49–006 

109TH CONGRESS REPORT " ! HOUSE OF REPRESENTATIVES 1st Session 109–256 

DEPARTMENT OF VETERANS AFFAIRS INFORMATION 

TECHNOLOGY MANAGEMENT IMPROVEMENT ACT OF 2005 

OCTOBER 27, 2005.—Committed to the Committee of the Whole House on the State 

of the Union and ordered to be printed 

Mr. BUYER, from the Committee on Veterans’ Affairs, 

submitted the following 

R E P O R T 

[To accompany H.R. 4061] 

[Including cost estimate of the Congressional Budget Office] 

The Committee on Veterans’ Affairs, to whom was referred the 

bill (H.R. 4061) to amend title 38, United States Code, to improve 

the management of information technology within the Department 

of Veterans Affairs by providing for the Chief Information Officer 

of that Department to have authority over resources, budget, and 

personnel related to the support function of information technology, 

and for other purposes, having considered the same, report favorably thereon without amendment and recommend that the bill do 

pass. 

INTRODUCTION

The reported bill reflects the Committee’s consideration of H.R. 

4061. 

On September 14, 2005, the full Committee held a hearing on the 

Department of Veterans Affairs (VA) reorganization of its Information Technology (IT) infrastructure, and potential legislative solutions to provide VA with a more efficient use of the IT resources. 

On October 17, 2005, the Chairman and Ranking Member of the 

Veterans’ Affairs Committee, Honorable Steve Buyer and Honorable Lane Evans, respectively, along with Mr. Strickland, Mr. 

Everett, Mr. Brown of South Carolina, Mr. Boozman, Mr. Filner, 

Mr. Gutierrez, Ms. Corrine Brown of Florida, Mr. Reyes, Ms. Ginny 

Brown-Waite of Florida, Mr. Burton of Indiana, Mr. Udall of New 

Mexico, Mr. Bradley of New Hampshire, Mr. Moran of Kansas, and 

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Mr. Turner introduced H.R. 4061, the Department of Veterans Affairs Technology Management Improvement Act of 2005. 

On October 20, 2005, the full Committee met and ordered H.R. 

4061 reported favorably to the House by voice vote. 

SUMMARY OF THE REPORTED BILL

H.R. 4061 would: 

1. Amend Title 38 USC to improve the management of information technology within the Department of Veterans Affairs 

by providing the Chief Information Officer the authority over 

resources, budget, and personnel related to the support function of information technology for the Department. 

2. Require the Secretary of Veterans Affairs, through the 

Chief Information Officer, to develop and maintain a process 

for the selection and oversight of information technology for 

the Department. 

3. Require the Secretary of Veterans Affairs, through the 

Chief Information Officer, to develop an information technology 

strategic plan that includes performance measures and an integrated enterprise architecture; and require the Chief Information Officer to review and update the information technology 

strategic plan and enterprise architecture on an ongoing basis 

in order to maintain currency with technological changes, and 

changing mission needs of the Department. 

4. Mandate that funds for information technology be obligated in accordance with the process the Department develops 

for the selection and oversight of information technology. 

5. Require that amounts appropriated for the Department for 

any fiscal year that are available for information technology 

shall be allocated consistent with annual appropriations acts; 

require that allocation of any funding provided for through the 

annual appropriations process that is inconsistent with the allocation method known as the Veterans Equitable Resource Allocation be approved by the Secretary. 

6. Require the Secretary to submit a report to Congress that 

identifies amounts requested for information technology for the 

Department when the budget for any fiscal year is submitted 

by the President to Congress under Title 31, Section 1105; and 

require the report to set forth those amounts both for each Administration within the Department and for the Department 

aggregate and to identify, for each such amount, how that 

amount is aligned with and supports the Department’s information technology strategic plan. 

