Department of Education

INFORMATION TECHNOLOGY SYSTEM MODERNIZATION

AND WORKING CAPITAL

Fiscal Year 2021 Budget Request

CONTENTS

Page

Appropriations Language ..................................................................................................... CC-1

Analysis of Language Provisions and Changes.................................................................... CC-2

Amounts Available for Obligation ......................................................................................... CC-3

Activity: 

Information Technology System Modernization and Working Capital............................... CC-4

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Appropriations Language

TITLE III GENERAL PROVISIONS

SEC. 306. Notwithstanding section 302, the Secretary of Education may transfer up to 10 

percent of any amounts that are made available to the “Program Administration”, “Office for Civil 

Rights”, or “Office of Inspector General” accounts in this Act to the “Information Technology 

System Modernization and Working Capital Fund” (IT WCF), as authorized by section 

1077(b)(1) of title X of division A of the National Defense Authorization Act for Fiscal 

Year 20181: Provided, That any amounts transferred to the IT WCF shall remain available for 3 

fiscal years2: Provided further, That the Secretary shall notify the Committees on Appropriations 

of the Senate and the House of Representatives at least 15 days in advance of any such 

transfer.3 

NOTE

Each language provision that is followed by a footnote reference is explained in the Analysis of Language 

Provisions and Changes document, which follows the appropriation language.
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Analysis of Language Provisions and Changes

Language Provision Explanation

TITLE III GENERAL PROVISIONS

1 SEC. 306. Notwithstanding section 302, 

the Secretary of Education may transfer up to 

10 percent of any amounts that are made 

available to the Program Administration, 

Office for Civil Rights, or Office of Inspector 

General accounts in this or any other Act to 

the “Information Technology System 

Modernization and Working Capital Fund” (IT 

WCF), as authorized by section 1077(b)(1) of 

title X of division A of the National Defense 

Authorization Act for Fiscal Year 2018:

This language provides authority to transfer

up to 10 percent of any amounts that are 

available from most administrative fund

accounts to an Information Technology 

System Modernization and IT Working 

Capital Fund. 

2 Provided, That any amounts transferred to 

the IT WCF shall remain available for 3 fiscal 

years: 

This language makes funds transferred to the

IT Working Capital Fund available for 3 fiscal 

years.

3 Provided further, That the Secretary shall 

notify the Committees on Appropriations of 

the Senate and the House of 

Representatives at least 15 days in advance 

of any such transfer.

This language requires the Secretary to 

notify the Committees on Appropriations at 

least 15 days before funds are transferred. 
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Amounts Available for Obligation

(dollars in thousands)

Appropriation and Adjustments 2019 2020 2021

Discretionary budget authority:

Transfer from Department of Education, 

Program Administration, for IT System 

Modernization and Working Capital ........... 0 0 $5,000

Subtotal, adjusted discretionary 

appropriation........................... 0 0 5,000
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Information Technology System Modernization and 

Working Capital

(P.L. 115-91, Division A, Title X, Section 1077(b)(1))

(dollars in thousands)

FY 2021 Authorization: Indefinite

Budget Authority:

Annual Fund

2020 2021 

Change from

2020 to 2021

Non-Personnel Costs 0 $5,0001 +$5,000

Total 0 5,000 +5,000

1 The budget authority for this account would be transferred from funds requested in the Program Administration 

account.

____________________________________________________________________________

PROGRAM DESCRIPTION

The Modernizing Government Technology Act of 2018 (MGT Act) authorizes all CFO Act 

agencies to establish IT Working Capital Funds (IT WCFs). These IT WCFs may only be used: 

(A) to improve, retire, or replace existing information technology systems to enhance 

cybersecurity of existing systems and to improve efficiency and effectiveness of the life of a 

given workload; (B) to transition legacy information technology systems to commercial cloud 

computing and other innovative commercial platforms and technologies, including those serving 

more than one covered agency with common requirements; (C) 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; (D) to reimburse funds 

transferred to the agency from the Technology Modernization Fund established by the MGT Act;

and, (E) for a program, project, or activity or to increase funds for any program, project, or 

activity that has not been denied or restricted by Congress. With the additional transfer authority 

requested in this Budget, the Department may use this authority to transfer funds from the 

Program Administration, Office for Civil Rights, and Office of Inspector General accounts to this 

account for IT modernization projects.

