[Senate Report 117-22]
[From the U.S. Government Publishing Office]


  							Calendar No. 56
117th Congress         }                        {               Report
                      		 SENATE                          
 1st Session           }                        {               117-22           
_______________________________________________________________________

 
                       BILLION DOLLAR BOONDOGGLE 
                              ACT OF 2021

                               __________

                              R E P O R T

                                 of the

                   COMMITTEE ON HOMELAND SECURITY AND

                          GOVERNMENTAL AFFAIRS

                          UNITED STATES SENATE

                              to accompany

                                 S. 636

                TO REQUIRE THE DIRECTOR OF THE OFFICE OF
             MANAGEMENT AND BUDGET TO SUBMIT TO CONGRESS AN
             ANNUAL REPORT ON PROJECTS THAT ARE OVER BUDGET
              AND BEHIND SCHEDULE, AND FOR OTHER PURPOSES



		[GRAPHIC(S) NOT AVAILABLE IN TIFF FORMAT]
		
		


                  May 10, 2021.--Ordered to be printed
                  
                  
                  
				________
	

		    U.S. GOVERNMENT PUBLISHING OFFICE

 			  WASHINGTON : 2021
                  
                  
                  
        COMMITTEE ON HOMELAND SECURITY AND GOVERNMENTAL AFFAIRS

                   GARY C. PETERS, Michigan, Chairman
THOMAS R. CARPER, Delaware           ROB PORTMAN, Ohio
MAGGIE HASSAN, New Hampshire         RON JOHNSON, Wisconsin
KYRSTEN SINEMA, Arizona              RAND PAUL, Kentucky
JACKY ROSEN, Nevada                  JAMES LANKFORD, Oklahoma
ALEX PADILLA, California             MITT ROMNEY, Utah
JON OSSOFF, Georgia                  RICK SCOTT, Florida
                                     JOSH HAWLEY, Missouri

                   David M. Weinberg, Staff Director
                    Zachary I. Schram, Chief Counsel
            Lena C. Chang, Director of Governmental Affairs
              Yelena L. Tsilker, Professional Staff Member
                Pamela Thiessen, Minority Staff Director
  Andrew C. Dockham, Minority Chief Counsel and Deputy Staff Director
       Jeremy H. Hayes, Minority Senior Professional Staff Member
                     Laura W. Kilbride, Chief Clerk



  						       Calendar No. 56
117th Congress         }                        {             Report
                      		 SENATE                          
 1st Session           }                        {             117-22 
======================================================================


                 BILLION DOLLAR BOONDOGGLE ACT OF 2021

                                _______
                                

                  May 10, 2021.--Ordered to be printed

                                _______
                                

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

                              R E P O R T

                         [To accompany S. 636]

      [Including cost estimate of the Congressional Budget Office]

    The Committee on Homeland Security and Governmental 
Affairs, to which was referred the bill (S. 636) to require the 
Director of the Office of Management and Budget to submit to 
Congress an annual report on projects that are over budget and 
behind schedule, and for other purposes, having considered the 
same, reports favorably thereon with an amendment and 
recommends that the bill, as amended, do pass.

                                CONTENTS

                                                                   Page
   I. Purpose and Summary.............................................1
  II. Background and Need for the Legislation.........................2
 III. Legislative History.............................................3
  IV. Section-by-Section Analysis of the Bill, as Reported............3
   V. Evaluation of Regulatory Impact.................................3
  VI. Congressional Budget Office Cost Estimate.......................4
 VII. Changes in Existing Law Made by the Bill, as Reported...........5

                         I. PURPOSE AND SUMMARY

    S. 636, the Billion Dollar Boondoggle Act of 2021, requires 
Federal agencies to include in one of several relevant annual 
reports to Congress a list of all projects that are $1 billion 
or more over budget or five years or more behind schedule. The 
purpose of this bill is to increase oversight with respect to 
projects that are over budget and behind schedule.\1\
---------------------------------------------------------------------------
    \1\On March 2, 2020, the Committee approved S. 565, the Billion 
Dollar Boondoggle Act of 2019, which is substantially similar to S. 
636.
---------------------------------------------------------------------------