7. Require the Department of Veterans Affairs Chief Information Officer to select a Chief Information Officer for each of 

the Veterans Health Administration, the Veterans Benefits Administration, and the National Cemetery Administration; and 

require that each Administration Chief Information Officer selected: 

a. be designated as a Department Deputy Chief Information Officer, and will report directly to the Department of 

Veterans Affairs Chief Information Officer. 

b. be responsible for implementing in their respective 

Administrations, as directed by the Department Chief InVerDate Aug 31 2005 22:46 Oct 29, 2005 Jkt 049118 PO 00000 Frm 00002 Fmt 6659 Sfmt 6602 E:\HR\OC\HR256.XXX HR256
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formation Officer, the information technology strategic 

plan and the integrated enterprise architecture. 

c. maintain operational control of all information technology system assets and personnel, including the direct 

management of their respective Administration’s software 

and applications development activities, necessary to accomplish the objectives of the Department Chief Information Officer to support the mission of the Department and 

its respective Administrations. 

d. be the principal advocate for the information technology needs of their respective Administration and shall 

assure, by coordinating with the Department Chief Information Officer, that the business and mission needs of 

their respective Administrations are met by considering requirements at all levels. 

8. Require that the Secretary submit to the Committees on 

Veterans’ Affairs of the Senate and the House of Representatives an annual report that provides the Secretary’s assessment of the implementation during the year covered by the report; and require that each report include the assessment of 

the Secretary as to the increased efficiency within the Department of information technology acquisition processes, management, responsibility and accountability, and the estimated cost 

savings to the Department as a result of those provisions. 

9. Require regular reports to Congress from the Department 

of Veterans Affairs on the status of implementation of the Act 

at predetermined intervals, as well as require a final report 

once the Act is fully implemented. 

BACKGROUND AND DISCUSSION

In 2001, the Department of Veterans Affairs became the last cabinet-level agency to comply with the requirements of the ClingerCohen Act and appoint a full-time Chief Information Officer (CIO). 

The Veterans Affairs’ Committee has maintained oversight over the 

development of the Office of the CIO and closely monitored the 

strategic alignment between information technology support systems and the expressed business and mission needs of the Department. The Committee and its Subcommittees conducted five oversight hearings and requested many staff-level briefings related to 

the VA Information Technology (IT) infrastructure. The Committee 

believes that the failure of several major IT projects at VA are related to mismanagement, a lack of project oversight within VA, and 

an unclear or ineffective alignment of IT with the mission and business needs of the Department. 

VA has expended about $1 billion per year over the last decade 

to upgrade its IT infrastructure. GAO has testified since 1998 that 

the Department has encountered numerous and consistent problems with managing its IT programs. The VA’s FY 2005 budget request for IT was $1.6 billion. In 2004, the VA received $1.4 billion 

for its IT program, and over the past decade has averaged one billion dollars each year for IT initiatives. 

The concept of the CIO is a relatively new idea. On February 10, 

1996, President Clinton signed the National Defense Authorization 

Act for Fiscal Year 1996, creating Public Law 104–106 (P.L. 104– 

106). Included as Sections D and E respectively in P.L. 104–106 

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were the provisions of the Federal Acquisition Reform Act (FARA) 

of 1996, and the Information Technology Management Reform Act 

(ITMRA) of 1996. These provisions were renamed the ClingerCohen Act of 1996 in the fiscal year 1997 Omnibus Consolidated 

Appropriations Act (P.L. 106–208). One of the main provisions of 

the Clinger-Cohen Act was the creation of a Chief Information Officer (CIO) in each of the federal agencies. Although each agency has 

its own CIO created with the same legislative language, the role 

developed differently in each Department. 

Under the Clinger-Cohen Act, Sections D and E of Public Law 

104–106 defines the general responsibilities of the CIO as: 

providing advice and other assistance to the head of the 

executive agency and other senior management personnel 

of the executive agency to ensure that information technology is acquired and information resources are managed 

of the executive agency in a manner that implements the 

policies and procedures of this division, consistent with 

chapter 35 of title 44, United States Code, and the priorities established by the head of the executive agency; developing, maintaining, and facilitating the implementation 

of a sound and integrated information technology architecture for the executive agency; and promoting the effective 

and efficient design and operation of all major information 

resources management processes of the executive agency, 

including improvements to work processes of the executive 

agency. 

Despite strong encouragement of the Committee and its Oversight and Investigations Subcommittee over the last five years, despite numerous letters from individual Committee Members, and 

despite express direction from the VA Secretary in August 2003, to 

centralize and better align IT management, the anticipated improvements have not occurred. In 2004, VA hired Gartner, a Fortune 500 IT consultant, to analyze and review its IT infrastructure 

and processes. In testimony before the Committee in September 

2005, Gartner testified that VA’s IT budgets are very fluid without 

much accountability on how and when funding is spent. Gartner 

further testified that VA could save more than $345 million annually (over $1.7 billion over the next five years) by centralizing VA’s 

IT organization structure. 

