,,ii #aaeth ,,congress #ast ,session ,s4 #iij ,,in ,,the ,,senate ,,of ,,the ,,united ,,states ,april #bh1 #bjag ,mr4 ,moran 7for himself1 ,mr4 ,udall1 ,mr4 ,daines1 and ,mr4 ,warner7 introduced the following bill2 which was read twice and referred to the ,committee on ,homeland ,security and ,governmental ,affairs ,a ,,bill ,to modernize ,government information technology1 and for other purposes4 #a4 ,short title ,this ,act may be cited as the ,modernizing ,government ,technology ,act of #bjag or the ,,mgt ,act4 #b4 ,findings2 purposes 7a7 ,findings ,the ,congress finds the following3 7#a7 ,the ,federal ,government spends nearly #ge percent of its annual information technology funding on operating and maintaining existing legacy information technology systems4 ,these systems can pose operational risks1 including rising costs and inability to meet mission requirements4 ,these systems also pose security risks1 including the inability to use current security best practices1 such as data encryption and multi-factor authentication1 making these systems particularly vulnerable to malicious cyber activity4 7#b7 ,in #bjae1 the ,government ,accountability ,office designated improving the management of information technology acquisitions and operations to its biannual ,high ,risk ,list and identified as a particular concern the increasing level of information technology spending on operations and maintenance1 making less funding available for development or modernization4 ,the ,government ,accountability ,office also found that the ,federal ,government has spent billions on failed and poorly performing information technology investments due to a lack of effective oversight4 7#c7 ,the ,federal ,government must modernize ,federal information technology systems to mitigate existing operational and security risks4 7#d7 ,the efficiencies1 cost savings1 and greater computing power offered by modernized solutions1 such as cloud computing1 have the potential to-- 7,a7 eliminate inappropriate duplication and reduce costs2 7,b7 address the critical need for cybersecurity by design2 and 7,c7 move the ,federal ,government into a broad1 digital-services delivery model that will transform the ability of the ,federal ,government to meet mission requirements and deliver services to the people of the ,united ,states4 7b7 ,purposes ,the purposes of this ,act are the following3 7#a7 ,assist the ,federal ,government in modernizing ,federal information technology to mitigate current operational and security risks4 7#b7 ,incentivize cost savings in ,federal information technology through modernization4 7#c7 ,accelerate the acquisition and deployment of modernized information technology solutions1 such as cloud computing1 by addressing impediments in the areas of funding1 development1 and acquisition practices4 #c4 ,establishment of agency ,information ,technology ,systems ,modernization and ,working ,capital ,funds 7a7 ,information ,technology ,system ,modernization and ,working ,capital ,funds 7#a7 ,establishment ,the head of a covered agency may establish within such agency an information technology system modernization and working capital fund 7in this section referred to as the ,,it working capital fund7 for necessary expenses described in paragraph 7#c74 7#b7 ,source of funds ,the following amounts may be deposited into an ,,it working capital fund3 7,a7 ,reprogramming and transfer of funds made available in appropriations ,acts subsequent to the date of the enactment of this ,act1 including transfer of any funds for the operation and maintenance of legacy information technology systems1 in compliance with any applicable reprogramming law or guidelines of the ,committees on ,appropriations of the ,house of ,representatives and the ,senate4 7,b7 ,amounts made available to the ,,it working capital fund through discretionary appropriations made available subsequent to the date of the enactment of this ,act4 7#c7 ,use of funds ,an ,,it working capital fund established under paragraph 7#a7 may be used1 subject to the availability of appropriations1 only for the following3 7,a7 ,to improve1 retire1 or replace existing information technology systems in the covered agency to enhance cybersecurity and to improve efficiency and effectiveness4 7,b7 ,to transition legacy information technology at the covered agency to cloud computing and other innovative platforms and technologies1 including those serving more than one covered agency with common requirements4 7,c7 ,to assist and support covered agency efforts to provide adequate1 risk-based1 and cost-effective information technology capabilities that address evolving threats to information security4 7,d7 ,to reimburse