II

104TH CONGRESS

1ST SESSION S. 946

To facilitate, encourage, and provide for efficient and effective acquisition

and use of modern information technology by executive agencies; to

establish the position of Chief Information Officer of the United States

in the Office of Management and Budget; to increase the responsibility

and public accountability of the heads of the departments and agencies

of the Federal Government for achieving substantial improvements in

the delivery of services to the public and in other program activities

through the use of modern information technology in support of agency

missions; and for other purposes.

IN THE SENATE OF THE UNITED STATES

JUNE 20 (legislative day, JUNE 19), 1995

Mr. COHEN (for himself and Mr. LEVIN) introduced the following bill; which

was read twice and referred to the Committee on Governmental Affairs

A BILL

To facilitate, encourage, and provide for efficient and effective acquisition and use of modern information technology by executive agencies; to establish the position

of Chief Information Officer of the United States in

the Office of Management and Budget; to increase the

responsibility and public accountability of the heads of

the departments and agencies of the Federal Government

for achieving substantial improvements in the delivery

of services to the public and in other program activities

through the use of modern information technology in

support of agency missions; and for other purposes.
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1 Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled,

3 SECTION 1. SHORT TITLE; TABLE OF CONTENTS.

4 (a) SHORT TITLE.—This Act may be cited as the

5 ‘‘Information Technology Management Reform Act of

6 1995’’.

7 (b) TABLE OF CONTENTS.—The table of contents for

8 this Act is as follows:

Sec. 1. Short title; table of contents.

Sec. 2. Findings.

Sec. 3. Purposes.

Sec. 4. Definitions.

TITLE I—RESPONSIBILITY FOR ACQUISITIONS OF

INFORMATION TECHNOLOGY

Subtitle A—General Authority

Sec. 101. Authority of heads of executive agencies.

Sec. 102. Superior authority of Director of Office of Management and Budget.

Sec. 103. Repeal of central authority of the Administrator of General Services.

Subtitle B—Director of the Office of Management and Budget

Sec. 121. Responsibility of Director.

Sec. 122. Specific responsibilities.

Sec. 123. Performance-based and results-based management.

Sec. 124. Standards and guidelines for Federal information systems.

Sec. 125. Contracting for performance of information resources management

functions.

Sec. 126. Regulations.

Subtitle C—Chief Information Officer of the United States

Sec. 131. Office of the Chief Information Officer of the United States.

Sec. 132. Relationship of Chief Information Officer to Director of the Office of

Management and Budget; principal duties.

Sec. 133. Additional duties.

Sec. 134. Acquisitions under high-risk information technology programs.

Sec. 135. Electronic data base on contractor performance.

Subtitle D—Executive Agencies

Sec. 141. Responsibilities.

Sec. 142. Specific authority.

Sec. 143. Agency chief information officer.

Sec. 144. Accountability.
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Sec. 145. Agency missions and the appropriateness of information technology

initiatives.

Sec. 146. Significant failures of programs to achieve cost, performance, or

schedule goals.

Sec. 147. Interagency support.

Sec. 148. Monitoring of modifications in information technology acquisition programs.

Sec. 149. Special provisions for Department of Defense.

Sec. 150. Special provisions for Central Intelligence Agency.

Subtitle E—Federal Information Council

Sec. 151. Establishment of Federal Information Council.

Sec. 152. Membership.

Sec. 153. Chairman; executive director.

Sec. 154. Duties.

Sec. 155. Software Review Council.

Subtitle F—Interagency Functional Groups

Sec. 161. Establishment.

Sec. 162. Specific functions.

Subtitle G—Congressional Oversight

Sec. 171. Establishment and organization of Joint Committee on Information.

Sec. 172. Responsibilities of Joint Committee on Information.

Sec. 173. Rulemaking authority of Congress.

Subtitle H—Other Responsibilities

Sec. 181. Responsibilities under the National Institute of Standards and Technology Act.

Sec. 182. Responsibilities under the Computer Security Act of 1987.

TITLE II—PROCESS FOR ACQUISITIONS OF INFORMATION

TECHNOLOGY

Subtitle A—Procedures

Sec. 201. Procurement procedures.

Sec. 202. Agency process.

Sec. 203. Incremental acquisition of information technology.

Sec. 204. Authority to limit number of offerors.

Sec. 205. Exception from truth in negotiation requirements.

Sec. 206. Unrestricted competitive procurement of commercial off-the-shelf

items of information technology.

Sec. 207. Task and delivery order contracts.

Sec. 208. Two-phase selection procedures.

Sec. 209. Contractor share of gains and losses from cost, schedule, and performance experience.

Subtitle B—Acquisition Management

Sec. 221. Acquisition management team.

Sec. 222. Oversight of acquisitions.
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TITLE III—SPECIAL FISCAL SUPPORT FOR INFORMATION

INNOVATION

Subtitle A—Information Technology Fund

Sec. 301. Establishment.

Sec. 302. Accounts.

Subtitle B—Innovation Loan Account

Sec. 321. Availability of fund for loans in support of information innovation.

Sec. 322. Repayment of loans.

Sec. 323. Savings from information innovations.

Sec. 324. Funding.

Subtitle C—Common Use Account

Sec. 331. Support of multiagency acquisitions of information technology.

Sec. 332. Funding.

Subtitle D—Other Fiscal Policies

Sec. 341. Limitation on use of funds.

Sec. 342. Sense of Congress.

Sec. 343. Review by GAO and inspectors general.

TITLE IV—INFORMATION TECHNOLOGY ACQUISITION

PILOT PROGRAMS

Subtitle A—Conduct of Pilot Programs

Sec. 401. Requirement to conduct pilot programs.

Sec. 402. Tests of innovative procurement methods and procedures.

Sec. 403. Evaluation criteria and plans.

Sec. 404. Report.

Sec. 405. Recommended legislation.

Sec. 406. Rule of construction.

Subtitle B—Specific Pilot Programs

Sec. 421. Share-in-savings pilot program.

Sec. 422. Solutions-based contracting pilot program.

Sec. 423. Pilot program for contracting for performance of acquisition functions.

Sec. 424. Major acquisitions pilot programs.

TITLE V—OTHER INFORMATION RESOURCES

MANAGEMENT REFORMS

Sec. 501. Transfer of responsibility for FACNET.

Sec. 502. On-line multiple award schedule ordering.

Sec. 503. Upgrading information equipment in agency field offices.

Sec. 504. Disposal of excess computer equipment.

Sec. 505. Leasing information technology.

Sec. 506. Continuation of eligibility of contractor for award of information

technology contract after providing design and engineering

services.

Sec. 507. Enhanced performance incentives for information technology acquisition workforce.
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TITLE VI—ACTIONS REGARDING CURRENT INFORMATION

TECHNOLOGY PROGRAMS

Sec. 601. Performance measurements.

Sec. 602. Independent assessment of programs.

Sec. 603. Current information technology acquisition program defined.

TITLE VII—PROCUREMENT PROTEST AUTHORITY OF THE

COMPTROLLER GENERAL

Sec. 701. Remedies.

Sec. 702. Period for processing protests.

Sec. 703. Definition.

TITLE VIII—RELATED TERMINATIONS, CONFORMING

AMENDMENTS, AND CLERICAL AMENDMENTS

Subtitle A—Related Terminations

Sec. 801. Office of Information and Regulatory Affairs.

Sec. 802. Senior information resources management officials.

Subtitle B—Conforming Amendments

Sec. 811. Amendments to title 10, United States Code.

Sec. 812. Amendments to title 28, United States Code.

Sec. 813. Amendments to title 31, United States Code.

Sec. 814. Amendments to title 38, United States Code.

Sec. 815. Provisions of title 44, United States Code, and other laws relating

to certain joint committees of Congress.

Sec. 816. Provisions of title 44, United States Code, relating to paperwork reduction.

Sec. 817. Amendment to title 49, United States Code.

Sec. 818. Other laws.

Subtitle C—Clerical Amendments

Sec. 821. Amendment to title 10, United States Code.

Sec. 822. Amendment to title 38, United States Code.

Sec. 823. Amendments to title 44, United States Code.

TITLE IX—SAVINGS PROVISIONS

Sec. 901. Savings provisions.

TITLE X—EFFECTIVE DATES

Sec. 1001. Effective dates.

1 SEC. 2. FINDINGS.

2 Congress makes the following findings:

3 (1) Federal information systems are critical to

4 the lives of every American.
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1 (2) The efficiency and effectiveness of the Fed2 eral Government is dependent upon the effective use

3 of information.

4 (3) The Federal Government annually spends

5 billions of dollars operating obsolete information sys6 tems.

7 (4) The use of obsolete information systems se8 verely limits the quality of the services that the Fed9 eral Government provides, the efficiency of Federal

10 Government operations, and the capabilities of the

11 Federal Government to account for how taxpayer

12 dollars are spent.

13 (5) The failure to modernize Federal Govern14 ment information systems, despite efforts to do so,

15 has resulted in the waste of billions of dollars that

16 cannot be recovered.

17 (6) Despite improvements achieved through im18 plementation of the Chief Financial Officers Act of

19 1990, most Federal agencies cannot track the ex20 penditures of Federal dollars and, thus, expose the

21 taxpayers to billions of dollars in waste, fraud,

22 abuse, and mismanagement.

23 (7) Weak oversight and a lengthy acquisition

24 process have resulted in the American taxpayers not

25 getting their money’s worth from the expenditure of
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1 $200,000,000,000 on information systems during

2 the decade preceding the enactment of this Act.

3 (8) The Federal Government does an inad4 equate job of planning for information technology

5 acquisitions and how such acquisitions will support

6 the accomplishment of agency missions.

7 (9) Many Federal Government personnel lack

8 the basic skills necessary to effectively and efficiently

9 use information technology and other information

10 resources in support of agency programs and mis11 sions.

12 (10) Federal regulations governing information

13 technology acquisitions are outdated, focus on proc14 ess rather than results, and prevent the Federal

15 Government from taking timely advantage of the

16 rapid advances taking place in the competitive and

17 fast changing global information technology indus18 try.

19 (11) Buying, leasing, or developing information

20 systems should be a top priority for Federal agency

21 management because the high potential for the sys22 tems to substantially improve Federal Government

23 operations, including the delivery of services to the

24 public.
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1 (12) Organizational changes are necessary in

2 the Federal Government in order to improve Federal

3 information management and to facilitate Federal

4 Government acquisition of the state-of-the-art infor5 mation technology that is critical for improving the

6 efficiency and effectiveness of Federal Government

7 operations.

8 SEC. 3. PURPOSES.

9 The purposes of this Act are as follows:

10 (1) To create incentives for the Federal Govern11 ment to strategically use information technology in

12 order to achieve efficient and effective operations of

13 the Federal Government, to provide cost effective

14 and efficient delivery of Federal Government services

15 to the taxpayers, to provide greater protection of the

16 health and safety of Americans, and to enhance the

17 national security of the United States.

18 (2) To provide for the cost effective and timely

19 acquisition, management, and use of effective infor20 mation technology solutions.

21 (3) To transform the process-oriented procure22 ment system of the Federal Government, as it re23 lates to the acquisition of information technology,

24 into a results-oriented procurement system.
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1 (4) To increase the responsibility of officials of

2 the Office of Management and Budget and other

3 Federal Government agencies, and the accountability

4 of such officials to Congress and the public, for

5 achieving agency missions, including achieving im6 provements in the efficiency and effectiveness of

7 Federal Government programs through the use of

8 information technology and other information re9 sources in support of agency missions.

10 (5) To ensure that the heads of Federal Gov11 ernment agencies are responsible and accountable

12 for acquiring, using, and strategically managing in13 formation resources in a manner that achieves sig14 nificant improvements in the performance of agency

15 missions in pursuit of a goal of achieving service de16 livery levels and project management performance

17 comparable to the best in the private sector.

18 (6) To promote the development and operation

19 of secure, multiple-agency and Governmentwide,

20 interoperable, shared information resources to sup21 port the performance of Federal Government mis22 sions.

23 (7) To reduce fraud, waste, abuse, and errors

24 resulting from a lack of, or poor implementation of,

25 Federal Government information systems.
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1 (8) To increase the capability of Federal Gov2 ernment agencies to restructure and improve proc3 esses before applying information technology.

4 (9) To increase the emphasis placed by Federal

5 agency managers on completing effective planning

6 and mission analysis before applying information

7 technology to the execution of plans and the per8 formance of agency missions.

9 (10) To coordinate, integrate, and, to the extent

10 practicable and appropriate, establish uniform Fed11 eral information resources management policies and

12 practices in order to improve the productivity, effi13 ciency, and effectiveness of Federal Government pro14 grams and the delivery of services to the public.

15 (11) To strengthen the partnership between the

16 Federal Government and State, local, and tribal gov17 ernments for achieving Federal Government mis18 sions, goals, and objectives.

19 (12) To provide for the development of a well20 trained core of professional Federal Government in21 formation resources managers.

22 SEC. 4. DEFINITIONS.

23 In this Act:

24 (1) INFORMATION RESOURCES.—The term ‘‘in25 formation resources’’ means the resources used in
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1 the collection, processing, maintenance, use, sharing,

2 dissemination, or disposition of information, includ3 ing personnel, equipment, funds, and information

4 technology.

5 (2) INFORMATION RESOURCES MANAGEMENT.—

6 The term ‘‘information resources management’’

7 means the process of managing information re8 sources to accomplish agency missions and to im9 prove agency performance.

10 (3) INFORMATION SYSTEM.—The term ‘‘infor11 mation system’’ means a discrete set of information

12 resources, whether automated or manual, that are

13 organized for the collection, processing, mainte14 nance, use, sharing, dissemination, or disposition of

15 information in accordance with defined procedures

16 and includes computer systems.

17 (4) INFORMATION TECHNOLOGY.—The term

18 ‘‘information technology’’, with respect to an execu19 tive agency—

20 (A) means any equipment or inter21 connected system or subsystem of equipment,

22 including software, services, satellites, sensors,

23 an information system, or a telecommunication

24 system, that is used in the acquisition, storage,

25 manipulation, management, movement, control,
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1 display, switching, interchange, transmission, or

2 reception of data or information by the execu3 tive agency or under a contract with the execu4 tive agency which (i) requires the use of such

5 system or subsystem of equipment, or (ii) re6 quires the use, to a significant extent, of such

7 system or subsystem of equipment in the per8 formance of a service or the furnishing of a

9 product; and

10 (B) does not include any such equipment

11 that is acquired by a Federal contractor inci12 dental to a Federal contract.

13 (5) INFORMATION ARCHITECTURE.—The term

14 ‘‘information architecture’’, with respect to an execu15 tive agency, means a framework or plan for evolving

16 or maintaining existing information technology, ac17 quiring new information technology, and integrating

18 the agency’s information technology to achieve the

19 agency’s strategic goals and information resources

20 management goals.

21 (6) EXECUTIVE DEPARTMENT.—The term ‘‘ex22 ecutive department’’ means an executive department

23 specified in section 101 of title 5, United States

24 Code.
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1 (7) EXECUTIVE AGENCY.—The term ‘‘executive

2 agency’’ has the meaning given the term in section

3 4(1) of the Office of Federal Procurement Policy

4 Act (41 U.S.C. 403(1)).

5 (8) HIGH-RISK INFORMATION TECHNOLOGY

6 PROGRAM.—The term ‘‘high-risk information tech7 nology program’’ means an acquisition of an infor8 mation system, or components of an information

9 system, that requires special management attention

10 because—

11 (A) the program cost is at least

12 $100,000,000;

13 (B) the system being developed under the

14 program is critical to the success of an execu15 tive agency in fulfilling the agency’s mission;

16 (C) there is a significant risk in the devel17 opment of the system because of—

18 (i) the size or scope of the develop19 ment project;

20 (ii) the period necessary for complet21 ing the project;

22 (iii) technical configurations;

23 (iv) unusual security requirements;
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1 (v) the special management skills nec2 essary for the management of the project;

3 or

4 (vi) the highly technical expertise nec5 essary for the project; or

6 (D) it is or will be necessary to allocate a

7 significant percentage of the information tech8 nology budget of an executive agency to paying

9 the costs of developing, operating, or maintain10 ing the system.

11 (9) COMMERCIAL ITEM.—The term ‘‘commer12 cial item’’ has the meaning given that term in sec13 tion 4(12) of the Office of Federal Procurement Pol14 icy Act (41 U.S.C. 403(12)).

15 (10) NONDEVELOPMENTAL ITEM.—The term

16 ‘‘nondevelopmental item’’ has the meaning given

17 that term in section 4(13) of the Office of Federal

18 Procurement Policy Act (41 U.S.C. 403(13)).

19 TITLE I—RESPONSIBILITY FOR

20 ACQUISITIONS OF INFORMA21 TION TECHNOLOGY

22 Subtitle A—General Authority

23 SEC. 101. AUTHORITY OF HEADS OF EXECUTIVE AGENCIES.

24 The heads of the executive agencies may conduct ac25 quisitions of information technology pursuant to their re-
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1 spective authorities under title III of the Federal Property

2 and Administrative Services Act of 1949 (41 U.S.C. 251,

3 et seq.), chapters 4 and 137 of title 10, United States

4 Code, and the National Aeronautics and Space Act of

5 1958 (42 U.S.C. 2451 et seq.).

6 SEC. 102. SUPERIOR AUTHORITY OF DIRECTOR OF OFFICE

7 OF MANAGEMENT AND BUDGET.

8 Notwithstanding section 101 and the authorities re9 ferred to in such section, the conduct of an acquisition

10 of information technology by the head of an executive

11 agency is subject to (1) the authority, direction, and con12 trol of the Director of the Office of Management and

13 Budget and the Chief Information Officer of the United

14 States, and (2) the provisions of this Act.

15 SEC. 103. REPEAL OF CENTRAL AUTHORITY OF THE ADMIN16 ISTRATOR OF GENERAL SERVICES.

17 Section 111 of the Federal Property and Administra18 tive Services Act of 1949 (40 U.S.C. 759) is repealed.

19 Subtitle B—Director of the Office

20 of Management and Budget

21 SEC. 121. RESPONSIBILITY OF DIRECTOR.

22 (a) IN GENERAL.—The Director of the Office of

23 Management and Budget is responsible for the effective

24 and efficient acquisition, use, and disposal of information
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1 technology and other information resources by the execu2 tive agencies.

3 (b) GOAL.—It shall be a goal of the Director to maxi4 mize the productivity, efficiency, and effectiveness of the

5 information resources of the Federal Government to serve

6 executive agency missions.

7 (c) ACTIONS TO BE TAKEN THROUGH CHIEF INFOR8 MATION OFFICER.—The Director shall act through the

9 Chief Information Officer of the United States in the exer10 cise of authority under this Act.

11 SEC. 122. SPECIFIC RESPONSIBILITIES.

12 (a) RESPONSIBILITIES STATED.—The Director of the

13 Office of Management and Budget has the following re14 sponsibilities with respect to the executive agencies:

15 (1) To provide direction for, and oversee, the

16 acquisition and management of information re17 sources.

18 (2) To develop, coordinate, and supervise the

19 implementation of policies, principles, standards, and

20 guidelines for information resources, performance of

21 information resources management functions and ac22 tivities, and investment in information resources.

23 (3) To determine the information resources that

24 are to be provided in common for executive agencies.
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1 (4) To designate (as the Director considers ap2 propriate) one or more heads of executive agencies

3 as an executive agent to contract for Government4 wide information technology.

5 (5) To maintain a registry of most effective

6 agency sources of information technology program

7 management and contracting services, and to facili8 tate interagency use of such sources.

9 (6) To promulgate standards and guidelines

10 pertaining to Federal information systems in accord11 ance with section 124.

12 (7) To carry out an information systems secu13 rity and privacy program for the information sys14 tems of the Federal Government, including to ad15 minister the provisions of section 21 of the National

16 Institute of Standards and Technology Act (15

17 U.S.C. 278g–4) relating to the Computer System

18 Security and Privacy Advisory Board.

19 (8) To provide for Federal information system

20 security training in accordance with section 5(c) of

21 the Computer Security Act of 1987 (40 U.S.C.

22 759(c)).

23 (9) To encourage and advocate the adoption of

24 national and international information technology

25 standards that are technically and economically ben-
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1 eficial to the Federal Government and the private

2 sector.

3 (b) CONSULTATION WITH FEDERAL INFORMATION

4 COUNCIL.—(1) The Director shall consult with the Fed5 eral Information Council regarding actions to be taken

6 under paragraphs (3) and (4) of subsection (a).

7 (2) The Director may consult with the Federal Infor8 mation Council regarding the performance of any other

9 responsibility of the Director under this Act.

10 SEC. 123. PERFORMANCE-BASED AND RESULTS-BASED

11 MANAGEMENT.

12 (a) EVALUATION OF AGENCY PROGRAMS AND IN13 VESTMENTS.—

14 (1) REQUIREMENT.—The Director of the Office

15 of Management and Budget shall evaluate the infor16 mation resources management practices of the exec17 utive agencies and the performance and results of

18 the information technology investments of executive

19 agencies.

20 (2) CONSIDERATION OF ADVICE AND REC21 OMMENDATIONS.—In performing the evaluation, the

22 Director shall consider any advice and recommenda23 tions provided by the Federal Information Council or

24 in any interagency or independent review or vendor

25 or user survey conducted pursuant to this section.
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1 (b) CONTINUOUS REVIEW REQUIRED.—The Director

2 shall ensure, by reviewing each executive agency’s budget

3 proposals, information resources management plans, and

4 performance measurements, and by other means, that—

5 (1) the agency—

6 (A) provides adequately for the integration

7 of the agency’s information resources manage8 ment plans, strategic plans prepared pursuant

9 to section 306 of title 5, United States Code,

10 and performance plans prepared pursuant to

11 section 1115 of title 31, United States Code;

12 and

13 (B) budgets for the acquisition and use of

14 information technology;

15 (2) the agency analyzes its missions and, based

16 on the analysis, revises its mission-related processes

17 and administrative processes as appropriate before

18 making significant investments in information tech19 nology to be used in support of agency missions;

20 (3) the agency’s information resources manage21 ment plan is current and adequate and, to the maxi22 mum extent practicable, specifically identifies how

23 new information technology to be acquired is ex24 pected to improve agency operations and otherwise

25 expected to benefit the agency;
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1 (4) efficient and effective interagency and Gov2 ernmentwide information technology investments are

3 undertaken to improve the accomplishment of com4 mon agency missions; and

5 (5) agency information security is adequate.

