[Senate Report 113-157]
[From the U.S. Government Publishing Office]


113th Congress                                                   Report
                                 SENATE
 2d Session                                                     113-157
_______________________________________________________________________

                                     

                                                       Calendar No. 372


 
           THE FEDERAL DATA CENTER CONSOLIDATION ACT OF 2013

                               __________

                              R E P O R T

                                 of the

                   COMMITTEE ON HOMELAND SECURITY AND

                          GOVERNMENTAL AFFAIRS

                          UNITED STATES SENATE

                              to accompany

                                S. 1611

TO REQUIRE CERTAIN AGENCIES TO CONDUCT ASSESSMENTS OF DATA CENTERS AND 
        DEVELOP DATA CENTER CONSOLIDATION AND OPTIMIZATION PLANS




                  May 6, 2014.--Ordered to be printed
        COMMITTEE ON HOMELAND SECURITY AND GOVERNMENTAL AFFAIRS

                  THOMAS R. CARPER, Delaware, Chairman
CARL LEVIN, Michigan                 TOM COBURN, Oklahoma
MARK L. PRYOR, Arkansas              JOHN McCAIN, Arizona
MARY L. LANDRIEU, Louisiana          RON JOHNSON, Wisconsin
CLAIRE McCASKILL, Missouri           ROB PORTMAN, Ohio
JON TESTER, Montana                  RAND PAUL, Kentucky
MARK BEGICH, Alaska                  MICHAEL B. ENZI, Wyoming
TAMMY BALDWIN, Wisconsin             KELLY AYOTTE, New Hampshire
HEIDI HEITKAMP, North Dakota

                  Gabrielle A. Batkin, Staff Director
               John P. Kilvington, Deputy Staff Director
                    Beth M. Grossman, Chief Counsel
                   Jonathan M. Kraden, Senior Counsel
               Keith B. Ashdown, Minority Staff Director
         Christopher J. Barkley, Minority Deputy Staff Director
               Andrew C. Dockham, Minority Chief Counsel
      Sean Casey, Legislative Assistant, Office of Senator Coburn
                     Laura W. Kilbride, Chief Clerk


                                CONTENTS

                                 ------                                
                                                                   Page
  I. Purpose and Summary..............................................1
 II. Background.......................................................1
III. Legislative History..............................................5
 IV. Section-by-Section Analysis of the Bill, as Reported.............6
  V. Congressional Budget Office (CBO) Cost Estimate..................7
 VI. Evaluation of Regulatory Impact.................................10
VII. Changes in Existing Law.........................................10


                                                       Calendar No. 372
113th Congress                                                   Report
                                 SENATE
 2d Session                                                     113-157

======================================================================




                 THE FEDERAL DATA CENTER CONSOLIDATION
                              ACT OF 2013

                                _______
                                

                  May 6, 2014.--Ordered to be printed

                                _______
                                

 Mr. Carper, from the Committee on Homeland Security and Governmental 
                    Affairs, submitted the following

                              R E P O R T

                         [To accompany S. 1611]

    The Committee on Homeland Security and Governmental 
Affairs, to which was referred the bill (S. 1611) to require 
certain agencies to conduct assessments of data centers and 
develop data center consolidation and optimization plans, 
having considered the same, reports favorably thereon with an 
amendment in the nature of a substitute and recommends that the 
bill, as amended, do pass.

                         I. PURPOSE AND SUMMARY

    The Federal Data Center Consolidation Act of 2013 (S. 1611) 
builds on the Administration's efforts to consolidate and 
streamline data centers--the facilities in which federal 
agencies house computer systems and related components--thereby 
saving the government money and making management of federal 
information technology (``IT'') resources more efficient. The 
bill does so by requiring agencies, among other things, to 
devise and implement plans to inventory and consolidate 
existing data centers and to report to the Office of Management 
and Budget (``OMB'') and Congress on the extent to which they 
are implementing those plans. It also directs the Government 
Accountability Office (``GAO'') to review and verify agencies' 
data center consolidation efforts.

