[Senate Report 118-311]
[From the U.S. Government Publishing Office]


                                                 Calendar No. 731

118th Congress}                                           { Report
                                 SENATE
   2d Session }                                           { 118-311

======================================================================
           MULTI-CLOUD INNOVATION AND ADVANCEMENT ACT OF 2023

                               __________

                              R E P O R T

                                 OF THE

                   COMMITTEE ON HOMELAND SECURITY AND

                          GOVERNMENTAL AFFAIRS

                          UNITED STATES SENATE

                              TO ACCOMPANY

                                S. 2871

            TO ADVANCE FEDERAL GOVERNMENT INNOVATION THROUGH
          THE IMPLEMENTATION AND USE OF MULTI-CLOUD COMPUTING
              SOFTWARE TECHNOLOGY, AND FOR OTHER PURPOSES

[GRAPHIC(S) NOT AVAILABLE IN TIFF FORMAT]


   December 19 (legislative day, December 16), 2024.--Ordered to be 
                                printed
                                
                                 __________

                   U.S. GOVERNMENT PUBLISHING OFFICE                    
                         WASHINGTON : 2025                  
          
-----------------------------------------------------------------------------------                                
                                
        COMMITTEE ON HOMELAND SECURITY AND GOVERNMENTAL AFFAIRS

                   GARY C. PETERS, Michigan, Chairman
THOMAS R. CARPER, Delaware           RAND PAUL, Kentucky
MAGGIE HASSAN, New Hampshire         RON JOHNSON, Wisconsin
KYRSTEN SINEMA, Arizona              JAMES LANKFORD, Oklahoma
JACKY ROSEN, Nevada                  MITT ROMNEY, Utah
JON OSSOFF, Georgia                  RICK SCOTT, Florida
RICHARD BLUMENTHAL, Connecticut      JOSH HAWLEY, Missouri
ADAM SCHIFF, California              ROGER MARSHALL, Kansas

                   David M. Weinberg, Staff Director
                      Alan S. Kahn, Chief Counsel
                  Michelle M. Benecke, Senior Counsel
                        Evan E. Freeman, Counsel
           William E. Henderson III, Minority Staff Director
              Christina N. Salazar, Minority Chief Counsel
                  Andrew J. Hopkins, Minority Counsel
          Kendal B. Tigner, Minority Professional Staff Member
                     Laura W. Kilbride, Chief Clerk
                     
                     
                     
                                                   Calendar No. 731

118th Congress}                                           { Report
                                 SENATE
   2d Session }                                           { 118-311

======================================================================
 
           MULTI-CLOUD INNOVATION AND ADVANCEMENT ACT OF 2023                  
                                _______
                                

   December 19 (legislative day, December 16), 2024.--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. 2871]

      [Including cost estimate of the Congressional Budget Office]

    The Committee on Homeland Security and Governmental 
Affairs, to which was referred the bill (S. 2871) to advance 
Federal Government innovation through the implementation and 
use of multi-cloud computing software technology, and for other 
purposes, 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.

                                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..................................4
 VI. Congressional Budget Office Cost Estimate........................5
VII. Changes in Existing Law Made by the Bill, as Reported............5

                         I. PURPOSE AND SUMMARY

    S. 2871, the Multi-Cloud Innovation and Advancement Act of 
2023, would support a modernized and streamlined adoption of 
cloud computing technology by federal agencies. The Act 
recognizes the federal government's use of cloud computing and 
the need to optimize its use through operational efficiencies, 
standardized security, and cost reduction.
    The Act would require the Office of Management and Budget 
(OMB) to provide guidance for federal agencies on how to 
operate cloud computing services from more than one provider 
(referred to as multi-cloud technology). That guidance would 
inform agencies on how to securely and efficiently transition 
their information technology systems to multi-cloud networks. 
In addition, the bill requires the Government Accountability 
Office to report to Congress on the effectiveness of efforts by 
federal agencies to adopt multi-cloud technology. The bill also 
requires workforce development training to help fill skill gaps 
and improve implementation.

