[Congressional Record Volume 163, Number 127 (Thursday, July 27, 2017)]
[Senate]
[Pages S4598-S4600]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]

  SA 715. Mr. MORAN (for himself and Mr. Udall) submitted an amendment 
intended to be proposed by him to the bill H.R. 2810, to authorize 
appropriations for fiscal year 2018 for military activities of the 
Department of Defense, for military construction, and

[[Page S4599]]

for defense activities of the Department of Energy, to prescribe 
military personnel strengths for such fiscal year, and for other 
purposes; which was ordered to lie on the table; as follows:

       At the appropriate place, add the following:

     SEC. __. MODERNIZATION OF GOVERNMENT INFORMATION TECHNOLOGY.

       (a) Definitions.--In this section:
       (1) Board.--The term ``Board'' means the Technology 
     Modernization Board established under subsection (c)(3)(A).
       (2) Cloud computing.--The term ``cloud computing'' has the 
     meaning given the term by the National Institute of Standards 
     and Technology in NIST Special Publication 800-145 and any 
     amendatory or superseding document thereto.
       (3) Commissioner.--The term ``Commissioner'' means the 
     Commissioner of the Technology Transformation Service of the 
     General Services Administration.
       (4) Director.--The term ``Director'' means the Director of 
     the Office of Management and Budget.
       (5) Fund.--The term ``Fund'' means the Technology 
     Modernization Fund established under subsection (c)(2)(A).
       (6) Information technology.--The term ``information 
     technology'' has the meaning given the term in section 3502 
     of title 44, United States Code.
       (7) IT working capital fund.--The term ``IT working capital 
     fund'' means an information technology system modernization 
     and working capital fund established under subsection 
     (b)(2)(A).
       (8) Legacy information technology system.--The term 
     ``legacy information technology system'' means an outdated or 
     obsolete system of information technology.
       (b) Establishment of Agency Information Technology Systems 
     Modernization and Working Capital Funds.--
       (1) Definition.--In this subsection, the term ``covered 
     agency'' means each agency listed in section 901(b) of title 
     31, United States Code.
       (2) Information technology system modernization and working 
     capital funds.--
       (A) Establishment.--The head of a covered agency may 
     establish within the covered agency an information technology 
     system modernization and working capital fund for necessary 
     expenses described in subparagraph (C).
       (B) Source of funds.--The following amounts may be 
     deposited into an IT working capital fund:
       (i) Reprogramming and transfer of funds made available in 
     appropriations Acts enacted after the date of enactment of 
     this Act, including the transfer of any funds for the 
     operation and maintenance of legacy information technology 
     systems, in compliance with any applicable statutory transfer 
     authority or reprogramming law or guidelines of the 
     Committees on Appropriations of the Senate and the House of 
     Representatives as in effect on the day before the date of 
     enactment of this Act.
       (ii) Amounts made available to the IT working capital fund 
     through discretionary appropriations made available after the 
     date of enactment of this Act.
       (C) Use of funds.--An IT working capital fund may only be 
     used, subject to the availability of appropriations--
       (i) to improve, retire, or replace existing information 
     technology systems in the covered agency to enhance 
     cybersecurity and to improve efficiency and effectiveness;
       (ii) to transition legacy information technology systems at 
     the covered agency to cloud computing and other innovative 
     platforms and technologies, including those serving more than 
     1 covered agency with common requirements;
       (iii) to assist and support covered agency efforts to 
     provide adequate, risk-based, and cost-effective information 
     technology capabilities that address evolving threats to 
     information security; and
       (iv) to reimburse funds transferred to the covered agency 
     from the Fund with the approval of the Chief Information 
     Officer, in consultation with the Chief Financial Officer, of 
     the covered agency.
       (D) Existing funds.--An IT working capital fund may not be 
     used to supplant funds provided for the operation and 
     maintenance of any system within an appropriation for the 
     covered agency at the time of establishment of the IT working 
     capital fund.
       (E) Prioritization of funds.--
       (i) In general.--The head of each covered agency--

       (I) shall prioritize funds within the IT working capital 
     fund of the covered agency to be used initially for cost 
     savings activities approved by the Chief Information Officer 
     of the covered agency, in consultation with the Administrator 
     of the Office of Electronic Government; and
       (II) may reprogram and transfer any amounts saved as a 
     direct result of the cost savings activities approved under 
     subclause (I) for deposit into the IT working capital fund of 
     the covered agency, consistent with subparagraph (B)(i).

