2,000 students in ADA, much less 2,000 impacted students.
  Finally, the bill would allow two districts in South Dakota, 
Bonesteel-Fairfax and Wagner, to claim eligibility for section 8003 for 
the current year. These two schools meet all the criteria for section 
8003 funds, but could not qualify because of regulations that prevented 
them from amending their application after September 30. Allowing these 
two districts to claim eligibility would not alter section 8003 
payments to other schools.
  This bill represents no departures in policy from previous 
legislation. It would require no new funds. It simply would clear up 
several areas of uncertainty and enable the program to run more 
efficiently. This bill enjoys bipartisan support. The Impact Aid 
Program has been operating successfully for more than 40 years. These 
changes will help the program continue to run smoothly for years to 
come.
  Mr. President, as we begin this year's appropriations process, the 
Impact Aid Program is in danger once again of being drastically cut. 
Again, I remind my colleagues that it is due to a Federal presence that 
nearby schools lose tax revenue and have to rely on the Impact Aid 
Program. It would be most unfair to federally impacted districts and 
the children they serve if the Federal government opted to deny them 
both a tax base and Federal support. Without this Federal support, 
local and county governments would be forced to either raise taxes or 
cut services to its citizens. A Federal presence should not force local 
governments to make that choice.
  Impact Aid is a continuing responsibility that Congress cannot shirk. 
I look forward to working with my colleagues on both sides of the aisle 
to further enhance this program in the year ahead.
  Mr. President, I ask unanimous consent that the text of the bill be 
printed in the Record.
  There being no objection, the bill was ordered to be printed in the 
Record, as follows:
                                 S. 947

       Be it enacted by the Senate and House of Representatives of 
     the United States of America in Congress assembled,
     SECTION 1. IMPACT AID.

       (a) Hold-Harmless Amounts for Payments Relating to Federal 
     Acquisition of Real Property.--Section 8002 of the Elementary 
     and Secondary Education Act of 1965 (20 U.S.C. 7702) is 
     amended by adding at the end the following new subsections:
       ``(g) Former Districts.--
       ``(1) In general.--Where the school district of any local 
     educational agency described in paragraph (2) is formed at 
     any time after 1938 by the consolidation of two or more 
     former school districts, such agency may elect (at any time 
     such agency files an application under section 8005) for any 
     fiscal year to have (A) the eligibility of such local 
     educational agency, and (B) the amount which such agency 
     shall be eligible to receive, determined under this section 
     only with respect to such of the former school districts 
     comprising such consolidated school districts as such agency 
     shall designate in such election.
       ``(2) Eligible local educational agencies.--A local 
     educational agency referred to in paragraph (1) is any local 
     educational agency that, for fiscal year 1994 or any 
     preceding fiscal year, applied for and was determined 
     eligible under section 2(c) of the Act of September 30, 1950 
     (Public Law 874, 81st Congress) as such section was in effect 
     on September 30, 1994.
       ``(h) Hold-Harmless Amounts.--
       ``(1) In general.--Except as provided in paragraph (2)(A), 
     the total amount that the Secretary shall pay a local 
     educational agency under subsection (b)--
       ``(A) for fiscal year 1995 shall not be less than 85 
     percent of the amount such agency received for fiscal year 
     1994 under section 2 of the Act of September 30, 1950 (Public 
