Information Technology Modernization Act

Summary: Information Technology Modernization Act This bill establishes in the Treasury an Information Technology Modernization Fund for technology related activities, to improve information technology, and to enhance cybersecurity across the federal government.  The Fund shall be administered by the General Services Administration (GSA). The GSA may:  transfer amounts from the Fund to an agency to improve, retire, or replace existing information technology systems to enhance cybersecurity and improve efficiency and effectiveness;  use amounts in the Fund for the development, operation, and procurement of information technology products, services, and acquisition vehicles for use by agencies to improve efficiency and cybersecurity; and  use amounts in the Fund to provide services or work performed in support of such activities.  An agency shall: (1) reimburse the Fund for any such transfer, and (2) pay a price to be fixed by the GSA for any such product or service the agency uses.  The bill establishes an Information Technology Modernization Board, which shall: (1) evaluate proposals for modernization submitted by agencies; (2) make recommendations to the GSA to assist agencies in the further development and refinement of select proposals; and (3) monitor progress and performance in executing approved projects and, if necessary, recommend the suspension or termination of funding.  The GSA shall support Board activities and provide technical support to, and oversight of, agencies that receive transfers from the Fund.

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Information Technology Modernization 
Act''.

SEC. 2. ESTABLISHMENT OF INFORMATION TECHNOLOGY MODERNIZATION FUND AND 
              BOARD.