6 (c) PERIODIC REVIEWS.—

7 (1) REVIEWS REQUIRED.—The Director shall

8 periodically review selected information resources

9 management activities of the executive agencies in

10 order to ascertain the efficiency and effectiveness of

11 such activities in improving agency performance and

12 the accomplishment of agency missions.

13 (2) INDEPENDENT REVIEWERS.—(A) The Di14 rector may carry out a review of an executive agency

15 under this subsection through—

16 (i) the Comptroller General of the United

17 States (with the consent of the Comptroller

18 General);

19 (ii) the Inspector General of the agency (in

20 the case of an agency having an Inspector Gen21 eral); or

22 (iii) in the case of a review requiring an

23 expertise not available to the Director for the

24 review, a panel of officials of executive agencies

25 or a contractor.
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1 (B) The Director shall notify the head of a

2 Federal agency of any determination made by the

3 Director to provide for a review to be performed by

4 an independent reviewer from outside the agency.

5 (C) A review of an executive agency by the

6 Comptroller General of the United States may be

7 carried out only pursuant to an interagency agree8 ment entered into by the Director and the Comptrol9 ler General. The agreement shall provide for the Di10 rector to pay the Comptroller General the amount

11 necessary to reimburse the Comptroller General for

12 the costs of performing the review.

13 (3) FUNDING.—Funds available to an executive

14 agency for acquisition or use of information tech15 nology shall be available for paying the costs of a re16 view of activity of that agency under this subsection.

17 (4) REPORT AND RESPONSE.—The Director

18 shall transmit to the head of an executive agency re19 viewed under this subsection a report on the results

20 of the review. Within 30 days after receiving the re21 port, the head of the executive agency shall submit

22 to the Director a written plan (including milestones)

23 on the actions that the head of the executive agency

24 determines necessary in order—
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1 (A) to resolve any information resources

2 management problems identified in the report;

3 and

4 (B) to improve the performance of agency

5 missions and other agency performance.

6 (d) VENDOR SURVEYS.—The Director shall conduct

7 surveys of vendors and other sources of information tech8 nology acquired by an executive agency in order to deter9 mine the level of satisfaction of those sources with the per10 formance of the executive agency in conducting the acqui11 sition or acquisitions involved. The Director shall afford

12 the sources the opportunity to rate the executive agency

13 anonymously.

14 (e) USER SURVEYS.—

15 (1) REQUIREMENT.—The Director shall con16 duct surveys of users of information technology ac17 quired by an executive agency in order to determine

18 the level of satisfaction of the users with the per19 formance of the vendor.

20 (2) COMPILATION OF SURVEY RESULTS.—The

21 Director shall compile the results of the surveys into

22 an annual report and make the annual report avail23 able electronically to the heads of the executive agen24 cies.

25 (f) ENFORCEMENT OF ACCOUNTABILITY.—
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1 (1) IN GENERAL.—The Director may take any

2 action that the Director considers appropriate, in3 cluding an action involving the budgetary process or

4 appropriations management process, to enforce ac5 countability for poor performance of information re6 sources management in an executive agency.

7 (2) SPECIFIC ACTIONS.—Actions taken by the

8 Director in the case of an executive agency may in9 clude such actions as the following:

10 (A) Reduce the amount proposed by the

11 head of the executive agency to be included for

12 information resources in the budget submitted

13 to Congress under section 1105(a) of title 31,

14 United States Code.

15 (B) Reduce or otherwise adjust apportion16 ments and reapportionments of appropriations

17 for information resources.

18 (C) Use other authorized administrative

19 controls over appropriations to restrict the

20 availability of funds for information resources.

21 (D) Disapprove the commencement or con22 tinuance of an information technology invest23 ment by the executive agency.
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1 (E) Designate for the executive agency an

2 executive agent to contract with private sector

3 sources for—

4 (i) the performance of information re5 sources management (subject to the ap6 proval and continued oversight of the Di7 rector); or

8 (ii) the acquisition of information

9 technology.

10 (F) Withdraw all or part of the head of the

11 executive agency’s authority to contract directly

12 for information technology.

13 (g) ENFORCEMENT ACTIONS RELATED TO COST,

14 PERFORMANCE, AND SCHEDULE GOALS.—

15 (1) REQUIRED TERMINATIONS OF ACQUISI16 TIONS.—The Director shall terminate any high-risk

17 information technology program or phase or incre18 ment of the program that—

19 (A) is more than 50 percent over the cost

20 goal established for the program or a phase or

21 increment of the program;

22 (B) fails to achieve at least 50 percent of

23 the performance goals established for the pro24 gram or a phase or increment of a program; or
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1 (C) is more than 50 percent behind sched2 ule as determined in accordance with the sched3 ule goal established for the program or a phase

4 or increment of the program.

5 (2) AUTHORIZED TERMINATIONS OF ACQUISI6 TIONS.—The Director shall consider terminating any

7 information technology acquisition that—

8 (A) is more than 10 percent over the cost

9 goal established for the program or a phase or

10 increment of the program;

11 (B) fails to achieve at least 90 percent of

12 the performance goals established for the pro13 gram or a phase or increment of a program; or

14 (C) is more than 10 percent behind sched15 ule as determined in accordance with the sched16 ule goal established for the program or a phase

17 or increment of the program.

18 SEC. 124. STANDARDS AND GUIDELINES FOR FEDERAL IN19 FORMATION SYSTEMS.

20 (a) PROMULGATION RESPONSIBILITY.—The Director

21 of the Office of Management and Budget shall, on the

22 basis of standards and guidelines developed pursuant to

23 paragraphs (2) and (3) of section 20(a) of the National

24 Institute of Standards and Technology Act (20 U.S.C.

25 278g–3(a)), promulgate standards and guidelines pertain-
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1 ing to Federal information systems, making such stand2 ards compulsory and binding to the extent to which the

3 Director determines necessary to improve the efficiency of

4 operation, interoperability, security, and privacy of Fed5 eral information systems. In promulgating standards, the

6 Director should minimize the use of unique standards and

7 adopt market standards to the extent practicable.

8 (b) MORE STRINGENT STANDARDS AUTHORIZED.—

9 The head of an executive agency may employ standards

10 for the security and privacy of sensitive information in a

11 Federal information system within or under the super12 vision of that agency that are more stringent than the

13 standards promulgated by the Director, if such standards

14 are approved by the Director, are cost effective, maintain

15 interoperability, and contain, at a minimum, the provi16 sions of those applicable standards made compulsory and

17 binding by the Director.

18 (c) WAIVER AUTHORITY.—The standards determined

19 to be compulsory and binding may be waived by the Direc20 tor in writing upon a determination that compliance would

21 adversely affect the accomplishment of the mission of an

22 operator of a Federal information system, or cause a

23 major adverse financial impact on the operator which is

24 not offset by Governmentwide savings.
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1 (d) SPECIAL RULE OF APPLICABILITY.—(1) Security

2 standards promulgated by the Director of the Office of

3 Management and Budget do not apply to information sys4 tems of the Department of Defense or the Central Intel5 ligence Agency.

6 (2) The Secretary of Defense shall prescribe security

7 standards applicable to the information systems of the De8 partment of Defense.

9 (3) The Director of Central Intelligence shall pre10 scribe security standards applicable to the information

11 systems of the Central Intelligence Agency.

12 SEC. 125. CONTRACTING FOR PERFORMANCE OF INFORMA13 TION RESOURCES MANAGEMENT FUNCTIONS.

14 The Director of the Office of Management and Budg15 et may contract for the performance of an information re16 sources management function for the executive branch.

17 SEC. 126. REGULATIONS.

18 (a) AUTHORITY.—The Director of the Office of Man19 agement and Budget may prescribe regulations to carry

20 out the provisions of this Act.

21 (b) SIMPLICITY OF REGULATIONS.—To the maxi22 mum extent practicable, the Director shall minimize the

23 length and complexity of the regulations and establish

24 clear and concise implementing regulations.
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1 (c) INCORPORATION INTO FAR.—The regulations

2 shall be made a part of the Federal Acquisition Regula3 tion.

4 (d) PROHIBITION AGAINST AGENCY SUPPLEMENTAL

5 REGULATIONS.—The head of an executive agency may not

6 prescribe supplemental regulations for the regulations pre7 scribed by the Director under subsection (a).

8 Subtitle C—Chief Information

9 Officer of the United States

10 SEC. 131. OFFICE OF THE CHIEF INFORMATION OFFICER

11 OF THE UNITED STATES.

12 (a) ESTABLISHMENT.—There is established in the

13 Office of Management and Budget an Office of the Chief

14 Information Officer of the United States.

15 (b) CHIEF INFORMATION OFFICER OF THE UNITED

16 STATES.—

17 (1) APPOINTMENT.—The Chief Information Of18 ficer of the United States is appointed by the Presi19 dent, by and with the advice and consent of the Sen20 ate, from among persons who have demonstrated the

21 knowledge, skills, and abilities in management and

22 in information resources management that are nec23 essary to perform the functions of the Office of the

24 Chief Information Officer of the United States effec25 tively. The qualifications considered shall include
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1 education, work experience, and professional activi2 ties related to information resources management.

3 (2) HEAD OF OFFICE.—The Chief Information

4 Officer is the head of the Office of the Chief Infor5 mation Officer of the United States.

6 (3) EXECUTIVE LEVEL II.—Section 5313 of

7 title 5, United States Code, is amended by adding

8 at the end the following:

9 ‘‘Chief Information Officer of the United

10 States.’’.

11 (c) ADMINISTRATIVE PROVISIONS.—

12 (1) APPOINTMENT OF EMPLOYEES.—The Chief

13 Information Officer appoints the employees of the

14 office.

15 (2) EMPLOYEE QUALIFICATIONS.—In selecting

16 a person for appointment as an employee in an in17 formation resources management position, the Chief

18 Information Officer shall afford special attention to

19 the person’s demonstrated abilities to perform the

20 information resources management functions of the

21 position. The qualifications considered shall include

22 education, work experience, and professional activi23 ties related to information resources management.

24 (3) PAY FOR PERFORMANCE.—(A) The Chief

25 Information Officer shall establish a pay for per-
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1 formance system for the employees of the office and

2 pay the employees in accordance with that system.

3 (B) Subject to the approval of the Director of

4 the Office of Management and Budget, the Chief In5 formation Officer may submit to Congress any rec6 ommendations for legislation that the Chief Informa7 tion Officer considers necessary to implement fully

8 the pay for performance system.

9 (4) SUPPORT FROM OTHER AGENCIES.—Upon

10 the request of the Chief Information Officer, the

11 head of an executive agency (other than an inde12 pendent regulatory agency) shall, to the extent prac13 ticable, make services, personnel, or facilities of the

14 agency available to the Office of the Chief Informa15 tion Officer of the United States for the perform16 ance of functions of the Chief Information Officer.

17 SEC. 132. RELATIONSHIP OF CHIEF INFORMATION OFFICER

18 TO DIRECTOR OF THE OFFICE OF MANAGE19 MENT AND BUDGET; PRINCIPAL DUTIES.

20 (a) REPORTING AUTHORITY.—The Chief Information

21 Officer of the United States reports directly to the Direc22 tor.

23 (b) PRINCIPAL ADVISER TO DIRECTOR OF OMB ON

24 INFORMATION RESOURCES MANAGEMENT.—The Chief

25 Information Officer is the principal adviser to the Director
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1 on information resources management policy, including

2 policy on acquisition of information technology for the

3 Federal Government.

4 (c) PERFORMANCE OF DUTIES OF DIRECTOR OF

5 OMB.—

6 (1) IN GENERAL.—The Chief Information Offi7 cer shall perform the responsibilities of the Director

8 under this Act.

9 (2) CONTINUED RESPONSIBILITY OF DIREC10 TOR.—Paragraph (1) does not relieve the Director

11 of responsibility and accountability for the perform12 ance of such responsibilities.

13 (d) AUTHORITY SUBJECT TO CONTROL OF DIRECTOR

14 OF OMB.—The performance of duties and exercise of au15 thority by the Chief Information Officer is subject to the

16 authority, direction, and control of the Director of the Of17 fice of Management and Budget.

18 SEC. 133. ADDITIONAL DUTIES.

19 The Chief Information Officer has the following addi20 tional duties:

21 (1) To encourage the executive agencies to de22 velop and use the best practices in information re23 sources management and in acquisitions of informa24 tion technology by—
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1 (A) identifying and collecting information

2 regarding the best practices, including informa3 tion on the development and implementation of

4 the best practices by the executive agencies; and

5 (B) providing the executive agencies with

6 information on the best practices and with ad7 vice and assistance regarding use of the best

8 practices.

9 (2) To assess, on a continuing basis, the experi10 ences of executive agencies, State and local govern11 ments, international organizations, and the private

12 sector in managing information resources.

13 (3) To compare the performances of the execu14 tive agencies in using information resources and to

15 disseminate the comparisons to the executive agen16 cies.

17 (4) To develop and maintain a Governmentwide

18 strategic plan for information resources management

19 and acquisitions of information technology, including

20 guidelines and standards for the development of an

21 information resources management plan to be used

22 by the executive agencies.

23 (5) To ensure that the information resources

24 management plan and the information systems of

25 executive agencies conform to the guidelines and
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•S 946 IS

1 standards set forth in the Governmentwide strategic

2 plan.

3 (6) To develop and submit to the Director of

4 the Office of Management and Budget proposed leg5 islation and proposed changes or additions to regula6 tions and agency procedures as the Chief Informa7 tion Officer considers necessary in order to improve

8 information resources management by the executive

9 agencies.

10 (7) To review the regulations, policies, and

11 practices of executive agencies regarding information

12 resources management and acquisitions of informa13 tion technology in order to identify the regulations,

14 policies, and practices that should be eliminated or

15 adjusted so as not to hinder or impede information

16 resources management or acquisitions of information

17 technology.

18 (8) To monitor the development and implemen19 tation of training in information resources manage20 ment for executive agency management personnel

21 and staff.

22 (9) To keep Congress fully informed on high23 risk information technology programs of the execu24 tive agencies, and the extent to which the executive

25 agencies are improving program performance and
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1 the accomplishment of agency missions through the

2 use of the best practices in information resources

3 management.

4 (10) To review Federal procurement policies on

5 acquisitions of information technology and to coordi6 nate with the Administrator for Federal Procure7 ment Policy regarding the development of Federal

8 procurement policies for such acquisitions.

9 (11) To facilitate the establishment and mainte10 nance of an electronic clearinghouse of information

11 on the availability of nondevelopmental items of in12 formation technology for the Federal Government.

13 (12) To perform the functions of the Director

14 of the Office of Management and Budget under

15 chapter 35 of title 44, United States Code.

16 SEC. 134. ACQUISITIONS UNDER HIGH-RISK INFORMATION

17 TECHNOLOGY PROGRAMS.

18 (a) ADVANCE PROGRAM REVIEW.—The Chief Infor19 mation Officer of the United States shall review each pro20 posed high-risk information technology program.

21 (b) ADVANCE APPROVAL REQUIRED.—No program

22 referred to in subsection (a) may be carried out by the

23 head of an executive agency without the advance approval

24 of the Chief Information Officer of the United States.
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1 SEC. 135. ELECTRONIC DATA BASE ON CONTRACTOR PER2 FORMANCE.

3 (a) ESTABLISHMENT.—The Chief Information Offi4 cer of the United States shall establish in the Office of

5 the Chief Information Officer of the United States an elec6 tronic data base containing a record of the performance

7 of each contractor under a Federal Government contract

8 for the acquisition of information technology or other in9 formation resources.

10 (b) REPORTING OF INFORMATION TO DATA BASE.—

11 (1) REQUIREMENT.—The head of each execu12 tive agency shall, in accordance with regulations pre13 scribed by the Director of the Office of Management

14 and Budget, report to the Chief Information Officer

15 information on contractor performance that is to be

16 included in the data base.

17 (2) WHEN SUBMITTED.—The head of an execu18 tive agency shall submit to the Director—

19 (A) an annual report on contractor per20 formance during the year covered by the report;

21 and

22 (B) upon the completion or termination of

23 performance under a contract, a report on the

24 contractor performance under that contract.

25 (c) PERIOD FOR INFORMATION TO BE MAIN26 TAINED.—Information on the performance of a contractor
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•S 946 IS

1 under a contract shall be maintained in the data base for

2 five years following completion of the performance under

3 that contract. Information not required to be maintained

4 under the preceding sentence shall be removed from the

5 data base or rendered inaccessible.

6 Subtitle D—Executive Agencies

7 SEC. 141. RESPONSIBILITIES.

8 (a) IN GENERAL.—The head of an executive agency

9 is responsible for—

10 (1) carrying out the information resources man11 agement activities of the agency in a manner that

12 fulfills the agency’s missions and improves agency

13 productivity, efficiency, and effectiveness; and

14 (2) complying with the requirements of this Act

15 and the policies, regulations, and directives issued by

16 the Director of the Office of Management and Budg17 et or the Chief Information Officer of the United

18 States under the provisions of this Act.

19 (b) INFORMATION RESOURCES MANAGEMENT

20 PLAN.—

21 (1) PLAN REQUIRED.—The head of an execu22 tive agency shall develop, maintain, and oversee the

23 implementation of an agency-wide information re24 sources management plan that is consistent with the

25 strategic plan prepared by the head of the agency
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1 pursuant to section 306 of title 5, United States

2 Code, and the agency head’s mission analysis, and

3 ensure that the agency information systems conform

4 to those plans.

5 (2) CONTENT OF PLAN.—The information re6 sources management plan shall provide for applying

7 information technology and other information re8 sources in support of the performance of the mis9 sions of the agency and shall include the following:

10 (A) A statement of goals for improving the

11 contribution of information resources to pro12 gram productivity, efficiency, and effectiveness.

13 (B) Methods for measuring progress to14 ward achieving the goals.

15 (C) Assignment of clear roles, responsibil16 ities, and accountability for achieving the goals.

17 (D) Identification of—

18 (i) the existing and planned informa19 tion technology components (such as infor20 mation systems and telecommunication

21 networks) of the agency and the relation22 ship among the information technology

23 components; and

24 (ii) the information architecture for

25 the agency.
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1 (c) AGENCY RECORDS.—The head of an executive

2 agency shall periodically evaluate and, as necessary, im3 prove the accuracy, completeness, and reliability of data

4 and records in the information systems of the agency.

5 (d) BUDGETING.—The head of an executive agency

6 shall use the strategic plan, performance plans, and infor7 mation resources management plan of the agency in pre8 paring and justifying the agency’s budget proposals to the

9 Director of the Office of Management and Budget and to

10 Congress.

11 SEC. 142. SPECIFIC AUTHORITY.

12 The authority of the head of an executive agency

13 under section 101 and the authorities referred to in such

14 section includes the following authorities:

15 (1) To acquire information technology—

16 (A) in the case of an acquisition of less

17 than $100,000,000, without the advance ap18 proval of the Chief Information Officer of the

19 United States; and

20 (B) in the case of an acquisition of a high21 risk information technology program, with the

22 advance approval of the Director of the Office

23 of Management and Budget.

24 (2) To enter into a contract that provides for

25 multi-agency acquisitions of information technology
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•S 946 IS

1 subject to the approval and guidance of the Federal

2 Information Council.

3 (3) If the Federal Information Council and the

4 heads of the executive agencies concerned find that

5 it would be advantageous for the Federal Govern6 ment to do so, to enter into a multi-agency contract

7 for procurement of commercial items that requires

8 each agency covered by the contract, when procuring

9 such items, either to procure the items under that

10 contract or to justify an alternative procurement of

11 the items.

12 (4) To establish one or more independent tech13 nical review committees, composed of diverse agency

14 personnel (including users) and outside experts se15 lected by the head of the executive agency, to advise

16 the head of the executive agency about information

17 systems programs.

18 SEC. 143. AGENCY CHIEF INFORMATION OFFICER.

19 (a) DESIGNATION OF CHIEF INFORMATION OFFI20 CERS.—

21 (1) AGENCIES REQUIRED TO HAVE CHIEF IN22 FORMATION OFFICERS.—There shall be a chief infor23 mation officer within each executive agency named

24 in section 901(b) of title 31, United States Code.
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•S 946 IS

1 The head of the executive agency shall designate the

2 chief information officer for the executive agency.

3 (2) AGENCIES AUTHORIZED TO HAVE CHIEF IN4 FORMATION OFFICERS.—The head of any executive

5 agency not required by paragraph (1) to have a chief

6 information officer may designate a chief informa7 tion officer for the executive agency.

8 (b) RELATIONSHIP TO AGENCY HEAD.—

9 (1) PRINCIPAL ADVISER.—The chief informa10 tion officer of an executive agency is the principal

11 adviser to the head of the executive agency regard12 ing acquisition of information technology and man13 agement of information resources for the agency.

14 (2) REPORTING AUTHORITY.—The chief infor15 mation officer of an executive agency reports directly

16 to the head of the executive agency.

17 (3) CONTROL BY AGENCY HEAD.—The perform18 ance of duties and exercise of authority by the chief

19 information officer of an executive agency is subject

20 to the authority, direction, and control of the head

21 of the executive agency.