                II. BACKGROUND AND NEED FOR LEGISLATION

    A data center is a room or building that houses computer 
systems and associated components that are used for the 
storage, management, and dissemination of data and 
information.\1\ Over the years, the federal government's demand 
for information technology has led to a dramatic rise in the 
number of federal data centers and an increase in operation 
costs. Since the 1990s, the number of data centers operated by 
the federal government has grown from several hundred to more 
than six thousand as of July 2013.\2\
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    \1\The Office of Management and Budget's (``OMB's'') definition of 
a ``data center'' has evolved over the years. It most recently has 
settled on defining ``data center'' as ``a closet, room, floor or 
building for the storage, management, and dissemination of data and 
information.'' OMB's guidance further explains that ``such a repository 
houses computer systems and associated components, such as database, 
application, and storage systems and data stores. A data center 
generally includes redundant or backup power supplies, redundant data 
communications connections, environmental controls (air conditioning, 
fire suppression, etc.) and special security devices housed in leased 
(including by cloud providers), owned, collocated, or stand-alone 
facilities. This definition excludes facilities exclusively devoted to 
communications and network equipment (e.g., telephone exchanges and 
telecommunications rooms).'' Office of Management and Budget Memorandum 
for Chief Information Officers, Implementation Guidance for the Federal 
Data Center Consolidation Initiative (March 19, 2012).
    \2\In July 2013, the Government Accountability Office reported that 
the number of agency-reported federal data centers stood at 6,836. 
Government Accountability Office, Information Technology: OMB and 
Agencies Need to More Effectively Implement Major Initiatives to Save 
Billions of Dollars, GAO-13-796T (July 2013). That is more than triple 
the number reported in 2010, when OMB first started counting, an 
increase resulting not so much from an actual growth in data centers, 
as from agencies' growing familiarity with OMB's requirements and OMB's 
expansion of the definition of ``data center.''
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    Operating these data centers imposes significant costs on 
the federal government. The government has to purchase 
hardware, software, and the facilities in which to place them, 
and it has to pay people to run the machines in the centers. 
Moreover, the Environmental Protection Agency reported that in 
2006 (the most recent year for which the information is 
available), federal servers and data centers accounted for 
approximately six billion kilowatts of electricity use, for a 
total annual electricity cost of about $450 million.\3\ These 
data centers typically run 24 hours a day, seven days a week, 
and require significant electricity to power the ``always-on'' 
equipment. In addition, data centers produce significant heat, 
requiring a substantial expenditure for energy to cool them.\4\ 
Furthermore, GAO has cited ``the growth in the number of 
federal data centers, many offering similar services and 
resources'' as a source of overlap and duplication (and 
therefore unnecessary expenditures) in the federal 
government.\5\
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    \3\U.S. Environmental Protection Agency, ENERGY STAR Program, 
Report to Congress on Server and Data Center Energy Efficiency at 25 
(pursuant to Public Law 109-431) (August 2, 2007).
    \4\See Time Magazine, The Surprisingly Large Energy Footprint of 
the Digital Economy, April 14, 2013 at http://science.time.com/2013/08/
14/power-drain-the-digital-cloud-is-using-more-energy-than-you-think/.
    \5\Government Accountability Office, Opportunities to Reduce 
Potential Duplication in Government Programs, Save Tax Dollars, and 
Enhance Revenue, 26-29, GAO-11-318SP (March 2011).
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    In 2010, OMB, through the Federal Chief Information Officer 
(``Federal CIO''), launched the Federal Data Center 
Consolidation Initiative (``Consolidation Initiative'' or 
``Initiative'') to consolidate redundant federal data centers 
and achieve cost savings. The goals of the initiative were to: 
promote the use of green IT by reducing the overall energy and 
real estate footprint of government data centers; reduce the 
cost of data center hardware, software, and operations; 
increase the overall IT security posture of the government; and 
shift IT investments to more efficient computing platforms and 
technologies.\6\
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    \6\Office of Management and Budget Memorandum for Chief Information 
Officers, Federal Data Center Consolidation Initiative (February 26, 
2010).
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    Under the Consolidation Initiative, OMB required the 24 
departments and agencies on the Chief Information Officers 
Council\7\ to submit an inventory of each agency's data centers 
and a plan for consolidating them. Agencies were then required 
to annually update their asset inventory and report on the 
progress made toward implementing the agency consolidation 
plan. OMB set a target goal of closing 40 percent of the 
federal data centers agencies had identified, and it estimated 
saving between $3 and $5 billion--both by the end of 2015.\8\
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    \7\The 24 agencies on the CIO Council are: Department of 
Agriculture; Department of Commerce; Department of Defense; Department 
of Education; Department of Energy; Department of Health and Human 
Services; Department of Homeland Security; Department of Housing and 
Urban Development; Department of the Interior; Department of Justice; 
Department of Labor; Department of State; Department of Transportation; 
Department of the Treasury; Department of Veterans Affairs; 
Environmental Protection Agency; General Services Administration; 
National Aeronautics and Space Administration; National Science 
Foundation; Nuclear Regulatory Commission; Office of Personnel 
Management; Small Business Administration; Social Security 
Administration; and United States Agency for International Development.
    \8\See Fiscal Year 2012 Budget of the U.S. Government, page 29 
(http://www.whitehouse.gov/sites/default/files/omb/budget/fy2012/
assets/budget.pdf) and Fiscal Year 2013 Budget of the U.S. Government, 
page 43 (http://www.whitehouse.gov/sites/default/files/omb/budget/
fy2013/assets/budget.pdf).
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Government Accountability Office reviews of the Initiative