It has come to the Committee’s attention that the Department 

and its leadership intend to implement a federated model as defined by the Gartner consultant and characterized by an IT organizational structure where technology operations, such as data centers and networks, are controlled by groups with all business applications developed and supported by each business line, whether 

medical care, pension, housing, or finance. The Committee believes 

that the federated model is inconsistent with the express direction 

of the VA Secretary in August 2003, as well as previous guidance 

from the House Committee on Veterans’ Affairs. It is the Committee’s view that the federated model would not optimize IT support 

and service delivery VA-wide. Therefore, the Committee directs 

that VA shall not adopt a federated model for its IT organizational 

structure. This Committee further maintains the view that VA efforts to date are not sufficient to facilitate the desired changes in 

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IT management at the Department of Veterans Affairs and directs 

the Department to centralize its IT management. 

It is the view of the Committee on Veterans’ Affairs that the Department of Veterans Affairs should maintain a fully-centralized 

and empowered information technology management system, which 

in concert with the requirements of Clinger-Cohen permits the 

Chief Information Officer to maintain control of all information 

technology related assets in the Department. The Committee maintains that the sole purpose of the VA information technology program is to support the business and mission needs of the Department by assessing those needs at all levels of the Department to 

include line managers and all end users of the IT. 

Operational control of information technology system assets and 

personnel may be delegated by the Department Deputy Chief Information Officer within their respective departmental Administrations so long as the objectives of the Department CIO are met and 

communications and line authority are maintained. Although this 

legislation authorizes the delegation of operational control of information technology system assets and personnel within the respective Administrations, VA should not spend appropriated or Medical 

Care Collection Fund monies on software development and other IT 

initiatives without the knowledge of the Department Deputy CIO 

of their respective Administration, and the approval of the Department CIO. 

While this bill places all information technology personnel under 

the administrative and operational control of the Department Deputy CIOs for day to day operations, the Committee understands 

that emergency situations may preempt the prescribed line-authority and require local-level information technology personnel to work 

collaboratively with line personnel from their respective Administrations without the opportunity to coordinate emergency actions 

with the Department Deputy CIO. This emergency autonomy is encouraged to continue to provide mission and business support to 

the Administration in time of crisis. 

The Committee directs that any individual selected for the position of Department Deputy CIO shall understand information technology, the strategic planning process, and the business and mission needs of their respective Administration. The Committee believes that the performance of the Department Deputy CIO should 

be judged principally by the degree that IT enhances and yields desired mission and business outcomes for the respective Administrations. The Committee believes that the performance of the Department CIO should be based not only on success by all Department 

Deputy CIOs, but also on enhancements in Department-wide efficacy and successful outcomes with regard to achieving ‘‘One-VA.’’ 

Additionally, the Committee interprets the operational control 

granted to the Department Deputy CIOs to include management 

and communication of best practices, encouragement and sharing of 

innovative ideas, development of effective and reasonable DoD/VA 

sharing opportunities, and accountability for all successes and failures when supporting the mission and business needs of the Department. The Department CIO may assert control over any aspect 

of day to day operations to facilitate alignment of information technology assets or personnel provided that the mission and business 

needs of the respective Administrations are not compromised. DifVerDate Aug 31 2005 22:46 Oct 29, 2005 Jkt 049118 PO 00000 Frm 00005 Fmt 6659 Sfmt 6602 E:\HR\OC\HR256.XXX HR256
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ferences of opinion that can not be resolved regarding questions of 

IT alignment and of potential impact on the mission and business 

needs of the Administration should be referred to the VA Secretary 

who will evaluate the issue based on a judgment that a high probability exists that the alignment course of action will result in a 

significant adverse impact within the respective Administration. 

To achieve the desired changes, the Committee deems it necessary that the Department CIO be empowered with specific authority over budget (resources), personnel and equipment (assets). 