22 (c) DUTIES.—

23 (1) IN GENERAL.—The chief information officer

24 of an executive agency shall provide advice and other

25 assistance to the head of the executive agency and
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•S 946 IS

1 other senior management personnel of the executive

2 agency to ensure that information technology is ac3 quired and information resources are managed for

4 the agency in a manner that—

5 (A) maximizes—

6 (i) the benefits derived by the agency

7 and the public served by the agency from

8 use of information technology; and

9 (ii) the public accountability of the

10 agency for delivery of services and accom11 plishment of the agency’s mission; and

12 (B) is consistent with the policies, require13 ments, and procedures that are applicable in ac14 cordance with this Act to the acquisition and

15 management of information technology.

16 (2) ESTABLISHMENT OF GOALS.—The chief in17 formation officer of an executive agency shall—

18 (A) establish goals for improving the effi19 ciency and effectiveness of agency operations

20 and the delivery of services to the public

21 through the effective use of information re22 sources; and

23 (B) submit to the head of the executive

24 agency an annual report, to be included in the
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1 budget submission for the executive agency, on

2 the progress in achieving the goals.

3 (3) INFORMATION RESOURCES MANAGEMENT.—

4 (A) The chief information officer of an executive

5 agency shall administer the information resources

6 management functions, including the acquisition

7 functions, of the head of the executive agency.

8 (B) Subparagraph (A) does not relieve the head

9 of an executive agency of responsibility and account10 ability for the administration of such functions.

11 (4) AGENCY POLICIES.—The chief information

12 officer shall prescribe policies and procedures that—

13 (A) minimize the layers of review for ac14 quisitions of information technology within the

15 executive agency;

16 (B) foster timely communications between

17 vendors of information technology and the

18 agency; and

19 (C) set forth and require the use of infor20 mation resources management practices and in21 formation technology acquisition practices that

22 the chief information officer considers as being

23 among the best of such practices.

24 (5) AGENCY PLANNING.—The chief information

25 officer shall—
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•S 946 IS

1 (A) develop and maintain an information

2 resources management plan for management of

3 information resources and acquisition of infor4 mation technology for the executive agency; and

5 (B) ensure that there is adequate advance

6 planning for acquisitions of information tech7 nology, including assessing and revising the

8 mission-related processes and administrative

9 processes of the agency as determined appro10 priate before making information system invest11 ments.

12 (6) PERFORMANCE MEASUREMENTS.—(A) The

13 chief information officer shall ensure that—

14 (i) performance measurements are pre15 scribed for information technology used by or to

16 be acquired for the executive agency; and

17 (ii) the performance measurements meas18 ure how well the information technology sup19 ports agency programs.

20 (B) In carrying out the duty set forth in sub21 paragraph (A), the chief information officer shall

22 consult with the head of the executive agency, agen23 cy managers, users, and program managers regard24 ing the performance measurements that are to be

25 prescribed for information technology.
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1 (7) MONITORING OF PROGRAM PERFORM2 ANCE.—The chief information officer shall monitor

3 the performance of information technology programs

4 of the executive agency, evaluate the performance on

5 the basis of the applicable performance measure6 ments, and advise the head of the executive agency

7 regarding whether to continue or terminate pro8 grams.

9 (8) PROGRAM PERFORMANCE REPORTS.—(A)

10 Not later than February 1, 1997, and not later than

11 February 1 of each year thereafter, the chief infor12 mation officer of an executive agency shall prepare

13 and submit to the head of the executive agency an

14 annual program performance report for the informa15 tion technology programs of the executive agency.

16 The report shall satisfy the requirements of section

17 1116(d) of title 31, United States Code.

18 (B) The head of the executive agency shall

19 transmit a copy of the annual report to the Chief In20 formation Officer of the United States.

21 (9) ADDITIONAL ASSIGNED DUTIES.—A chief

22 information officer designated under subsection

23 (a)(1) may not be assigned any duty that is not re24 lated to information resources management.

25 (d) OFFICE OF CHIEF INFORMATION OFFICER.—
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1 (1) ESTABLISHMENT.—The head of an execu2 tive agency designating a chief information officer

3 shall establish within the agency an Office of the

4 Chief Information Officer.

5 (2) HEAD OF OFFICE.—The chief information

6 officer of the executive agency shall be the head of

7 the office.

8 (3) STAFF.—(A) The head of the executive

9 agency appoints the employees of the office. The

10 chief information officer of the executive agency may

11 make recommendations for appointments to posi12 tions in the office.

13 (B) In selecting a person for appointment to an

14 information resources management position in the

15 office, the head of the executive agency shall afford

16 special attention to the demonstrated abilities of the

17 person to perform the information resources man18 agement functions of the position. To the maximum

19 extent practicable, the head of the executive agency

20 shall appoint to the position a person who has direct

21 and substantial experience in successfully achieving

22 major improvements in organizational performance

23 through the use of information technology.
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1 (e) EXECUTIVE LEVEL IV.—Section 5315 of title 5,

2 United States Code, is amended by adding at the end the

3 following:

4 ‘‘Chief information officers designated under

5 section 143 of the Information Technology Manage6 ment Reform Act of 1995.’’.

7 SEC. 144. ACCOUNTABILITY.

8 (a) INFORMATION TECHNOLOGY INVESTMENTS.—

9 The head of an executive agency shall be accountable to

10 the Director of the Office of Management and Budget,

11 through the budget process and otherwise as the Director

12 may prescribe, for attaining or failing to attain success

13 in the achievement of the program objectives established

14 for the information technology investments of the agency.

15 (b) SYSTEM OF CONTROLS.—The head of an execu16 tive agency, in consultation with the chief financial officer

17 of the agency (or, in the case of an agency without a chief

18 financial officer, any comparable official) shall establish

19 policies and procedures that—

20 (1) provide for sound management of expendi21 tures for information technology investments of the

22 agency;

23 (2) ensure that the accounting, financial, and

24 asset management systems and other information

25 systems of the agency are designed, developed, main-
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•S 946 IS

1 tained, and used effectively to provide financial or

2 program performance data for financial statements

3 of the agency;

4 (3) ensure that financial and related program

5 performance data are provided on a reliable, consist6 ent, and timely basis to agency financial manage7 ment systems;

8 (4) ensure that there is a full and accurate ac9 counting for information technology expenditures,

10 including expenditures for related expenses, and for

11 the results derived by the agency from the expendi12 tures; and

13 (5) ensure that financial statements support—

14 (A) assessment and revision of mission-re15 lated processes and administrative processes of

16 the agency; and

17 (B) performance measurement in the case

18 of information system investments made by the

19 agency.

20 (c) PROTECTION OF SENSITIVE INFORMATION.—Sec21 tion 6 of the Computer Security Act of 1987 (Public Law

22 100–235; 101 Stat. 1729) is amended—

23 (1) in subsection (a), by striking out ‘‘Within 6

24 months after the date of enactment of this Act,

25 each’’ and inserting in lieu thereof ‘‘Each’’; and
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1 (2) in the first sentence of subsection (b)—

2 (A) by striking out ‘‘Within one year after

3 the date of enactment of this Act, each’’ and in4 serting in lieu thereof ‘‘Each’’; and

5 (B) by striking out ‘‘section 111(d) of the

6 Federal Property and Administrative Services

7 Act of 1949’’ and inserting in lieu thereof ‘‘sec8 tion 124 of the Information Technology Man9 agement Reform Act of 1995’’.

10 SEC. 145. AGENCY MISSIONS AND THE APPROPRIATENESS

11 OF INFORMATION TECHNOLOGY INITIATIVES.

12 (a) PROVIDING FOR APPROPRIATE INITIATIVES.—

13 Before making investments in information technology or

14 other information resources for the performance of agency

15 missions, the head of each executive agency shall—

16 (1) identify opportunities to revise mission-re17 lated processes and administrative processes, assess

18 the desirability of making the revisions, and, if de19 termined desirable, take appropriate action to make

20 and complete the revisions; and

21 (2) determine the most efficient and effective

22 manner for carrying out the agency missions.

23 (b) MISSION ANALYSIS.—

24 (1) CONTINUOUS STUDIES.—In order to be pre25 pared to carry out subsection (a) in an efficient, ef-
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•S 946 IS

1 fective, and timely manner, the head of an executive

2 agency shall provide for studies to be conducted on

3 a continuing basis within the agency for the purpose

4 of analyzing the missions of the agency.

5 (2) ANALYSIS.—The purpose of an analysis of

6 a mission under subsection (a) is to determine—

7 (A) whether the mission should be per8 formed in the private sector rather than by an

9 agency of the Federal Government and, if so,

10 whether the component of the agency perform11 ing that function should be converted from a

12 governmental organization to a private sector

13 organization; or

14 (B) whether the mission should be per15 formed by the executive agency and, if so,

16 whether the mission should be performed by—

17 (i) a private sector source under a

18 contract entered into by head of the execu19 tive agency; or

20 (ii) executive agency personnel.

21 (c) PROCESS IMPROVEMENT STUDIES.—The head of

22 the executive agency shall require that studies be con23 ducted of ways to improve processes used in the perform24 ance of missions determined, in accordance with sub-
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1 section (b) or otherwise, as being appropriate for the agen2 cy to perform.

3 SEC. 146. SIGNIFICANT FAILURES OF PROGRAMS TO

4 ACHIEVE COST, PERFORMANCE, OR SCHED5 ULE GOALS.

6 (a) IN GENERAL.—The head of an executive agency

7 shall monitor the performance of information technology

8 acquisition programs of the executive agency with regard

9 to meeting the cost, performance, and schedule goals ap10 proved or defined for the programs pursuant to section

11 313(b) of the Federal Property and Administrative Serv12 ices Act of 1949 (41 U.S.C. 263(b)) or section 2220(a)

13 of title 10, United States Code.

14 (b) REQUIRED TERMINATIONS OF ACQUISITIONS.—

15 The head of an executive agency shall terminate any infor16 mation technology acquisition program of the executive

17 agency, or any phase or increment of such a program,

18 that—

19 (1) is more than 50 percent over the cost goal

20 established for the program or any phase or incre21 ment of the program;

22 (2) fails to achieve at least 50 percent of the

23 performance goals established for the program or

24 any phase or increment of the program; or
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•S 946 IS

1 (3) is more than 50 percent behind schedule as

2 determined in accordance with the schedule goal es3 tablished for the program or any phase or increment

4 of the program.

5 (c) ACQUISITIONS REQUIRED TO BE CONSIDERED

6 FOR TERMINATION.—The head of an executive agency

7 shall consider for termination any information technology

8 acquisition program of the executive agency, or any phase

9 or increment of such a program, that—

10 (1) is more than 10 percent over the cost goal

11 established for the program or any phase or incre12 ment of the program;

13 (2) fails to achieve at least 90 percent of the

14 performance goals established for the program or

15 any phase or increment of the program; or

16 (3) is more than 10 percent behind schedule as

17 determined in accordance with the schedule goal es18 tablished for the program or any phase or increment

19 of the program.

20 SEC. 147. INTERAGENCY SUPPORT.

21 The head of an executive agency shall make personnel

22 of the agency and other forms of support available for

23 Governmentwide independent review committees and

24 interagency groups established under this Act.
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1 SEC. 148. MONITORING OF MODIFICATIONS IN INFORMA2 TION TECHNOLOGY ACQUISITION PRO3 GRAMS.

4 (a) REQUIREMENT TO MONITOR AND REPORT.—The

5 program manager for an information technology acquisi6 tion program of an executive agency shall monitor the

7 modifications made in the program or any phase or incre8 ment of the program, including modifications of cost,

9 schedule, or performance goals, and shall periodically re10 port on such modifications to the chief information officer

11 of the agency.

12 (b) DETERMINATIONS OF HIGH RISK.—The number

13 and type of the modifications in a program shall be a criti14 cal consideration in determinations of whether the pro15 gram is a high-risk information technology program (with16 out regard to the cost of the program).

17 (c) ASSESSMENTS OF AGENCY PERFORMANCE.—The

18 Chief Information Officer of the United States shall con19 sider the number and type of the modifications in an infor20 mation technology acquisition program of an executive

21 agency for purposes of assessing agency performance.

22 (d) CONTRACT TERMINATIONS.—The chief informa23 tion officer of an executive agency shall—

24 (1) closely review the modifications in an infor25 mation technology acquisition program of the

26 agency;
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1 (2) consider whether the frequency and extent

2 of the modifications justify termination of a contract

3 under the program; and

4 (3) if a termination is determined justified, sub5 mit to the head of the executive agency a rec6 ommendation to terminate the contract.

7 SEC. 149. SPECIAL PROVISIONS FOR DEPARTMENT OF DE8 FENSE.

9 (a) OVERSIGHT OF IMPLEMENTATION WITHIN THE

10 DEPARTMENT OF DEFENSE.—

11 (1) DELEGATION OF AUTHORITY FOR INDIVID12 UAL PROGRAMS AND SYSTEMS.—(A) Subject to sub13 paragraph (B), the Director of the Office of Man14 agement and Budget shall delegate to the Secretary

15 of Defense the authority to perform the responsibil16 ities of the Director for supervision of the implemen17 tation of the requirements of this Act and the poli18 cies, regulations, and procedures prescribed by the

19 Director under this Act in the case of individual in20 formation technology programs, including acquisition

21 programs, and information systems of the Depart22 ment of Defense.

23 (B) The Director may revoke, in whole or in

24 part, the delegation of authority under subparagraph

25 (A) at any time that the Director determines that it
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1 is in the interests of the United States to do so. In

2 considering whether to revoke the authority, the Di3 rector shall take into consideration the reports re4 ceived under subsection (d).

5 (2) RESPONSIBILITY OF DIRECTOR OF OMB.—

6 The Director of the Office of Management and

7 Budget shall continue to exercise overall responsibil8 ity for compliance by the Department of Defense

9 with the provisions of this Act and the policies, regu10 lations, and procedures prescribed by the Director

11 under this Act.

12 (b) IMPLEMENTATION.—

13 (1) REQUIREMENT.—The Secretary of Defense

14 shall implement the provisions of this Act within the

15 Department of Defense.

16 (2) COVERED PROGRAMS.—The Secretary of

17 Defense shall ensure that the provisions of this Act

18 and the policies and regulations prescribed by the

19 Director of the Office of Management and Budget

20 are applied to all information technology programs

21 of the Department of Defense, including—

22 (A) all such programs that are acquisition

23 programs, including major defense acquisition

24 programs;
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1 (B) programs that involve intelligence ac2 tivities, cryptologic activities related to national

3 security, command and control of military

4 forces, and information technology integral to a

5 weapon or weapons system; and

6 (C) programs that are critical to the direct

7 fulfillment of military or intelligence missions.

8 (c) CHIEF INFORMATION OFFICER.—

9 (1) DESIGNATION.—The Secretary of Defense

10 shall—

11 (A) designate the Under Secretary of De12 fense for Acquisition and Technology as the

13 chief information officer of the Department of

14 Defense; and

15 (B) delegate to the Under Secretary the

16 duty to perform the responsibilities of the Sec17 retary under this Act.

18 (2) OTHER DUTIES.—Section 143(c)(9) does

19 not apply to the chief information officer of the De20 partment of Defense.

21 (d) ANNUAL REPORT.—The Secretary of Defense

22 shall submit to the Director of the Office of Management

23 and Budget an annual report on the implementation of

24 this Act within the Department of Defense.

25 (e) PILOT PROGRAMS.—
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1 (1) RECOMMENDATIONS BY SECRETARY OF DE2 FENSE.—The Secretary of Defense may submit to

3 the Chief Information Officer of the United States

4 a recommendation that a specific information tech5 nology pilot program be carried out under section

6 401.

7 (2) OVERSIGHT OF RECOMMENDED PRO8 GRAM.—If the Chief Information Officer determines

9 to carry out a pilot program in the Department of

10 Defense under section 401, the Director of the Of11 fice of Management and Budget shall supervise the

12 pilot program without regard to any delegation of

13 authority under subsection (a).

14 SEC. 150. SPECIAL PROVISIONS FOR CENTRAL INTEL15 LIGENCE AGENCY.

16 (a) OVERSIGHT OF IMPLEMENTATION WITHIN THE

17 CIA.—

18 (1) DELEGATION OF AUTHORITY FOR INDIVID19 UAL PROGRAMS AND SYSTEMS.—(A) Subject to sub20 paragraph (B), the Director of the Office of Man21 agement and Budget shall delegate to the Director

22 of Central Intelligence the authority to perform the

23 responsibilities of the Director of the Office of Man24 agement and Budget for supervision of the imple25 mentation of the requirements of this Act and the
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1 policies, regulations, and procedures prescribed by

2 the Director of the Office of Management and Budg3 et under this Act in the case of individual informa4 tion technology programs (including acquisition pro5 grams) and information systems of the Central In6 telligence Agency.

7 (B) The Director of the Office of Management

8 and Budget may revoke, in whole or in part, the del9 egation of authority under subparagraph (A) at any

10 time that the Director determines that it is in the

11 interests of the United States to do so. In consider12 ing whether to revoke the authority, the Director

13 shall take into consideration the reports received

14 under subsection (d).

15 (2) RESPONSIBILITY OF DIRECTOR OF OMB.—

16 The Director of the Office of Management and

17 Budget shall continue to exercise overall responsibil18 ity for compliance by the Central Intelligence Agency

19 with the provisions of this Act and the policies, regu20 lations, and procedures prescribed by the Director

21 under this Act.

22 (b) IMPLEMENTATION.—

23 (1) REQUIREMENT.—The Director of Central

24 Intelligence shall implement the provisions of this

25 Act within the Central Intelligence Agency.
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1 (2) COVERED PROGRAMS.—The Director of

2 Central Intelligence shall ensure that the provisions

3 of this Act and the policies and regulations pre4 scribed by the Director of the Office of Management

5 and Budget are applied to all information technology

6 programs of the Central Intelligence Agency, includ7 ing information technology acquisition programs.

8 (c) CHIEF INFORMATION OFFICER.—

9 (1) DESIGNATION.—The Director of Central In10 telligence shall—

11 (A) designate the Deputy Director of

12 Central Intelligence as the chief information of13 ficer of the Central Intelligence Agency; and

14 (B) delegate to the Deputy Director the

15 duty to perform the responsibilities of the Di16 rector of Central Intelligence under this Act.

17 (2) OTHER DUTIES.—Section 143(c)(9) does

18 not apply to the chief information officer of the

19 Central Intelligence Agency.

20 (d) ANNUAL REPORT.—The Director of Central In21 telligence shall submit to the Director of the Office of

22 Management and Budget an annual report on the imple23 mentation of this Act within the Central Intelligence

24 Agency.

25 (e) PILOT PROGRAMS.—
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1 (1) RECOMMENDATIONS BY DIRECTOR OF

2 CENTRAL INTELLIGENCE.—The Director of Central

3 Intelligence may submit to the Chief Information

4 Officer of the United States a recommendation that

5 a specific information technology pilot program be

6 carried out under section 401.

7 (2) OVERSIGHT OF RECOMMENDED PRO8 GRAM.—If the Chief Information Officer determines

9 to carry out a pilot program in the Central Intel10 ligence Agency under section 401, the Director of

11 the Office of Management and Budget shall super12 vise the pilot program without regard to any delega13 tion of authority under subsection (a).

14 Subtitle E—Federal Information

15 Council

16 SEC. 151. ESTABLISHMENT OF FEDERAL INFORMATION

17 COUNCIL.

18 There is established in the executive branch a ‘‘Fed19 eral Information Council’’.

20 SEC. 152. MEMBERSHIP.

21 The members of the Federal Information Council are

22 as follows:

23 (1) The chief information officer of each execu24 tive department.
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1 (2) The chief information officer or senior in2 formation resources management official of each ex3 ecutive agency who is designated as a member of the

4 Council by the Director of the Office of Management

5 and Budget.

6 (3) Other officers or employees of the Federal

7 Government designated by the Director.

8 SEC. 153. CHAIRMAN; EXECUTIVE DIRECTOR.

9 (a) CHAIRMAN.—The Director of the Office of Man10 agement and Budget is the Chairman of the Federal In11 formation Council.

12 (b) EXECUTIVE DIRECTOR.—The Chief Information

13 Officer of the United States is the Executive Director of

14 the Council. The Executive Director provides administra15 tive and other support for the Council.

16 SEC. 154. DUTIES.

17 The duties of the Federal Information Council are

18 as follows:

19 (1) To obtain advice on information resources,

20 information resources management, and information

21 technology from State, local, and tribal governments

22 and from the private sector.

23 (2) To make recommendations to the Director

24 of the Office of Management and Budget regarding
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1 Federal policies and practices on information re2 sources management.

3 (3) To establish strategic direction and prior4 ities for a Governmentwide information infrastruc5 ture.

6 (4) To assist the Chief Information Officer of

7 the United States in developing and maintaining the

8 Governmentwide strategic information resources

9 management plan.

10 (5) To coordinate Governmentwide and multi11 agency programs and projects for achieving improve12 ments in the performance of Federal Government

13 missions, including taking such actions as—

14 (A) identifying program goals and require15 ments that are common to several agencies;

16 (B) establishing interagency functional

17 groups under section 161;

18 (C) establishing an interagency group of

19 senior managers of information resources to re20 view high-risk information technology programs;

21 (D) identifying opportunities for undertak22 ing information technology programs on a

23 shared basis or providing information tech24 nology services on a shared basis;
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1 (E) providing for the establishment of tem2 porary special advisory groups, composed of

3 senior officials from industry and the Federal

4 Government, to review Governmentwide infor5 mation technology programs, high-risk informa6 tion technology acquisitions, and issues of infor7 mation technology policy;

8 (F) coordinating budget estimates and in9 formation technology acquisitions in order to

10 develop a coordinated approach for meeting

11 common information technology goals and re12 quirements; and

13 (G) reviewing agency programs and proc14 esses, to identify opportunities for consolidation

15 of activities or cooperation.