    (a) Information Technology Modernization Fund.--
            (1) Establishment.--There is established in the Treasury an 
        Information Technology Modernization Fund (in this section 
        referred to as the ``Fund'') for technology related activities, 
        to improve information technology, and to enhance cybersecurity 
        across the Federal Government.
            (2) Administration of fund.--The Administrator of General 
        Services shall administer the Fund in accordance with this 
        subsection.
            (3) Use of funds.--The Administrator of General Services 
        may, in accordance with the recommendations of the Information 
        Technology Modernization Board established in subsection (b), 
        make use of amounts in the Fund for the following purposes:
                    (A) To transfer such amounts, to remain available 
                until expended, to the head of an agency to improve, 
                retire, or replace existing information technology 
                systems to enhance cybersecurity and improve efficiency 
                and effectiveness.
                    (B) 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.
                    (C) To provide services or work performed in 
                support of the activities described under subparagraph 
                (A) or (B).
            (4) Deposit of funds.--
                    (A) In general.--Effective on October 1, 2016, 
                there is appropriated to the Fund, out of any money in 
                the Treasury not otherwise appropriated, 
                $3,000,000,000.
                    (B) Other credits.--The Fund shall be credited with 
                all reimbursements, advances, or refunds or recoveries 
                relating to information technology or services provided 
                through the Fund.
                    (C) Availability.--Amounts deposited, credited, or 
                otherwise made available to the Fund shall be available 
                without regard to fiscal year limitation.
            (5) Reimbursement.--
                    (A) Payment by agency.--For a product or service 
                developed under paragraph (3), the head of an agency 
                that uses such product or service shall pay an amount 
                fixed by the Administrator of General Services in 
                accordance with this subsection.
                    (B) Reimbursement by agency.--The head of an agency 
                shall reimburse the Fund for any transfer made under 
                paragraph (3)(A) in accordance with the terms 
                established in the written agreement described in 
                paragraph (6). Notwithstanding any other provision of 
                law, an agency may make a reimbursement required by 
                this subparagraph from any appropriation available for 
                information technology activities. An obligation to 
                make a payment under an agreement described in 
                paragraph (6) in a future fiscal year shall be recorded 
                pursuant to section 1501 of title 31, United States 
                Code, in the fiscal year in which the payment is due.
                    (C) Prices fixed by administrator of general 
                services.--The Administrator of General Services, in 
                consultation with the Director of the Office of 
                Management and Budget, shall establish amounts to be 
                paid by an agency and terms of repayment for use of a 
                product or service developed under paragraph (3) at 
                levels sufficient to ensure the solvency of the Fund, 
                including operating expenses. Before making any changes 
                to the established amounts and terms of repayment, the 
                Administrator of General Services shall conduct a 
                review and consult with the Director of the Office of 
                Management and Budget.
                    (D) Failure to make timely reimbursement.--The 
                Administrator of General Services may obtain 
                reimbursement by the issuance of transfer and 
                counterwarrants, or other lawful transfer documents, 
                supported by itemized bills, if payment is not made by 
                a requisitioning agency--
                            (i) within 90 days after the expiration of 
                        a repayment period described in the written 
                        agreement described in paragraph (6)(A); or
                            (ii) within 45 days after the expiration of 
                        the time period to make a payment under a 
                        payment schedule for a product or service 
                        developed under paragraph (3).
            (6) Written agreement.--
                    (A) In general.--Before the transfer of funds to an 
                agency under paragraph (3)(A), the Administrator of 
                General Services 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 repayment. An agreement made pursuant to this 
                subparagraph shall be recorded as an obligation as 
                provided in paragraph (5)(B).
                    (B) Requirement for use of incremental development 
                practices.--For any funds transferred to an agency 
                under paragraph (3)(A), in the absence of compelling 
                circumstances documented by the Administrator of 
                General Services at the time of transfer, such funds 
                shall be transferred only on an incremental basis, tied 
                to metric-based development milestones achieved by the 
                agency, to be described in the written agreement 
                required pursuant to subparagraph (A).
    (b) Information Technology Modernization Board.--
            (1) Establishment.--There is established an Information 
        Technology Modernization Board (in this section referred to as 
        the ``Board'') which shall evaluate all proposals for 
        modernization submitted by agencies of information technology 
        used in the Federal Government.
            (2) Responsibilities.--The responsibilities of the Board 
        are to--
                    (A) provide input to the Director of the Office of 
                Management and Budget for the development of processes 
                for agencies to submit modernization proposals to the 
                Board and to establish the criteria by which such 
                proposals are evaluated, which shall include addressing 
                the greatest security and operational risks, having the 
                greatest Governmentwide impact, and having a high 
                probability of success based on factors such as a 
                strong business justification, technical design, 
                procurement strategy (including adequate use of 
                incremental development practices), and program 
                management;
                    (B) make recommendations to the Administrator of 
                General Services 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 Administrator of 
                General Services;
                    (C) review and prioritize, with the assistance of 
                the Administrator of General Services and the Director 
                of the Office of Management and Budget, modernization 
                proposals based on criteria established pursuant to 
                subparagraph (A);
                    (D) identify, with the assistance of the 
                Administrator of General Services, opportunities to 
                improve or replace multiple information technology 
                systems with a smaller number of information technology 
                systems common to multiple agencies;
                    (E) recommend the funding of agency modernization 
                proposals, in accordance with the uses in subsection 
                (a)(3)(A), to the Administrator of General Services; 
                and
                    (F) monitor, in consultation with the Administrator 
                of General Services, progress and performance in 
                executing approved projects and, if necessary, 
                recommend the suspension or termination of funding for 
                projects that fail to meet the terms of the written 
                agreement described in subsection (a)(6).
            (3) Membership.--The Board shall consist of 7 voting 
        members.
            (4) Chair.--The Administrator of the Office of Electronic 
        Government shall serve as the chair of the Board.
            (5) Permanent members.--The permanent members of the Board 
        shall be the following:
                    (A) The Administrator of the Office of Electronic 
                Government.
                    (B) A senior official from the General Services 
                Administration, who shall be appointed by the 
                Administrator of General Services.
            (6) Additional members of the board.--
                    (A) Appointment.--The other members of the Board 
                shall be appointed as follows:
                            (i) An employee of the National Institute 
                        of Standards and Technology of the Department 
                        of Commerce, by the Secretary of Commerce.
                            (ii) An employee of the National Protection 
                        and Programs Directorate of the Department of 
                        Homeland Security, by the Secretary of Homeland 
                        Security.
                            (iii) Three Federal employees primarily 
                        having technical expertise in information 
                        technology development, financial management, 
                        cybersecurity and privacy, and acquisition, by 
                        the Director of the Office of Management and 
                        Budget.
                    (B) Term.--Each member of the Board described in 
                paragraph (A) shall serve a term of one year, which 
                shall be renewable up to three times, at the discretion 
                of the appointing Secretary or Director, as applicable.
            (7) Prohibition on compensation.--Members of the Board may 
        not receive additional pay, allowances, or benefits by reason 
        of their service on the Board.
            (8) Staff.--Upon request of the chair of the Board, the 
        Director of the Office of Management and Budget and the 
        Administrator of General Services may detail, on a 
        nonreimbursable basis, any of the personnel of the Office or 
        the General Services Administration (as the case may be) to the 
        Board to assist it in carrying out its functions under this 
        Act.
    (c) Responsibilities of the Administrator of General Services.--
            (1) In general.--In addition to the responsibilities 
        described in subsection (a), the Administrator of General 
        Services shall support the activities of the Board and provide 
        technical support to, and oversight of, agencies that receive 
        transfers from the Fund.
            (2) Responsibilities.--The responsibilities of the 
        Administrator of General Services are to--
                    (A) provide direct technical support in the form of 
                personnel services or otherwise to agencies transferred 
                amounts under subsection (a)(3)(A) and for products, 
                services, and acquisition vehicles funded under 
                subsection (a)(3)(B);
                    (B) assist the Board with the evaluation, 
                prioritization, and development of agency modernization 
                proposals;
                    (C) perform regular project oversight and 
                monitoring of approved agency modernization projects, 
                in consultation with the Board and the Director of the 
                Office of Management and Budget, to increase the 
                likelihood of successful implementations and reduce 
                waste; and
                    (D) publish and maintain a list of projects funded 
                by the Fund on a public dashboard to be updated not 
                less than quarterly, that includes a description of the 
                project, project status, and financial expenditure data 
                related to the project.
    (d) Agency Defined.--In this section, the term ``agency'' has the 
meaning given that term in section 551 of title 5, United States Code.