[Congressional Record Volume 163, Number 148 (Wednesday, September 13, 2017)]
[Senate]
[Pages S5671-S5674]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]

  SA 1006. Mr. MORAN (for himself, Mr. Udall, Mr. Daines, and Mr. 
Warner) submitted an amendment intended to be proposed to amendment SA 
1003 proposed by Mr. McCain (for himself and Mr. Reed) 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 
for defense activities of the Department of Energy,

[[Page S5672]]

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 end of title X, add the following:

             Subtitle H--Modernizing Government Technology

     SEC. 1091. SHORT TITLE.

       This subtitle may be cited as the ``Modernizing Government 
     Technology Act of 2017'' or the ``MGT Act''.

     SEC. 1092. DEFINITIONS.

       In this subtitle:
       (1) Administrator.--The term ``Administrator'' means the 
     Administrator of General Services.
       (2) Board.--The term ``Board'' means the Technology 
     Modernization Board established under section 1094(c)(1).
       (3) 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.
       (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 section 1094(b)(1).
       (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 section 
     1093(b)(1).
       (8) Legacy information technology system.--The term 
     ``legacy information technology system'' means an outdated or 
     obsolete system of information technology.

     SEC. 1093. ESTABLISHMENT OF AGENCY INFORMATION TECHNOLOGY 
                   SYSTEMS MODERNIZATION AND WORKING CAPITAL 
                   FUNDS.

       (a) Definition.--In this section, the term ``covered 
     agency'' means each agency listed in section 901(b) of title 
     31, United States Code.
       (b) Information Technology System Modernization and Working 
     Capital Funds.--
       (1) 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 paragraph (3).
       (2) Source of funds.--The following amounts may be 
     deposited into an IT working capital fund:
       (A) 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 reprogramming law 
     or guidelines of the Committees on Appropriations of the 
     Senate and the House of Representatives or transfer authority 
     specifically provided in appropriations law.
       (B) Amounts made available to the IT working capital fund 
     through discretionary appropriations made available after the 
     date of enactment of this Act.
       (3) Use of funds.--An IT working capital fund established 
     under paragraph (1) may only be used--
       (A) to improve, retire, or replace existing information 
     technology systems in the covered agency to enhance 
     cybersecurity and to improve efficiency and effectiveness 
     across the life of a given workload, procured using full and 
     open competition among all commercial items to the greatest 
     extent practicable;
       (B) to transition legacy information technology systems at 
     the covered agency to commercial cloud computing and other 
     innovative commercial platforms and technologies, including 
     those serving more than 1 covered agency with common 
     requirements;
       (C) to assist and support covered agency efforts to provide 
     adequate, risk-based, and cost-effective information 
     technology capabilities that address evolving threats to 
     information security;
       (D) 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; and
       (E) for a program, project, or activity or to increase 
     funds for any program, project, or activity that has not been 
     denied or restricted by Congress.
       (4) 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.
       (5) Prioritization of funds.--The head of each covered 
     agency--
       (A) 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; and
       (B) may reprogram and transfer any amounts saved as a 
     direct result of the cost savings activities approved under 
     clause (i) for deposit into the IT working capital fund of 
     the covered agency, consistent with paragraph (2)(A).
       (6) Availability of funds.--
       (A) 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.
       (B) 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 subparagraph (A) shall be 
     transferred to the general fund of the Treasury.
       (7) 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 
     section 1094(b)(1) 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.
       (c) Reporting Requirement.--
       (1) 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--
       (A) a list of each information technology investment 
     funded, including the estimated cost and completion date for 
     each investment; and
       (B) a summary by fiscal year of obligations, expenditures, 
     and unused balances.
       (2) Public availability.--The Director shall make the 
     information submitted under paragraph (1) publicly available 
     on a website.

     SEC. 1094. ESTABLISHMENT OF TECHNOLOGY MODERNIZATION FUND AND 
                   BOARD.

