S.Amdt. 715

SA 715. Mr. MORAN (for himself and Mr. Udall) submitted an amendment
intended to be proposed by him 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

[[Page S4599]]

for defense activities of the Department of Energy, 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 appropriate place, add the following:

SEC. __. MODERNIZATION OF GOVERNMENT INFORMATION TECHNOLOGY.

(a) Definitions.--In this section:
(1) Board.--The term ``Board'' means the Technology
Modernization Board established under subsection (c)(3)(A).
(2) 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.
(3) Commissioner.--The term ``Commissioner'' means the
Commissioner of the Technology Transformation Service of the
General Services Administration.
(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 subsection (c)(2)(A).
(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 subsection
(b)(2)(A).
(8) Legacy information technology system.--The term
``legacy information technology system'' means an outdated or
obsolete system of information technology.
(b) Establishment of Agency Information Technology Systems
Modernization and Working Capital Funds.--
(1) Definition.--In this subsection, the term ``covered
agency'' means each agency listed in section 901(b) of title
31, United States Code.
(2) Information technology system modernization and working
capital funds.--
(A) 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 subparagraph (C).
(B) Source of funds.--The following amounts may be
deposited into an IT working capital fund:
(i) 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 statutory transfer
authority or reprogramming law or guidelines of the
Committees on Appropriations of the Senate and the House of
Representatives as in effect on the day before the date of
enactment of this Act.
(ii) Amounts made available to the IT working capital fund
through discretionary appropriations made available after the
date of enactment of this Act.
(C) Use of funds.--An IT working capital fund may only be
used, subject to the availability of appropriations--
(i) to improve, retire, or replace existing information
technology systems in the covered agency to enhance
cybersecurity and to improve efficiency and effectiveness;
(ii) to transition legacy information technology systems at
the covered agency to cloud computing and other innovative
platforms and technologies, including those serving more than
1 covered agency with common requirements;
(iii) 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; and
(iv) 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.
(D) 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.
(E) Prioritization of funds.--
(i) In general.--The head of each covered agency--

(I) 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, in consultation with the Administrator
of the Office of Electronic Government; and
(II) may reprogram and transfer any amounts saved as a
direct result of the cost savings activities approved under
subclause (I) for deposit into the IT working capital fund of
the covered agency, consistent with subparagraph (B)(i).

(ii) Report.--The Chief Information Officer of each covered
agency shall document and submit to the Administrator of the
Office of Electronic Government a report on any cost savings
activities approved under clause (i)(I).
(F) Availability of funds.--
(i) 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.
(ii) 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 clause (i) shall be transferred to
the general fund of the Treasury.
(G) 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
subsection (c)(2)(A) 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.
(H) Reporting requirement.--
(i) 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--

(I) a list of each information technology investment
funded, including the estimated cost and completion date for
each investment; and
(II) a summary by fiscal year of obligations, expenditures,
and unused balances.

(ii) Public availability.--The Director shall make the
information submitted under clause (i) publicly available on
a website.
(c) Establishment of Technology Modernization Fund and
Board.--
(1) Definition.--In this subsection, the term ``agency''
has the meaning given the term in section 551 of title 5,
United States Code.
(2) Technology modernization fund.--
(A) 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.
(B) Administration of fund.--The Commissioner, in
consultation with the Chief Information Officers Council and
with the approval of the Director, shall administer the Fund
in accordance with this paragraph.
(C) Use of funds.--The Commissioner shall, in accordance
with recommendations from the Board, use amounts in the
Fund--
(i) to transfer such amounts, to remain available until
expended, to the head of an agency to improve, retire, or
replace existing Federal information technology systems to
enhance cybersecurity and privacy and improve efficiency and
effectiveness;
(ii) for the development, operation, and procurement of
information technology products, services, and acquisition
vehicles for use by agencies to improve Governmentwide
efficiency and cybersecurity in accordance with the
requirements of the agencies; and
(iii) to provide services or work performed in support of--

(I) the activities described in clause (i) or (ii); and
(II) the Board and the Director in carrying out the
responsibilities described in paragraph (3)(B).

(D) Authorization of appropriations; credits; availability
of funds.--
(i) Authorization of appropriations.--There is authorized
to be appropriated to the Fund $250,000,000 for each of
fiscal years 2018 and 2019.
(ii) 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 through the
Fund.
(iii) Availability of funds.--Amounts deposited, credited,
or otherwise made available to the Fund shall be available,
as provided in appropriations Acts, until expended for the
purposes described in subparagraph (C).
(E) Reimbursement.--
(i) Payment by agency.--For a product or service developed
under subparagraph (C)(ii), including any services or work
performed in support of that development under subparagraph
(C)(iii), the head of an agency that uses the product or
service shall pay an amount fixed by the Commissioner in
accordance with this subparagraph.
(ii) Reimbursement by agency.--

(I) In general.--The head of an agency shall reimburse the
Fund for any transfer made under subparagraph (C)(i),
including any services or work performed in support of the
transfer under subparagraph (C)(iii), in accordance with the
terms established in a written agreement described in
subparagraph (F).
(II) Reimbursement from subsequent appropriations.--
Notwithstanding any other provision of law, an agency may
make a reimbursement required under subclause (I) from any
appropriation made available after the date of enactment of
this Act for information technology activities, consistent
with any applicable reprogramming law or guidelines of the
Committees on Appropriations of the Senate and the House of
Representatives as in effect on the day before the date of
enactment of this Act.
(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 subparagraph
(E) in a fiscal year after the

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date of enactment of this Act shall be recorded in the fiscal
year in which the payment is due.