funds transferred to the covered agency from the ,technology ,modernization ,fund established under section #d1 with the approval of the ,chief ,information ,officer of the covered agency4 7#d7 ,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 fund4 7#e7 ,prioritization of funds ,the head of each covered agency shall prioritize funds within the ,,it working capital fund to be used initially for cost savings activities approved by the ,chief ,information ,officer of the covered agency1 in consultation with the ,administrator of the ,office of ,electronic ,government4 ,the head of each covered agency may reprogram and transfer any amounts saved as a direct result of such activities for deposit into the applicable ,,it working capital fund1 consistent with paragraph 7#b77;,a74 7#f7 ,return of funds ,any funds deposited into an ,,it working capital fund shall be available for obligation for three years after the last day of the fiscal year in which such funds were deposited4 7#g7 ,agency ,,cio responsibilities ,in evaluating projects to be funded from the ,,it working capital fund1 the ,chief ,information ,officer of the covered agency shall consider1 to the extent applicable1 guidance issued pursuant to section #d7;a77#a7 to evaluate applications for funding from the ,technology ,modernization ,fund established under that section that include factors such as a strong business case1 technical design1 procurement strategy 7including adequate use of incremental software development practices71 and program management4 7b7 ,reporting requirement 7#a7 ,in general ,not later than one year after the date of the enactment of this ,act1 and every six months thereafter1 the head of each covered agency shall submit to the ,director the following1 with respect to the ,,it working capital fund for the covered agency3 7,a7 ,a list of each information technology investment funded with estimated cost and completion date for each such investment4 7,b7 ,a summary by fiscal year of obligations1 expenditures1 and unused balances4 7#b7 ,public availability ,the ,director shall make the information submitted under paragraph 7#a7 publicly available on a website4 7c7 ,covered agency defined ,in this section1 the term covered agency means each agency listed in section #ija7;b7 of title #ca1 ,united ,states ,code4 #d4 ,establishment of ,technology ,modernization ,fund and ,board 7a7 ,technology ,modernization ,fund 7#a7 ,establishment ,there is established in the ,treasury of the ,united ,states a ,technology ,modernization ,fund 7in this section referred to as the ,fund7 for technology-related activities1 to improve information technology1 to enhance cybersecurity across the ,federal ,government1 and to be administered in accordance with guidance issued by the ,director4 7#b7 ,administration of ,fund ,the ,commissioner of the ,technology ,transformation ,service of the ,general ,services ,administration1 in consultation with the ,chief ,information ,officers ,council and with the approval of the ,director1 shall administer the ,fund in accordance with this subsection4 7#c7 ,use of funds ,the ,commissioner shall1 in accordance with the recommendations of the ,technology ,modernization ,board established under subsection 7b71 use amounts in the ,fund for the following purposes3 7,a7 ,to transfer such amounts1 to remain available until expended1 to the head of an agency to improve1 retire1 or replace existing ,federal information technology systems to enhance cybersecurity and improve efficiency and effectiveness4 7,b7 ,for the development1 operation1 and procurement of information technology products1 services1 and acquisition vehicles for use by agencies to improve ,governmentwide efficiency and cybersecurity in accordance with the requirements of such agencies4 7,c7 ,to provide services or work performed in support of the activities described under subparagraph 7,a7 or 7,b74 7#d7 ,authorization of appropriations2 credits2 availability of funds 7,a7 ,authorization of appropriations ,there is authorized to be appropriated to the ,fund #bej1jjj1jjj for each of fiscal years #bjah and #bjai4 7,b7 ,credits ,in addition to any funds otherwise appropriated1 the ,fund shall be credited with all reimbursements1 advances1 or refunds or recoveries relating to information technology or services provided through the ,fund4 7,c7 ,availability of funds ,amounts deposited1 credited1 or otherwise made available to the ,fund shall be available1 as provided in appropriations ,acts1 until expended for the purposes described in paragraph 7#c74 7#e7 ,reimbursement 7,a7 ,payment by agency ,for a product or service developed under paragraph 7#c77;,b71 including any services or work