    At the request of this Committee, GAO conducted several 
reviews of the progress that OMB and agencies have made under 
the Initiative. GAO's ongoing work on the Consolidation 
Initiative has confirmed two things. First, data center 
consolidation is an economical way to achieve more efficient IT 
operations, as well as cost savings or cost avoidance.\9\ 
Second, significant work must still be done before agencies 
realize the full benefits of consolidation.
---------------------------------------------------------------------------
    \9\See Government Accountability Office, Opportunities to Reduce 
Potential Duplication in Government Programs, Save Tax Dollars, and 
Enhance Revenue, 26-29, GAO-11-318SP (March 2011).
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    GAO's first report, issued in July 2011, assessed the 
completeness of each agency's first submission of data center 
consolidation documents. GAO found that, at that time, only one 
agency out of 24 had submitted a complete data center asset 
inventory and no agency had submitted a complete consolidation 
plan.\10\ In addition, GAO reported on some of the challenges 
that agencies faced when trying to implement the Consolidation 
Initiative. Some agencies told GAO that they had experienced 
operational challenges in maintaining services during 
consolidation, while other agencies reported cultural 
challenges in trying to consolidate in a decentralized 
organizational structure.\11\ GAO recommended that OMB, the 
Federal CIO, and the agencies each take steps to ensure that 
agencies improve and complete their data center inventories and 
consolidation plans.
---------------------------------------------------------------------------
    \10\Government Accountability Office, Data Center Consolidation: 
Agencies Need to Complete Inventories and Plans to Achieve Expected 
Savings, 8-19, GAO-11-565 (July 2011).
    \11\Id. at 19-23.
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    A year later, in July 2012, GAO reported on agencies' 
second submission of data center consolidation documents. These 
submissions demonstrated that the Consolidation Initiative 
could potentially save the government billions of dollars. GAO 
found that nineteen agencies reported anticipating a combined 
total of more than $2.4 billion in cost savings and more than 
$820 million in cost avoidances between 2011 and 2015.\12\ 
However, GAO's review also found that there were still large 
gaps in agency inventories and plans. For example, only three 
agencies had submitted a complete inventory and only one agency 
had submitted a complete consolidation plan.\13\
---------------------------------------------------------------------------
    \12\Government Accountability Office, Data Center Consolidation: 
Agencies Making Progress on Efforts, but Inventories and Plans Need to 
be Completed, 12, GAO-12-742 (July 2012). GAO noted that actual savings 
could reach even higher, because fourteen of the agencies provided 
incomplete projections, one agency does not expect to accrue net 
savings until 2017, and three agencies did not provide any estimated 
cost savings at all.
    \13\Id.
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    GAO's next report on the Consolidation Initiative, issued 
in April 2013, once again evaluated agency progress in 
consolidating data centers. GAO expressed frustration over the 
failure to track cost savings associated with the Consolidation 
Initiative, stating, ``the lack of initiative-wide cost savings 
data makes it unclear whether agencies will be able to achieve 
OMB's projected savings of $3 billion by the end of 2015.''\14\ 
GAO also found that OMB had not measured agencies' progress 
toward OMB's cost savings goal of $3 billion, because OMB had 
not determined a consistent and repeatable method for tracking 
cost savings. GAO further stated that until OMB begins tracking 
and reporting on performance measures such as cost savings, OMB 
would be limited in its ability to oversee agencies' progress 
towards key initiative goals.\15\
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    \14\Government Accountability Office, Data Center Consolidation: 
Strengthened Oversight Needed to Achieve Cost Savings Goal 14, GAO-13-
378 (April 2013).
    \15\Id. at 10.
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The Federal Data Center Consolidation Act of 2013