       (ii) Report.--The Chief Information Officer of each covered 
     agency shall document and submit to the Administrator of the 
     Office of Electronic Government a report on any cost savings 
     activities approved under clause (i)(I).
       (F) Availability of funds.--
       (i) In general.--Any funds deposited into an IT working 
     capital fund shall be available for obligation for the 3-year 
     period beginning on the last day of the fiscal year in which 
     the funds were deposited.
       (ii) Transfer of unobligated amounts.--Any amounts in an IT 
     working capital fund that are unobligated at the end of the 
     3-year period described in clause (i) shall be transferred to 
     the general fund of the Treasury.
       (G) Agency cio responsibilities.--In evaluating projects to 
     be funded by the IT working capital fund of a covered agency, 
     the Chief Information Officer of the covered agency shall 
     consider, to the extent applicable, guidance issued under 
     subsection (c)(2)(A) to evaluate applications for funding 
     from the Fund that include factors including a strong 
     business case, technical design, consideration of commercial 
     off-the-shelf products and services, procurement strategy 
     (including adequate use of rapid, iterative software 
     development practices), and program management.
       (H) Reporting requirement.--
       (i) In general.--Not later than 1 year after the date of 
     enactment of this Act, and every 6 months thereafter, the 
     head of each covered agency shall submit to the Director, 
     with respect to the IT working capital fund of the covered 
     agency--

       (I) a list of each information technology investment 
     funded, including the estimated cost and completion date for 
     each investment; and
       (II) a summary by fiscal year of obligations, expenditures, 
     and unused balances.

       (ii) Public availability.--The Director shall make the 
     information submitted under clause (i) publicly available on 
     a website.
       (c) Establishment of Technology Modernization Fund and 
     Board.--
       (1) Definition.--In this subsection, the term ``agency'' 
     has the meaning given the term in section 551 of title 5, 
     United States Code.
       (2) Technology modernization fund.--
       (A) Establishment.--There is established in the Treasury a 
     Technology Modernization Fund for technology-related 
     activities, to improve information technology, to enhance 
     cybersecurity across the Federal Government, and to be 
     administered in accordance with guidance issued by the 
     Director.
       (B) Administration of fund.--The Commissioner, in 
     consultation with the Chief Information Officers Council and 
     with the approval of the Director, shall administer the Fund 
     in accordance with this paragraph.
       (C) Use of funds.--The Commissioner shall, in accordance 
     with recommendations from the Board, use amounts in the 
     Fund--
       (i) to transfer such amounts, to remain available until 
     expended, to the head of an agency to improve, retire, or 
     replace existing Federal information technology systems to 
     enhance cybersecurity and privacy and improve efficiency and 
     effectiveness;
       (ii) for the development, operation, and procurement of 
     information technology products, services, and acquisition 
     vehicles for use by agencies to improve Governmentwide 
     efficiency and cybersecurity in accordance with the 
     requirements of the agencies; and
       (iii) to provide services or work performed in support of--

       (I) the activities described in clause (i) or (ii); and
       (II) the Board and the Director in carrying out the 
     responsibilities described in paragraph (3)(B).

       (D) Authorization of appropriations; credits; availability 
     of funds.--
       (i) Authorization of appropriations.--There is authorized 
     to be appropriated to the Fund $250,000,000 for each of 
     fiscal years 2018 and 2019.
       (ii) Credits.--In addition to any funds otherwise 
     appropriated, the Fund shall be credited with all 
     reimbursements, advances, or refunds or recoveries relating 
     to information technology or services provided through the 
     Fund.
       (iii) Availability of funds.--Amounts deposited, credited, 
     or otherwise made available to the Fund shall be available, 
     as provided in appropriations Acts, until expended for the 
     purposes described in subparagraph (C).
       (E) Reimbursement.--
       (i) Payment by agency.--For a product or service developed 
     under subparagraph (C)(ii), including any services or work 
     performed in support of that development under subparagraph 
     (C)(iii), the head of an agency that uses the product or 
     service shall pay an amount fixed by the Commissioner in 
     accordance with this subparagraph.
       (ii) Reimbursement by agency.--