              II. BACKGROUND AND NEED FOR THE LEGISLATION

    Cloud computing is a model for access to a shared pool of 
resources that can be rapidly provisioned and released with 
minimal management. As opposed to local computing, cloud 
computing servers are often hosted by third-party providers in 
remote data centers and are accessible via the internet. These 
remote models, unlike local computing practices, do not require 
government spending on the maintenance of on-site hardware and 
software.\1\ In 2010, OMB published a report delineating a 25-
point plan to reform federal information technology (IT), 
highlighting cloud computing for its potential to address 
government inefficiencies.\2\
---------------------------------------------------------------------------
    \1\Congressional Research Service, Cloud Computing: Background, 
Status of Adoption by Federal Agencies, and Congressional Action 
(R46119) (Mar. 25, 2020); National Institute of Science and Technology, 
The NIST Definition of Cloud Computing (SP 800-145) (Sept. 2011).
    \2\Office of Management and Budget, 25 Point Implementation Plan to 
Reform Federal Information Technology Management (Dec. 9, 2010) 
(www.whitehouse.gov/wp-content/uploads/legacy_drupal_files/omb/assets/
egov_docs/25-point-implementation-plan-to-reform-federal-it.pdf).
---------------------------------------------------------------------------
    In 2011, the Obama Administration released the first 
Federal Cloud Computing Strategy (Cloud First) to accelerate 
the pace of the government's adoption of cloud computing 
solutions. Cloud First requires agencies to implement cloud 
solutions whenever feasible, prioritize cloud-based options in 
IT procurement, and leverage cloud computing's scalability and 
cost-effectiveness to enhance overall operational 
efficiency.\3\ In 2017, the Trump Administration built on this 
framework and published the Cloud Smart strategy. This strategy 
focused on modernizing security policies, improving the ability 
of agencies to purchase cloud software, and bolstering the 
federal workforce's digital skills regarding cloud engineering 
and IT modernization.\4\
---------------------------------------------------------------------------
    \3\Office of Management and Budget, Federal Cloud Computing 
Strategy (Feb. 8, 2011) (obamawhitehouse.archives.gov/sites/default/
files/omb/assets/egov_docs/federal-cloud-computing-strategy.pdf).
    \4\Office of Management and Budget, Federal Cloud Computing 
Strategy (June 24, 2019) (www.whitehouse.gov/wp-content/uploads/2019/
06/Cloud-Strategy.pdf).
---------------------------------------------------------------------------
    The Multi-Cloud Innovation and Advancement Act of 2023 
builds on these previous executive initiatives and seeks to 
further modernize the federal government's IT landscape and 
increase cost efficiencies. The bill requires OMB to (1) 
publish a study and guidelines for voluntary agency use of 
multi-cloud technology, including best practices and lessons 
learned from agencies that have adopted these technologies, and 
(2) a cost-benefit analysis of agencies transitioning to multi-
cloud technology compared to the existing cloud computing 
systems of those agencies. This bill also requires OMB to 
evaluate the digital skills gap within the federal workforce 
and recommend ways to bolster these skills. In calling for OMB 
to build upon its history of deploying advanced cloud computing 
strategies, this bill aims to modernize the federal 
government's IT landscape.