performed in support of such development under paragraph 7#c77;,c71 the head of an agency that uses such product or service shall pay an amount fixed by the ,commissioner in accordance with this paragraph4 7,b7 ,reimbursement by agency ,the head of an agency shall reimburse the ,fund for any transfer made under paragraph 7#c77;,a71 including any services or work performed in support of such transfer under paragraph 7#c77;,c71 in accordance with the terms established in a written agreement described in paragraph 7#f74 ,notwithstanding any other provision of law1 an agency may make a reimbursement required by this subparagraph from any appropriation made available subsequent to the date of the enactment of this ,act for information technology activities1 consistent with any applicable reprogramming law or guidelines of the ,committees on ,appropriations of the ,house of ,representatives and the ,senate4 ,an obligation to make a payment under a written agreement described in paragraph 7#f7 in a fiscal year after the date of the enactment of this ,act shall be recorded pursuant to section #aeja of title #ca1 ,united ,states ,code1 in the fiscal year in which the payment is due4 7,c7 ,prices fixed by ,commissioner ,the ,commissioner1 in consultation with the ,director1 shall establish amounts to be paid by an agency and terms of repayment for use of a product or service developed under paragraph 7#c77;,b71 including any services or work performed in support of such development under paragraph 7#c77;,c71 at levels sufficient to ensure the solvency of the ,fund1 including operating expenses4 ,before making any changes to the established amounts and terms of repayment1 the ,commissioner shall conduct a review and obtain approval from the ,director4 7,d7 ,failure to make timely reimbursement ,the ,commissioner may obtain reimbursement by the issuance of transfer and counterwarrants1 or other lawful transfer documents1 supported by itemized bills1 if payment is not made by an agency-- 7i7 within #ij days after the expiration of a repayment period described in a written agreement described in paragraph 7#f72 or 7ii7 within #de days after the expiration of the time period to make a payment under a payment schedule for a product or service developed under paragraph 7#c77;,b74 7#f7 ,written agreement 7,a7 ,in general ,before the transfer of funds to an agency under paragraph 7#c77;,a71 the ,commissioner 7in consultation with the ,director7 and the head of the requisitioning agency shall enter into a written agreement documenting the purpose for which the funds will be used and the terms of repayment1 which may not exceed five years unless approved by the ,director4 ,an agreement made pursuant to this subparagraph shall be recorded as an obligation as provided in paragraph 7#e77;,b74 7,b7 ,requirement for use of incremental development practices ,for any funds transferred to an agency under paragraph 7#c77;,a71 in the absence of compelling circumstances documented by the ,commissioner at the time of transfer1 such funds shall be transferred only on an incremental basis1 tied to metric-based development milestones achieved by the agency1 to be described in a written agreement required under subparagraph 7,a74 7#g7 ,reporting requirement ,not later than six months after the date of the enactment of this ,act1 the ,director shall publish and maintain a list of each project funded by the ,fund on a public website1 to be updated not less than quarterly1 that includes a description of the project1 project status 7including any schedule delay and cost overruns71 and financial expenditure data related to the project4 7b7 ,technology ,modernization ,board 7#a7 ,establishment ,there is established a ,technology ,modernization ,board 7in this section referred to as the ,board7 to evaluate proposals submitted by agencies for funding authorized under the ,fund4 7#b7 ,responsibilities ,the responsibilities of the ,board are the following3 7,a7 ,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 such proposals are evaluated1 which shall include addressing the greatest security and operational risks1 having the greatest ,governmentwide impact1 and having a high probability of success based on factors such as a strong business case1 technical design1 procurement strategy 7including adequate use of incremental software development practices71 and program management4 7,b7 ,make recommendations to the ,commissioner to assist agencies in the further development and refinement of select submitted modernization proposals1 based on an initial evaluation performed with the assistance of the ,commissioner4 7,c7 ,review and prioritize1 with the assistance of the ,commissioner