    When OMB launched the Consolidation Initiative in 2010, it 
sought to have agencies free up resources to better support 
mission-critical activities, reduce the overall energy and real 
estate footprint of federal data centers, and improve the 
overall IT security posture of the government. Furthermore, in 
shutting redundant and underutilized data centers, the 
Administration sought to reduce the duplicative infrastructure 
that breeds wasteful IT. These are all worthwhile goals, and 
the Committee strongly supports them. However, GAO's reports on 
progress under the Consolidation Initiative demonstrate that 
there is much that still needs to be done for the Initiative to 
reach its full potential.
    The Federal Data Center Consolidation Act of 2013 helps 
ensure that there is a continued emphasis placed on 
consolidating and optimizing agency data centers and that 
agencies see the Consolidation Initiative through to its 
conclusion. S. 1611 codifies and builds upon many of the 
Administration's own requirements in several important ways.
    First, the bill requires the 24 agencies included in the 
current Consolidation Initiative to submit annual reports to 
OMB that include: comprehensive data center inventories; multi-
year strategies to consolidate data centers and make the 
servers and other equipment housed in them more efficient and 
cost-effective; a timeline for agency activities under the 
Initiative; and year-by-year calculations of investment and 
cost savings. The bill then requires agencies to implement 
their data center strategies and provide quarterly updates to 
OMB on their progress under the Initiative. These annual 
reports and quarterly updates to OMB will facilitate increased 
oversight by OMB and Congress, assist agency decision making, 
and ultimately improve operational efficiency at federal 
agencies.
    Second, the bill requires the Administrator for the Office 
of E-Government and Information Technology at OMB\16\ to 
establish performance metrics (including cost metrics), provide 
annual updates on the cumulative cost savings of the 
Initiative, review agency data center inventories, and review 
and monitor the implementation of agency data center 
strategies. GAO has repeatedly recommended that, in order for 
the Initiative to reach its full potential, OMB must take steps 
to ensure that agencies are completing data center inventories, 
implementing consolidation strategies, and better tracking cost 
savings.\17\ By specifically laying out the Administrator's 
duties, S. 1611 ensures that OMB's responsibilities are clear 
in this area.
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    \16\The Administrator for the Office of E-Government and 
Information Technology at OMB is a statutorily defined position. 
Currently, one person is serving as both the Federal CIO and the 
Administrator for the Office of E-Government and Information 
Technology.
    \17\Government Accountability Office, Data Center Consolidation: 
Strengthened Oversight Needed to Achieve Cost Savings Goal 14, GAO-13-
378 (April 2013).
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    Third, the bill requires GAO to annually review and report 
on the Consolidation Initiative. While federal agencies have 
generally improved their data center inventories, much work 
still remains to be done to ensure that agencies have the most 
accurate information possible when assessing and altering their 
inventories. To ensure sustained progress towards the goals of 
the Initiative, S. 1611 includes provisions to hold federal 
agencies accountable by requiring GAO to conduct annual reviews 
of the quality and completeness of agency data center 
inventories and consolidation strategies.