     Law 874, 81st Congress) as such section was in effect on 
     September 30, 1994; or
       ``(B) for fiscal year 1996 shall not be less than 85 
     percent of the amount such agency received for fiscal year 
     1995 under subsection (b).
       ``(2) Ratable reductions.--(A)(i) If necessary in order to 
     make payments to local educational agencies in accordance 
     with paragraph (1) for any fiscal year, the Secretary first 
     shall ratably reduce payments under subsection (b) for such 
     year to local educational agencies that do not receive a 
     payment under this subsection for such year.
       ``(ii) If additional funds become available for making 
     payments under subsection (b) for such year, then payments 
     that were reduced under clause (i) shall be increased on the 
     same basis as such payments were reduced.
       ``(B)(i) If the sums made available under this title for 
     any fiscal year are insufficient to pay the full amounts that 
     all local educational agencies in all States are eligible to 
     receive under paragraph (1) after the application of 
     subparagraph (A) for such year, then the Secretary shall 
     ratably reduce payments under paragraph (1) to all such 
     agencies for such year.
       ``(ii) If additional funds become available for making 
     payments under paragraph (1) for such fiscal year, then 
     payments that were reduced under clause (i) shall be 
     increased on the same basis as such payments were reduced.''.
       (b) Computation of Payment.--Paragraph (3) of section 
     8003(a) of such Act (20 U.S.C. 7703(a)) is amended by 
     striking ``and such'' and inserting ``, or such''.
       (c) Payments for Eligible Federally Connected Children.--
     Subsection (f) of section 8003 of such Act (20 U.S.C. 7703) 
     is amended--
       (1) in paragraph (2)--
       (A) in the matter preceding clause (i) of subparagraph (A), 
     by striking ``only if such agency'' and inserting ``if such 
     agency is eligible for a supplementary payment in accordance 
     with subparagraph (B) or such agency''; and
       (B) by adding at the end the following new subparagraph:
       ``(C) A local educational agency shall only be eligible to 
     receive additional assistance under this subsection if the 
     Secretary determines that--
       ``(i) such agency is exercising due diligence in availing 
     itself of State and other financial assistance; and
       ``(ii) the eligibility of such agency under State law for 
     State aid with respect to the free public education of 
     children described in subsection (a)(1) and the amount of 
     such aid are determined on a basis no less favorable to such 
     agency than the basis used in determining the eligibility of 
     local educational agencies for State aid, and the amount of 
     such aid, with respect to the free public education of other 
     children in the State.''; and
       (2) in paragraph (3)--
       (A) in subparagraph (A)--
       (i) in the matter preceding clause (i), by inserting 
     ``(other than any amount received under paragraph (2)(B))'' 
     after ``subsection'';
       (ii) in subclause (I) of clause (i), by striking ``or the 
     average per-pupil expenditure of all the States'';
       (iii) by amending clause (ii) to read as follows:
       ``(ii) The Secretary shall next multiply the amount 
     determined under clause (i) by the total number of students 
     in average daily attendance at the schools of the local 
     educational agency.''; and
       (iv) by amending clause (iii) to read as follows:
       ``(iii) The Secretary shall next subtract from the amount 
     determined under clause (ii) all funds available to the local 
     educational agency for current expenditures, but shall not so 
     subtract funds provided--