FY 2021 BUDGET REQUEST

In fiscal year 2021, the Administration is requesting $5.0 million, to be transferred from the 

Program Administration account to the IT Systems Modernization and Working Capital Fund.

The Administration’s request includes the transfer authority necessary to establish and use the 

IT WCF authorized by the Modernizing Government Technology Act in 2018. The requested 
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authority would also enable the Department to transfer 1-year administrative funds to an 

account with a 3-year period of availability for use on IT modernization.

The IT Working Capital Fund authority would enable the Department to make the best use of 

limited administrative funds, particularly when circumstances such as a contract postponement 

or lower-than-anticipated FTE costs leave unanticipated balances available at the end of the 

fiscal year. The 3-year availability would provide the Department more time to appropriately 

consider all risks, merits, and alternatives with IT investments, reducing risk and maximizing the 

effectiveness.

Thirty-one percent of the Program Administration account funds major contracts such as the 

Department’s IT infrastructure and security and financial management systems. These major 

procurements are not routine in nature, but rather have become more complex; requiring, for 

example, additional layers of integration with security requirements. Contract actions, 

particularly those that are complex, are often subject to protests, which can impact the timing of 

funding needs--in many cases crossing over fiscal years. The IT Working Capital Fund will give 

the Department the flexibility to align the availability of funds with these procurement actions.

Consistent with the Federal Information Technology Acquisition Reform Act (FITARA), the 

Secretary shall ensure that the Department’s Chief Information Officer, at a minimum, be the 

principal advisor to the Secretary and a member on any board or governance structure of the 

Department responsible for advising and setting Departmentwide information technology 

budgets to include the IT Working Capital Fund. Furthermore, funds transferred to the IT 

Working Capital Fund may not be obligated without authorization from the Department’s Chief 

Information Officer.

G5 Modernization

One of the principle uses of the Fund will be to help modernize the G5 grants management 

system. As part of its modernization efforts, the Department plans to gather and analyze 

system requirements and identify a strategy and approach for replacing the current G5 grants 

system with a modern, modularized system that incorporates best-in-class solutions that may 

include shared service, commercial-off-the-shelf components, and are in line with the Grants 

Quality Service Management Office (QSMO) standards.

The technology that supports G5 is aging and increasingly unable to meet the expanded grants 

management needs of Department staff. As part of the G5 Modernization effort, a number of 

Department office-specific systems have been identified for consolidation into G5 to increase 

efficiency and decrease costs. Modernizing the G5 system would improve the entire grants 

experience to both internal and external customers by providing a modern, supportable and 

user-friendly way for applicants and grantees to communicate and manage grants.

The G5 grants management system supports the full lifecycle of the Department’s grant-making 

business process. G5 services end-to-end grants management activities, from intake of 

applications, peer reviews, awards, payments, and performance monitoring to final closeout of 

the grant award. G5 also processes payments for Federal Student Aid programs, such as Pell 
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Grants and campus-based aid. In addition to processing payments for these feeder systems, 

G5 is seamlessly integrated with the Financial Management Support System; the Department’s 

general ledger.

G5 customers include grant program staff and external customers who apply for and receive 

grant funds. This includes individuals, colleges and universities, states, counties, school 

districts, tribal organizations, non-profit organizations, and other potential applicants and 

grantees that use the G5 system to apply for grants and, when the grant is awarded, to draw 

down funds. G5 also allows applicants and grantees to see and maintain their grant data 

electronically in one place.