       (a) Definition.--In this section, the term ``agency'' has 
     the meaning given the term in section 551 of title 5, United 
     States Code.
       (b) Technology Modernization Fund.--
       (1) 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.
       (2) Administration of fund.--The Administrator, in 
     consultation with the Chief Information Officers Council and 
     with the approval of the Director, shall administer the Fund 
     in accordance with this subsection.
       (3) Use of funds.--The Administrator shall, in accordance 
     with recommendations from the Board, use amounts in the 
     Fund--
       (A) to transfer such amounts, to remain available until 
     expended, to the head of an agency for the acquisition of 
     products and services, or the development of such products 
     and services when more efficient and cost effective, to 
     improve, retire, or replace existing Federal information 
     technology systems to enhance cybersecurity and privacy and 
     improve long-term efficiency and effectiveness;
       (B) to transfer such amounts, to remain available until 
     expended, to the head of an agency for the operation and 
     procurement of information technology products and services, 
     or the development of such products and services when more 
     efficient and cost effective, and acquisition vehicles for 
     use by agencies to improve Governmentwide efficiency and 
     cybersecurity in accordance with the requirements of the 
     agencies;
       (C) to provide services or work performed in support of--
       (i) the activities described in subparagraph (A) or (B); 
     and
       (ii) the Board and the Director in carrying out the 
     responsibilities described in subsection (c)(2); and
       (D) to fund only programs, projects, or activities or to 
     fund increases for any programs, projects, or activities that 
     have not been denied or restricted by Congress.
       (4) Authorization of appropriations; credits; availability 
     of funds.--
       (A) Authorization of appropriations.--There is authorized 
     to be appropriated to the Fund $250,000,000 for each of 
     fiscal years 2018 and 2019.
       (B) 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 for the 
     purposes described in paragraph (3).
       (C) Availability of funds.--Amounts deposited, credited, or 
     otherwise made available to the Fund shall be available until 
     expended for the purposes described in paragraph (3).
       (5) Reimbursement.--
       (A) Reimbursement by agency.--
       (i) In general.--The head of an agency shall reimburse the 
     Fund for any transfer made under subparagraph (A) or (B) of 
     paragraph (3), including any services or work performed in 
     support of the transfer under paragraph (3)(C), in accordance 
     with the terms established in a written agreement described 
     in paragraph (6).
       (ii) Reimbursement from subsequent appropriations.--
     Notwithstanding any other provision of law, an agency may 
     make a reimbursement required under clause (i) from any 
     appropriation made available after the date of enactment of 
     this Act for information technology activities, consistent 
     with