(iii) Prices fixed by commissioner.--

(I) In general.--The Commissioner, in consultation with the
Director, shall establish amounts to be paid by an agency
under this paragraph and the terms of repayment for a product
or service developed under subparagraph (C)(ii), including
any services or work performed in support of that development
under subparagraph (C)(iii), 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 Commissioner
shall conduct a review and obtain approval from the Director.

(iv) Failure to make timely reimbursement.--The
Commissioner may obtain reimbursement from an agency under
this subparagraph by the issuance of transfer and
counterwarrants, or other lawful transfer documents,
supported by itemized bills, if payment is not made by the
agency--

(I) during the 90-day period beginning after the expiration
of a repayment period described in a written agreement
described in subparagraph (F); or
(II) during the 45-day period beginning after the
expiration of the time period to make a payment under a
payment schedule for a product or service developed under
subparagraph (C)(ii).

(F) Written agreement.--
(i) In general.--Before the transfer of funds to an agency
under subparagraph (C)(i), the Commissioner, 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 subparagraph (E)(ii).

(ii) Requirement for use of commercial products and
services and rapid, iterative development practices.--

(I) In general.--For any funds transferred to an agency
under subparagraph (C)(i), in the absence of compelling
circumstances of the need to develop a custom information
technology solution that are documented by the Commissioner
in a written agreement under this subparagraph, the funds
shall be used for commercial products and services.
(II) Timeline.--If the Commissioner documents in a written
agreement under this subparagraph that there are compelling
circumstances of the need to develop a custom information
technology solution, the Commissioner shall include in the
written agreement a timeline for a rapid, iterative
development process.

(G) Reporting requirements.--
(i) 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), and financial expenditure data related to the
project.
(II) Public availability.--The list required under
subclause (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.

(ii) 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 by the Fund; and
(II) the reliability of the cost savings estimated by
agencies associated with projects funded by the Fund.

(3) Technology modernization board.--
(A) Establishment.--There is established a Technology
Modernization Board to evaluate proposals submitted by
agencies for funding authorized under the Fund.
(B) Responsibilities.--The responsibilities of the Board
are--
(i) 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 the use of commercial solutions when possible, a
strong business case, technical design, procurement strategy
(including adequate use of rapid, iterative software
development practices), and program management;

(ii) to make recommendations to the Commissioner 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 Commissioner;
(iii) to review and prioritize, with the assistance of the
Commissioner and the Director, modernization proposals based
on criteria established pursuant to clause (i);
(iv) to identify, with the assistance of the Commissioner,
opportunities to improve or replace multiple information
technology systems with a smaller number of information
technology service common to multiple agencies;
(v) to recommend the funding of modernization projects, in
accordance with the uses described in paragraph (2)(C), to
the Commissioner;
(vi) to monitor, in consultation with the Commissioner,
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
paragraph (2)(F); and
(vii) to monitor the operating costs of the Fund.
(C) Membership.--The Board shall consist of 7 voting
members.
(D) Chair.--The Chair of the Board shall be the
Administrator of the Office of Electronic Government.
(E) Permanent members.--The permanent members of the Board
shall be--
(i) the Administrator of the Office of Electronic
Government; and
(ii) a senior official from the General Services
Administration having technical expertise in information
technology development, appointed by the Administrator of
General Services, with the approval of the Director.
(F) Additional members of the board.--
(i) 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.

(ii) Term.--Each member of the Board described in clause
(i) shall serve a term of 1 year, which shall be renewable
not more than 3 times at the discretion of the Secretary of
Homeland Security or the Director, as applicable.
(G) Prohibition on compensation.--Members of the Board may
not receive additional pay, allowances, or benefits by reason
of their service on the Board.
(H) Staff.--Upon request of the Chair of the Board, the
Director and the Administrator of General Services 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.
(4) Responsibilities of commissioner.--
(A) In general.--In addition to the responsibilities
described in paragraph (2), the Commissioner 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.
(B) Responsibilities.--The responsibilities of the
Commissioner are--
(i) to provide direct technical support in the form of
personnel services or otherwise to agencies transferred
amounts under paragraph (2)(C)(i) and for products, services,
and acquisition vehicles funded under paragraph (2)(C)(ii);
(ii) to assist the Board with the evaluation,
prioritization, and development of agency modernization
proposals.
(iii) 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
(iv) to provide the Director with information necessary to
meet the requirements of paragraph (2)(G).
(5) Sunset.--This subsection shall cease to have force or
effect on the date that is 2 years after the date on which
the Comptroller General of the United States issues the third
report required under paragraph (2)(G)(ii).
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