                        III. LEGISLATIVE HISTORY

    On May 25, 2011, the Committee held a hearing entitled 
``How to Save Taxpayer Dollars: Case Studies of Duplication in 
the Federal Government.'' One of the case studies examined at 
the hearing was the Consolidation Initiative's effort to reduce 
unnecessary federal data centers.
    On June 11, 2013, the Committee held a hearing entitled 
``Reducing Duplication and Improving Outcomes in Federal 
Information Technology.'' During the hearing, several critical 
IT areas were identified as offering potential opportunities to 
reduce duplication and the cost of government operations, 
including reducing the number of underutilized federal data 
centers.
    On October 30, 2013, Senators Bennet, Coburn, and Ayotte 
introduced S. 1611, the Federal Data Center Consolidation Act 
of 2013, and the bill was referred to the Senate Committee on 
Homeland Security and Governmental Affairs.
    The Committee considered the bill at a business meeting on 
November 6, 2013. Senator Carper offered a substitute amendment 
making technical corrections, and providing that the relevant 
Congressional Committees be provided a statement of explanation 
for any waiver of the requirements of the Act granted by the 
Director of National Intelligence for any element of the 
Intelligence Community. The Committee adopted the substitute 
amendment and ordered the underlying bill reported favorably, 
both by voice vote. Members present for the vote on the 
amendment and on the bill were Senators Carper, Levin, 
McCaskill, Tester, Begich, Baldwin, Johnson, Portman and 
Ayotte.

        IV. SECTION-BY-SECTION ANALYSIS OF THE BILL, AS REPORTED

Section 1: Short title

    The short title of the bill is the ``Federal Data Center 
Consolidation Act of 2013.''

Section 2: Federal Data Center Consolidation Initiative (FDCCI)

Section 2(a): Definitions

    Section 2(a) defines four terms. First, the term 
``Administrator'' means the Administrator for the Office of E-
Government and Information Technology within OMB. Second, 
``Covered Agency'' is defined to include all 24 agencies that 
were included in the original Consolidation Initiative.\18\ 
Third, the term ``FDCCI'' means the Federal Data Center 
Consolidation Initiative that was first started by OMB in 
February 2010, or any successor to the Initiative. Finally, 
``Government-Wide Data Center Consolidation and Optimization 
Metrics'' are the metrics that are established by the 
Administrator under section (b)(2)(g) of this Act.
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    \18\See 31 U.S.C. Sec. 901(b). These 24 agencies are known as the 
``Chief Financial Officer'' or ``CFO'' agencies, a reference to Public 
Law 101-576, the Chief Financial Officers Act of 1990.
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Subsection 2(b): Federal Data Center consolidation inventories and 
        strategies

    Subsection 2(b)(1)(A) establishes annual data center 
consolidation reporting requirements for covered agencies, as 
defined in Section 2(a). The bill requires those agencies to 
submit annually to OMB a data center inventory and a multi-year 
strategy to consolidate their data centers and make the servers 
and other equipment housed in them more efficient and cost-
effective. The strategy shall include performance metrics, a 
consolidation timeline, and cost savings estimates.
    Subsection 2(b)(1)(B) makes clear that OMB may allow 
agencies to submit information through existing reporting 
structures, and 2(b)(1)(C) requires an agency Chief Information 
Officer to submit to the Administrator, and make publicly 
available, an annual statement that the agency has complied 
with the requirements of this Act. Subsection 2(b)(1)(D) then 
requires agencies to implement the consolidation strategies 
submitted to OMB and provide quarterly updates to OMB on the 
implementation process. Finally, 2(b)(1)(E) contains a rule of 
construction to make it clear that nothing in this Act limits 
the reporting of information by agencies to OMB or Congress.
    Subsection 2(b)(2) lays out the responsibilities of the 
Administrator for the Office of E-Government and Information 
Technology under this Act. These responsibilities include: 
establishing deadlines for annual reporting by agencies and 
requirements that agencies must meet to be considered in 
compliance with the Act, ensuring that information relating to 
agency progress towards meeting the goals of the Consolidation 
Initiative is made available to the public, reviewing the 
inventories and strategies submitted pursuant to this Act, 
monitoring the implementation of agency strategies, updating 
the cost savings realized through the Consolidation Initiative, 
and creating government-wide data center consolidation and 
optimization metrics.
    Subsection 2(b)(3) requires the Administrator to develop a 
cost-savings goal for the Initiative, with a year-by-year 
breakdown of anticipated savings. OMB must make this 
information publicly available and submit annual updates to 
Congress on cost savings realized and the completeness or 
incompleteness of each agency's data center inventories and 
consolidation strategies.
    Subsection 2(b)(4) requires GAO to review annually the 
quality and completeness of each agency's asset inventory and 
consolidation strategy.