              II. BACKGROUND AND THE NEED FOR LEGISLATION

    It is the responsibility of Congress to oversee the use of 
taxpayer dollars, and greater transparency strengthens the 
ability of Congress to reduce unnecessary costs.
    On May 21, 2019, Senator Joni Ernst (R-IA), Senator Ron 
Johnson (R-WI), and Senator Gary Peters (D-MI) sent letters to 
the ten Federal agencies with the highest annual spending on 
contracts to gather information about projects that are $1 
billion or more over budget or five years or more behind 
schedule.\2\
---------------------------------------------------------------------------
    \2\Letter from Joni Ernst, Senator, Ron Johnson, Chairman, Senate 
Committee on Homeland Security and Governmental Affairs, and Gary 
Peters, Ranking Member, to the Department of Justice, Department of 
Health and Human Services, National Aeronautics and Space 
Administration, Department of Transportation, Department of Homeland 
Security, Department of Agriculture, Department of Energy, Department 
of State, Department of Defense, and Department of Veterans Affairs 
(May 21, 2019) (on file with the Committee).
---------------------------------------------------------------------------
    In their responses, agencies discussed a number of projects 
that are severely over budget or behind schedule. The list 
included computer systems funded by the Department of Homeland 
Security, new aircraft and weapons systems funded by the 
Department of Defense, clean-up projects funded by the 
Department of Energy, and renovation projects funded by the 
Department of Veterans Affairs, among others.\3\ In at least 
one case, a Department of Transportation project to establish a 
new bullet train, which was estimated to be more than $1 
billion over budget and 13 years behind schedule, was cancelled 
in May 2019.\4\
---------------------------------------------------------------------------
    \3\Responses on file with Committee staff.
    \4\U.S. Department of Transportation, Federal Railroad 
Administration, Statement of Federal Railroad Administration on 
Termination of FY `10 Grant Agreement with California High-Speed Rail 
Authority (May 16, 2019) (https://railroads.dot.gov/newsroom/statement-
federal-railroad-administration-termination-fy-%E2%80%9810-grant-
agreement-california) (accessed Apr. 20, 2021).
---------------------------------------------------------------------------
    Not all projects meeting these requirements should be 
discontinued. For instance, there could have been funding 
delays, miscalculations or unforeseen challenges arising for an 
innovative project, or even expansions to a project to meet 
emerging needs. However, if a project is missing deadlines or 
costing significantly more than originally estimated, Congress 
should be updated so the members can assess if mismanagement or 
fraud is taking place. Congress may also respond by passing 
legislation to address the underlying causes of the cost 
overruns and delays.
    The Nunn-McCurdy Act, included as part of the Department of 
Defense Authorization Act for Fiscal Year 1983, required the 
Department of Defense (DOD) to report to Congress whenever a 
Major Defense Acquisition Program (MDAP) experiences 
significant cost overruns.\5\ There were 37 such cases reported 
to Congress between 2007 and 2015.\6\ The Congressional 
Research Service (CRS) noted, ``As a result of the Nunn-McCurdy 
process, Congress has substantial visibility into the cost 
performance of the acquisition stage of MDAPs that experience 
certain levels of cost growth. To the extent that Nunn-McCurdy 
increases visibility into--and an understanding of what 
causes--cost growth, the act can help efforts to improve weapon 
system acquisitions.''\7\ CRS further noted that, while 
uncommon, in a few cases Nunn-McCurdy reports have resulted in 
a program being cancelled.\8\ That cost transparency principle 
is equally important for other executive and independent 
agencies.
---------------------------------------------------------------------------
    \5\Department of Defense Authorization Act for Fiscal Year 1983, 
Pub. L. No. 97 252 (1982), codified at 10 U.S.C. Sec.  2433 (1982).
    \6\Congressional Research Service, The Nunn-McCurdy Act: 
Background, Analysis, and Issues for Congress (R41293) (May 12, 2016).
    \7\Id.
    \8\Id.
---------------------------------------------------------------------------
    The Billion Dollar Boondoggle Act of 2021, as amended, 
requires the Office of Management and Budget (OMB) to issue 
guidance requiring Federal agencies to annually report a list 
of all projects that are $1 billion or more over their original 
budget or five years or more behind schedule, including 
information on each contractor, subcontractor, grantee, and 
subgrantee involved. Additionally, this bill specifies that the 
term ``project'' refers to time-limited endeavors, such as 
major acquisitions or clean-up efforts, and does not include 
mandatory spending. This bill allows agencies to include the 
requested information in one of several relevant annual reports 
in lieu of publishing a separate report to Congress. With the 
requirement to report to Congress, agencies will more easily 
identify projects that are severely over budget or behind 
schedule. Therefore, both Congress and agencies will be better 
suited to manage taxpayer dollars.