HR 4061 assures the Department CIO will have necessary authority to align IT with the business and mission needs of the Department. Success, as measured by achievement both on VA’s performance metrics Department-wide and Administration-wide (for each 

respective administration), will be the primary indicator of the success of the IT support program. The Committee recommends that 

the Department analyze the root-cause of any failure to achieve a 

desired performance measurement benchmark, especially if that 

benchmark is influenced by the IT support system. This recommendation extends VA-wide and is not limited to the IT strategic plan. 

SECTION-BY-SECTION ANALYSIS

Section 1 provides the Short Title of the bill as the Department 

of Veterans Affairs Information Technology Management Improvement Act. 

Section 2(a) amends Title 38, Section 310 by adding new subsections (c) through (h) as follows: 

Subsection (c) would require the Secretary of Veterans Affairs to 

ensure that the Department of Veterans Affairs Chief Information 

Officer has the authority and control necessary for the development, approval, implementation, integration and oversight of policies, procedures, processes, activities, and systems of the Department relating to the management of information technology for the 

Department, including management of related mission applications, information resources, personnel, and infrastructure. 

Subsection (d)(1) would require the Secretary of Veterans Affairs, 

through the Chief information Officer, to develop and maintain a 

process for the selection and oversight of information technology for 

the Department. 

Subsection (d)(2) would require the Secretary of Veterans Affairs, 

through the Chief information Officer, to develop an information 

technology strategic plan that includes performance measures and 

an integrated enterprise architecture. 

Subsection (d)(3) would require that the information technology 

strategic plan set forth a multiyear plan for the use of information 

technology and related resources to accomplish the Department’s 

mission. 

Subsection (d)(4) would require that the Chief Information Officer shall review and update the strategic plan and integrated enterprise architecture on an ongoing basis in order to maintain currency with technological changes, and changing mission needs of 

the Department. 

Subsection (e)(1) would mandate that funds for information technology be obligated in accordance with the process for the selection 

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and oversight of information technology as set forth in Subsection 

(d)(1). 

Subsection (e)(2)(A) would require that amounts appropriated for 

the Department for any fiscal year that are available for information technology shall be allocated consistent with annual appropriations acts. 

Subsection (e)(2)(B) would require that the Secretary approve, 

after notifying the Under Secretary of Health, the allocation of any 

funding provided for through the annual appropriations process 

that is inconsistent with the allocation method known as the Veterans Equitable Resource Allocation. 

Subsection (e)(3) would require that the Secretary to submit a report to Congress that identifies amounts requested for information 

technology for the Department when the budget for any fiscal year 

is submitted by the President to Congress under Title 31, Section 

1105; further, the subsection would require the report set forth 

those amounts both for each Administration within the Department and for the Department aggregate and shall identify, for each 

such amount, how that amount is aligned with and supports information technology strategic plan under Subsection (d). 

Subsection (f)(1) through Subsection (f)(5) would require the Department of Veterans Affairs Chief Information Officer to select a 

Chief Information Officer for each of the Veterans Health Administration, the Veterans Benefits Administration, and the National 

Cemetery Administration. Each Administration Chief Information 

Officer selected would be designated as a Department Deputy Chief 

Information Officer, and would report directly to the Department 

of Veterans Affairs Chief Information Officer. Each Department 

Deputy Chief Information Officer would be responsible for implementing in their respective Administrations, as directed by the Department Chief Information Officer, the information technology 

strategic plan and the integrated enterprise architecture developed 

pursuant to Subsection (d)(2). To accomplish the policies, programmatic goals, information technology system acquisitions and 

alignments prescribed or directed by the Department Chief Information Officer, each Department Deputy Chief Information Officer 

would maintain operational control of all information technology 

system assets and personnel necessary, including direct management of the administrations software and applications development 

activities. The Department Deputy Chief Information Officer would 

be the principal advocate for the information technology needs of 

their respective Administrations and assure, by coordinating with 

the Department Chief Information Officer, that the business and 

mission needs of their respective Administrations are met by considering requirements at all levels, from top level managers to endusers across the entire system. 

Subsection (g)(1) would require the Secretary to ensure that the 

annual report submitted by the Secretary pursuant to Title 40 Section 11313 includes identification of any obligation approved by the 

Chief Information Officer under Subsection (e)(1) above, including 

date, amount and purpose of each obligation. 