       (I) In general.--The head of an agency shall reimburse the 
     Fund for any transfer made under subparagraph (C)(i), 
     including any services or work performed in support of the 
     transfer under subparagraph (C)(iii), in accordance with the 
     terms established in a written agreement described in 
     subparagraph (F).
       (II) Reimbursement from subsequent appropriations.--
     Notwithstanding any other provision of law, an agency may 
     make a reimbursement required under subclause (I) from any 
     appropriation made available after the date of enactment of 
     this Act for information technology activities, consistent 
     with any applicable reprogramming law or guidelines of the 
     Committees on Appropriations of the Senate and the House of 
     Representatives as in effect on the day before the date of 
     enactment of this Act.
       (III) Recording of obligation.--Notwithstanding section 
     1501 of title 31, United States Code, an obligation to make a 
     payment under a written agreement described in subparagraph 
     (E) in a fiscal year after the

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     date of enactment of this Act shall be recorded in the fiscal 
     year in which the payment is due.

       (iii) Prices fixed by commissioner.--

       (I) In general.--The Commissioner, in consultation with the 
     Director, shall establish amounts to be paid by an agency 
     under this paragraph and the terms of repayment for a product 
     or service developed under subparagraph (C)(ii), including 
     any services or work performed in support of that development 
     under subparagraph (C)(iii), at levels sufficient to ensure 
     the solvency of the Fund, including operating expenses.
       (II) Review and approval.--Before making any changes to the 
     established amounts and terms of repayment, the Commissioner 
     shall conduct a review and obtain approval from the Director.

       (iv) Failure to make timely reimbursement.--The 
     Commissioner may obtain reimbursement from an agency under 
     this subparagraph by the issuance of transfer and 
     counterwarrants, or other lawful transfer documents, 
     supported by itemized bills, if payment is not made by the 
     agency--

       (I) during the 90-day period beginning after the expiration 
     of a repayment period described in a written agreement 
     described in subparagraph (F); or
       (II) during the 45-day period beginning after the 
     expiration of the time period to make a payment under a 
     payment schedule for a product or service developed under 
     subparagraph (C)(ii).

       (F) Written agreement.--
       (i) In general.--Before the transfer of funds to an agency 
     under subparagraph (C)(i), the Commissioner, in consultation 
     with the Director, and the head of the agency shall enter 
     into a written agreement--

       (I) documenting the purpose for which the funds will be 
     used and the terms of repayment, which may not exceed 5 years 
     unless approved by the Director; and
       (II) which shall be recorded as an obligation as provided 
     in subparagraph (E)(ii).

       (ii) Requirement for use of commercial products and 
     services and rapid, iterative development practices.--

       (I) In general.--For any funds transferred to an agency 
     under subparagraph (C)(i), in the absence of compelling 
     circumstances of the need to develop a custom information 
     technology solution that are documented by the Commissioner 
     in a written agreement under this subparagraph, the funds 
     shall be used for commercial products and services.
       (II) Timeline.--If the Commissioner documents in a written 
     agreement under this subparagraph that there are compelling 
     circumstances of the need to develop a custom information 
     technology solution, the Commissioner shall include in the 
     written agreement a timeline for a rapid, iterative 
     development process.

       (G) Reporting requirements.--
       (i) List of projects.--

       (I) In general.--Not later than 6 months after the date of 
     enactment of this Act, the Director shall maintain a list of 
     each project funded by the Fund, to be updated not less than 
     quarterly, that includes a description of the project, 
     project status (including any schedule delay and cost 
     overruns), and financial expenditure data related to the 
     project.
       (II) Public availability.--The list required under 
     subclause (I) shall be published on a public website in a 
     manner that is, to the greatest extent possible, consistent 
     with applicable law on the protection of classified 
     information, sources, and methods.

       (ii) Comptroller general reports.--Not later than 2 years 
     after the date of enactment of this Act, and every 2 years 
     thereafter, the Comptroller General of the United States 
     shall submit to Congress and make publically available a 
     report assessing--

       (I) the costs associated with establishing the Fund and 
     maintaining the oversight structure associated with the Fund 
     compared with the cost savings associated with the projects 
     funded by the Fund; and
       (II) the reliability of the cost savings estimated by 
     agencies associated with projects funded by the Fund.