       ``(I) under this Act; or
       ``(II) by any department or agency of the Federal 
     Government (other than the Department) that are used for 
     capital expenses.''; and

       (B) by amending subparagraph (B) to read as follows:
       ``(B) Special rule.--With respect to payments under this 
     subsection for a fiscal year for a local educational agency 
     described in clause (ii) or (iii) of paragraph (2)(A), the 
     maximum amount of payments under this subsection shall be 
     equal to--
       ``(i) the product of--

       ``(I) the average per-pupil expenditure in all States 
     multiplied by 0.7, except that such amount may not exceed 125 
     percent of the average per-pupil expenditure in all local 
     educational agencies in the State; multiplied by
       ``(II) the number of students described in subparagraph (A) 
     or (B) of subsection (a)(1) for such agency; minus

       ``(ii) the amount of payments such agency receives under 
     subsections (b) and (d) for such year.''.
       (d) Current Year Data.--Paragraph (4) of section 8003(f) of 
     such Act (20 U.S.C. 7703(f)) is amended to read as follows:
       ``(4) Current year data.--For purposes of providing 
     assistance under this subsection the Secretary--
       ``(A) shall use student and revenue data from the fiscal 
     year for which the local educational agency is applying for 
     assistance under this subsection; and
       ``(B) shall derive the per-pupil expenditure amount for 
     such year for the local educational agency's comparable 
     school districts by increasing or decreasing the per pupil 
     expenditure data for the second fiscal year preceding the 
     fiscal year for which the determination is made by the same 
     percentage increase or decrease reflected between the per 
     pupil expenditure data for the fourth fiscal year preceding 
     the fiscal year for which the determination is made and the 
     per [[Page S 8709]] pupil expenditure data for such second 
     year.''.
       (e) Special Rule for 1994 Payments.--The Secretary shall 
     not consider any payment to a local educational agency by the 
     Department of Defense, that is available to such agency for 
     current expenditures and used for capital expenses, as funds 
     available to such agency for purposes of making a 
     determination for fiscal year 1994 under section 
     3(d)(2)(B)(i) of the Act of September 30, 1950 (Public Law 
     874, 81st Congress) (as such Act was in effect on September 
     30, 1994).
       (f) Applications for Increased Payments.--
       (1) Payments.--(A) Notwithstanding any other provision of 
     law--
       (A) the Bonesteel-Fairfax School District #26-5, South 
     Dakota, and the Wagner Community School District #11-4, South 
     Dakota, shall be eligible to apply for payment for fiscal 
     year 1994 under section 3(d)(2)(B) of the Act of September 
     30, 1950 (Public Law 874, 81st Congress) (as such section was 
     in effect on September 30, 1994); and
       (B) the Secretary of Education shall use a subgroup of 10 
     or more generally comparable local educational agencies for 
     the purpose of calculating a payment described in 
     subparagraph (A), and the local contribution rate applicable 
     to such payment, for a local educational agency described in 
     such subparagraph.
       (2) Application.--In order to be eligible to receive a 
     payment described in subsection (a), a school district 
     described in such subsection shall apply for such payment 
     within 30 days after the date of enactment of this Act.
       (3) Construction.--Nothing in this section shall be 
     construed to require a local educational agency that received 
     a payment under section 3(d)(2)(B) of the Act of September 
     30, 1950 (Public Law 874, 81st Congress) (as such section was 
     in effect on September 30, 1994) for fiscal year 1994 to 
     return such payment or a portion of such payment to the 
     Federal Government.

  Mr. DASCHLE. Mr. President, today, along with Senator Pressler and 
Congressman Johnson, I am introducing legislation making technical 
amendments to the Impact Act law to clarify the eligibility 
requirements for aid to federally impacted school districts. Federal 
Impact Aid is essential to the education and development of thousands 
of children across the United States.
  Some of the provisions of Public Law 103-382, last year's 
reauthorization of the Elementary and Secondary Education Act, were not 
clearly known or fully understood until the implementation of the law 
was underway. Now that implementation is underway, one area of the law 
that demands clarification is that governing payments to section 8002 
schools (formerly section 2).
  Section 8002 provides a payment in lieu of taxes to those school 
districts which have lost at least 10 percent of the assessed value of 
their taxable land due to Federal acquisition. It provides partial 
compensation for the presence of Federal property within a school 
district's borders. Prior to Public Law 103-382, Congress included 
specific statutory protection to school districts that consolidated 
with districts that included Federal property. However, this provision 
was not included in Public Law 103-382; therefore, formerly eligible 
districts are not deemed ineligible.
  The new law jeopardizes the eligibility of consolidated school 
districts that are eligible based on former district status. 
Previously, section 2 authorized reimbursements to a school district in 
which the Federal Government had acquired, since 1938, at least 10 
percent of the taxable assessed value of the district. In many cases, 
especially in South Dakota, schools have found it necessary to 
consolidate, and the old law provided a safeguard for those schools. 
This safeguard provision in section 2 enabled districts to be eligible 
for funds if one or more of the consolidating districts was a former 
district with a 10 percent Federal impact. However, under Public Law 
103-382, to be eligible for section 8002 payments, the current district 
itself must be affected by 10 percent or more, not counting any former 
school districts.
  The elimination of the safeguard language will have a devastating 
effect on section 8002 schools in South Dakota. Under the new law, 18 
of the 21 school districts in South Dakota that currently receive 
section 2 funds would be ineligible. Although the dollar amounts 
received may seem small, the funds are critical to enable these 
districts to provide basic educational needs.
  The legislation we are introducing today would reinstate the former 
safeguard for section 8002 schools. It is important to note that our 
bill would not allow newly consolidated school districts to claim 
eligibility.
  This bill also brings the hold harmless provisions for section 8002 
districts, at 85 percent, in line with those governing other sections 
of the law; makes a technical correction regarding ``civilian b'' 
students; clarifies that supplemental payments from other Federal 
agencies used for capital outlays should not be counted against the 
district's overall supplemental payments; authorizes the adjustment of 
prior year financial data to accommodate current year need; and allows 
certain districts to apply for section 8003 funds if excess funds are 
remaining.
  I hope these technical amendments can be adopted expeditiously.
                                 ______

      By Mr. DORGAN (for himself, Mr. Helms, Mr. Inouye, Mr. Leahy, Mr. 
        Murkowski, and Mr. Robb):
  S. 948. A bill to encourage organ donation through the inclusion of 
an organ donation card with individual income refund payments, and for 
other purposes; to the Committee on Finance.