Subsection (g)(2) would require that the Secretary submit to the 

Committees on Veterans’ Affairs of the Senate and the House of 

Representatives an annual report that provides the Secretary’s assessment of the implementation during the year covered by the reVerDate Aug 31 2005 22:46 Oct 29, 2005 Jkt 049118 PO 00000 Frm 00007 Fmt 6659 Sfmt 6602 E:\HR\OC\HR256.XXX HR256
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port of the provisions of Subsections (c), (d) and (e). Each report 

would include the assessment of the Secretary as to the increased 

efficiency within the Department of information technology acquisition processes, management, responsibility, and accountability, and 

the estimated cost savings to the Department as a result of those 

provisions. 

Subsection (h) cites that the definition of information technology 

has the meaning given that term in Title 40, Section 11101, Paragraph 6. 

Section (2)(b) would require regular reports to Congress from the 

Department of Veterans Affairs on the status of implementation of 

the Act at predetermined intervals, as well as require a final report 

once the Act is fully implemented. 

PERFORMANCE GOALS AND OBJECTIVES

The reported bill would improve the management of information 

technology within the Department of Veterans Affairs by providing 

the Chief Information Officer the authority over resources, budget, 

and personnel related to the support function of information technology to support the business and mission needs of the Department. The Secretary of Veterans Affairs, through the Chief information Officer would be required to develop an information technology strategic plan that includes performance measures and an 

integrated enterprise architecture. The Chief Information Officer 

would be required to review and update the information technology 

strategic plan and enterprise architecture on an ongoing basis in 

order to maintain currency with technological changes, and changing mission needs of the Department. The performance of the CIO 

and Deputy CIOs would be assessed based on the degree that information technology advances the mission and business goals of the 

Department and its Administrations as determined using the strategic plan and the performance measurement system of VA and the 

Administrations. 

STATEMENTS OF THE VIEWS OF THE ADMINISTRATION

STATEMENT OF GORDON H. MANSFIELD, DEPUTY SECRETARY, 

DEPARTMENT OF VETERANS AFFAIRS BEFORE THE COMMITTEE ON VETERANS’ AFFAIRS, U.S. HOUSE OF REPRESENTATIVES, SEPTEMBER 14, 2005

For at least 25 years prior to 1990, VA’s IT program was 

centralized. VA was elevated to cabinet level in 1988, and 

in FY 1989 the VA IT organization was led by an Assistant 

Secretary for Information Resources Management. In July 

1990, under a belief that decentralized operations provide 

for better management of VA facilities, the Department decentralized resources to the Administrations and staff offices for VA’s IT systems design and applications development, systems operations, and systems oversight, along 

with four data processing centers. The remaining IT oversight program was placed under the Chief Financial Officer (CFO). Then, in accordance with the Clinger-Cohen Act 

of 1996, VA formally established the position of Assistant 

Secretary for Information and Technology (CIO), but the 

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IT oversight program remained aligned under the CFO 

and decentralization of VA’s IT program continued. 

At his confirmation hearing in January 2001, Secretarydesignee Principi stated that he was committed to ending 

stovepiped systems in VA. Secretary Principi directed the 

centralization of the Department’s IT program, including 

authority over personnel and funding, in the Office of the 

Assistant Secretary for Information Technology effective 

October 1, 2002. A team of executives from across VA was 

convened to design a centralized IT organization for VA. 

The Secretary approved a centralized reorganization plan 

on May 14, 2003. The reorganization involved the immediate detail and eventual permanent reassignment of 97 

employees from the Administrations in the areas of telecommunications support and cyber security (field VISN 

level ISOs). The Administration level chief information officers were renamed as Deputy CIO’s and designated as 

being ‘‘dual hatted,’’ meaning they would take their technical direction from the CIO but remain employees of their 

existing parent organizations and take their business direction from the Administration in which they resided. 

The result of this reorganization was a matrix organization which, over time, VA came to realize was not best 

suited for a large, geographically dispersed organization 

that is highly dependent on information technology to deliver services. VA is in the final phase of rebuilding its nationwide telecommunications infrastructure, beginning the 

consolidation of some infrastructure assets, and implementing aggressive cyber security and privacy programs to 

ensure the protection of our infrastructure and veterans’ 

personal information. VA submitted its VA Enterprise Architecture design to OMB in June 2005 and received a 

score of 3.0, significantly higher than the previous score of 

1.25. 