                        III. LEGISLATIVE HISTORY

    Senator Steve Daines (R-MT) introduced S. 2871, the Multi-
Cloud Innovation and Advancement Act of 2023, on September 20, 
2023, with original cosponsor Senator Jacky Rosen (D-V). The 
bill was referred to the Committee on Homeland Security and 
Governmental Affairs.
    The Committee considered S. 2871 at a business meeting on 
April 10, 2024. At the business meeting, Senator Gary Peters 
(D-MI) offered a substitute amendment to the bill and a 
modification to the substitute amendment. The Peters substitute 
amendment revises the definition of multi-cloud technology and 
adds language requiring the Director of the National Institute 
of Science and Technology (NIST) to publish this definition and 
subject it to periodic review. The substitute amendment also 
includes additional reporting requirements for the required OMB 
study as well as the Comptroller General's report. It removes a 
provision that required the Comptroller General to issue a 
technical assessment evaluating agencies' existing capabilities 
and recommending improvements. The modification to the 
substitute amendment makes minor technical changes to the 
language of the bill and adds language prohibiting the 
authorization of additional funds to carry out this Act.
    The Committee adopted the modification to the Peters 
substitute amendment, and the Peters substitute amendment as 
modified, by unanimous consent, with Senators Peters, Hassan, 
Sinema, Rosen, Ossoff, Blumenthal, Butler, Paul, Lankford, 
Romney, Scott, Hawley, and Marshall present. The bill, as 
amended by the Peters substitute amendment as modified, was 
ordered reported favorably by roll call vote of 12 yeas to 1 
nay, with Senator Peters, Hassan, Sinema, Rosen, Ossoff, 
Blumenthal, Butler, Lankford, Romney, Scott, Hawley, and 
Marshall voting in the affirmative, and Senator Paul voting in 
the negative. Senators Carper and Johnson voted yea by proxy, 
for the record only.

        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 
``Multi-Cloud Innovation and Advancement Act of 2023.''

Section 2. Definitions

    This section defines the terms ``agency,'' ``cloud 
computing,'' ``Comptroller General,'' ``Director,'' 
``information and communications technology,'' ``multi-cloud 
technology,'' and ``relevant committees of Congress'' within 
the bill.

Section 3. Study and guidelines for voluntary agency use of multi-cloud 
        technology

    This section requires the OMB Director, not later than one 
year after enactment of this bill, to study the use of multi-
cloud technology by agencies, identify best practices and 
lessons learned by agencies, and develop a cost-benefit 
analysis of agencies transitioning to multi-cloud technology 
compared to their existing cloud computing systems. OMB is 
required to provide a briefing to the relevant congressional 
committees on these findings within 540 days of enactment.

Section 4. Workforce development study and technical capabilities 
        assessment

    This section requires the Comptroller General to submit a 
report to Congress and the public, not later than one year 
after enactment, that identifies gaps in digital skills within 
the federal workforce, assesses the ability of the federal 
government to procure multi-cloud technology, and recommends 
solutions to address any gaps identified.

Section 5. Report to Congress

    This section requires the Comptroller General to submit a 
report to Congress and the public, not later than two years 
after enactment, that evaluates the state of multi-cloud 
technology since the adoption of the bill, including but not 
limited to information regarding the extent to which the 
adoption of multi-cloud technology has resulted in cost-savings 
and reduced cybersecurity risks.

Section 6. Multi-cloud technology definition

    This section requires the Director of NIST to publish a 
definition of ``multi-cloud technology'' no less than 120 days 
after enactment of this bill and periodically review--and if 
necessary, update and republish--the definition to reflect 
advancements in the technology or industry practices.

Section 7. No additional funds

    This section prohibits the authorization of additional 
funds to carry out this Act.

                   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



    S. 2871 would require the Office of Management and Budget 
to provide guidance to federal agencies on how to operate cloud 
computing services from more than one provider (referred to as 
multi-cloud technology). That guidance would inform agencies 
how to securely and efficiently transition their information 
technology systems to multi-cloud networks. The bill also would 
require the Government Accountability Office to report to the 
Congress on the effectiveness of efforts by federal agencies to 
adopt multi-cloud technology.
    Using information about the cost of similar guidance and 
reporting requirements, CBO estimates that implementing the 
bill would cost less than $500,000 to prepare the required 
documents and reports. Any spending would be subject to the 
availability of appropriated funds.
    The CBO staff contact for this estimate is Aldo Prosperi. 
The estimate was reviewed by Christina Hawley Anthony, Deputy 
Director of Budget Analysis.
                                         Phillip L. Swagel,
                             Director, Congressional Budget Office.

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

    In compliance with paragraph 12 of rule XXVI of the 
Standing Rules of the Senate, there are no changes to existing 
law.

                                  [all]