                        III. LEGISLATIVE HISTORY

    Senator Joni Ernst (R-IA) introduced S. 636, the Billion 
Dollar Boondoggle Act of 2021, on March 9, 2021, with Chairman 
Gary Peters (D-MI) and Senator Mike Braun (R-IN). The bill was 
referred to the Committee on Homeland Security and Governmental 
Affairs. Senator Rick Scott (R-FL), Senator James Lankford (R-
OK), Senator Margaret Hassan (D-NH), and Senator Marsha 
Blackburn (R-TN) later joined as cosponsors.
    The Committee considered S. 636 at a business meeting on 
March 17, 2021. During the business meeting, an amendment was 
offered by Chairman Peters and adopted en bloc by voice vote. 
The bill, as amended, was ordered reported favorably by voice 
vote en bloc. Senators Peters, Rosen, Padilla, Portman, 
Johnson, Lankford, Romney, Scott and Hawley were present for 
the vote.

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

Section 1. Short title

    This section establishes the short title of the bill as the 
``Billion Dollar Boondoggle Act of 2021.''

Section 2. Annual report

    This section requires the Director of the Office of 
Management and Budget to provide guidance to agencies for 
reporting annually on projects that are more than five years 
behind schedule or more than $1 billion over their original 
budget. The section defines the terms ``covered agency,'' 
``covered project,'' and ``project.'' The section further 
specifies the annual reporting requirements, including a brief 
description of the covered project and other required 
information.

                   V. 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 and determined 
that the bill will have no regulatory impact within the meaning 
of the rules. The Committee agrees with the Congressional 
Budget Office's statement that the bill contains no 
intergovernmental or private-sector mandates as defined in the 
Unfunded Mandates Reform Act (UMRA) and would impose no costs 
on state, local, or tribal governments.

             VI. CONGRESSIONAL BUDGET OFFICE COST ESTIMATE

                                     U.S. Congress,
                               Congressional Budget Office,
                                     Washington, DC, April 5, 2021.
Hon. Gary C. Peters,
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. 636, the Billion 
Dollar Boondoggle Act of 2021.
    If you wish further details on this estimate, we will be 
pleased to provide them. The CBO staff contact is Matthew 
Pickford.
            Sincerely,
                                         Phillip L. Swagel,
                                                          Director.
    Enclosure.



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    S. 636 would require agencies to report on any government 
project that is $1 billion or more over budget or more than 
five years behind schedule. The report would include a 
description of the project, any changes to the project's 
requirements, the original due date and expected completion 
date, and some financial information. The bill also would 
require the Office of Management and Budget to issue guidance 
on the reporting requirements. Because the information is 
already available for those projects, CBO estimates that 
implementing S. 636 would have no significant effect on the 
federal budget.
    The CBO staff contact for this estimate is Matthew 
Pickford. The estimate was reviewed by H. Samuel Papenfuss, 
Deputy Director of Budget Analysis.

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

    Because this legislation would not repeal or amend any 
provision of current law, it would not make changes in existing 
law within the meaning of clauses (a) and (b) of paragraph 12 
of rule XXVI of the Standing Rules of the Senate.

                                  
                                  
                                  [all]