                     ORGAN DONATION INSERT CARD ACT

  Mr. DORGAN. Mr. President, I rise today to reintroduce legislation 
that proposes an inexpensive public education campaign to encourage 
organ donation. Senators Inouye, Leahy, Robb, Murkowski, and Helms join 
me in this effort. And my good friend in the House of Representatives, 
Dick Durbin, is introducing the same bill in that body today.
  The Organ Donation Insert Card Act would direct the Treasury 
Department to enclose organ donation information when it mails next 
year's Federal Income Tax refunds.


                      the shortage of organ donors

  The most common tragedy of organ donation is not the patient who 
receives a transplant and dies, but the patient who has to wait too 
long and dies before a suitable organ can be found. Three thousand 
people will die this year because their bodies simply cannot wait any 
longer for the needed transplant.
  In the meantime, the number of people added to the waiting list 
continues to increase dramatically. More than 40,000 people are 
currently on the waiting list--double the number on the list 5 years 
ago. Just in the last year, 9,000 people have been added to the waiting 
list, and a new name is added every 18 minutes.
  Organ transplants can only happen if a grieving family authorizes the 
donation of their loved one's organs. Even a signed organ donor card 
does not ensure a donation because the next-of-kin must also agree to 
the donation.
  I certainly understand that it is difficult for families to cope with 
the unexpected death of a loved one. Often, potentially life-saving 
transplants never occur because family members hesitate to permit organ 
donation at this emotionally demanding time. However, if family members 
can remember that a loved one talked to them about this matter, they 
are more likely to authorize the donation.
  That's why it's so important for willing donors to discuss their 
wishes with their families before a tragedy can occur. Many family 
members will never have to act on these wishes. But if this difficult 
decision does arise, something good can come from this misfortune.


                the organ donation insert card proposal

  My legislation provides a simple, inexpensive way for the Federal 
Government to help educate potential donors and their families about 
organ donation.
  My legislation would direct the Secretary of the Treasury to enclose 
with each income tax refund mailed next year information that 
encourages organ donation. The information would include a detachable 
organ-donor card. It would also include a message urging recipients to 
sign the card, tell their family they are willing to be an organ donor, 
and encourage their family to permit organ donation should the decision 
prove necessary.
  The Treasury Department has said that enclosing this information with 
every tax refund would reach about 70 million households at a cost of 
only $210,000. The population that would receive these insert cards is 
very appropriate for the organ donation appeal.
  The medical and transplant recipient communities strongly support 
this proposal. In fact, last year, more than 20 [[Page S 8710]] of 
these organizations endorsed this legislation.
  By increasing public awareness and encouraging family discussion 
about organ donation, this legislation would increase the number of 
donors and reduce the number of people who die while waiting for 
transplants. I urge my colleagues to cosponsor and support this 
important measure.
  Mr. President, I ask unanimous consent that the text of the bill and 
a summary of its provisions be printed in the Record.
  There being no objection, the material was ordered to be printed in 
the Record, as follows:

                                 S. 948

       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 ``Organ Donation Insert Card 
     Act''.

     SEC. 2. ORGAN DONATION INFORMATION INCLUDED WITH INCOME TAX 
                   REFUND PAYMENTS.

       (a) In General.--The Secretary of the Treasury shall 
     include with any payment of a refund of individual income tax 
     made during the period beginning on February 1, 1996, and 
     ending on June 30, 1996, a copy of the document described in 
     subsection (b).
       (b) Text of Document.--The Secretary of the Treasury shall, 
     after consultation with the Secretary of Health and Human 
     Services and organizations promoting organ donation, prepare 
     a document suitable for inclusion with individual income tax 
     refund payments which--
       (1) encourages organ donation;
       (2) includes a detachable organ donor card; and
       (3) urges recipients to--
       (A) sign the organ donor card;
       (B) discuss organ donation with family members and tell 
     family members about the recipient's desire to be an organ 
     donor if the occasion arises; and
       (C) encourage family members to request or authorize organ 
     donation if the occasion arises.
                                                                    ____