A strong Enterprise Architecture is critical to any effort 

to bring down our stovepiped systems and replace them 

with integrated systems. The score of 3.0 is significant 

progress in this information technology area and signals 

that we are steadfastly working to build a foundation for 

systems integration and standardization. In the wake of 

the difficulties with CoreFLS, the Assistant Secretary for 

Information Technology McFarland to undertook a study of 

our IT system and pursued outside assistance. In December 2004 VA contracted with The Gartner Group to conduct an Organizational Assessment of VA IT. 

This assessment was to enhance the effectiveness of 

VA’s IT by first baselining how it operates today, then developing organizational models that increase VA’s IT value 

(in terms of greater efficiencies, economies of scale, and 

added business value), and finally, charting the path VA 

IT can follow to deploy its new organizational model to 

truly deliver value. The completed assessment was delivered to the Assistant Secretary for Information and Technology in May 2005. A decision is forthcoming. The next 

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step will be to systematically and methodically plan, organize, and transition to the new organization. 

The study proposed five different alternatives, as follows: 

Option 1—Status quo. Currently, VA IT resources are 

operated and managed within a highly decentralized management structure. The Department’s CIO manages a central office staff of approximately 350 government employees and a direct budget of approximately $50M per year. 

While the CIO is charged with overall responsibility for 

the successful management of all VA IT resources (in 

FY05, $1.6B and approximately 5400 IT FTE) the CIO has 

no direct management control or organizational authority 

over any of these resources. The CIO provides policy guidance, budgetary review and general oversight via indirect 

supervision (dotted line) of the Administration and staff office CIO’s. Within some of the Administrations, the CIO 

does not directly supervise or have authority over the majority of IT resources in the field and must also provide 

policy guidance, budgetary review and general oversight 

via indirect supervision. 

Option 2—Regional Option. Under this option, VA would 

be divided into three to five geographically based subdivisions. Within each of these, a Deputy CIO would control 

all IT assets (Operations, Staff Functions, and Systems 

Development) and be responsible for all service delivery 

within that region. These Deputy CIO’s would report directly to the VA CIO. 

Option 3—Administration-Centric Option. Under this option, VA would be divided by Administration and Staff Offices and a Deputy CIO for each would control all IT assets 

(Operations, Staff Functions, and Systems Development) 

and be responsible for all service delivery within that Administration or Staff Office. These Deputy CIO’s would report directly to the VA CIO. 

Option 4—Federated Option. Under this option, VA 

would separate operational responsibilities and IT systems 

development responsibilities into separate domains. All IT 

operational service delivery personnel and the budget associated with their support (to include all non-medical IT 

equipment, maintenance, and contractor support) would 

come under the direct supervision of a national organization that reports directly to the CIO’s office. This organization would be charged with delivering all IT-related operational services to all elements of VA based upon a negotiated and formally agreed upon set of specific standard IT 

services delivered according to a clearly understood and 

documented set of service-level-agreement standards. 

Under a federated approach, IT systems development responsibility remains with the Administrations or staff office business units. The Administrations and staff offices 

directly manage all systems-development FTE and budget 

authority. The CIO clearly maintains overall responsibility 

for the successful management of these resources and conVerDate Aug 31 2005 22:46 Oct 29, 2005 Jkt 049118 PO 00000 Frm 00010 Fmt 6659 Sfmt 6969 E:\HR\OC\HR256.XXX HR256
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tinues to provide IT budget oversight, policy, and program 

management direction for the Department. 

Option 5—Centralized Option. Under this option, all VA 

IT personnel resources, assets, and budget would be under 

the direct supervision of the VA’s CIO. This centralized IT 

organization would be charged with delivering all IT-related operational and systems development services to all 

elements of the VA based upon a negotiated and formally 

agreed upon set of specific standard IT services and systems development standards delivered according to a clearly understood and documented set of service level agreement standards. Under this option the Administrations remain responsible for system and user requirements definition, service delivery standards development, and end user 

participation in systems development acceptance criteria 

development and testing. 

The organizational assessment is one tool we are using 

to decide how to improve our IT programs. VA is determined to move forward and implement the changes necessary for a world-class IT program that increases efficiencies and performance. From better utilization of resources, any savings can be reinvested in direct services to 

veterans. 