16 (6) To coordinate the provision, planning, and

17 acquisition of common infrastructure services, such

18 as telecommunications, Governmentwide E-mail,

19 electronic benefits transfer, electronic commerce, and

20 Governmentwide data sharing, by—

21 (A) making recommendations to the Direc22 tor of the Office of Management and Budget

23 regarding services that can be provided in com24 mon;
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1 (B) making recommendations to the Direc2 tor regarding designation of an executive agent

3 to contract for common infrastructure services

4 on behalf of the Federal Government;

5 (C) approving overhead charges by execu6 tive agents;

7 (D) approving a surcharge which may be

8 imposed on selected common infrastructure

9 services and is to be credited to the Common

10 Use Account established by section 331; and

11 (E) monitoring and providing guidance for

12 the administration of the Common Use Account

13 established by section 331 and the Innovation

14 Loan Account established by section 321 for

15 purposes of encouraging innovation by making

16 financing available for high-opportunity infor17 mation technology programs, including common

18 infrastructure systems and services.

19 (7) To assess ways to revise and reorganize

20 Federal Government mission-related and administra21 tive processes before acquiring information tech22 nology in support of agency missions.

23 (8) To monitor and provide guidance for the de24 velopment of performance measures for agency in-
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1 formation resources management activities for Gov2 ernmentwide applicability.

3 (9) To submit to the Chief Information Officer

4 of the United States recommendations for conduct5 ing pilot projects for the purpose of identifying bet6 ter ways for Federal Government agencies to plan

7 for, acquire, and manage information resources.

8 (10) To identify opportunities for sharing infor9 mation at the Federal, State, and local levels of gov10 ernment and to improve information sharing and

11 communications.

12 (11) To ensure that United States interests in

13 international information-related activities are

14 served, including coordinating United States partici15 pation in the activities of international information

16 organizations.

17 SEC. 155. SOFTWARE REVIEW COUNCIL.

18 (a) ESTABLISHMENT.—The Federal Information

19 Council shall establish a Federal Software Review Council.

20 (b) MEMBERSHIP.—

21 (1) COMPOSITION.—The Federal Information

22 Council, in consultation with the Chief Information

23 Officer of the United States, shall determine the

24 membership of the Federal Software Council. The
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1 number of members of the Council may not exceed

2 10 members.

3 (2) CERTAIN REPRESENTATION REQUIRED.—

4 The Federal Information Council shall provide for

5 the Government, private industry, and college and

6 universities to be represented on the membership of

7 the Software Review Council.

8 (c) CHAIRMAN.—The Chief Information Officer of

9 the United States shall serve as Chairman of the Federal

10 Software Review Council.

11 (d) DUTIES.—

12 (1) CLEARINGHOUSE FUNCTION.—(A) The

13 Federal Software Review Council shall act as a

14 clearinghouse of information on the software that—

15 (i) is commercially available to the Federal

16 Government; and

17 (ii) has been uniquely developed for use by

18 one or more executive agencies.

19 (B) The Federal Software Review Council shall

20 provide advice to heads of executive agencies regard21 ing recommended software engineering techniques

22 and commercial software solutions appropriate to

23 the agency’s needs.

24 (2) SOFTWARE FOR USE IN DEVELOPMENT OF

25 AGENCY SYSTEMS.—The Federal Software Review
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1 Council shall submit to the Federal Information

2 Council proposed guidelines and standards regarding

3 the use of commercial software, nondevelopmental

4 items of software, and uniquely developed software

5 in the development of executive agency information

6 systems.

7 (3) INTEGRATION OF MULTIPLE SOFTWARE.—

8 The Federal Software Review Council shall submit

9 to the Federal Information Council proposed guid10 ance regarding integration of multiple software com11 ponents into executive agency information systems.

12 (4) REVIEW OF PROPOSALS FOR UNIQUELY DE13 VELOPED ITEMS OF SOFTWARE.—(A) In each case

14 in which an executive agency undertakes to acquire

15 a uniquely developed item of software for an infor16 mation system used or to be used by the agency,

17 the Federal Software Review Council shall—

18 (i) determine whether it would be more

19 beneficial to the executive agency to use com20 mercial items or nondevelopmental items to

21 meet the needs of the executive agency; and

22 (ii) submit the Federal Software Review

23 Council’s determination to the head of the exec24 utive agency.
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1 (B) Subparagraph (A) applies to an informa2 tion technology acquisition program in excess of

3 $1,000,000.

4 Subtitle F—Interagency Functional

5 Groups

6 SEC. 161. ESTABLISHMENT.

7 (a) IN GENERAL.—The heads of executive agencies

8 may jointly establish one or more interagency groups,

9 known as ‘‘functional groups’’—

10 (1) to examine issues that would benefit from

11 a Governmentwide or multi-agency perspective;

12 (2) to submit to the Federal Information Coun13 cil proposed solutions for problems in specific com14 mon operational areas; and

15 (3) to promote cooperation among agencies on

16 information technology matters.

17 (b) REQUIREMENT FOR COMMON INTERESTS.—The

18 representatives of the executive agencies participating in

19 a functional group shall have the following common inter20 ests:

21 (1) Involvement in the same or similar func22 tional areas of agency operations.

23 (2) Mission-related processes or administrative

24 processes that would benefit from common or similar

25 applications of information technology.
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1 (3) The same or similar requirements for—

2 (A) information technology; or

3 (B) meeting needs of the common recipi4 ents of services of the agencies.

5 SEC. 162. SPECIFIC FUNCTIONS.

6 The functions of an interagency functional group are

7 as follows:

8 (1) To identify common goals and requirements

9 for common agency programs.

10 (2) To develop a coordinated approach to meet11 ing agency requirements, including coordinated

12 budget estimates and procurement programs.

13 (3) To identify opportunities to share informa14 tion for improving the quality of the performance of

15 agency functions, for reducing the cost of agency

16 programs, and for reducing burdens of agency activi17 ties on the public.

18 (4) To coordinate activities and the sharing of

19 information with other functional groups.

20 (5) To make recommendations to the heads of

21 executive agencies and to the Director of the Office

22 of Management and Budget regarding the selection

23 of protocols and other standards for information

24 technology, including security standards.
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1 (6) To support interoperability among informa2 tion systems.

3 (7) To perform other functions, related to the

4 purposes set forth in section 161(a), that are as5 signed by the Federal Information Council.

6 Subtitle G—Congressional

7 Oversight

8 SEC. 171. ESTABLISHMENT AND ORGANIZATION OF JOINT

9 COMMITTEE ON INFORMATION.

10 (a) ESTABLISHMENT.—There is established in Con11 gress a Joint Committee on Information composed of eight

12 members as follows:

13 (1) Four members of the Committee on Govern14 mental Affairs of the Senate appointed by the Chair15 man of that committee.

16 (2) Four members of the Committee on Govern17 ment Reform and Oversight of the House of Rep18 resentatives appointed by the Chairman of that com19 mittee.

20 (b) TERM OF APPOINTMENT.—The term of service

21 of a member on the joint committee shall expire imme22 diately before the convening of the Congress following the

23 Congress during which the member is appointed. A mem24 ber may be reappointed to serve on the joint committee.
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1 (c) VACANCIES.—A vacancy in the membership of the

2 joint committee does not affect the power of the remaining

3 members to carry out the responsibilities of the joint com4 mittee. The vacancy shall be filled in the same manner

5 as the original appointment.

6 (d) CHAIRMAN AND VICE CHAIRMAN.—

7 (1) ELECTION BY COMMITTEE.—The chairman

8 and vice chairman of the joint committee shall be

9 elected by the members of the joint committee from

10 among the members of the joint committee.

11 (2) BICAMERAL COMMITTEE LEADERSHIP.—

12 The chairman and vice chairman may not be mem13 bers of the same House of Congress.

14 (3) ROTATION OF LEADERSHIP POSITIONS BE15 TWEEN HOUSES.—The eligibility for election as

16 chairman and for election as vice chairmanship shall

17 alternate annually between the members of one

18 house of Congress and the members of the other

19 house of Congress.

20 SEC. 172. RESPONSIBILITIES OF JOINT COMMITTEE ON IN21 FORMATION.

22 (a) IN GENERAL.—The Joint Committee on Informa23 tion has the following responsibilities:

24 (1) To review information-related operations of

25 the Federal Government, including the acquisition
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1 and management of information technology and

2 other information resources.

3 (2) To perform studies of major information re4 sources management issues regarding such matters

5 as the following:

6 (A) Compatibility and interoperability of

7 systems.

8 (B) Electronic commerce.

9 (C) Performance measurement.

10 (D) Process improvement.

11 (E) Paperwork and regulatory burdens im12 posed on the public.

13 (F) Statistics.

14 (G) Management and disposition of

15 records.

16 (H) Privacy and confidentiality.

17 (I) Security and protection of information

18 resources.

19 (J) Accessibility and dissemination of Gov20 ernment information.

21 (K) Information technology, including

22 printing and other media.

23 (L) Information technology procurement

24 policy, training, and personnel.
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1 (3) To submit to the Committees on Govern2 mental Affairs and on Appropriations of the Senate

3 and the Committees on Government Reform and

4 Oversight and on Appropriations of the House of

5 Representatives recommendations for legislation de6 veloped on the basis of the reviews and studies.

7 (4) To carry out the responsibilities of the joint

8 committee under chapter 1 of title 44, United States

9 Code.

10 (5) To carry out responsibilities regarding the

11 Library of Congress as provided by the Senate and

12 the House of Representatives.

13 (b) STUDY REQUIRED.—Upon the organization of the

14 Joint Committee on Information, the joint committee shall

15 consider and develop policies and procedures providing for

16 cooperation among the committees of Congress having ju17 risdiction over authorizations of appropriations, appro18 priations, and oversight of departments and agencies of

19 the Federal Government in order to provide incentives for

20 such departments and agencies to maximize effectiveness

21 in the administration of this Act and the amendments

22 made by this Act.

23 (c) TRANSFERS.—

24 (1) FUNCTIONS.—The functions of the Joint

25 Committee on Printing and the functions of the
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1 Joint Committee of Congress on the Library are

2 transferred to the Joint Committee on Information.

3 (2) RECORDS.—The records of the Joint Com4 mittee on Printing and the records of the Joint

5 Committee of Congress on the Library are trans6 ferred to the Joint Committee on Information.

7 (d) TERMINATION OF SUPERSEDED JOINT COMMIT8 TEES.—The Joint Committee on Printing and the Joint

9 Committee of Congress on the Library are terminated.

10 SEC. 173. RULEMAKING AUTHORITY OF CONGRESS.

11 This subtitle is enacted—

12 (1) as an exercise of the rulemaking power of

13 the Senate and House of Representatives, respec14 tively, and as such it is deemed a part of the rules

15 of each House, respectively, and it supersedes other

16 rules only to the extent that it is inconsistent with

17 such rules; and

18 (2) with full recognition of the constitutional

19 right of either House to change the rules (so far as

20 the rules relate to that House) at any time, in the

21 same manner, and to the same extent as in the case

22 of any other rule of that House.
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1 Subtitle H—Other Responsibilities

2 SEC. 181. RESPONSIBILITIES UNDER THE NATIONAL INSTI3 TUTE OF STANDARDS AND TECHNOLOGY ACT.

4 (a) STANDARDS PROGRAM.—

5 (1) MISSION AND DUTIES.—Subsection (a) of

6 section 20 of the National Institute of Standards

7 and Technology Act (15 U.S.C. 278g–3) is

8 amended—

9 (A) by striking out ‘‘The Institute—’’ in

10 the matter preceding paragraph (1) and insert11 ing in lieu thereof ‘‘To the extent authorized by

12 the Director of the Office of Management and

13 Budget, the Director of the Institute shall—’’;

14 (B) in paragraph (3), by striking out

15 ‘‘have responsibility within the Federal Govern16 ment’’ and inserting in lieu thereof ‘‘carry out

17 the responsibility of the Director of the Office

18 of Management and Budget’’; and

19 (C) in paragraph (4), by striking out ‘‘to

20 the Secretary of Commerce for promulgation

21 under section 111(d) of the Federal Property

22 and Administrative Services Act of 1949’’ and

23 inserting in lieu thereof ‘‘to the Director of the

24 Office of Management and Budget under sec-
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1 tion 124 of the Information Technology Man2 agement Reform Act of 1995’’

3 (2) AUTHORITY.—Subsection (b) of such sec4 tion is amended—

5 (A) by striking out ‘‘In fulfilling subsection

6 (a) of this section, the Institute is authorized’’

7 in the matter preceding paragraph (1) and in8 serting in lieu thereof ‘‘In order to carry out

9 duties authorized under subsection (a), the Di10 rector of the Institute may, to the extent au11 thorized by the Director of the Office of Man12 agement and Budget—’’;

13 (B) in paragraph (2), by striking out ‘‘Ad14 ministrator of General Services on policies and

15 regulations proposed pursuant to section 111(d)

16 of the Federal Property and Administrative

17 Services Act of 1949’’ and inserting in lieu

18 thereof ‘‘Director of the Office of Management

19 and Budget on policies and regulations pro20 posed pursuant section 124 of the Information

21 Technology Management Reform Act of 1995’’;

22 (C) in paragraph (3), by striking out ‘‘sec23 tion 111(d) of the Federal Property and Ad24 ministrative Services Act of 1949’’ and insert25 ing in lieu thereof ‘‘section 124 of the Informa-
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1 tion Technology Management Reform Act of

2 1995’’; and

3 (D) in paragraph (4), by striking out ‘‘Of4 fice of Personnel Management in developing

5 regulations pertaining to training, as required

6 by’’ and inserting in lieu thereof ‘‘Director of

7 the Office of Management and Budget in carry8 ing out the responsibilities regarding training

9 regulations provided under’’.

10 (3) AUTHORITY OF DIRECTOR OF OMB.—Such

11 section is amended—

12 (A) by redesignating subsection (d) as sub13 section (e); and

14 (B) by inserting after subsection (c) the

15 following new subsection (d):

16 ‘‘(d) AUTHORITY OF DIRECTOR OF OMB.—The Di17 rector of the Office of Management and Budget may—

18 ‘‘(1) authorize the Director of the Institute to

19 perform any of the functions and take any of the ac20 tions provided in subsections (a), (b), or (c), or limit,

21 withdraw, or withhold such authority;

22 ‘‘(2) perform any of the functions and take any

23 of the actions provided in subsections (a), (b), or (c);

24 and
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1 ‘‘(3) designate any other officer of the Federal

2 Government in the executive branch to perform any

3 of such functions and exercise any of such authori4 ties.’’.

5 (4) TERMINOLOGY.—Such section is further

6 amended by striking out ‘‘computer system’’ each

7 place it appears and inserting in lieu thereof ‘‘infor8 mation system’’.

9 (5) DEFINITIONS.—Subsection (e) of such sec10 tion, as redesignated by paragraph (3), is

11 amended—

12 (A) in paragraph (1)(B)(v) by striking out

13 ‘‘Administrator of General Services pursuant to

14 section 111 of the Federal Property and Ad15 ministrative Services Act of 1949’’ and insert16 ing in lieu thereof ‘‘Director of the Office of

17 Management and Budget’’; and

18 (B) in paragraph (2)(B), by striking out

19 ‘‘as that term is defined in section 111(a)(2) of

20 the Federal Property and Administrative Serv21 ices Act of 1949’’.

22 (b) INFORMATION SYSTEM SECURITY AND PRIVACY

23 ADVISORY BOARD.—
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1 (1) ESTABLISHMENT.—Subsection (a) of sec2 tion 21 of the National Institute of Standards and

3 Technology Act (15 U.S.C. 278g–4) is amended—

4 (A) by striking out ‘‘within the Depart5 ment of Commerce’’ in the first sentence and

6 inserting in lieu thereof ‘‘within the Office of

7 the Chief Information Officer of the United

8 States’’; and

9 (B) by striking out ‘‘Secretary of Com10 merce’’ both places it appears and inserting in

11 lieu thereof ‘‘Director of the Office of Manage12 ment and Budget’’.

13 (2) RECIPIENTS OF ADVICE AND REPORTS

14 FROM BOARD.—Subsection (b) of such section is

15 amended—

16 (A) by striking out ‘‘Institute and the Sec17 retary of Commerce’’ in paragraph (2) and in18 serting in lieu thereof ‘‘Director of the Office of

19 Management and Budget’’; and

20 (B) by striking out ‘‘the Secretary of Com21 merce,’’ in paragraph (3).

22 (3) TERMINOLOGY.—Such section is further

23 amended by striking out ‘‘computer system’’ each

24 place it appears and inserting in lieu thereof ‘‘infor25 mation system’’.
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1 (4) DEFINITIONS.—Subsection (g) of such sec2 tion is amended by striking out ‘‘section 20(d)’’ and

3 inserting in lieu thereof ‘‘section 20(e)’’.

4 SEC. 182. RESPONSIBILITIES UNDER THE COMPUTER SECU5 RITY ACT OF 1987.

6 (a) RESPONSIBILITY FOR TRAINING REGULA7 TIONS.—Section 5(c) of the Computer Security Act of

8 1987 (Public Law 100–235; 101 Stat. 1729) is amended

9 by striking out ‘‘Within six months after the date of the

10 enactment of this Act, the Director of the Office of Per11 sonnel Management’’ and inserting in lieu thereof ‘‘The

12 Director of the Office of Management and Budget’’.

13 (b) REPEAL OF EXECUTED PROVISION.—Section

14 5(b) of such Act is amended by striking out ‘‘shall be

15 started within 60 days after the issuance of the regula16 tions described in subsection (c). Such training’’.

17 TITLE II—PROCESS FOR ACQUI18 SITIONS OF INFORMATION

19 TECHNOLOGY

20 Subtitle A—Procedures

21 SEC. 201. PROCUREMENT PROCEDURES.

22 (a) RESPONSIBILITY.—The Director of the Office of

23 Management and Budget of the United States shall pre24 scribe in regulations the procedures to be used in conduct25 ing information technology acquisitions. The procedures
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1 shall be made a part of the Federal Acquisition Regula2 tion.

3 (b) STANDARDS FOR PROCEDURES.—The Director

4 shall ensure that the process for acquisition of information

5 technology is, in general, a simplified, clear, and under6 standable process that, for higher cost and higher risk ac7 quisitions, provides progressively more stringent pre8 cautions for ensuring that there is full and open competi9 tion in an acquisition and that each acquisition timely and

10 effectively satisfies the needs of the Federal Government.

11 (c) PERFORMANCE MEASUREMENTS.—The regula12 tions shall include performance measurements and other

13 performance requirements that the Director determines

14 appropriate.

15 (d) USE OF COMMERCIAL ITEMS.—The regulations

16 shall require the head of each executive agency to use, to

17 the maximum extent practicable, commercial items to

18 meet the information technology requirements of the exec19 utive agency.

20 (e) DIFFERENTIATED PROCEDURES AND REQUIRE21 MENTS.—Subject to subsection (b), the Director shall pre22 scribe different sets of procedures and requirements for

23 acquisitions in each of the following categories of acquisi24 tions:

25 (1) Acquisitions not in excess of $5,000,000.
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1 (2) Acquisitions in excess of $5,000,000 and

2 not in excess of $25,000,000.

3 (3) Acquisitions in excess of $25,000,000 and

4 not in excess of $100,000,000.

5 (4) Acquisitions in excess of $100,000,000.

6 (5) Acquisitions considered as high-risk acquisi7 tions.

8 (f) DIFFERENTIATION ON THE BASIS OF OTHER

9 FACTORS.—In prescribing regulations under this title, the

10 Director shall consider whether and, to the extent appro11 priate, how to differentiate in the treatment and conduct

12 of acquisitions of information technology on any of the fol13 lowing additional bases:

14 (1) The information technology to be acquired,

15 including such considerations as whether the item is

16 a commercial item or an item being developed or

17 modified uniquely for use by one or more executive

18 agencies.

19 (2) The complexity of the information tech20 nology acquisition, including such considerations as

21 size and scope.

22 (3) The level of risk (at levels other than high

23 risk covered by procedures and requirements pre24 scribed pursuant to subsection (e)), including tech25 nical and schedule risks.
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1 (4) The level of experience or expertise of the

2 critical personnel in the program office, mission

3 unit, or office of the chief information officer of the

4 executive agency concerned.

5 (5) The extent to which the information tech6 nology may be used Government wide or by several

7 agencies.

8 (g) REQUIRED ACTIONS.—The regulations shall re9 quire the heads of executive agencies, in planning for and

10 undertaking acquisitions of information technology, to

11 apply sound methodologies and approaches that result in

12 realistic and comprehensive advance assessments of risks,

13 reasonable management of the risks, and maximization of

14 the benefit derived by the Federal Government toward

15 meeting the requirements for which the technology is ac16 quired.

17 SEC. 202. AGENCY PROCESS.

18 (a) RESPONSIBILITY.—The head of each executive

19 agency shall, consistent with the regulations prescribed

20 under section 201, design and apply in the executive agen21 cy a process for maximizing the value and assessing and

22 managing the risks of the information technology acquisi23 tions of the agency.

24 (b) DESIGN OF PROCESS.—The process shall—
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1 (1) provide for the selection, control, and eval2 uation of the results of information technology in3 vestments of the agency;

4 (2) be integrated with budget, financial, and

5 program management decisions of the agency; and

6 (3) incorporate the procedures and satisfy the

7 requirements, including procedures and requirements

8 applicable under various threshold criteria, that are

9 prescribed pursuant to section 201.

10 (c) BENEFIT AND RISK MEASUREMENTS.—

11 (1) REQUIREMENT.—The process shall provide

12 for clearly identifying in advance of the acquisition

13 quantifiable measurements for determining the net

14 benefits and risks of each proposed information

15 technology investment.

16 (2) EXAMPLES OF MEASURES.—(A) Measure17 ments of net benefits could include such measures as

18 cost reductions, decreases in program cycle time, re19 turn on investment, increases in productivity, en20 hanced capability, reductions in the paperwork bur21 den imposed on the public, and improvements in the

22 level of public satisfaction with services provided.

23 (B) Measures of risk could include such meas24 ures as project size and scope, project longevity,

25 technical configurations, unusual security require-
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1 ments, special project management skills, software

2 complexity, system integration requirements, and ex3 isting technical and management expertise.