                   The Organ Donation Insert Card Act


                       what the legislation does

       This legislation directs the Secretary of the Treasury to 
     enclose with each income tax refund check mailed between 
     February 1 and June 30 of next year a card that encourages 
     organ donation.
       The insert would include a detachable organ-donor card. It 
     also would include a message urging individuals to sign the 
     card, tell their families about their willingness to be an 
     organ donor, and encourage their family members to request or 
     authorize organ donation if the occasion arises.
       The text of the card would be developed by the Secretary of 
     the Treasury, in consultation with the Secretary of Health 
     and Human Services and organizations promoting organ 
     donation.


                     why the legislation is needed

       The most common tragedy of organ transplantation is not the 
     patient who receives a transplant and dies, but the patient 
     who has to wait too long and dies before a suitable organ can 
     be found. More than 3,000 people on the waiting list will die 
     this year before receiving a transplant.
       The demand for organs greatly exceeds the supply. More than 
     40,000 people now are waiting for an organ transplant, 
     including over 1,400 children and more than 25,000 people who 
     must have kidney dialysis while they wait for a kidney to 
     become available. Meanwhile, another person is added to the 
     list every 18 minutes.
       We lose many opportunities for organ donation because 
     people hesitate to authorize organ donation for themselves or 
     their family members. Even a signed donor card does not 
     ensure a donation because the next-of-kin must authorize the 
     donation.
       By encouraging organ donation and disseminating information 
     about the importance of family discussion, this legislation 
     could expand the pool of potential donors, increase the 
     likelihood that families will authorize donation upon the 
     death of a loved one, and reduce the number of people who die 
     while waiting for organ transplants.


                             implementation

       Every year, the Treasury Department already puts an insert 
     card in refund check mailings. According to the Treasury 
     Department, the cost of the insert cards is $210,000. In 
     recent years, the insert cards have offered special coins for 
     sale. Switching from an appeal about coins to an appeal about 
     organ donation for one year could save many lives for many 
     years to come.
       About 70 million households would receive the organ donor 
     information and card. The population that would receive these 
     cards is very appropriate for the organ donation appeal. For 
     most transplants, the optimum age range for organ donors is 
     15 to 65. Individuals who receive refunds tend to be adults 
     below retirement age. They tend to be of prime age for organ 
     donation and often are the next-of-kin of others who could be 
     prime candidates for organ donation.
       More than 20 organizations in the medical and transplant 
     recipient communities endorsed this proposal last year.
                                 ______

      By Mr. GRAHAM (for himself, Mr. Robb, Mr. Warner, Mr. Heflin, 
        Mrs. Kassebaum, Mr. Inouye, and Mr. Shelby):
  S. 949. A bill to require the Secretary of the Treasury to mint coins 
in commemoration of the 200th anniversary of the death of George 
Washington; to the Committee on Banking, Housing, and Urban Affairs.


                george washington commemorative coin act

  Mr. GRAHAM. Mr. President, It is my distinct honor to introduce, with 
my colleagues, Senators Robb, Warner, kassebaum, Heflin, Inouye, and 
Shelby, the George Washington Commemorative Coin Act of 1995.
  On December 14, 1799, the United States lost its most honored 
patriot, a living embodiment of the ideals of the American Revolution. 
Unlike his contemporaries, many Americans today do not understand 
President Washington's importance, and while his reputation as 
America's greatest hero has remained for the most part intact, it seems 
that each generation knows less about George Washington than the 
previous one.
  The George Washington Commemorative Coin Act of 1995 will focus 
public attention on the significance of our first President and the 
legacy he left behind. This legislation would authorize the Secretary 
of the Treasury to mint 100,000 gold coins in 1999, commemorating the 
200th anniversary of Washington's death. The sale of these coins will 
cover costs that the Federal Government will incur in the minting of 
the coin and will provide a $35 surcharge which will be transferred to 
Mount Vernon.
  The George Washington Commemorative Coin Act was recommended by the 
Citizens Commemorative Advisory Committee in its initial report to 
Congress last November, and was drafted with the assistance of the U.S. 
Mint.
  Mount Vernon has the distinction of being the beloved home of our 
first President as well as our Nation's oldest and foremost historic 
preservation project. The proceeds from the sale of the coin will be 
added to Mount Vernon's endowment for the preservation of George 
Washington's home and the continuation of Mount Vernon's efforts to 
educate the American public about his life and accomplishments.
  Mr. President, I urge my colleagues to join me in supporting the 
George Washington Commemorative Coin Act of 1995, thus ensuring that 
future generations have a full understanding of the importance of our 
Nation's first President.
  Mr. President, I ask unanimous consent that the text of the bill be 
printed in the Record.
  There being no objection, the bill was ordered to be printed in the 
Record, as follows:

                                 S. 949

       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 ``George Washington 
     Commemorative Coin Act''.

     SEC. 2. COIN SPECIFICATIONS.

       (a) Five Dollar Coins.--The Secretary of the Treasury (in 
     this Act referred to as the ``Secretary'') shall mint and 
     issue not more than 100,000 $5 coins, each of which shall--
       (1) weigh 8.359 grams;
       (2) have a diameter of 0.850 inches; and
       (3) contain 90 percent gold and 10 percent alloy.
       (b) Legal Tender.--The coins minted under this Act shall be 
     legal tender, as provided in section 5103 of title 31, United 
     States Code.
       (c) Numismatic Items.--For purposes of section 5134 of 
     title 31, United States Code, all coins minted under this Act 
     shall be considered to be numismatic items.

     SEC. 3. SOURCES OF BULLION.

       The Secretary shall obtain gold for minting coins under 
     this Act pursuant to the authority of the Secretary under 
     other provisions of law.

     SEC. 4. DESIGN OF COINS.

       (a) Design Requirements.--
       (1) In general.--The design of the coins minted under this 
     act shall be emblematic of George Washington, the first 
     President of the United States.
       (2) Designation and inscriptions.--On each coin minted 
     under this Act there shall be--
       (A) a designation of the value of the coin;
       (B) an inscription of the year ``1999''; and
       (C) inscriptions of the words ``Liberty'', ``In God We 
     Trust'', ``United States of America'', and ``E Pluribus 
     Unum''.
       (b) Selection.--The design for the coins minted under this 
     Act shall be--
       (1) selected by the Secretary after consultation with the 
     Mount Vernon Ladies' Association and the Commission of Fine 
     Arts; and [[Page S 8711]] 
       (2) reviewed by the Citizens Commemorative Coin Advisory 
     Committee.

     SEC. 5. ISSUANCE OF COINS.

       (a) Quality of Coins.--Coins minted under this Act shall be 
     issued in uncirculated and proof qualities.
       (b) Mint Facility.--Only 1 facility of the United States 
     Mint may be used to strike any particular combination of 
     denomination and quality of the coins minted under this Act.
       (c) Commencement of Issuance.--The Secretary may issue 
     coins minted under this Act beginning May 1, 1999.
       (d) Termination of Minting Authority.--No coins may be 
     minted under this Act after November 1, 1999.

     SEC. 6. SALE OF COINS.

       (a) Sale Price.--The coins issued under this Act shall be 
     sold by the Secretary at a price equal to the sum of--
       (1) the face value of the coins;
       (2) the surcharge provided in subsection (d) with respect 
     to such coins; and
       (3) the cost of designing and issuing the coins (including 
     labor, materials, dies, use of machinery, overhead expenses, 
     marketing, and shipping).
       (b) Bulk Sales.--The Secretary shall make bulk sales of the 
     coins issued under this Act at a reasonable discount.
       (c) Prepaid Orders.--
       (1) In general.--The Secretary shall accept prepaid orders 
     for the coins minted under this Act before the issuance of 
     such coins.
       (2) Discount.--Sale prices with respect to prepaid orders 
     under paragraph (1) shall be at a reasonable discount.
       (d) Surcharges.--All sales of coins minted under this Act 
     shall include a surcharge of $35 per coin.

     SEC. 7. GENERAL WAIVER OF PROCUREMENT REGULATIONS.

       (a) In General.--Except as provided in subsection (b), no 
     provision of law governing procurement or public
      contracts shall be applicable to the procurement of goods 
     and services necessary for carrying out the provisions of 
     this Act.
       (b) Equal Employment Opportunity.--Subsection (a) shall not 
     relieve any person entering into a contract under the 
     authority of this Act from complying with any law relating to 
     equal employment opportunity.