CONGRESSIONAL BUDGET OFFICE COST ESTIMATE

CONGRESSIONAL BUDGET OFFICE, 

U.S. CONGRESS, 

Washington, DC, October 26, 2005. 

Hon. STEVE BUYER, 

Chairman, Committee on Veterans’ Affairs, 

House of Representatives, Washington, DC. 

DEAR MR. CHAIRMAN: The Congressional Budget Office has prepared the enclosed cost estimate for H.R. 4061, the Department of 

Veterans Affairs Information Technology Management Improvement Act of 2005. 

If you wish further details on this estimate, we will be pleased 

to provide them. The CBO staff contact is Michelle S. Patterson. 

Sincerely, 

DONALD B. MARRON

(For Douglas Holtz-Eakin, Director). 

Enclosure. 

H.R. 4061—Department of Veterans Affairs Information Technology 

Management Improvement Act of 2005 

H.R. 4061 Would direct the Secretary of the Department of Veterans Affairs (VA) to ensure that the department’s Chief Information Officer (CIO) has the authority to control the policy and procedures related to information technology (IT) throughout the department. The bill would direct the Secretary, acting through the CIO, 

to develop and implement a process for the selection and oversight 

of IT systems within VA, and to develop a strategic plan for IT systems that includes an integrated enterprise architecture. Finally, 

the bill would specify that funds appropriated to the department 

for IT be obligated according to plans and processes established by 

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the CIO and would direct the Secretary of VA to submit periodic 

progress reports to the Congress on the implementation of the requirements set forth in this legislation. 

VA currently has decentralized system of IT development and 

management. Each of the three organizations within VA—the Veterans Health Administration (VHA), the Veterans Benefits Administration (VBA), and the National Cemetery Administration 

(NCA)—develops and manages its own IT functions, with much of 

the development and maintenance occurring at the local or regional 

levels. According to VA, the department recently decided to change 

its IT system so that the CIO will gain control over much of the 

IT budget and other resources but VHA, VBA, and NCA will still 

control software development and management. VA indicates it has 

yet to determine the costs associated with implementing this new 

model. 

H.R. 4061 would require VA to adopt a more centralized approach that would give the CIO authority over almost all IT-related 

functions. Based on information provided by VA, CBO expects it 

would likely cost several hundred million dollars to implement either model of IT management within the department. However, because VA has not yet determined exactly how it would implement 

its planned new approach to IT management, or what it would cost, 

CBO has no basis for estimating whether the centralized approach 

required under the bill would be more or less costly to implement 

than VA’s current plans. 

H.R. 4061 contains no intergovernmental or private-sector mandates as defined in the Unfunded Mandates Reform Act and would 

not affect the budgets of state, local, or tribal governments. 

The CBO staff contact is Michelle S. Patterson. This estimate 

was approved by Robert Sunshine, Assistant Director for Budget 

Analysis. 

STATEMENT OF FEDERAL MANDATES

The preceding Congressional Budget Office cost estimate states 

that the bill contains no intergovernmental or private sector mandates as defined in the Unfunded Mandates Reform Act. 

STATEMENT OF CONSTITUTIONAL AUTHORITY

Pursuant to Article I, section 8 of the United States Constitution, 

the reported bill is authorized by Congress’ power to ‘provide for 

the common Defense and general Welfare of the United States.’ 

CHANGES IN EXISTING LAW MADE BY THE BILL, AS REPORTED

In compliance with clause 3(e) of rule XIII of the Rules of the 

House of Representatives, changes in existing law made by the bill, 

as reported, are shown as follows (new matter is printed in italic 

and existing law in which no change is proposed is shown in 

roman): 

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SECTION 310 OF TITLE 38, UNITED STATES 

CODE 

§ 310. Chief Information Officer 

(a) * * * 

* * * * * * * 

(c) To support the economical, efficient, and effective execution of 

the information technology objectives, policies, and plans of the Department in support of Department goals, the Secretary shall ensure 

that the Chief Information Officer has the authority and control 

necessary for the development, approval, implementation, integration, and oversight of policies, procedures, processes, activities, and 

systems of the Department relating to the management of information technology for the Department, including the management of 

all related mission applications, information resources, personnel, 

and infrastructure. 