4 (d) EVALUATION OF VALUE OF PROPOSED INVEST5 MENTS.—The process shall require evaluation of the value

6 of a proposed information technology investment to the

7 performance of agency missions, including the provision

8 of services to the public, on the basis of—

9 (1) the measurements applicable under sub10 section (c) as well as other applicable criteria and

11 standards; and

12 (2) a comparison of that investment with other

13 information technology investments proposed to be

14 undertaken by or for the agency.

15 (e) PERIODIC REVIEW BY SENIOR MANAGERS.—

16 (1) IN GENERAL.—The process shall provide for

17 senior managers of the executive agency—

18 (A) to review on a periodic basis the devel19 opment, implementation, and operation of infor20 mation technology investments undertaken or to

21 be undertaken by the agency and the informa22 tion technology acquired under such invest23 ments; and

24 (B) in the case of each investment, to

25 make recommendations to the head of the exec-
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1 utive agency regarding actions that should be

2 taken in order to ensure that suitable progress

3 is made toward achieving the goals established

4 for the investment or that the investment, if not

5 making suitable progress, is terminated in a

6 timely manner.

7 (2) REVIEWS AFTER IMPLEMENTATION.—The

8 implementation and operation reviews provided for

9 under paragraph (1) shall include provisions for sen10 ior managers of the executive agency—

11 (A) upon the implementation of the invest12 ment, to evaluate the results of the investment

13 in order to determine whether the benefits pro14 jected for the investment were achieved; and

15 (B) after operation of information systems

16 under the investment begins, to conduct peri17 odic reviews of the systems in order—

18 (i) to determine whether the benefits

19 to mission performance resulting from the

20 use of such systems are satisfactory; and

21 (ii) to identify opportunities for addi22 tional improvement in mission performance

23 that can be derived from use of such sys24 tems.
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1 (f) SPECIFIC ACQUISITION PROCEDURES.—In the

2 awarding of contracts for the acquisition of information

3 technology, the head of an executive agency shall consider

4 the information on the past performance of offerors that

5 is available from the Director of the Office of Management

6 and Budget.

7 SEC. 203. INCREMENTAL ACQUISITION OF INFORMATION

8 TECHNOLOGY.

9 (a) IN GENERAL.—The regulations prescribed under

10 section 201 shall require that, to the maximum extent

11 practicable, an executive agency’s needs for information

12 technology be satisfied in successive, incremental acquisi13 tions of interoperable systems the characteristics of which

14 comply with readily available standards and, therefore,

15 can be connected to other systems that comply with such

16 standards.

17 (b) DIVISION OF ACQUISITIONS INTO INCRE18 MENTS.—Under the successive, incremental acquisition

19 process, an extensive acquisition of information technology

20 shall be divided into several smaller acquisition increments

21 that—

22 (1) are easier to manage individually than

23 would be one extensive acquisition;

24 (2) address complex information technology

25 problems incrementally in order to enhance the like-
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1 lihood of achieving workable solutions for those

2 problems;

3 (3) provide for delivery, implementation, and

4 testing of workable systems or solutions in discrete

5 increments each of which comprises a system or so6 lution that is not dependent on any other increment

7 in order to be workable for the purposes for which

8 acquired; and

9 (4) provide an opportunity for later increments

10 of the acquisition to take advantage of any evolution

11 in technology or needs that occurs during conduct of

12 the earlier increments.

13 (c) TIMELY ACQUISITIONS.—

14 (1) AWARD OF CONTRACT.—If a contract for an

15 increment of an information technology acquisition

16 is not awarded within 180 days after the date on

17 which the solicitation is issued, that increment of the

18 acquisition shall be canceled. A subsequent solicita19 tion for that increment of the solicitation, or for a

20 revision of that increment, may be issued. A contract

21 may be awarded on the basis of offers received in re22 sponse to a subsequent solicitation.

23 (2) DELIVERY.—(A) The information tech24 nology provided for in a contract for acquisition of

25 information technology shall be delivered within 18
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1 months after the date on which the solicitation re2 sulting in award of the contract was issued.

3 (B) The Chief Information Officer of the

4 United States may waive the requirement under sub5 paragraph (A) in the case of a particular contract.

6 The Chief Information Officer shall notify Congress

7 in writing of each waiver granted under this sub8 paragraph.

9 (C) If the information technology to be acquired

10 under a contract is not timely delivered as provided

11 in subparagraph (A) and a waiver is not granted in

12 such case, the contract shall be terminated and the

13 contracting official concerned may issue a new solici14 tation that—

15 (i) provides for taking advantage of ad16 vances in information technology that have oc17 curred during the 18-month period described in

18 subparagraph (A) and advances in information

19 technology that are anticipated to occur within

20 the period necessary for completion of the ac21 quisition; and

22 (ii) adjusts for any changes in identified

23 mission requirements to be satisfied by the in24 formation technology.
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1 (d) FULL-INCREMENT FUNDING FOR MAJOR AND

2 HIGH-RISK ACQUISITIONS.—

3 (1) SUBMISSION OF PROGRAM INCREMENT DE4 TAILS TO CONGRESS.—Before initial funding is

5 made available for an information technology acqui6 sition program that is in excess of $100,000,000,

7 the head of the executive agency for which the pro8 gram is carried out shall submit to Congress infor9 mation about the objectives and plans for the con10 duct of that acquisition program and the funding re11 quirements for each increment of the acquisition

12 program. The information shall identify the intended

13 user of the information technology items to be ac14 quired under the program and each increment and

15 shall include objective, quantifiable criteria for as16 sessing the extent to which the objectives and goals

17 established for the program are achieved.

18 (2) REQUIREMENT FOR FULL INCREMENT

19 FUNDING.—(A) In authorizing appropriations for an

20 increment of an information technology acquisition

21 program, Congress shall provide an authorization of

22 appropriations for the program increment in a single

23 amount that is sufficient for carrying out that incre24 ment of the program. Each such authorization of ap-
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1 propriations shall be stated in the authorization law

2 as a specific item.

3 (B) In each law making appropriations for an

4 increment of information technology acquisition pro5 gram, Congress shall specify the program increment

6 for which an appropriation is made and the amount

7 appropriated for that program increment.

8 (e) COMMERCIAL ITEMS.—

9 (1) SOURCE.—Except as provided in paragraph

10 (2), a commercial item used in the development of

11 an information system or otherwise being acquired

12 for an executive agency shall be acquired through

13 any of the following means available for the agency

14 that can supply an item satisfying the needs of the

15 agency for the acquisition:

16 (A) A multiple award schedule contract.

17 (B) A task or delivery order contract.

18 (C) A Federal Government on-line pur19 chasing network established by the Chief Infor20 mation Officer of the United States.

21 (2) EXCEPTION.—A commercial item need not

22 be acquired from a source referred to in paragraph

23 (1) if an item satisfying such needs is available at

24 a lower cost from another source.
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1 SEC. 204. AUTHORITY TO LIMIT NUMBER OF OFFERORS.

2 (a) CIVILIAN AGENCY ACQUISITIONS.—Section

3 303B(d) of the Federal Property and Administrative Serv4 ices Act of 1949 (41 U.S.C. 253b(d)) is amended by add5 ing at the end the following:

6 ‘‘(3) Under regulations prescribed by the Director of

7 the Office of Management and Budget, a contracting offi8 cer of an executive agency receiving more than three com9 petitive proposals for a proposed contract for acquisition

10 of information technology may solicit best and final offers

11 from the three offerors who submitted the best offers with12 in the competitive range, as determined on the basis of

13 the evaluation factors established for the procurement.

14 Notwithstanding paragraph (1)(A), the contracting officer

15 should first conduct discussions with all of the responsible

16 parties that submit offers within the competitive range.’’.

17 (b) ARMED SERVICES ACQUISITIONS.—Section

18 2305(b) of title 10, United States Code, is amended by

19 adding at the end the following:

20 ‘‘(5) Under regulations prescribed by the Director of

21 the Office of Management and Budget, a contracting offi22 cer of an agency receiving more than three competitive

23 proposals for a proposed contract for acquisition of infor24 mation technology may solicit best and final offers from

25 the three offerors who submitted the best offers within the

26 competitive range. Notwithstanding paragraph (4)(A)(i),
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1 the contracting officer should first conduct discussions

2 with all of the responsible parties that submit offers within

3 the competitive range.’’.

4 SEC. 205. EXCEPTION FROM TRUTH IN NEGOTIATION RE5 QUIREMENTS.

6 (a) CIVILIAN AGENCY ACQUISITIONS.—Section 304A

7 of the Federal Property and Administrative Services Act

8 of 1949 is amended—

9 (1) by redesignating subsection (i) as subsection

10 (j) and, as so redesignated, is amended by adding at

11 the end the following:

12 ‘‘(4) The term ‘information technology’ has the

13 meaning given that term in section 4 of the Infor14 mation Technology Management Reform Act of

15 1995.’’; and

16 (2) by inserting after subsection (h) the follow17 ing new subsection (i):

18 ‘‘(i) ADDITIONAL EXCEPTION FOR INFORMATION

19 TECHNOLOGY COMMERCIAL ITEMS.—The head of an ex20 ecutive agency may not require the submission of cost or

21 pricing data in a procurement of any information tech22 nology that is a commercial item. However, the head of

23 the executive agency shall seek to obtain from each offeror

24 or contractor the information described in subsection

25 (d)(2)(A)(ii) for the procurement.’’.
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1 (b) ARMED SERVICES ACQUISITIONS.—Section

2 2306a of title 10, United States Code, is amended—

3 (1) by redesignating subsection (i) as subsection

4 (j) and, as so redesignated, is amended by adding at

5 the end the following:

6 ‘‘(4) The term ‘information technology’ has the

7 meaning given that term in section 4 of the Infor8 mation Technology Management Reform Act of

9 1995.’’; and

10 (2) by inserting after subsection (h) the follow11 ing new subsection (i):

12 ‘‘(i) ADDITIONAL EXCEPTION FOR INFORMATION

13 TECHNOLOGY COMMERCIAL ITEMS.—The head of an

14 agency may not require the submission of cost or pricing

15 data in a procurement of any information technology that

16 is a commercial item. However, the head of an agency

17 shall seek to obtain from each offeror or contractor the

18 information described in subsection (d)(2)(A)(ii) for the

19 procurement’’.

20 SEC. 206. UNRESTRICTED COMPETITIVE PROCUREMENT OF

21 COMMERCIAL OFF-THE-SHELF ITEMS OF IN22 FORMATION TECHNOLOGY.

23 (a) FULL AND OPEN COMPETITION REQUIRED.—

24 Full and open competition shall be used for each procure-
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1 ment of commercial off-the-shelf items of information

2 technology by or for an executive agency.

3 (b) INAPPLICABILITY OF CERTAIN PROCUREMENT

4 LAWS.—

5 (1) FAR LIST.—The Federal Acquisition Regu6 lation shall include a list of provisions of law that

7 are inapplicable to contracts for the procurement of

8 commercial, off-the-shelf items of information tech9 nology. A provision of law that is properly included

10 on the list pursuant to paragraph (2) may not be

11 construed as being applicable to such contracts.

12 Nothing in this section shall be construed to render

13 inapplicable to such contracts any provision of law

14 that is not included on such list.

15 (2) PROVISIONS TO BE INCLUDED.—A provision

16 of law described in subsection (c) shall be included

17 on the list of inapplicable provisions of law required

18 by paragraph (1) unless the Chief Information Offi19 cer of the United States, in consultation with the

20 Federal Information Council, makes a written deter21 mination that it would not be in the best interest of

22 the United States to exempt such contracts from the

23 applicability of that provision of law.

24 (c) COVERED LAW.—The list referred to in sub25 section (b)(1) shall include each provision of law that, as
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1 determined by the Chief Information Officer, sets forth

2 policies, procedures, requirements, or restrictions for the

3 procurement of property or services by the Federal Gov4 ernment, except the following:

5 (1) A provision of this Act.

6 (2) A provision of law that is amended by this

7 Act.

8 (3) A provision of law that is made applicable

9 to procurements of commercial, off-the-shelf items of

10 information technology by this Act.

11 (4) A provision of law that prohibits or limits

12 the use of appropriated funds.

13 (5) A provision of law that specifically refers to

14 this section and provides that, notwithstanding this

15 section, such provision of law shall be applicable to

16 contracts for the procurement of commercial off-the17 shelf items of information technology.

18 (d) PETITION TO INCLUDE OMITTED PROVISION.—

19 (1) PETITION AUTHORIZED.—Any person may

20 submit to the Chief Information Officer a petition to

21 include on the list referred to in subsection (b)(1) a

22 provision of law not included on that list.

23 (2) ACTION ON PETITION.—The Federal Acqui24 sition Regulatory Council shall amend the Federal

25 Acquisition Regulation to include the item on the list
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1 unless the Chief Information Officer, in consultation

2 with the Federal Information Council—

3 (A) has made a written determination de4 scribed in subsection (b)(2) with respect to that

5 provision of law before receiving the request; or

6 (B) within 60 days after the date of re7 ceipt of the request, makes such written deter8 mination regarding the provision of law.

9 (e) DEFINITION.—In this subsection, the term ‘‘com10 mercial, off-the-shelf item of information technology’’

11 means an item of information technology that—

12 (A) is a commercial item described in section

13 4(12)(A) of the Office of Federal Procurement Pol14 icy Act (41 U.S.C. 403);

15 (B) is sold in substantial quantities in the com16 mercial marketplace; and

17 (C) is offered to the Government, without modi18 fication, in the same form in which it is sold in the

19 commercial marketplace.

20 SEC. 207. TASK AND DELIVERY ORDER CONTRACTS.

21 (a) CIVILIAN AGENCY ACQUISITIONS.—

22 (1) REQUIREMENT FOR MULTIPLE AWARDS.—

23 Section 303H(d) of the Federal Property and Ad24 ministrative Services Act of 1949 (41 U.S.C.
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1 253h(d)) is amended by adding at the end the fol2 lowing new paragraph:

3 ‘‘(4) In exercising the authority under this section for

4 procurement of information technology, the head of an ex5 ecutive agency shall award at least two task or delivery

6 order contracts for the same or similar information tech7 nology services or property unless the Chief Information

8 Officer of the United States determines that, because of

9 unusual circumstances, it is not in the best interests of

10 the United States to award two such contracts.’’.

11 (2) DEFINITION.—Section 303K of such Act

12 (41 U.S.C. 253k) is amended by adding at the end

13 the following new paragraph:

14 ‘‘(3) The term ‘information technology’ has the

15 meaning given that term in section 4 of the Information

16 Technology Management Reform Act of 1995.’’.

17 (b) ARMED SERVICES ACQUISITIONS.—

18 (1) REQUIREMENT FOR MULTIPLE AWARDS.—

19 Section 2304a(d) of title 10, United States Code, is

20 amended by adding at the end the following new

21 paragraph:

22 ‘‘(4) In exercising the authority under this section for

23 procurement of information technology, the head of an ex24 ecutive agency shall award at least two task or delivery

25 order contracts for the same or similar information tech-
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1 nology services or property unless the Chief Information

2 Officer of the United States determines that, because of

3 unusual circumstances, it is not in the best interests of

4 the United States to award two such contracts.’’.

5 (2) DEFINITION.—Section 2304d of title 10,

6 United States Code, is amended by adding at the

7 end the following new paragraph:

8 ‘‘(3) The term ‘information technology’ has the

9 meaning given that term in section 4 of the Information

10 Technology Management Reform Act of 1995.’’.

11 SEC. 208. TWO-PHASE SELECTION PROCEDURES.

12 (a) CIVILIAN AGENCIES.—

13 (1) PROCEDURES AUTHORIZED.—Title III of

14 the Federal Property and Administrative Services

15 Act of 1949 (41 U.S.C. 251 et seq.) is amended by

16 inserting after section 303H the following new sec17 tion:

18 ‘‘TWO-PHASE SELECTION PROCEDURES

19 ‘‘SEC. 303I. (a) PROCEDURES AUTHORIZED.—The

20 head of an executive agency may use two-phase selection

21 procedures for entering into a contract for the acquisition

22 of information technology when the agency head deter23 mines that three or more offers will be received for such

24 contract, substantial design work must be performed be25 fore an offeror can develop a reliable price or cost proposal
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1 for such contract, and the offerors will incur a substantial

2 amount of expenses in preparing the offers.

3 ‘‘(b) PROCEDURES DESCRIBED.—Two-phase selec4 tion procedures consist of the following:

5 ‘‘(1) The agency head solicits proposals that—

6 ‘‘(A) include information on the offerors’—

7 ‘‘(i) technical approach; and

8 ‘‘(ii) technical and management quali9 fications; and

10 ‘‘(B) do not include—

11 ‘‘(i) detailed design information; or

12 ‘‘(ii) cost or price information.

13 ‘‘(2) The agency head evaluates the proposals

14 on the basis of evaluation criteria set forth in the so15 licitation, except that the agency head does not con16 sider cost-related or price-related evaluation factors.

17 ‘‘(3) The agency head selects at least three

18 offerors as the most highly qualified to provide the

19 property or services under the contract and requests

20 the selected offerors to submit competitive proposals

21 that include cost and price information.

22 ‘‘(4) The agency head awards the contract in

23 accordance with section 303B(d).

24 ‘‘(c) RESOURCE COMPARISON CRITERIA RE25 QUIRED.—In using two-phase selection procedures for en-
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1 tering into a contract, the agency head shall establish re2 source criteria and financial criteria applicable to the con3 tract in order to provide a consistent basis for comparing

4 the offerors and their proposals.

5 ‘‘(d) TWO-PHASE SELECTION PROCEDURES DE6 FINED.—In this section, the term ‘two-phase selection pro7 cedures’ means procedures described in subsection (b) that

8 are used for the selection of a contractor on the basis of

9 cost and price and other evaluation criteria to provide

10 property or services in accordance with the provisions of

11 a contract which requires the contractor to design the

12 property to be acquired under the contract and produce

13 or construct such property.

14 ‘‘(e) DEFINITION.—In this section, the term ‘infor15 mation technology’ has the meaning given the term in sec16 tion 4 of the Information Technology Management Reform

17 Act of 1995.’’.

18 (2) CLERICAL AMENDMENT.—The table of con19 tents in the first section of such Act is amended by

20 inserting after the item relating to section 303H the

21 following new item:

‘‘Sec. 303I. Two-phase selection procedures.’’.

22 (b) DEPARTMENT OF DEFENSE.—

23 (1) PROCEDURES AUTHORIZED.—Chapter 137

24 of title 10, United States Code, is amended by in25 serting after section 2305 the following new section:
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1 ‘‘§ 2305a. Two-phase selection procedures

2 ‘‘(a) PROCEDURES AUTHORIZED.—The head of an

3 agency may use two-phase selection procedures for enter4 ing into a contract for the acquisition of information tech5 nology when the head of the agency determines that three

6 or more offers will be received for such contract, substan7 tial design work must be performed before an offeror can

8 develop a reliable price or cost proposal for such contract,

9 and the offerors will incur a substantial amount of ex10 penses in preparing the offers.

11 ‘‘(b) PROCEDURES DESCRIBED.—Two-phase selec12 tion procedures consist of the following:

13 ‘‘(1) The head of the agency solicits proposals

14 that—

15 ‘‘(A) include information on the offerors’—

16 ‘‘(i) technical approach; and

17 ‘‘(ii) technical and management quali18 fications; and

19 ‘‘(B) do not include—

20 ‘‘(i) detailed design information; and

21 ‘‘(ii) cost or price information.

22 ‘‘(2) The head of the agency evaluates the pro23 posals on the basis of evaluation criteria set forth in

24 the solicitation, except that the head of the agency

25 does not consider cost-related or price-related eval26 uation factors.
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1 ‘‘(3) The head of the agency selects at least

2 three offerors as the most highly qualified to provide

3 the property or services under the contract and re4 quests the selected offerors to submit competitive

5 proposals that include cost and price information.

6 ‘‘(4) The head of the agency awards the con7 tract in accordance with section 2305(b)(4) of this

8 title.

9 ‘‘(c) RESOURCE COMPARISON CRITERIA RE10 QUIRED.—In using two-phase selection procedures for en11 tering into a contract, the head of the agency shall estab12 lish resource criteria and financial criteria applicable to

13 the contract in order to provide a consistent basis for com14 paring the offerors and their proposals.

15 ‘‘(d) TWO-PHASE SELECTION PROCEDURES DE16 FINED.—In this section, the term ‘two-phase selection pro17 cedures’ means procedures described in subsection (b) that

18 are used for the selection of a contractor on the basis of

19 cost and price and other evaluation criteria to provide

20 property or services in accordance with the provisions of

21 a contract which requires the contractor to design the

22 property to be acquired under the contract and produce

23 or construct such property.

24 ‘‘(e) DEFINITION.—In this section, the term ‘infor25 mation technology’ has the meaning given the term in sec-
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1 tion 4 of the Information Technology Management Reform

2 Act of 1995.’’.

3 (2) CLERICAL AMENDMENT.—The table of sec4 tions at the beginning of such chapter is amended

5 by inserting after the item relating to section 2305

6 the following:

‘‘2305a. Two-phase selection procedures.’’.

7 SEC. 209. CONTRACTOR SHARE OF GAINS AND LOSSES

8 FROM COST, SCHEDULE, AND PERFORMANCE

9 EXPERIENCE.

10 The Director of the Office of Management and Budg11 et shall prescribe in regulations a clause, to be included

12 in each cost-type or incentive-type contract for procure13 ment of information technology for an executive agency,

14 that provides a system for the contractor—

15 (1) to be rewarded for contract performance ex16 ceeding the contract cost, schedule, or performance

17 goals to the benefit of the United States; and

18 (2) to be penalized for failing—

19 (A) to adhere to cost, schedule, or per20 formance goals to the detriment of the United

21 States; or

22 (B) to provide an operationally effective so23 lution for the information technology problem

24 covered by the contract.
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1 Subtitle B—Acquisition

2 Management

3 SEC. 221. ACQUISITION MANAGEMENT TEAM.

4 (a) IN GENERAL.—

5 (1) USE OF AGENCY PERSONNEL.—The head of

6 each executive agency planning an acquisition of in7 formation technology shall determine whether agency

8 personnel satisfying the requirements of subsection

9 (b) are available and are to be used for carrying out

10 the acquisition.