       (3) Technology modernization board.--
       (A) Establishment.--There is established a Technology 
     Modernization Board to evaluate proposals submitted by 
     agencies for funding authorized under the Fund.
       (B) Responsibilities.--The responsibilities of the Board 
     are--
       (i) to provide input to the Director for the development of 
     processes for agencies to submit modernization proposals to 
     the Board and to establish the criteria by which those 
     proposals are evaluated, which shall include--

       (I) addressing the greatest security, privacy, and 
     operational risks;
       (II) having the greatest Governmentwide impact; and
       (III) having a high probability of success based on factors 
     including the use of commercial solutions when possible, a 
     strong business case, technical design, procurement strategy 
     (including adequate use of rapid, iterative software 
     development practices), and program management;

       (ii) to make recommendations to the Commissioner to assist 
     agencies in the further development and refinement of select 
     submitted modernization proposals, based on an initial 
     evaluation performed with the assistance of the Commissioner;
       (iii) to review and prioritize, with the assistance of the 
     Commissioner and the Director, modernization proposals based 
     on criteria established pursuant to clause (i);
       (iv) to identify, with the assistance of the Commissioner, 
     opportunities to improve or replace multiple information 
     technology systems with a smaller number of information 
     technology service common to multiple agencies;
       (v) to recommend the funding of modernization projects, in 
     accordance with the uses described in paragraph (2)(C), to 
     the Commissioner;
       (vi) to monitor, in consultation with the Commissioner, 
     progress and performance in executing approved projects and, 
     if necessary, recommend the suspension or termination of 
     funding for projects based on factors including the failure 
     to meet the terms of a written agreement described in 
     paragraph (2)(F); and
       (vii) to monitor the operating costs of the Fund.
       (C) Membership.--The Board shall consist of 7 voting 
     members.
       (D) Chair.--The Chair of the Board shall be the 
     Administrator of the Office of Electronic Government.
       (E) Permanent members.--The permanent members of the Board 
     shall be--
       (i) the Administrator of the Office of Electronic 
     Government; and
       (ii) a senior official from the General Services 
     Administration having technical expertise in information 
     technology development, appointed by the Administrator of 
     General Services, with the approval of the Director.
       (F) Additional members of the board.--
       (i) Appointment.--The other members of the Board shall be--

       (I) 1 employee of the National Protection and Programs 
     Directorate of the Department of Homeland Security, appointed 
     by the Secretary of Homeland Security; and
       (II) 4 employees of the Federal Government primarily having 
     technical expertise in information technology development, 
     financial management, cybersecurity and privacy, and 
     acquisition, appointed by the Director.

       (ii) Term.--Each member of the Board described in clause 
     (i) shall serve a term of 1 year, which shall be renewable 
     not more than 3 times at the discretion of the Secretary of 
     Homeland Security or the Director, as applicable.
       (G) Prohibition on compensation.--Members of the Board may 
     not receive additional pay, allowances, or benefits by reason 
     of their service on the Board.
       (H) Staff.--Upon request of the Chair of the Board, the 
     Director and the Administrator of General Services may 
     detail, on a reimbursable or nonreimbursable basis, any 
     employee of the Federal Government to the Board to assist the 
     Board in carrying out the functions of the Board.
       (4) Responsibilities of commissioner.--
       (A) In general.--In addition to the responsibilities 
     described in paragraph (2), the Commissioner shall support 
     the activities of the Board and provide technical support to, 
     and, with the concurrence of the Director, oversight of, 
     agencies that receive transfers from the Fund.
       (B) Responsibilities.--The responsibilities of the 
     Commissioner are--
       (i) to provide direct technical support in the form of 
     personnel services or otherwise to agencies transferred 
     amounts under paragraph (2)(C)(i) and for products, services, 
     and acquisition vehicles funded under paragraph (2)(C)(ii);
       (ii) to assist the Board with the evaluation, 
     prioritization, and development of agency modernization 
     proposals.
       (iii) to perform regular project oversight and monitoring 
     of approved agency modernization projects, in consultation 
     with the Board and the Director, to increase the likelihood 
     of successful implementation and reduce waste; and
       (iv) to provide the Director with information necessary to 
     meet the requirements of paragraph (2)(G).
       (5) Sunset.--This subsection shall cease to have force or 
     effect on the date that is 2 years after the date on which 
     the Comptroller General of the United States issues the third 
     report required under paragraph (2)(G)(ii).
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