     SEC. 8. DISTRIBUTION OF SURCHARGES.

       (a) In General.--All surcharges received by the Secretary 
     from the sale of coins issued under this Act shall be 
     promptly paid by the Secretary to the Mount Vernon Ladies' 
     Association to be used--
       (1) to supplement the endowment of the Mount Vernon Ladies' 
     Association, which shall be a permanent source of support for 
     the preservation of George Washington's home; and
       (2) for the continuation and expansion of the efforts of 
     the Mount Vernon Ladies' Association to educate the American 
     public about the life of George Washington.
       (b) Audits.--The Comptroller General of the United States 
     shall have the right to examine such books, records, 
     documents, and other data of the Mount Vernon Ladies' 
     Association as may be related to the expenditures of amounts 
     paid under subsection (a).

     SEC. 9. FINANCIAL ASSURANCES.

       (a) No Net Cost to the Government.--The Secretary shall 
     take such actions as may be necessary to ensure that minting 
     and issuing coins under this Act will not result in any net 
     cost to the United States Government.
       (b) Payment for Coins.--A coin shall not be issued under 
     this Act unless the Secretary has received--
       (1) full payment for the coin;
       (2) security satisfactory to the Secretary to indemnify the 
     United States for full payment; or
       (3) a guarantee of full payment satisfactory to the 
     Secretary from a depository institution whose deposits are 
     insured by the Federal Deposit Insurance Corporation or the 
     National Credit Union Administration Board.

  Mr. WARNER. Mr. President, I rise today with my good friend, Senator 
Bob Graham, to introduce legislation that will be a source of support 
for Mount Vernon, the home of George Washington, the first President of 
the United States of America. The land, including Mount Vernon estate, 
has been in the Washington family since it was first patented in 1674 
to John Washington, first of the name in America, and great-grandfather 
of George Washington. The estate served as home and, ultimately, final 
resting place for our first President and his wife, the former Martha 
Dandridge Custis. Indeed, Mount Vernon and the tomb of George 
Washington are held in such veneration that every ship of the United 
States Navy, while passing this spot, lowers its flag to half mast, 
tolls its bell and calls its crew to attention. Mount Vernon was 
declared as neutral ground by both North and South during the Civil 
War.
  Mount Vernon is maintained by the Mount Vernon Ladies' Association, a 
nonprofit organization which scrupulously restored the estate following 
George Washington's own plans of detail and furnishings. Encompassing 
487 acres, the grounds are landscaped according to Washington's records 
and notations to his estate manager. Mount Vernon is visited by more 
than 500,000 people a year.
  The legislation which I am introducing today would authorize the U.S. 
Mint to produce a commemorative coin to honor the 200th anniversary of 
the death of George Washington. After recovery of minting and 
production costs, the proceeds of the George Washington commemorative 
coin, conservatively estimated at $5-$10 million, will be used for the 
preservation of George Washington's home and the expansion and 
continuation of Mount Vernon's efforts to educate the American public 
about our first President's life and accomplishments. This campaign 
will assure the full preservation and continued operation of the home 
of the first President of the United States.
  Mr. President, George Washington was the living embodiment of the 
ideals of the American Revolution. His death in 1799 brought about an 
outpouring of grief remarkable even by modern standards. Unlike his 
contemporaries, many Americans today do not understand Washington's 
importance in creating the beginnings of a Nation that would become the 
most powerful and free country in the world. This legislation is an 
important step toward bringing all Americans closer to this great man.
  I thank the Chair.
  Mr. ROBB. Mr. President, I rise today with my colleagues from Florida 
and Virginia, Senators Graham and Warner, to introduce the George 
Washington Commemorative Coin Act.
  This legislation requires the Secretary of the Treasury to issue a 
coin in the year 1999 commemorating the 200th anniversary of the death 
of George Washington. The surcharges raised from the selling of the 
coins will go to the Mount Vernon Ladies Association for the 
preservation of Mount Vernon and help the American people about the 
life and the legacy of our Nation's first President.
  This is an important endeavor, Mr. President, because George 
Washington is one of our Nation's most prominent and beloved founding 
fathers. Before serving as President of a young Nation during its first 
8 difficult years, Washington was a distinguished soldier and 
statesmen. After commanding the Virginia forces during the French and 
Indian Wars at the age of 23, Washington went on to serve his State and 
Nation as a member of both the Virginia House of Burgesses and the 
First Continental Congress. As Commander of the Continental Army during 
the Revolutionary War, he led the defeat of the most powerful nation on 
earth, and in doing so, allowed for the establishment of a bold 
experiment we call America.
  As Virginius Dabney once wrote:

       George Washington epitomized what subsequent generations 
     have come to recognize as a great, a good, a brave and a 
     patriotic American. Without him there would have been no 
     victory in war, no stability in peace. He came as close as 
     anyone in our history to being the indispensable man.

  In approving the George Washington Commemorative Coin Act, Mr. 
President, this Congress helps preserve the legacy of George Washington 
for future generations of the great nation he helped create and 
sustain.
  I urge my colleagues to support this important legislation.
                                 ______

      By Mrs. BOXER (for herself, Mr. Kennedy, Mr. Kerry, Mr. Sarbanes, 
        Ms. Mikulski, Mr. Moynihan, Mr. Akaka, Mr. Inouye, Mrs. Murray, 
        Mrs. Feinstein, Mr. Hollings, Mr. Robb, Mr. Graham, and Mr. 
        Lautenberg):
  S. 950. A bill to amend the Outer Continental Shelf Lands Act to 
direct the Secretary of the Interior to cease mineral leasing activity 
on submerged land of the Outer Continental Shelf that is adjacent to a 
coastal State that has declared a moratorium on mineral exploration, 
development, or production activity in adjacent State waters, and for 
other purposes; to the Committee on Energy and Natural Resources.


                 coastal states protection act of 1995

  Mrs. BOXER. Mr. President, today the Republican Congress took the 
first step to destroy the California coastline and the coastlines of 
other States. We Democrats in Congress want to make sure it is their 
last.
  Congressman George Miller and I are introducing legislation that will 
offer Republicans a comfortable path away from coastal destruction. [[Page S 
8712]] 
  I say comfortable because this bill is based on States' rights and 
local control--two concepts embraced by Republicans--at least in 
theory.
  Simply put, the Boxer-Miller bill--the Coastal States Protection Act 
of 1995--says that when a State establishes a drilling moratorium on 
part or all of its coastal water, our legislation would extend that 
protection to Federal workers.
  It does a State no good to protect its own waters which extend 3 
miles from the coast only to have drilling from 4 miles to 200 miles of 
Federal waters jeopardizing the entire State's coastline including the 
State's protected waters.
  An oilspill in Federal waters will rapidly foul State beaches, 
contaminate the nutrient rich ocean floor upon which a local fishery 
industry depends, and endangers habitat on State tidelands.
  Our bill simply directs the Secretary of the Interior to cease 
leasing activities in Federal waters where the State has declared a 
moratorium on such activities thus coordinating Federal protection with 
State protection.
  Our bill has a fundamental philosophy--do no harm to the magnificent 
coastlines of America and respect State and local State laws.
  Those groups endorsing our bill include the Center for Marine 
Conservation, the Natural Resources Defense Council, American Oceans 
Campaign, and the Safe Oceans Campaign.
  Original cosponsors of the Moynihan bill include Senators Murray, 
Kennedy, Kerry, Sarbanes, Mikulski, Akaka, Inouye, Biden, Feinstein, 
Hollings, Robb, Graham, and Lautenberg.
  I ask unanimous consent that the text of the bill be printed in the 
Record.
  There being no objection, the bill was ordered to be printed in the 
Record, as follows:

                                 S. 950

       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 ``Coastal States Protection 
     Act''.

     SEC. 2. STATE MORATORIA ON OFFSHORE MINERAL LEASING.

       Section 8 of the Outer Continental Shelf Lands Act (43 
     U.S.C. 1337) is amended by adding at the end the following:
       ``(p) State Moratoria.--When there is in effect with 
     respect to lands beneath navigable waters of a coastal State 
     a moratorium on oil, gas, or other mineral exploration, 
     development, or production activities established by statute 
     or by order of the Governor, the Secretary shall not issue a 
     lease for the exploration, development, or production of 
     minerals on submerged lands of the outer Continental Shelf 
     that are seaward of or adjacent to those lands.''.
     

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