11 (2) USE OF OUTSIDE ACQUISITION TEAM.—If

12 the head of the executive agency determines that

13 such personnel are not available for carrying out the

14 acquisition, the head of that agency shall consider

15 designating a capable executive agent to carry out

16 the acquisition.

17 (b) CAPABILITIES OF AGENCY PERSONNEL.—

18 (1) IN GENERAL.—The head of each executive

19 agency shall ensure that the agency personnel in20 volved in an acquisition of information technology

21 have the experience, and have demonstrated the

22 skills and knowledge, necessary to carry out the ac23 quisition competently.
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1 (2) HIGH-RISK INFORMATION TECHNOLOGY

2 PROGRAM ACQUISITIONS.—For an acquisition under

3 a high-risk information technology program—

4 (A) each of the members of the acquisition

5 program management team (including the man6 agement, technical, program, procurement, and

7 legal personnel) shall have experience and dem8 onstrated competence in the team member’s

9 area of responsibility; and

10 (B) the team manager, deputy team man11 ager, and each procurement official on the ac12 quisition management team shall have dem13 onstrated competence in participating in other

14 major information system acquisitions or have

15 other comparable experience.

16 (c) ACQUISITION WORKFORCE TRAINING.—The head

17 of each executive agency shall ensure that agency person18 nel used for information technology acquisitions of the

19 agency receive continuing training in management of in20 formation resources and the acquisition of information

21 technology in order to maintain the competence of such

22 personnel in the skills and knowledge necessary for carry23 ing out such acquisitions successfully.
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1 SEC. 222. OVERSIGHT OF ACQUISITIONS.

2 It is the sense of Congress that the Director of the

3 Office of Management and Budget, the Chief Information

4 Officer of the United States, the heads of executive agen5 cies, and the inspectors general of executive agencies, in

6 performing responsibilities for oversight of information

7 technology acquisitions, should emphasize reviews of the

8 operational justifications for the acquisitions, the results

9 of the acquisition programs, and the performance meas10 urements established for the information technology rath11 er than reviews of the acquisition process.

12 TITLE III—SPECIAL FISCAL SUP13 PORT FOR INFORMATION IN14 NOVATION

15 Subtitle A—Information

16 Technology Fund

17 SEC. 301. ESTABLISHMENT.

18 There is established on the books of the Treasury a

19 fund to be known as the ‘‘Information Technology Fund’’.

20 SEC. 302. ACCOUNTS.

21 The Information Technology Fund shall have two ac22 counts as follows:

23 (1) The Innovation Loan Account.

24 (2) The Common Use Account.
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1 Subtitle B—Innovation Loan

2 Account

3 SEC. 321. AVAILABILITY OF FUND FOR LOANS IN SUPPORT

4 OF INFORMATION INNOVATION.

5 Amounts in the Innovation Loan Account shall be

6 available to the Director of the Office of Management and

7 Budget, without fiscal year limitation, for lending to an

8 executive agency for carrying out an information innova9 tion program to improve the productivity of the agency.

10 SEC. 322. REPAYMENT OF LOANS.

11 (a) REPAYMENT REQUIRED.—The head of an execu12 tive agency shall repay the Innovation Loan Account the

13 amount loaned to the executive agency.

14 (b) TERMS AND CONDITIONS.—The Director of the

15 Office of Management and Budget shall prescribe the

16 terms and conditions for repayment of the loan.

17 (c) REPAYMENT OUT OF SAVINGS.—The funds to be

18 used by the head of an executive agency for repaying a

19 loan shall be derived as provided in section 323 from sav20 ings realized by the agency through increases in the pro21 ductivity of the agency that result from the information

22 innovation funded (in whole or in part) by the loan. The

23 Director shall prescribe guidelines for computing the

24 amount of the savings.
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1 SEC. 323. SAVINGS FROM INFORMATION INNOVATIONS.

2 (a) DISPOSITION OF SAVINGS.—Of the total amount

3 saved by an executive agency in a fiscal year through in4 creases in the productivity of the agency that result from

5 information innovations funded (in whole or in part) by

6 loans from the Innovation Loan Account 50 percent shall

7 be credited to the Innovation Loan Account in repayment

8 of loans to the agency from the Fund.

9 (b) EMPLOYEE INCENTIVES.—The head of an execu10 tive agency is authorized to pay monetary incentives to

11 agency personnel who made significant contributions to

12 the achievement of increases in agency productivity that

13 resulted in the savings.

14 (c) COMPUTATION OF SAVINGS.—For purposes of

15 this section, the amount saved by an executive agency in

16 a fiscal year as a result of increases in the productivity

17 of the agency that are attributable to information innova18 tions funded (in whole or in part) by loans from the Inno19 vation Loan Account shall be computed by the head of

20 the agency in consultation with the chief information offi21 cer and chief financial officer of the agency and in accord22 ance with the guidelines prescribed pursuant to section

23 322(c).

24 SEC. 324. FUNDING.

25 (a) INITIAL CAPITALIZATION.—The head of each ex26 ecutive agency shall transfer to the Innovation Loan Ac-
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1 count at the beginning of each fiscal year for fiscal years

2 1996 through 2000 the amount equal to 5 percent of the

3 total amount available to that executive agency for such

4 fiscal year for information resources, as determined by the

5 Chief Information Officer of the United States.

6 (b) AUTHORIZATION OF APPROPRIATIONS.—There is

7 authorized to be appropriated to the Innovation Loan Ac8 count, to be available without fiscal year limitation, such

9 sums as may be necessary for making loans authorized

10 by section 321.

11 Subtitle C—Common Use Account

12 SEC. 331. SUPPORT OF MULTIAGENCY ACQUISITIONS OF IN13 FORMATION TECHNOLOGY.

14 (a) IN GENERAL.—Amounts in the Common Use Ac15 count shall be available to the Director of the Office of

16 Management and Budget, without fiscal year limitation

17 for the following purposes:

18 (1) Acquisitions of information technology to be

19 used by two or more executive agencies.

20 (2) Expenses, including cost of personal serv21 ices, incurred for developing and implementing infor22 mation technology for support of two or more execu23 tive agencies.

24 (b) PROJECTS FUNDED.—The Director of the Office

25 of Management and Budget shall select for funding out
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1 of the Common Use Account projects that are projected

2 to meet the following requirements:

3 (1) Demonstrate the innovative use of informa4 tion technology to reorganize and improve work

5 processes or to integrate programs and link the in6 formation systems of executive agencies.

7 (2) Provide substantial benefits to the public,

8 such as improved dissemination of information, in9 creased timeliness in delivery of services, and in10 creased quality of services.

11 (3) Substantially lower the operating costs of

12 two or more executive agencies or programs.

13 (c) LIMITATION OF FUNDING.—Funding for a par14 ticular project shall ordinarily be limited to two fiscal

15 years.

16 (d) ADDITIONAL REQUIREMENT FOR SELECTION.—

17 In addition to meeting the requirements in subsection (b),

18 the proposal for a project shall include a transition plan

19 for proceeding from a pilot program or the initial stage

20 of the project into operation of the information technology.

21 The transition plan shall identify funding sources for the

22 transition and for the sustainment of operations.

23 SEC. 332. FUNDING.

24 (a) INITIAL CAPITALIZATION.—
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1 (1) TRANSFER OF FUNDS.—The initial capital2 ization of the Common Use Account shall be accom3 plished by transfer of funds under paragraph (2).

4 (2) AMOUNT AND SOURCE.—For purposes of

5 paragraph (1), the Administrator of General Serv6 ices shall transfer, out of the Information Tech7 nology Fund established by section 110 of the Fed8 eral Property and Administrative Services Act of

9 1949 (40 U.S.C. 757), the amount equal to the ex10 cess of—

11 (A) the amount of the unobligated balance

12 in that Fund, over

13 (B) the portion of that unobligated balance

14 that the Administrator, with the approval of the

15 Director of the Office of Management and

16 Budget, determines is necessary to retain for

17 meeting the requirements of the fund for the

18 remainder of the fiscal year in which this Act

19 takes effect under section 1001(a) and the next

20 fiscal year.

21 (3) TERMINATION OF INFORMATION TECH22 NOLOGY FUND.—Effective at the end of the fiscal

23 year immediately following the fiscal year in which

24 this Act takes effect under section 1001(a)—
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1 (A) section 110 of the Federal Property

2 and Administrative Services Act (40 U.S.C.

3 757) is repealed; and

4 (B) the Information Technology Fund es5 tablished by that section is terminated.

6 (b) CHARGES FOR COMMON INFRASTRUCTURE SERV7 ICES.—The Director of the Office of Management and

8 Budget may impose on executive agencies a charge for

9 common infrastructure services to fund the Common Use

10 Account.

11 (c) AUTHORIZATION OF APPROPRIATIONS.—There is

12 authorized to be appropriated to the Common Use Ac13 count, to be available without fiscal year limitation, such

14 sums as may be necessary to fund multiagency acquisi15 tions of information technology.

16 Subtitle D—Other Fiscal Policies

17 SEC. 341. LIMITATION ON USE OF FUNDS.

18 Funds available to an executive agency for informa19 tion technology may not be expended for a proposed infor20 mation technology acquisition until the head of the agency

21 certifies in writing in the agency records of that acquisi22 tion that the head of the agency has completed a review

23 of the agency’s mission-related processes and administra24 tive processes to be supported by the proposed investment

25 in information technology and has established perform-
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1 ance measurements for determining improvements in

2 agency performance.

3 SEC. 342. SENSE OF CONGRESS.

4 It is the sense of Congress that executive agencies

5 should achieve a 5 percent per year decrease in the cost

6 incurred by the agency for operating and maintaining in7 formation technology, and a 5 percent per year increase

8 in the efficiency of the agency operations, by reason of

9 improvements in information resources management by

10 the agency.

11 SEC. 343. REVIEW BY GAO AND INSPECTORS GENERAL.

12 (a) REVIEW REQUIRED.—During fiscal year 1996

13 and each of the first four fiscal years following that fiscal

14 year, the Comptroller General of the United States and

15 the Inspector General of each executive agency or (in the

16 case of an executive agency that does not have an Inspec17 tor General) an appropriate audit agency shall, in coordi18 nation with each other, review the plans of the executive

19 agency for acquisitions of information technology, the in20 formation technology acquisition programs being carried

21 out by the executive agency, and the information resources

22 management of the executive agency.

23 (b) PURPOSE OF REVIEWS.—The purpose of each of

24 the reviews of an executive agency is to determine, for
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1 each of the agency’s functional areas supported by infor2 mation technology, the following:

3 (1) Whether the cost of operating and main4 taining information technology for the agency has

5 decreased below the cost incurred by the agency for

6 operating and maintaining information technology

7 for the agency for fiscal year 1995 by at least 5 per8 cent (in constant fiscal year 1995 dollars) for each

9 of five fiscal years.

10 (2) Whether, in terms of the applicable per11 formance measurements established by the head of

12 the executive agency, the efficiency of the operations

13 of the agency has increased over the efficiency of the

14 operations of the agency in fiscal year 1995 by at

15 least 5 percent by reason of improvements in infor16 mation resources management by the agency for

17 each of five fiscal years.

18 TITLE IV—INFORMATION TECH19 NOLOGY ACQUISITION PILOT

20 PROGRAMS

21 Subtitle A—Conduct of Pilot

22 Programs

23 SEC. 401. REQUIREMENT TO CONDUCT PILOT PROGRAMS.

24 (a) IN GENERAL.—
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1 (1) PURPOSE.—The Chief Information Officer

2 of the United States shall conduct pilot programs in

3 order to test alternative approaches for acquisition

4 of information technology and other information re5 sources by executive agencies.

6 (2) MULTIAGENCY, MULTIACTIVITY CONDUCT

7 OF EACH PROGRAM.—Except as otherwise provided

8 in this title, each pilot program conducted under this

9 title shall be carried out in not more than two pro10 curing activities in each of two executive agencies

11 designated by the Chief Information Officer. The

12 head of each designated executive agency shall, with

13 the approval of the Chief Information Officer, select

14 the procuring activities of the agency to participate

15 in the test and shall designate a procurement testing

16 official who shall be responsible for the conduct and

17 evaluation of the pilot program within the agency.

18 (b) LIMITATIONS.—

19 (1) NUMBER.—Not more than five pilot pro20 grams shall be conducted under the authority of this

21 title, including one pilot program each pursuant to

22 the requirements of sections 421, 422, and 423, and

23 two pilot programs pursuant to section 424.

24 (2) AMOUNT.—The total amount obligated for

25 contracts entered into under the pilot programs con-
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1 ducted under the authority of this title may not ex2 ceed $1,500,000,000. The Chief Information Officer

3 shall monitor such contracts and ensure that con4 tracts are not entered into in violation of the limita5 tion in the preceding sentence.

6 (c) INVOLVEMENT OF FEDERAL INFORMATION

7 COUNCIL.—The Chief Information Officer may—

8 (1) conduct pilot programs recommended by the

9 Federal Information Council; and

10 (2) consult with the Federal Information Coun11 cil regarding development of pilot programs to be

12 conducted under this section.

13 (d) PERIOD OF PROGRAMS.—

14 (1) IN GENERAL.—Subject to paragraph (2),

15 the Chief Information Officer shall conduct a pilot

16 program for the period, not in excess of five years,

17 that is determined by the Chief Information Officer

18 to be sufficient to establish reliable results.

19 (2) CONTINUING VALIDITY OF CONTRACTS.—A

20 contract entered into under the pilot program before

21 the expiration of that program shall remain in effect

22 according to the terms of the contract after the expi23 ration of the program.
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1 SEC. 402. TESTS OF INNOVATIVE PROCUREMENT METHODS

2 AND PROCEDURES.

3 (a) IN GENERAL.—The Chief Information Officer of

4 the United States shall exercise the authority of the Ad5 ministrator for Federal Procurement Policy under section

6 15 of the Office of Federal Procurement Policy Act (41

7 U.S.C. 413) with regard to the acquisition of information

8 technology and other information resources by executive

9 agencies.

10 (b) RELATIONSHIP TO PILOT PROGRAM AUTHOR11 ITY.—The authority under paragraph (1) is in addition

12 to the authority provided in this title to conduct pilot pro13 grams. A test program conducted under subsection (a),

14 and each contract awarded under such test program, are

15 not subject to the limitations on pilot programs provided

16 in this title.

17 SEC. 403. EVALUATION CRITERIA AND PLANS.

18 (a) MEASURABLE TEST CRITERIA.—The Chief Infor19 mation Officer of the United States shall require the head

20 of each executive agency conducting a pilot program under

21 section 401 or a test program under section 402 to estab22 lish, to the maximum extent practicable, measurable cri23 teria for evaluating the effects of the procedures or tech24 niques to be tested under the program.

25 (b) TEST PLAN.—Before a pilot program or a test

26 program may be conducted under section 401 or 402, re-
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1 spectively, the Chief Information Officer shall submit to

2 the Committee on Governmental Affairs of the Senate and

3 the Committee on Government Reform and Oversight of

4 the House of Representatives a detailed test plan for the

5 program, including a detailed description of the proce6 dures to be used and a list of any regulations that are

7 to be waived.

8 SEC. 404. REPORT.

9 (a) REQUIREMENT.—Not later than 180 days after

10 the completion of a pilot program conducted under this

11 title or a test program conducted under section 402, the

12 Chief Information Officer of the United States shall—

13 (1) submit to the Director of the Office of Man14 agement and Budget a report on the results and

15 findings under the program; and

16 (2) provide a copy of the report to the Commit17 tee on Governmental Affairs of the Senate and the

18 Committee on Government Reform and Oversight of

19 the House of Representatives.

20 (b) CONTENT.—The report shall include the follow21 ing:

22 (1) A detailed description of the results of the

23 program, as measured by the criteria established for

24 the program.
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1 (2) A discussion of any legislation that the

2 Chief Information Officer recommends, or changes

3 in regulations that the Chief Information Officer

4 considers necessary, in order to improve overall in5 formation resources management within the Federal

6 Government.

7 SEC. 405. RECOMMENDED LEGISLATION.

8 If the Director of the Office of Management and

9 Budget determines that the results and findings under a

10 pilot program under this title indicate that legislation is

11 necessary or desirable in order to improve the process for

12 acquisition of information technology, the Director shall

13 transmit the Director’s recommendations for such legisla14 tion to the Committee on Governmental Affairs of the Sen15 ate and the Committee on Government Reform and Over16 sight of the House of Representatives.

17 SEC. 406. RULE OF CONSTRUCTION.

18 Nothing in this title shall be construed as authorizing

19 the appropriation or obligation of funds for the pilot pro20 grams or test programs conducted pursuant to this title.
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1 Subtitle B—Specific Pilot

2 Programs

3 SEC. 421. SHARE-IN-SAVINGS PILOT PROGRAM.

4 (a) REQUIREMENT.—The Chief Information Officer

5 of the United States shall carry out a pilot program to

6 test the feasibility of—

7 (1) contracting on a competitive basis with a

8 private sector source to provide the Federal Govern9 ment with an information technology solution for im10 proving mission-related or administrative processes

11 of the Federal Government; and

12 (2) paying the private sector source an amount

13 equal to a portion of the savings derived by the Fed14 eral Government from any improvements in mission15 related processes and administrative processes that

16 result from implementation of the solution, as deter17 mined by the Chief Information Officer.

18 (b) PROGRAM CONTRACTS.—Up to five contracts for

19 one project each may be entered into under the pilot pro20 gram.

21 (c) SELECTION OF PROJECTS.—The projects shall be

22 selected by the Chief Information Officer from among

23 projects recommended by the Federal Information

24 Council.
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1 SEC. 422. SOLUTIONS-BASED CONTRACTING PILOT PRO2 GRAM.

3 (a) IN GENERAL.—The Chief Information Officer

4 shall carry out a pilot program to test the feasibility of

5 the use of solutions-based contracting for acquisition of

6 information technology.

7 (b) SOLUTIONS-BASED CONTRACTING DEFINED.—

8 For purposes of this section, solutions-based contracting

9 is an acquisition method under which the Federal Govern10 ment user of the technology to be acquired defines the ac11 quisition objectives, uses a streamlined contractor selec12 tion process, and allows industry sources to provide solu13 tions that attain the objectives effectively. The emphasis

14 of the method is on obtaining from industry an optimal

15 solution.

16 (c) PROCESS.—The Chief Information Officer shall

17 require use of the following process for acquisitions under

18 the pilot program:

19 (1) ACQUISITION PLAN EMPHASIZING DESIRED

20 RESULT.—Preparation of an acquisition plan that

21 defines the functional requirements of the intended

22 users of the information technology to be acquired,

23 identifies the operational improvement results to be

24 achieved, and defines the performance measurements

25 to be applied in determining whether the information
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1 technology acquired satisfies the defined require2 ments and attains the identified results.

3 (2) RESULTS-ORIENTED STATEMENT OF

4 WORK.—Use of a statement of work that is limited

5 to an expression of the end results or performance

6 capabilities desired under the acquisition plan.

7 (3) SMALL ACQUISITION ORGANIZATION.—As8 sembly of small acquisition organization consisting

9 of the following:

10 (A) An acquisition management team, the

11 members of which are to be evaluated and re12 warded under the pilot program for contribu13 tions toward attainment of the desired results

14 identified in the acquisition plan.

15 (B) A small source selection team com16 posed of representatives in the specific mission

17 or administrative area to be supported by the

18 information technology to be acquired, a con19 tracting officer, and persons with relevant ex20 pertise.

21 (4) USE OF SOURCE SELECTION FACTORS EM22 PHASIZING SOURCE QUALIFICATIONS.—Use of

23 source selection factors that are limited to determin24 ing the qualifications of the offeror, including such

25 factors as personnel skills, previous experience in
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1 providing other private or public sector organizations

2 with solutions for attaining objectives similar to the

3 objectives to be attained in the acquisition, past con4 tract performance, qualifications of the proposed

5 program manager, and the proposed management

6 plan.

7 (5) OPEN COMMUNICATIONS WITH CONTRACTOR

8 COMMUNITY.—Open availability of the following in9 formation to potential offerors:

10 (A) The agency mission to be served by the

11 acquisition.

12 (B) The functional process to be performed

13 by use of information technology.

14 (C) The process improvements to be at15 tained.

16 (6) SIMPLE SOLICITATION.—Use of a simple so17 licitation that sets forth only the functional work de18 scription, source selection factors, the required terms

19 and conditions, instructions regarding submission of

20 offers, and the estimate of the Federal Government’s

21 budget for the desired work.

22 (7) SIMPLE PROPOSALS.—Submission of oral

23 proposals and acceptance of written supplemental

24 submissions that are limited in size and scope and

25 contain information on the offeror’s qualifications to
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1 perform the desired work together with information

2 of past contract performance.

3 (8) SIMPLE EVALUATION.—Use of a simple

4 evaluation process, to be completed within 45 days

5 after receipt of proposals, which consists of the fol6 lowing:

7 (A) Identification of the offerors that are

8 within the competitive range of most of the

9 qualified offerors.

10 (B) Issuance of invitations for at least

11 three and not more than five of the identified

12 offerors to make oral presentations to, and en13 gage in discussions with, the evaluating person14 nel regarding the qualifications of the offerors,

15 including how the qualifications of each offeror

16 relate to the approaches proposed to be taken

17 by the offeror in the acquisition.

18 (C) Evaluation of the qualifications of the

19 identified offerors on the basis of submissions

20 required under the process and any oral presen21 tations made by, and any discussions with, the

22 offerors.