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     any applicable reprogramming law or guidelines of the 
     Committees on Appropriations of the Senate and the House of 
     Representatives.
       (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 paragraph (6) 
     in a fiscal year after the date of enactment of this Act 
     shall be recorded in the fiscal year in which the payment is 
     due.
       (B) Prices fixed by administrator.--
       (i) In general.--The Administrator, in consultation with 
     the Director, shall establish amounts to be paid by an agency 
     under this paragraph and the terms of repayment for 
     activities funded under paragraph (3), including any services 
     or work performed in support of that development under 
     paragraph (3)(C), 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 Administrator 
     shall conduct a review and obtain approval from the Director.
       (C) Failure to make timely reimbursement.--The 
     Administrator may obtain reimbursement from an agency under 
     this paragraph by the issuance of transfer and 
     counterwarrants, or other lawful transfer documents, 
     supported by itemized bills, if payment is not made by the 
     agency during the 90-day period beginning after the 
     expiration of a repayment period described in a written 
     agreement described in paragraph (6).
       (6) Written agreement.--
       (A) In general.--Before the transfer of funds to an agency 
     under subparagraphs (A) and (B) of paragraph (3), the 
     Administrator, 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 paragraph (5)(A).
       (B) Requirement for use of incremental funding, commercial 
     products and services, and rapid, iterative development 
     practices.--The Administrator shall ensure--
       (i) for any funds transferred to an agency under paragraph 
     (3)(A), in the absence of compelling circumstances documented 
     by the Administrator at the time of transfer, that such funds 
     shall be transferred only on an incremental basis, tied to 
     metric-based development milestones achieved by the agency 
     through the use of rapid, iterative, development processes; 
     and
       (ii) that the use of commercial products and services are 
     incorporated to the greatest extent practicable in activities 
     funded under subparagraphs (A) and (B) of paragraph (3), and 
     that the written agreement required under paragraph (6) 
     documents this preference.
       (7) Reporting requirements.--
       (A) 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), financial expenditure data related to the project, 
     and the extent to which the project is using commercial 
     products and services, including if applicable, a 
     justification of why commercial products and services were 
     not used and the associated development and integration costs 
     of custom development.
       (ii) Public availability.--The list required under clause 
     (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.
       (B) 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 both annually and over the life of the acquired 
     products and services by the Fund;
       (ii) the reliability of the cost savings estimated by 
     agencies associated with projects funded by the Fund;
       (iii) whether agencies receiving transfers of funds from 
     the Fund used full and open competition to acquire the custom 
     development of information technology products or services; 
     and
       (iv) the number of IT procurement, development, and 
     modernization programs, offices, and entities in the Federal 
     Government, including 18F and the United States Digital 
     Services, the roles, responsibilities, and goals of those 
     programs and entities, and the extent to which they duplicate 
     work.
       (c) Technology Modernization Board.--
       (1) Establishment.--There is established a Technology 
     Modernization Board to evaluate proposals submitted by 
     agencies for funding authorized under the Fund.
       (2) Responsibilities.--The responsibilities of the Board 
     are--
       (A) 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 a strong business case, technical design, 
     consideration of commercial off-the-shelf products and 
     services, procurement strategy (including adequate use of 
     rapid, agile iterative software development practices), and 
     program management;
       (B) to make recommendations to the Administrator to assist 
     agencies in the further development and refinement of select 
     submitted modernization proposals, based on an initial 
     evaluation performed with the assistance of the 
     Administrator;
       (C) to review and prioritize, with the assistance of the 
     Administrator and the Director, modernization proposals based 
     on criteria established pursuant to subparagraph (A);
       (D) to identify, with the assistance of the Administrator, 
     opportunities to improve or replace multiple information 
     technology systems with a smaller number of information 
     technology services common to multiple agencies;
       (E) to recommend the funding of modernization projects, in 
     accordance with the uses described in subsection (b)(3), to 
     the Administrator;
       (F) to monitor, in consultation with the Administrator, 
     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 
     subsection (b)(6); and
       (G) to monitor the operating costs of the Fund.
       (3) Membership.--The Board shall consist of 7 voting 
     members.
       (4) Chair.--The Chair of the Board shall be the 
     Administrator of the Office of Electronic Government.
       (5) Permanent members.--The permanent members of the Board 
     shall be--
       (A) the Administrator of the Office of Electronic 
     Government; and
       (B) a senior official from the General Services 
     Administration having technical expertise in information 
     technology development, appointed by the Administrator, with 
     the approval of the Director.
       (6) Additional members of the board.--
       (A) 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.
       (B) Term.--Each member of the Board described in paragraph 
     (A) shall serve a term of 1 year, which shall be renewable 
     not more than 4 times at the discretion of the appointing 
     Secretary or Director, as applicable.
       (7) Prohibition on compensation.--Members of the Board may 
     not receive additional pay, allowances, or benefits by reason 
     of their service on the Board.
       (8) Staff.--Upon request of the Chair of the Board, the 
     Director and the Administrator 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.
       (d) Responsibilities of Administrator.--
       (1) In general.--In addition to the responsibilities 
     described in subsection (b), the Administrator shall support 
     the activities of the Board and provide technical support to, 
     and, with the concurrence of the Director, oversight of, 
     agencies that receive transfers from the Fund.
       (2) Responsibilities.--The responsibilities of the 
     Administrator are--
       (A) to provide direct technical support in the form of 
     personnel services or otherwise to agencies transferred 
     amounts under subsection (b)(3)(A) and for products, 
     services, and acquisition vehicles funded under subsection 
     (b)(3)(B);
       (B) to assist the Board with the evaluation, 
     prioritization, and development of agency modernization 
     proposals.
       (C) 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
       (D) to provide the Director with information necessary to 
     meet the requirements of subsection (b)(7).
       (e) Effective Date.--This section shall take effect on the 
     date that is 90 days after the date of enactment of this Act.
       (f) Sunset.--
       (1) In general.--On and after the date that is 2 years 
     after the date on which the Comptroller General of the United 
     States issues the third report required under subsection 
     (b)(7)(B), the Administrator may not award or transfer funds 
     from the Fund for any project that is not already in progress 
     as of such date.
       (2) Transfer of unobligated amounts.--Not later than 90 
     days after the date on which all projects that received an 
     award from the Fund are completed, any amounts

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     in the Fund shall be transferred to the general fund of the 
     Treasury and shall be used for deficit reduction.
       (3) Termination of technology modernization board.--Not 
     later than 90 days after the date on which all projects that 
     received an award from the Fund are completed, the Technology 
     Modernization Board and all the authorities of subsection (c) 
     shall terminate.
                                 ______