and the ,director1 modernization proposals based on criteria established pursuant to subparagraph 7,a74 7,d7 ,identify1 with the assistance of the ,commissioner1 opportunities to improve or replace multiple information technology systems with a smaller number of information technology systems common to multiple agencies4 7,e7 ,recommend the funding of modernization projects1 in accordance with the uses described in subsection 7a77#c71 to the ,commissioner4 7,f7 ,monitor1 in consultation with the ,commissioner1 progress and performance in executing approved projects and1 if necessary1 recommend the suspension or termination of funding for projects based on factors such as failure to meet the terms of a written agreement described in subsection 7a77#f74 7,g7 ,monitor operating costs of the ,fund4 7#c7 ,membership ,the ,board shall consist of eight voting members4 7#d7 ,chair ,the ,chair of the ,board shall be the ,administrator of the ,office of ,electronic ,government4 7#e7 ,permanent members ,the permanent members of the ,board shall be the following3 7,a7 ,the ,administrator of the ,office of ,electronic ,government4 7,b7 ,a senior official from the ,general ,services ,administration having technical expertise in information technology development1 appointed by the ,administrator of ,general ,services1 with the approval of the ,director4 7#f7 ,additional members of the ,board 7,a7 ,appointment ,the other members of the ,board shall be appointed as follows3 7i7 ,one employee of the ,national ,protection and ,programs ,directorate of the ,department of ,homeland ,security1 appointed by the ,secretary of ,homeland ,security4 7ii7 ,one employee of the ,department of ,defense1 appointed by the ,secretary of ,defense4 7iii7 ,four ,federal employees primarily having technical expertise in information technology development1 financial management1 cybersecurity and privacy1 and acquisition1 appointed by the ,director4 7,b7 ,term ,each member of the ,board described in subparagraph 7,a7 shall serve a term of one year1 which shall be renewable up to three times1 at the discretion of the appointing ,secretary or ,director1 as applicable4 7#g7 ,prohibition on compensation ,members of the ,board may not receive additional pay1 allowances1 or benefits by reason of their service on the ,board4 7#h7 ,staff ,upon request of the ,chair of the ,board1 the ,director and the ,administrator of ,general ,services may detail1 on a nonreimbursable basis1 any of the personnel of the ,office of ,management and ,budget or the ,general ,services ,administration 7as the case may be7 to the ,board to assist the ,board in carrying out its functions under this ,act4 7c7 ,responsibilities of ,commissioner 7#a7 ,in general ,in addition to the responsibilities described in subsection 7b71 the ,commissioner shall support the activities of the ,board and provide technical support to1 and1 with the concurrence of the ,director1 oversight of1 agencies that receive transfers from the ,fund4 7#b7 ,responsibilities ,the responsibilities of the ,commissioner are the following3 7,a7 ,provide direct technical support in the form of personnel services or otherwise to agencies transferred amounts under subsection 7a77#c77;,a7 and for products1 services1 and acquisition vehicles funded under subsection 7a77#c77;,b74 7,b7 ,assist the ,board with the evaluation1 prioritization1 and development of agency modernization proposals4 7,c7 ,perform regular project oversight and monitoring of approved agency modernization projects1 in consultation with the ,board and the ,director1 to increase the likelihood of successful implementation and reduce waste4 7,d7 ,provide the ,director with information necessary to meet the requirements of subsection 7a77#g74 7d7 ,agency defined ,in this section1 the term agency has the meaning given that term in section #eea of title #e1 ,united ,states ,code4 #e4 ,definitions ,in this ,act3 7#a7 ,cloud computing ,the term cloud computing has the meaning given that term by the ,national ,institute of ,standards and ,technology in ,,nist ,special ,publication #hjj-ade and any amendatory or superseding document thereto4 7#b7 ,commissioner ,the term ,commissioner means the ,commissioner of the ,technology ,transformation ,service of the ,general ,services ,administration4 7#c7 ,director ,the term ,director means the ,director of the ,office of ,management and ,budget4 7#d7 ,information technology ,the term information technology has the meaning given that term in section #cejb of title #dd1 ,united ,states ,code4 7#e7 ,legacy information technology system ,the term legacy information technology system means an outdated or obsolete system of information technology4