23 (9) SELECTION OF MOST QUALIFIED

24 OFFEROR.—A selection process consisting of the fol25 lowing:
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1 (A) Identification of the most qualified

2 source, and ranking of alternative sources, pri3 marily on the basis of the oral proposals, pres4 entations, and discussions, but taking into con5 sideration supplemental written submissions.

6 (B) Conduct for 30 to 60 days of a pro7 gram definition phase, funded by the Federal

8 Government—

9 (i) during which the selected source,

10 in consultation with one or more intended

11 users, develops a conceptual system design

12 and technical approach, defines logical

13 phases for the project, and estimates the

14 total cost and the cost for each phase; and

15 (ii) after which a contract for per16 formance of the work may be awarded to

17 that source on the basis of cost, the re18 sponsiveness, reasonableness, and quality

19 of the proposed performance, and a shar20 ing of risk and benefits between the source

21 and the Government.

22 (C) Conduct of as many successive pro23 gram definition phases with the alternative

24 sources (in the order ranked) as is necessary in
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1 order to award a contract in accordance with

2 subparagraph (B).

3 (10) SYSTEM IMPLEMENTATION PHASING.—

4 System implementation to be executed in phases

5 that are tailored to the solution, with various con6 tract arrangements being used, as appropriate, for

7 various phases and activities.

8 (11) MUTUAL AUTHORITY TO TERMINATE.—

9 Authority for the Federal Government or the con10 tractor to terminate the contract without penalty at

11 the end of any phase defined for the project.

12 (12) TIME MANAGEMENT DISCIPLINE.—Appli13 cation of a standard for awarding a contract within

14 60 to 90 days after issuance of the solicitation.

15 (d) PILOT PROGRAM DESIGN.—

16 (1) JOINT PUBLIC-PRIVATE WORKING GROUP.—

17 The Chief Information Officer shall establish a joint

18 working group of Federal Government personnel and

19 representatives of the information technology indus20 try to design a plan for conduct of the pilot pro21 gram.

22 (2) CONTENT OF PLAN.—The plan shall provide

23 for use of solutions-based contracting in the Depart24 ment of Defense and not more than two other execu25 tive agencies for a total of—
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1 (A) 10 projects, each of which has an esti2 mated cost of between $25,000,000 and

3 $100,000,000; and

4 (B) 10 projects, each of which has an esti5 mated cost of between $1,000,000 and

6 $5,000,000, to be set aside for small business

7 concerns.

8 (3) COMPLEXITY OF PROJECTS.—(A) Subject to

9 subparagraph (C), each acquisition project under the

10 pilot program shall be sufficiently complex to provide

11 for meaningful evaluation of the use of solutions12 based contracting for acquisition of information

13 technology for executive agencies.

14 (B) In order for an acquisition project to sat15 isfy the requirement in subparagraph (A)—

16 (i) the solution for attainment of the exec17 utive agency’s objectives under the project

18 should not be obvious, but rather shall involve

19 a need for some innovative development; and

20 (ii) the project shall incorporate all ele21 ments of system integration.

22 (C) An acquisition project should not be so ex23 tensive or lengthy as to result in undue delay in the

24 evaluation of the use of solutions-based contracting.
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1 (e) USE OF EXPERIENCED FEDERAL PERSONNEL.—

2 Only Federal Government personnel who are experienced,

3 and have demonstrated success, in managing or otherwise

4 performing significant functions in complex acquisitions

5 shall be used for evaluating offers, selecting sources, and

6 carrying out the performance phases in an acquisition

7 under the pilot program.

8 (f) MONITORING BY GAO.—

9 (1) REQUIREMENT.—The Comptroller General

10 of the United States shall—

11 (A) monitor the conduct, and review the

12 results, of acquisitions under the pilot program;

13 and

14 (B) submit to Congress periodic reports

15 containing the views of the Comptroller General

16 on the activities, results, and findings under the

17 pilot program.

18 (2) EXPIRATION OF REQUIREMENT.—The re19 quirement under paragraph (1)(B) shall terminate

20 after submission of the report that contains the final

21 views of the Comptroller General on the last of the

22 acquisition projects completed under the pilot pro23 gram.
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1 SEC. 423. PILOT PROGRAM FOR CONTRACTING FOR PER2 FORMANCE OF ACQUISITION FUNCTIONS.

3 (a) REQUIREMENT.—The Chief Information Officer

4 of the United States shall carry out a pilot program which

5 provides for the head of an executive agency, or an execu6 tive agent acting for the head of an executive agency, to

7 contract for the performance of the contracting and pro8 gram management functions for an information tech9 nology acquisition for the agency.

10 (b) PARTICIPATING AGENCIES.—The Chief Informa11 tion Officer shall select five executive agencies to partici12 pate, with the consent of the head of the agency, in the

13 pilot program.

14 (c) OBLIGATION OF FUNDS TO BE BY FEDERAL OF15 FICIALS.—Funds of the United States may not be obli16 gated by a contractor in the performance of contracting

17 or program management functions of an executive agency

18 under the pilot program.

19 (d) GAO REVIEW AND ANALYSIS.—The Comptroller

20 General of the United States shall—

21 (1) monitor and review the results of the pilot

22 program;

23 (2) compare the use of contract personnel for

24 performance of the contracting and program man25 agement functions for an information technology ac-
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1 quisition under the pilot program with the use of

2 agency personnel to perform such functions; and

3 (3) submit to the Committee on Governmental

4 Affairs of the Senate and the Committee on Govern5 ment Reform and Oversight a report on the com6 parison, including any conclusions of the Comptrol7 ler General.

8 SEC. 424. MAJOR ACQUISITIONS PILOT PROGRAMS.

9 (a) FLEXIBLE ACQUISITIONS PILOT PROGRAMS.—

10 The Chief Information Officer of the United States shall

11 carry out two pilot programs, one in the Department of

12 Defense and one in another executive agency, to test and

13 demonstrate for use in major information technology ac14 quisition programs flexible acquisition procedures that ac15 commodate the following during the conduct of the acqui16 sition:

17 (1) Continuous refinement of—

18 (A) the agency information architecture for

19 which the information technology is being pro20 cured; and

21 (B) the requirements to be satisfied by

22 such technology within that information archi23 tecture.

24 (2) Incremental development of system capabili25 ties.
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1 (3) Integration of new technology as it becomes

2 available.

3 (4) Rapid fielding of effective systems.

4 (5) Completion of the operational increments of

5 the acquisition within 18 months (subject to

6 supplementation or further evolution of the agency

7 information system through follow-on procurements).

8 (b) COVERED ACQUISITION PROGRAMS.—Each pilot

9 program shall involve one acquisition of information tech10 nology that satisfies the following requirements:

11 (1) The acquisition is in an amount greater

12 than $100,000,000, but the amount of the incre13 ments of the acquisition covered by the pilot pro14 gram does not exceed $300,000,000.

15 (2) The information technology is to be pro16 cured for support of one or more agency processes

17 or missions that have been, or are being, reevaluated

18 and substantially revised to improve the efficiency

19 with which the agency performs agency missions or

20 delivers services.

21 (3) The acquisition is to be conducted as part

22 of a sustained effort of the executive agency con23 cerned to attain a planned overall information archi24 tecture for the agency that is designed to support
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1 improved performance of the agency missions and

2 improved delivery of services.

3 (4) The acquisition program provides for an

4 evolution of an information system that is guided by

5 the overall information architecture planned for the

6 agency.

7 (5) The acquisition is being conducted with a

8 goal of completing two or more major increments in

9 the evolution of the agency’s information system

10 within a 3-year period.

11 (c) WAIVER OF PROCUREMENT LAWS.—

12 (1) WAIVER AUTHORITY.—The head of an exec13 utive agency carrying out a pilot program under this

14 section may, with the approval of the Chief Informa15 tion Officer of the United States, waive any provi16 sion of procurement law referred to in paragraph (2)

17 to the extent that the head of the agency considers

18 necessary to carry out the pilot program in accord19 ance with this section.

20 (2) COVERED PROCUREMENT LAWS.—The waiv21 er authority under paragraph (1) applies to the fol22 lowing procurement laws:

23 (A) Title III of the Federal Property and

24 Administrative Services Act of 1949 (41 U.S.C.

25 251 et seq.).
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1 (B) Chapter 137 of title 10, United States

2 Code.

3 (C) The Office of Federal Procurement

4 Policy Act (41 U.S.C. 401 et seq.).

5 (D) Sections 8, 9, and 15 of the Small

6 Business Act (15 U.S.C. 637, 638, and 644).

7 (E) Any provision of law that, pursuant to

8 section 34 of the Office of Federal Procurement

9 Policy Act (41 U.S.C. 430), is listed in the Fed10 eral Acquisition Regulation as being inapplica11 ble—

12 (i) to contracts for the procurement of

13 commercial items; or

14 (ii) in the case of a subcontract under

15 the pilot program, to subcontracts for the

16 procurement of commercial items.

17 (F) Any other provision of law that im18 poses requirements, restrictions, limitations, or

19 conditions on Federal Government contracting

20 (other than a limitation on use of appropriated

21 funds), as determined by the Chief Information

22 Officer of the United States.

23 (d) OMB INVOLVEMENT.—

24 (1) IN GENERAL.—The Chief Information Offi25 cer of the United States shall closely and continu-
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1 ously monitor the conduct of the pilot programs car2 ried out under this section.

3 (2) ASSIGNMENT OF OMB PERSONNEL TO PRO4 GRAM TEAM.—In order to carry out paragraph (1)

5 effectively, the Chief Information Officer of the

6 United States shall assign one or more representa7 tives to the acquisition program management team

8 for each pilot program.

9 (e) TERMINATION OF PILOT PROGRAM FOR UNSATIS10 FACTORY PERFORMANCE.—The Chief Information Officer

11 of the United States shall terminate a pilot program under

12 this section at any time that the Chief Information Officer

13 determines that the acquisition under the program has

14 failed to a significant extent to satisfy cost, schedule, and

15 performance requirements established for the acquisition.

16 (f) REPORTS TO CONGRESS.—

17 (1) REQUIREMENT.—The Director of the Office

18 of Management and Budget shall submit to Con19 gress reports on each pilot program carried out

20 under this section as follows:

21 (A) An interim report upon the completion

22 of each increment of the acquisition under the

23 pilot program.

24 (B) A final report upon completion of the

25 pilot program.
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1 (2) CONTENT OF FINAL REPORT.—The final re2 port on a pilot program shall include any rec3 ommendations for waiver of the applicability of pro4 curement laws to further evolution of information

5 systems acquired under the pilot program.

6 TITLE V—OTHER INFORMATION

7 RESOURCES MANAGEMENT

8 REFORMS

9 SEC. 501. TRANSFER OF RESPONSIBILITY FOR FACNET.

10 Section 30 of the Office of Federal Procurement Pol11 icy Act (41 U.S.C. 426) is amended—

12 (1) in subsection (a), by striking out ‘‘Adminis13 trator’’ the first place it appears and inserting in

14 lieu thereof ‘‘Chief Information Officer of the United

15 States’’; and

16 (2) by striking out ‘‘Administrator’’ each place

17 it appears and inserting in lieu thereof ‘‘Chief Infor18 mation Officer’’.

19 SEC. 502. ON-LINE MULTIPLE AWARD SCHEDULE ORDER20 ING.

21 (a) DEVELOPMENT AND IMPLEMENTATION OF SYS22 TEM DESIGNS.—In order to provide for the economic and

23 efficient procurement of commercial information tech24 nology, the Chief Information Officer of the United States

25 shall establish competing programs for the development
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1 and testing of up to three system designs for providing

2 for Governmentwide, on-line computer purchasing of com3 mercial items of information technology.

4 (b) REQUIRED SYSTEM CAPABILITIES.—Each of the

5 system designs shall be established as an element of the

6 Federal acquisition computer network (FACNET) archi7 tecture and shall, at a minimum—

8 (1) provide basic information on the prices, fea9 tures, and performance of all commercial items of

10 information technology available for purchasing;

11 (2) provide for updating that information to re12 flect changes in prices, features, and performance as

13 soon as information on the changes becomes avail14 able;

15 (3) enable users to make on-line computer com16 parisons of the prices, features, and performance of

17 similar products and services offered by various ven18 dors;

19 (4) enable users to place, and vendors to re20 ceive, on-line computer orders for products and serv21 ices available for purchasing;

22 (5) enable ordering users to make payments to

23 vendors by bank card, electronic funds transfer, or

24 other automated methods in cases in which it is
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1 practicable and in the interest of the Federal Gov2 ernment to do so; and

3 (6) archive data relating to each order placed

4 against multiple award schedule contracts using

5 such system, including, at a minimum, data on—

6 (A) the agency or office placing the order;

7 (B) the vendor receiving the order;

8 (C) the products or services ordered; and

9 (D) the total price of the order.

10 (c) USE OF SYSTEMS.—Under guidelines and proce11 dures prescribed pursuant to subsection (d), the head of

12 an executive agency may use a system developed and test13 ed under this section to make purchases in a total amount

14 of not more than $5,000,000 for each order.

15 (d) GUIDELINES AND PROCEDURES.—The Chief In16 formation Officer shall prescribe guidelines and proce17 dures for making purchases authorized by subsection (c).

18 The guidelines and procedures shall ensure that orders

19 placed on the system referred to in that subsection do not

20 place any requirements on vendors that are not customary

21 for transactions involving sales of the purchased commod22 ities to private sector purchasers.

23 (e) REPORT TO CONGRESS.—Not later than one year

24 after the date of the enactment of this Act, the Chief In25 formation Officer shall submit to Congress a report on the
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1 Chief Information Officer’s decision on implementation of

2 an electronic marketplace for information technology. The

3 report shall contain a description of the results of the pro4 grams established under subsection (a).

5 SEC. 503. UPGRADING INFORMATION EQUIPMENT IN AGEN6 CY FIELD OFFICES.

7 (a) AUTHORITY TO USE MICRO-PURCHASE PROCE8 DURES.—Under the authority, direction, and control of

9 the head of an executive agency and subject to subsection

10 (b), the head of a field office of that agency may use

11 micro-purchase procedures to procure up to $20,000 of

12 upgrades for the computer equipment of that office each

13 year in increments not exceeding $2,500 each. Procure14 ments within that limitation shall not be counted against

15 the $20,000 annual limitation provided under section

16 32(c)(2) of the Office of Federal Procurement Policy Act

17 (41 U.S.C. 428(c)(2)).

18 (b) CERTIFICATION REQUIREMENT.—The head of a

19 field office may procure an upgrade for computer equip20 ment in accordance with subsection (a) only if the head

21 of the field office determines in writing that the cost of

22 the upgrade does not exceed 50 percent of the cost of pur23 chasing replacement equipment for the equipment to be

24 upgraded. The head of the field office shall include a writ-
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1 ten record of the determination in the agency records of

2 the procurement.

3 (c) MICRO-PURCHASE PROCEDURES DEFINED.—In

4 this section, the term ‘‘micro-purchase procedures’’ means

5 the procedures prescribed under section 32 of the Office

6 of Federal Procurement Policy Act (41 U.S.C. 428) for

7 purchases not in excess of the micro-purchase threshold

8 (as defined in that section).

9 SEC. 504. DISPOSAL OF EXCESS COMPUTER EQUIPMENT.

10 (a) AUTHORITY TO DONATE.—The head of an execu11 tive agency may, without regard to the procedures other12 wise applicable under title II of the Federal Property and

13 Administrative Services Act of 1949 (40 U.S.C. 481 et

14 seq.), convey without consideration all right, title, and in15 terest of the United States in any computer equipment

16 under the control of such official that is determined under

17 title II of such Act as being excess property or surplus

18 property to a recipient in the following order of priority:

19 (1) Elementary and secondary schools under

20 the jurisdiction of a local educational agency and

21 schools funded by the Bureau of Indian Affairs.

22 (2) Public libraries.

23 (3) Public colleges and universities.

24 (b) INVENTORY REQUIRED.—Upon the enactment of

25 this Act, the head of an executive agency shall inventory
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1 all computer equipment under the control of that official

2 and identify in accordance with title II of the Federal

3 Property and Administrative Services Act of 1949 (40

4 U.S.C. 481 et seq.) the equipment, if any, that is excess

5 property or surplus property.

6 (c) DEFINITIONS.—In this section:

7 (1) The terms ‘‘excess property’’ and ‘‘surplus

8 property’’ have the meanings given such terms in

9 section 3 of the Federal Property and Administra10 tive Services Act of 1949 (40 U.S.C. 472).

11 (2) The terms ‘‘local educational agency’’, ‘‘ele12 mentary school’’, and ‘‘secondary school’’ have the

13 meanings given such terms in section 14101 of the

14 Elementary and Secondary Education Act of 1965

15 (20 U.S.C. 8801).

16 SEC. 505. LEASING INFORMATION TECHNOLOGY.

17 (a) ANALYSIS BY GAO.—The Comptroller General of

18 the United States shall perform a comparative analysis

19 of—

20 (1) the costs and benefits of purchasing new in21 formation technology for executive agencies;

22 (2) the costs and benefits of leasing new infor23 mation technology for executive agencies;

24 (3) the costs and benefits of leasing used infor25 mation technology for executive agencies; and
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1 (4) the costs and benefits of purchasing used

2 information technology.

3 (b) LEASING GUIDELINES.—Based on the analysis,

4 the Comptroller General shall develop recommended guide5 lines for leasing information technology for executive

6 agencies.

7 SEC. 506. CONTINUATION OF ELIGIBILITY OF CONTRACTOR

8 FOR AWARD OF INFORMATION TECHNOLOGY

9 CONTRACT AFTER PROVIDING DESIGN AND

10 ENGINEERING SERVICES.

11 Notwithstanding any other provision of law, a con12 tractor that provides architectural design and engineering

13 services for an information system under an information

14 technology program of an executive agency is not, solely

15 by reason of having provided such services, ineligible for

16 award of a contract for procurement of information tech17 nology under that program or for a subcontract under

18 such a contract.

19 SEC. 507. ENHANCED PERFORMANCE INCENTIVES FOR IN20 FORMATION TECHNOLOGY ACQUISITION

21 WORKFORCE.

22 (a) ARMED SERVICES ACQUISITIONS.—

23 (1) CLARIFICATION OF REQUIREMENTS FOR

24 SYSTEM OF INCENTIVES.—Subsection (b) of section

25 5001 of the Federal Acquisition Streamlining Act of
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1 1994 (Public Law 103–355; 108 Stat. 3350; 10

2 U.S.C. 2220 note) is amended—

3 (A) by redesignating paragraphs (1) and

4 (2) as subparagraphs (A) and (B), respectively;

5 (B) by designating the second sentence as

6 paragraph (2);

7 (C) by inserting ‘‘(1)’’ after ‘‘(b) EN8 HANCED SYSTEM OF PERFORMANCE INCEN9 TIVES.—’’; and

10 (D) by adding at the end the following:

11 ‘‘(3) The Secretary shall include in the enhanced sys12 tem of incentives, to the extent that the system applies

13 with respect to programs for the acquisition of information

14 technology (as defined in section 4 of the Information

15 Technology Management Reform Act of 1995), the follow16 ing:

17 ‘‘(A) Pay bands.

18 ‘‘(B) Significant and material pay and perform19 ance incentives to be awarded, and significant and

20 material unfavorable personnel actions to be im21 posed, under the system exclusively, or primarily, on

22 the basis of the contributions of personnel to the

23 performance of the information technology acquisi24 tion program in relation to cost goals, performance

25 goals, and schedule goals.
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1 ‘‘(C) Provisions for pay incentives and perform2 ance incentives to be awarded under the system only

3 if—

4 ‘‘(i) the cost of the information technology

5 acquisition program is less than 90 percent of

6 the baseline established for the cost of the pro7 gram;

8 ‘‘(ii) the period for completion of the infor9 mation technology program is less than 90 per10 cent of the period provided under the baseline

11 established for the program schedule; and

12 ‘‘(iii) the results of the phase of the infor13 mation technology program being executed ex14 ceed the performance baselines established for

15 the system by more than 10 percent.

16 ‘‘(D) Provisions for unfavorable personnel ac17 tions to be taken under the system only if the infor18 mation technology acquisition program performance

19 for the phase being executed exceeds by more than

20 10 percent the cost and schedule parameters estab21 lished for the program phase and the performance of

22 the system acquired or to be acquired under the pro23 gram fails to achieve at least 90 percent of the base24 line goals established for performance of the pro25 gram.’’.
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1 (2) RECOMMENDED LEGISLATION.—Subsection

2 (c) of such section is amended by adding at the end

3 the following: ‘‘The Secretary shall include in the

4 recommendations provisions necessary to implement

5 the requirements of subsection (b)(3).’’.

6 (3) IMPLEMENTATION OF INCENTIVES SYS7 TEM.—Section 5001 of the Federal Acquisition

8 Streamlining Act of 1994 is further amended by

9 adding at the end the following:

10 ‘‘(d) IMPLEMENTATION OF INCENTIVES SYSTEM.—

11 (1) The Secretary shall complete the review required by

12 subsection (b) and take such actions as are necessary to

13 provide an enhanced system of incentives in accordance

14 with such subsection not later than October 1, 1997.

15 ‘‘(2) Not later than October 1, 1996, the Secretary

16 shall submit to the Committees on Armed Services and

17 on Governmental Affairs of the Senate and the Commit18 tees on National Security and on Government Reform and

19 Oversight of the House of Representatives a report on the

20 actions taken to satisfy the requirements of paragraph

21 (1).’’.