Subsection 2(c): Ensuring cybersecurity standards for data center 
        consolidation and cloud computing

    This subsection establishes that data center consolidation 
must be done in accordance with federal guidelines on cloud 
computing security, including the Federal Risk and 
Authorization Management Program\19\ and guidance published by 
the National Institute of Standards and Technology. This 
subsection also includes a rule of construction that makes it 
clear that OMB has the ability to update and modify federal 
guidelines on cloud computing security.
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    \19\The Federal Risk and Authorization Management Program 
(``FedRAMP'') is a government-wide program that provides a standardized 
approach to security assessment, authorization, and continuous 
monitoring for cloud products and services. See http://cloud.cio.gov/
fedramp.
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Subsection 2(d): Waiver of disclosure requirements

    This subsection authorizes the Director of National 
Intelligence (``DNI'') to waive the applicability of the 
requirements of the Act to an element (or component of an 
element) of the intelligence community if the DNI determines 
that such waiver is in the interest of national security. It 
requires the DNI, within 30 days of making such a 
determination, to file a statement describing the waiver and 
the reasons for the waiver to the Senate Homeland Security and 
Governmental Affairs Committee, the House Committee on 
Oversight and Government Reform, and the Senate and House 
Intelligence Committees.

Subsection 2(e): Sunset

    This subsection sunsets the legislation on October 1, 2018.

           V. CONGRESSIONAL BUDGET OFFICE (CBO) COST ESTIMATE

                                                  December 6, 2013.
Hon. Tom Carper,
Chairman, Committee on Homeland Security and Governmental Affairs, U.S. 
        Senate, Washington, DC.
    Dear Mr. Chairman: The Congressional Budget Office has 
prepared the enclosed cost estimate for S. 1611, the Federal 
Data Center Consolidation Act of 2013.
    If you wish further details on this estimate, we will be 
pleased to provide them. The CBO staff contact is Matthew 
Pickford.
            Sincerely,
                                              Douglas W. Elmendorf.
    Enclosure.

S. 1611--Federal Data Center Consolidation Act of 2013

    Summary: S. 1611 would require agencies to submit to the 
Office of Management and Budget (OMB) long-term plans for 
phasing out unnecessary data centers and optimizing performance 
at the remaining facilities (a data center is a facility used 
to house computer systems and associated components). Agencies 
would prepare comprehensive inventories of their information 
technology equipment as part of those plans. Agencies also 
would be required to prepare estimates of the savings that 
would be realized from consolidating data centers. Finally, the 
Government Accountability Office (GAO) would report annually to 
the Congress on the implementation of the legislation.
    Assuming appropriation of the necessary amounts, CBO 
estimates that implementing S. 1611 would cost $22 million over 
the 2014-2018 period. Although optimizing the use of federal 
data centers ultimately could reduce spending, CBO does not 
expect that there would be any significant savings from 
implementing this legislation for the next few years. Enacting 
the bill could affect direct spending by agencies not funded 
through annual appropriations; therefore, pay-as-you-go 
procedures apply. CBO estimates, however, that any net change 
in spending by those agencies would not be significant. 
Enacting the bill would not affect revenues.
    S. 1611 contains no intergovernmental or private-sector 
mandates as defined in the Unfunded Mandates Reform Act (UMRA) 
and would not affect the budgets of state, local, or tribal 
governments.
    Estimated cost to the Federal Government: The estimated 
budgetary impact of S. 1611 is shown in the following table. 
The costs of this legislation fall within budget function 800 
(general government) and all other budget functions that 
include expenditures for information technology.