(d)(1) The Secretary, acting through the Chief Information Officer, 

shall develop, implement, and maintain a process for the selection 

and oversight of information technology for the Department. 

(2) As components of the development of the process required by 

paragraph (1), the Secretary shall develop for the Department— 

(A) an information technology strategic plan that includes 

performance measurements; and 

(B) an integrated enterprise architecture. 

(3) The information technology strategic plan shall set forth a 

multiyear plan for the use of information technology and related resources to support the accomplishment of the Department’s mission. 

(4) The Chief Information Officer shall review and update the information technology strategic plan and the integrated enterprise 

architecture on an ongoing basis to maintain the currency of the 

plan and the currency of the enterprise architecture with technological changes and changing mission needs of the Department. 

(e)(1) Funds may be obligated for information technology for the 

Department only in accordance with the process implemented under 

paragraph (1) or as otherwise specifically authorized or delegated by 

the Chief Information Officer or as otherwise directed by the Secretary. 

(2)(A) Amounts appropriated for the Department for any fiscal 

year that are available for information technology shall be allocated 

within the Department, consistent with the provisions of appropriations Acts, in such manner as may be specified by, or approved by, 

the Chief Information Officer. 

(B) If for any fiscal year amounts referred to in subparagraph (A) 

that are available for the Veterans Health Administration (or are 

otherwise available for functions relating to medical care) are to be 

allocated under subparagraph (A) in a manner that is inconsistent 

with the allocation method known as the Veterans Equitable Resource Allocation, such allocation may be made only with the approval of the Secretary and after the Under Secretary for Health is 

notified. 

(3) When the budget for any fiscal year is submitted by the President to Congress under section 1105 of title 31, the Secretary shall 

submit to Congress a report that identifies amounts requested for 

information technology for the Department. The report shall set 

14 

forth those amounts both for each Administration within the Department and for the Department in the aggregate and shall identify, for each such amount, how that amount is aligned with and 

supports the information technology strategic plan under subsection 

(d), as then in effect. 

(f)(1) The Chief Information Officer shall select the Chief Information Officer for each of the Veterans Health Administration, the Veterans Benefits Administration, and the National Cemetery Administration. Any such selection may only be made after consultation 

with the Under Secretary with responsibility for the Administration 

for which the selection is to be made. 

(2) Each Administration Chief Information Officer selected under 

paragraph (1)— 

(A) shall be designated as a Department Deputy Chief Information Officer; and 

(B) shall report to the Department Chief Information Officer. 

(3) The Department Deputy Chief Information Officers are responsible for implementing in their respective Administrations, as directed by the Department Chief Information Officer, the information 

technology strategic plan and the integrated enterprise architecture 

developed for the Department by the Department Chief Information 

Officer pursuant to subsection (d)(2). 

(4) To accomplish the policies, programmatic goals, information 

technology system acquisitions, and alignments prescribed, authorized, or directed by the Department Chief Information Officer, each 

Department Deputy Chief Information Officer shall maintain, for 

their respective Administrations, operational control of all information technology system assets and personnel necessary, including direct management of the Administration’s software and applications 

development activities. 

(5) The Department Deputy Chief Information Officers— 

(A) shall be the principal advocate for the information technology needs of their respective Administrations; and 

(B) shall assure, by coordinating with the Department Chief 

Information Officer, that the business and mission needs of 

their respective Administrations are met by considering requirements at all levels. 

(g)(1) The Secretary shall ensure that the annual report submitted 

by the Secretary pursuant to section 11313 of title 40 includes an 

identification of any obligation approved by the Chief Information 

Officer under subsection (e)(1), including the date, amount, and 

purpose of such obligation. 

(2) The Secretary shall submit to the Committees on Veterans’ Affairs of the Senate and House of Representatives an annual report, 

not later than March 1 of each year (beginning in 2009), providing 

the Secretary’s assessment of the implementation during the year 

covered by the report of the provisions of subsections (c), (d), and (e). 

Each such report shall include— 

(A) the assessment of the Secretary as to increased efficiency 

within the Department of information technology acquisition 

processes, management, responsibility, and accountability as a 

result of those provisions; and 

(B) estimated cost savings to the Department as a result of 

those provisions. 

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(h) In this section, the term ‘‘information technology’’ has the 

meaning given that term in paragraph (6) of section 11101 of title 

40. 

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