22 (b) CIVILIAN AGENCY ACQUISITIONS.—

23 (1) CLARIFICATION OF REQUIREMENTS FOR

24 SYSTEM OF INCENTIVES.—Subsection (b) of section

25 5051 of the Federal Acquisition Streamlining Act of
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1 1994 (Public Law 103–355; 108 Stat. 3351; 41

2 U.S.C. 263 note) is amended—

3 (A) by redesignating paragraphs (1) and

4 (2) as subparagraphs (A) and (B), respectively;

5 (B) by designating the second sentence as

6 paragraph (2);

7 (C) by inserting ‘‘(1)’’ after ‘‘(b) EN8 HANCED SYSTEM OF PERFORMANCE INCEN9 TIVES.—’’; and

10 (D) by adding at the end the following:

11 ‘‘(3) The Deputy Director shall include in the en12 hanced system of incentives, to the extent that the system

13 applies with respect to programs for the acquisition of in14 formation technology (as defined in section 4 of the Infor15 mation Technology Management Act of 1995), the follow16 ing:

17 ‘‘(A) Pay bands.

18 ‘‘(B) Significant and material pay and perform19 ance incentives to be awarded, and significant and

20 material unfavorable personnel actions to be im21 posed, under the system exclusively, or primarily, on

22 the basis of the contributions of personnel to the

23 performance of the information technology acquisi24 tion program in relation to cost goals, performance

25 goals, and schedule goals.
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1 ‘‘(C) Provisions for pay incentives and perform2 ance incentives to be awarded under the system only

3 if—

4 ‘‘(i) the cost of the information technology

5 acquisition program is less than 90 percent of

6 the amount established as the cost goal for the

7 program under section 313 of the Federal

8 Property and Administrative Services Act of

9 1949 (41 U.S.C. 263);

10 ‘‘(ii) the period for completion of the pro11 gram is less than 90 percent of the period es12 tablished as the schedule goal for the program

13 under such section; and

14 ‘‘(iii) the results of the phase of the pro15 gram being executed exceed the performance

16 goal established for the program under such

17 section by more than 10 percent.

18 ‘‘(D) Provisions for unfavorable personnel ac19 tions to be taken under the system only if the infor20 mation technology acquisition program performance

21 for the phase being executed exceeds by more than

22 10 percent the cost and schedule goals established

23 for the program phase under section 313 of the Fed24 eral Property and Administrative Services Act of

25 1949 (41 U.S.C. 263) and the performance of the
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1 system acquired or to be acquired under the pro2 gram fails to achieve at least 90 percent of the per3 formance goal established for the program under

4 such section.’’.

5 (2) RECOMMENDED LEGISLATION.—Subsection

6 (c) of such section is amended by adding at the end

7 the following: ‘‘The Deputy Director shall include in

8 the recommendations provisions necessary to imple9 ment the requirements of subsection (b)(3).’’.

10 (3) IMPLEMENTATION OF INCENTIVES SYS11 TEM.—Section 5051 of the Federal Acquisition

12 Streamlining Act of 1994 is further amended by

13 adding at the end the following:

14 ‘‘(d) IMPLEMENTATION OF INCENTIVES SYSTEM.—

15 (1) The Deputy Director shall complete the review re16 quired by subsection (b) and take such actions as are nec17 essary to provide an enhanced system of incentives in ac18 cordance with such subsection not later than October 1,

19 1997.

20 ‘‘(2) Not later than October 1, 1996, the Deputy Di21 rector shall submit to the Committee on Governmental Af22 fairs of the Senate and the Committee on Government Re23 form and Oversight of the House of Representatives a re24 port on the actions taken to satisfy the requirements of

25 paragraph (1).’’.
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1 TITLE VI—ACTIONS REGARDING

2 CURRENT INFORMATION

3 TECHNOLOGY PROGRAMS

4 SEC. 601. PERFORMANCE MEASUREMENTS.

5 (a) IMPLEMENTATION OF REQUIREMENT FOR PER6 FORMANCE MEASUREMENTS.—The chief information offi7 cer of an executive agency shall ensure that performance

8 measurements are prescribed for each significant current

9 information technology acquisition program of the agency.

10 (b) QUALITY OF MEASUREMENTS.—The performance

11 measurements shall be sufficient to provide—

12 (1) the head of the executive agency with ade13 quate information for making determinations for

14 purposes of subsections (b)(2) and (c)(2) of section

15 146; and

16 (2) the Director of the Office of Management

17 and Budget with adequate information for making

18 determinations for purposes of paragraphs (1)(B)

19 and (2)(B) of section 123(g).

20 SEC. 602. INDEPENDENT ASSESSMENT OF PROGRAMS.

21 (a) ASSESSMENT REQUIRED.—The head of each ex22 ecutive agency shall provide for an assessment to be made

23 of each of the current information technology acquisition

24 programs of the agency that exceed $100,000,000.
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1 (b) INDEPENDENCE OF ASSESSMENT.—The head of

2 the executive agency shall provide for the assessment to

3 be carried out by the Inspector General of the agency (in

4 the case of an agency having an Inspector General), a con5 tractor, or another entity who is independent of the head

6 of the executive agency.

7 (c) PURPOSES.—The purposes of the assessment of

8 a program are to determine the following:

9 (1) To determine the status of the program in

10 terms of performance objectives and cost and sched11 ule baselines.

12 (2) To identify any need or opportunity for im13 proving the process to be supported by the program.

14 (3) To determine the potential for use of the in15 formation technology by other executive agencies on

16 a shared basis or otherwise.

17 (4) To determine the adequacy of the program

18 plan, the architecture of the information technology

19 being acquired, and the program management.

20 SEC. 603. CURRENT INFORMATION TECHNOLOGY ACQUISI21 TION PROGRAM DEFINED.

22 For purposes of this title, a current information tech23 nology acquisition program is—
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1 (1) an information technology acquisition pro2 gram being carried out on the date of the enactment

3 of this Act; and

4 (2) any other information technology acquisi5 tion program that is carried out through any con6 tract entered into on the basis of offers received in

7 response to a solicitation of offers issued before such

8 date.

9 TITLE VII—PROCUREMENT PRO10 TEST AUTHORITY OF THE

11 COMPTROLLER GENERAL

12 SEC. 701. REMEDIES.

13 Section 3554(b) of title 31, United States Code, is

14 amended by adding at the end the following:

15 ‘‘(4) If the Comptroller General makes a determina16 tion described in paragraph (1) in the case of a protest

17 in a procurement of information technology, the Comptrol18 ler General may submit to the Chief Information Officer

19 of the United States a recommendation to suspend the

20 procurement authority of a Federal agency for the pro21 tested procurement.’’.

22 SEC. 702. PERIOD FOR PROCESSING PROTESTS.

23 Section 3554(a) of title 31, United States Code, is

24 amended—
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1 (1) in paragraph (1), by striking out ‘‘para2 graph (2)’’ in the second sentence and inserting in

3 lieu thereof ‘‘paragraphs (2) and (5)’’; and

4 (2) by adding at the end the following:

5 ‘‘(5)(A) The requirements and restrictions set forth

6 in this paragraph apply in the case of a protest in a pro7 curement of information technology.

8 ‘‘(B) The Comptroller General shall issue a final deci9 sion concerning a protest referred to in subparagraph (A)

10 within 45 days after the date the protest is submitted to

11 the Comptroller General.

12 ‘‘(C) The disposition under this subchapter of a pro13 test in a procurement referred to in subparagraph (A)

14 bars any further protest under this subchapter by the

15 same interested party on the same procurement.’’.

16 SEC. 703. DEFINITION.

17 Section 3551 of title 31, United States Code, is

18 amended by adding at the end the following:

19 ‘‘(4) The term ‘information technology’ has the

20 meaning given that term in section 4 of the Infor21 mation Technology Management Reform Act of

22 1995.’’.
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1 TITLE VIII—RELATED TERMI2 NATIONS, CONFORMING

3 AMENDMENTS, AND CLERI4 CAL AMENDMENTS

5 Subtitle A—Related Terminations

6 SEC. 801. OFFICE OF INFORMATION AND REGULATORY

7 AFFAIRS.

8 The Office of Information and Regulatory Affairs in

9 the Office of Management and Budget is terminated.

10 SEC. 802. SENIOR INFORMATION RESOURCES MANAGE11 MENT OFFICIALS.

12 In each executive agency for which a chief informa13 tion officer is designated under section 143(a), the des14 ignation of a senior information resources management of15 ficial under section 3506(a)(2) of title 44, United States

16 Code, is terminated.

17 Subtitle B—Conforming

18 Amendments

19 SEC. 811. AMENDMENTS TO TITLE 10, UNITED STATES

20 CODE.

21 (a) MULTIYEAR CONTRACTS.—Section 2306b(k) of

22 title 10, United States Code, is amended by striking out

23 ‘‘property to which section 111 of the Federal Property

24 and Administrative Services Act of 1949 (40 U.S.C. 759)

25 applies’’ and inserting in lieu thereof ‘‘information tech-
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1 nology (as defined in section 4 of the Information Tech2 nology Management Reform Act of 1995’’.

3 (b) SENSITIVE DEFENSE ACTIVITIES.—Section 2315

4 of such title is repealed.

5 SEC. 812. AMENDMENTS TO TITLE 28, UNITED STATES

6 CODE.

7 Section 612 of title 28, United States Code, is

8 amended—

9 (1) in subsection (f), by striking out ‘‘section

10 111 of the Federal Property and Administrative

11 Services Act of 1949 (40 U.S.C. 759)’’ and inserting

12 in lieu thereof ‘‘the provisions of law, policies, and

13 regulations applicable to executive agencies under

14 the Information Technology Management Reform

15 Act of 1995’’;

16 (2) in subsection (g), by striking out ‘‘sections

17 111 and 201 of the Federal Property and Adminis18 trative Services Act of 1949 (40 U.S.C. 481 and

19 759)’’ and inserting in lieu thereof ‘‘section 201 of

20 the Federal Property and Administrative Services

21 Act of 1949 (40 U.S.C. 481)’’;

22 (3) by striking out subsection (l); and

23 (4) by redesignating subsection (m) as sub24 section (l).
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1 SEC. 813. AMENDMENTS TO TITLE 31, UNITED STATES

2 CODE.

3 (a) AVAILABILITY OF FUNDS FOLLOWING RESOLU4 TION OF A PROTEST.—Section 1558(b) of title 31, United

5 States Code, is amended by striking out ‘‘or under section

6 111(f) of the Federal Property and Administrative Serv7 ices Act of 1949 (40 U.S.C. 759(f))’’.

8 (b) GAO PROCUREMENT PROTEST SYSTEM.—Sec9 tion 3552 of such title is amended by striking out the sec10 ond sentence.

11 SEC. 814. AMENDMENTS TO TITLE 38, UNITED STATES

12 CODE.

13 Section 310 of title 38, United States Code, is

14 amended to read as follows:

15 ‘‘§ 310. Chief information officer

16 ‘‘(a) The Secretary shall designate a chief informa17 tion officer for the Department in accordance with section

18 143(a) of the Information Technology Management Re19 form Act of 1995.

20 ‘‘(b) The chief information officer shall perform the

21 duties provided for chief information officers of executive

22 agencies under the Information Technology Management

23 Reform Act of 1995.’’.
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1 SEC. 815. PROVISIONS OF TITLE 44, UNITED STATES CODE,

2 AND OTHER LAWS RELATING TO CERTAIN

3 JOINT COMMITTEES OF CONGRESS.

4 (a) JOINT COMMITTEE ON INFORMATION.—

5 (1) REPLACEMENT OF JOINT COMMITTEE ON

6 PRINTING.—Chapter 1 of title 44, United States

7 Code, is amended by striking out the chapter head8 ing and all that follows through the heading for sec9 tion 103 and inserting in lieu thereof the following:

10 ‘‘CHAPTER 1—JOINT COMMITTEE ON

11 INFORMATION

‘‘Sec.

‘‘101. Joint Committee on Information.

‘‘102. Remedial powers.

12 ‘‘§ 101. Joint Committee on Information

13 ‘‘There is a Joint Committee on Information estab14 lished by section 101 of the Information Technology Man15 agement Reform Act of 1995.

16 ‘‘§ 102. Remedial powers’’.

17 (2) REFERENCES TO JOINT COMMITTEE.—The

18 provisions of title 44, United States Code, are

19 amended by striking out ‘‘Joint Committee on Print20 ing’’ each place it appears and inserting in lieu

21 thereof ‘‘Joint Committee on Information’’.

22 (b) REFERENCES TO JOINT COMMITTEE OF CON23 GRESS ON THE LIBRARY.—
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1 (1) MISCELLANEOUS REFERENCES.—Section 82

2 of the Revised Statutes (2 U.S.C. 132a), section

3 203(i) of the Legislative Reorganization Act of 1946

4 (2 U.S.C. 166(i)), section 1831 of the Revised Stat5 utes (40 U.S.C. 188), and section 801(b)(2) of Pub6 lic Law 100–696 (102 Stat. 4608; 40 U.S.C.

7 188a(b)(2)) are amended by striking out ‘‘Joint

8 Committee of Congress on the Library’’ and insert9 ing in lieu thereof ‘‘Joint Committee on Informa10 tion’’.

11 (2) SUPERSEDED PROVISION.—Section 223 of

12 the Legislative Reorganization Act of 1946 (2

13 U.S.C. 132b) is repealed.

14 (3) CONTINUATION OF AUTHORITY.—Section 2

15 of the Act of March 3, 1883 (22 Stat. 587) is

16 amended under the heading ‘‘SENATE.’’ by striking

17 out the undesignated paragraph relating to the exer18 cise of powers and discharge of duties of the Joint

19 Committee of Congress on the Library by the Senate

20 members of the joint committee during the recess of

21 Congress (22 Stat. 592; 2 U.S.C. 133).

22 (c) OTHER REFERENCES.—A reference to a joint

23 committee of Congress terminated by section 102(d) in

24 any law or in any document of the Federal Government
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1 shall be deemed to refer to the Joint Committee on Infor2 mation established by section 101.

3 SEC. 816. PROVISIONS OF TITLE 44, UNITED STATES CODE,

4 RELATING TO PAPERWORK REDUCTION.

5 (a) DEFINITION.—Section 3502 of title 44, United

6 States Code, is amended by striking out paragraph (9)

7 and inserting in lieu thereof the following:

8 ‘‘(9) the term ‘information technology’ has the

9 meaning given that term in section 4 of the Infor10 mation Technology Management Reform Act of

11 1995;’’.

12 (b) OFFICE OF INFORMATION AND REGULATORY AF13 FAIRS.—Chapter 35 of such title is amended—

14 (1) by striking out section 3503 and inserting

15 in lieu thereof the following:

16 ‘‘§ 3503. Chief Information Officer of the United

17 States

18 ‘‘The Director of the Office of Management and

19 Budget shall delegate to the Chief Information Officer of

20 the United States the authority to administer all functions

21 under this chapter, except that any such delegation shall

22 not relieve the Director of responsibility for the adminis23 tration of such functions.’’; and

24 (2) by striking out section 3520.
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1 (c) DEVELOPMENT OF STANDARDS AND GUIDELINES

2 BY NIST.—Section 3504(h)(1)(B) of such title is amend3 ed by striking out ‘‘section 111(d) of the Federal Property

4 and Administrative Services Act of 1949 (40 U.S.C.

5 759(d))’’ and inserting in lieu thereof ‘‘paragraphs (2) and

6 (3) of section 20(a) of the National Institute of Standards

7 and Technology Act (20 U.S.C. 278g–3(a))’’.

8 (d) COMPLIANCE WITH DIRECTIVES.—Section

9 3504(h)(2) of such title is amended by striking out ‘‘sec10 tions 110 and 111 of the Federal Property and Adminis11 trative Services Act of 1949 (40 U.S.C. 757 and 759)’’

12 and inserting in lieu thereof ‘‘the Information Technology

13 Management Reform Act of 1995 and directives issued

14 under section 110 of the Federal Property and Adminis15 trative Services Act of 1949 (40 U.S.C. 757)’’.

16 (e) SENIOR INFORMATION RESOURCES MANAGE17 MENT OFFICIALS.—Section 3506(a)(2) of such title is

18 amended—

19 (1) in subparagraph (A), by striking out ‘‘sub20 paragraph (B)’’ and inserting in lieu thereof ‘‘sub21 paragraphs (B) and (C)’’; and

22 (2) by adding at the end the following:

23 ‘‘(C) An agency for which a chief information officer

24 is designated under section 143(a) of the Information
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1 Technology Management Reform Act of 1995 may not

2 designate a senior official under this paragraph.’’.

3 SEC. 817. AMENDMENT TO TITLE 49, UNITED STATES CODE.

4 Section 40112(a) of title 49, United States Code, is

5 amended by striking out ‘‘or a contract to purchase prop6 erty to which section 111 of the Federal Property and Ad7 ministrative Services Act of 1949 (40 U.S.C. 759) ap8 plies’’.

9 SEC. 818. OTHER LAWS.

10 (a) COMPUTER SECURITY ACT OF 1987.—Section

11 2(b)(2) of the Computer Security Act of 1987 (Public Law

12 100–235; 101 Stat. 1724) is amended by striking out ‘‘by

13 amending section 111(d) of the Federal Property and Ad14 ministrative Services Act of 1949 (40 U.S.C. 759(d))’’.

15 (b) PUBLIC LAW 101–520.—Section 306(b) of Public

16 Law 101–520 (40 U.S.C. 166 note) is amended by strik17 ing out paragraph (1) and inserting in lieu thereof the

18 following:

19 ‘‘(1) the Information Technology Management

20 Reform Act of 1995; and’’.

21 (c) NATIONAL ENERGY CONSERVATION POLICY

22 ACT.—Section 801(b)(3) of the National Energy Con23 servation Policy Act (42 U.S.C. 8287(b)(3)) is amended

24 by striking out the second sentence.
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1 (d) NATIONAL SECURITY ACT OF 1947.—Section 3

2 of the National Security Act of 1947 (50 U.S.C. 403c)

3 is amended by striking out subsection (e).

4 Subtitle B—Clerical Amendments

5 SEC. 821. AMENDMENT TO TITLE 10, UNITED STATES CODE.

6 The table of sections at the beginning of chapter 137

7 of title 10, United States Code, is amended by striking

8 out the item relating to section 2315.

9 SEC. 822. AMENDMENT TO TITLE 38, UNITED STATES CODE.

10 The table of sections at the beginning of chapter 3

11 of title 38, United States Code, is amended by striking

12 out the item relating to section 310 and inserting in lieu

13 thereof the following:

‘‘310. Chief information officer.’’.

14 SEC. 823. AMENDMENTS TO TITLE 44, UNITED STATES

15 CODE.

16 (a) CHAPTER 1.—The item relating to chapter 1 in

17 the table of chapters at the beginning of title 44, United

18 States Code, is amended to read as follows:

‘‘1. Joint Committee on Information .......................................... 101’’.

19 (b) CHAPTER 35.—The table of sections at the begin20 ning of chapter 35 of such title is amended—

21 (1) by striking out the item relating to section

22 3503 and inserting in lieu thereof the following:

‘‘3503. Chief Information Officer of the United States.’’;

23 and
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1 (2) by striking out the item relating to section

2 3520.

3 TITLE IX—SAVINGS PROVISIONS

4 SEC. 901. SAVINGS PROVISIONS.

5 (a) REGULATIONS, INSTRUMENTS, RIGHTS, AND

6 PRIVILEGES.—All rules, regulations, contracts, orders, de7 terminations, permits, certificates, licenses, grants, and

8 privileges—

9 (1) which have been issued, made, granted, or

10 allowed to become effective by the Administrator of

11 General Services or the General Services Adminis12 tration Board of Contract Appeals, or by a court of

13 competent jurisdiction, in connection with an acqui14 sition activity carried out under the section 111 of

15 the Federal Property and Administrative Services

16 Act of 1949 (40 U.S.C. 759), and

17 (2) which are in effect on the effective date of

18 this title,

19 shall continue in effect according to their terms until

20 modified, terminated, superseded, set aside, or revoked in

21 accordance with law by the Director of the Office of Man22 agement and Budget, the Chief Information Officer of the

23 United States, any other authorized official, by a court

24 of competent jurisdiction, or by operation of law.

25 (b) PROCEEDINGS AND APPLICATIONS.—
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1 (1) TRANSFERS OF FUNCTIONS NOT TO AFFECT

2 PROCEEDINGS.—This Act and the amendments

3 made by this Act shall not affect any proceeding, in4 cluding any proceeding involving a claim or applica5 tion, in connection with an acquisition activity car6 ried out under section 111 of the Federal Property

7 and Administrative Services Act of 1949 (40 U.S.C.

8 759) that is pending before the Administrator of

9 General Services or the General Services Adminis10 tration Board of Contract Appeals on the effective

11 date of this Act.

12 (2) ORDERS IN PROCEEDINGS.—Orders may be

13 issued in any such proceeding, appeals may be taken

14 therefrom, and payments may be made pursuant to

15 such orders, as if this Act had not been enacted. An

16 order issued in any such proceeding shall continue in

17 effect until modified, terminated, superseded, or re18 voked by the Director of the Office of Management

19 and Budget, the Chief Information Officer of the

20 United States, or any other authorized official, by a

21 court of competent jurisdiction, or by operation of

22 law.

23 (3) DISCONTINUANCE OR MODIFICATION OF

24 PROCEEDINGS NOT PROHIBITED.—Nothing in this

25 subsection prohibits the discontinuance or modifica-
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1 tion of any such proceeding under the same terms

2 and conditions and to the same extent that such pro3 ceeding could have been discontinued or modified if

4 this Act had not been enacted.

5 (4) REGULATIONS FOR TRANSFER OF PRO6 CEEDINGS.—The Director of the Office of Manage7 ment and Budget may prescribe regulations provid8 ing for the orderly transfer of proceedings continued

9 under paragraph (1).

10 TITLE X—EFFECTIVE DATES

11 SEC. 1001. EFFECTIVE DATES.

12 (a) IN GENERAL.—Except as provided in subsection

13 (b), this Act and the amendments made by this Act shall

14 take effect one year after the date of the enactment of

15 this Act.

16 (b) TITLE VI.—Title VI shall take effect on the date

17 of the enactment of this Act.

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