----------------------------------------------------------------------------------------------------------------
                                                                 By fiscal year, in millions of dollars--
                                                         -------------------------------------------------------
                                                            2014     2015     2016     2017     2018   2014-2018
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                                  CHANGES IN SPENDING SUBJECT TO APPROPRIATION

Estimated Authorization Level...........................        2        5        5        5        5        22
Estimated Outlays.......................................        2        5        5        5        5        22
----------------------------------------------------------------------------------------------------------------

    Basis of estimate: For this estimate, CBO assumes that the 
bill will be enacted in 2014, that the necessary amounts will 
be provided each year, and that spending will follow historical 
patterns for similar management initiatives.
    Most provisions of S. 1611 would expand on the 
Administration's current efforts to consolidate data centers. 
In 2010, OMB instructed federal agencies to develop 
consolidation plans as part of the Federal Data Center 
Consolidation Initiative (FDCCI). The goals of the initiative 
are to realize savings from purchasing fewer computer hardware 
and software products, reduce energy use, and lease less real 
estate. Each agency is required to identify a senior manager to 
lead the consolidation efforts, produce an inventory, and plan 
for future consolidations. The initiative also encourages the 
use of cloud computing. Recently, OMB integrated FDCCI with its 
PortfolioStat initiative, which is reviewing all information 
technology investments.
    S. 1611 would require the 24 participating agencies to 
submit comprehensive inventories of their IT facilities to OMB 
as well as long-term plans for phasing out some data centers 
and optimizing performance at the remaining facilities. 
Agencies also would be required to submit estimates of cost 
savings from those consolidations. Finally, GAO would be 
required to annually review and verify agency efforts and 
report to the Congress on its findings.
    Costs to implement the bill would vary by agency and depend 
on how much work had been previously completed and how much 
additional reporting and oversight would be required. GAO has 
reported that many agencies have not followed the FDCCI, 
completed their data center inventory or consolidation plan, or 
identified any cost savings from the centers they have closed. 
Based on information from selected agencies, OMB, and GAO 
studies and reports on similar efforts, CBO expects that the 
administrative workload of most agencies would increase by a 
few hundred thousand dollars annually under this bill. Thus, we 
estimate that implementing S. 1611 governmentwide and 
completing the necessary GAO reports would cost about $5 
million a year, assuming appropriation of the necessary 
amounts.
    Information from GAO and OMB indicates that the federal 
government operates more than 3,000 data centers. Those centers 
spend significant amounts for computer hardware, software, 
facility leases, and electricity. The Environmental Protection 
Agency estimates that in total the federal government spends 
$450 million just for electricity to operate such centers. The 
Administration is already attempting to reduce unnecessary 
costs of those operations. Through the data consolidation 
initiative, OMB's goal is to close about 1,200 data centers by 
2015 and lower operating costs substantially. Nonetheless, the 
activities required by S. 1611 could eventually contribute to 
the cost savings if federal agencies further consolidated data 
centers and made more efficient use of a smaller number of 
facilities. However, CBO expects that any such savings over the 
next five years would not be significant.
    Pay-As-You-Go considerations: The Statutory Pay-As-You-Go 
Act of 2010 establishes budget-reporting and enforcement 
procedures for legislation affecting direct spending or 
revenues. Enacting the bill could affect direct spending by 
agencies not funded through annual appropriations; therefore, 
pay-as-you-go procedures apply. CBO estimates, however, that 
any net change in spending by those agencies would not be 
significant. Enacting the bill would not affect revenues.
    Intergovernmental and private-sector impact: S. 1611 
contains no intergovernmental or private-sector mandates as 
defined in UMRA and would not affect the budgets of state, 
local, or tribal governments.
    Estimate prepared by: Federal Costs: Matthew Pickford; 
Impact on State, Local, and Tribal Governments: Michael Kulas; 
Impact on the Private Sector: Paige Piper/Bach.
    Estimate approved by: Theresa Gullo, Deputy Assistant 
Director for Budget Analysis.

                  VI. EVALUATION OF REGULATORY IMPACT

    Pursuant to the requirements of paragraph 11(b) of rule 
XXVI of the Standing Rules of the Senate, the Committee has 
considered the regulatory impact of this bill.
    The Committee agrees with the Congressional Budget Office 
that the bill contains no intergovernmental or private-sector 
mandates as defined in the Unfunded Mandates Reform Act and 
would impose no costs on state, local, or tribal governments, 
or private entities. The enactment of this legislation would 
not have significant regulatory impact.

     VII. CHANGES IN EXISTING STATUTE MADE BY THE BILL, AS REPORTED

    In compliance with paragraph 12 of rule XXVI of the 
Standing Rules of the Senate, the Committee states that there 
are no changes in existing law made by the bill, as reported.

                                  
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