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[Congressional Bills 104th Congress]
[From the U.S. Government Publishing Office]
[S. 946 Introduced in Senate (IS)]

  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.
    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE; TABLE OF CONTENTS.
    (a) Short Title.--This Act may be cited as the ``Information 
Technology Management Reform Act of 1995''.
    (b) Table of Contents.--The table of contents for 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.
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.
      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.
  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.
SEC. 2. FINDINGS.

    Congress makes the following findings:
            (1) Federal information systems are critical to the lives 
        of every American.
            (2) The efficiency and effectiveness of the Federal 
        Government is dependent upon the effective use of information.
            (3) The Federal Government annually spends billions of 
        dollars operating obsolete information systems.
            (4) The use of obsolete information systems severely limits 
        the quality of the services that the Federal Government 
        provides, the efficiency of Federal Government operations, and 
        the capabilities of the Federal Government to account for how 
        taxpayer dollars are spent.
            (5) The failure to modernize Federal Government information 
        systems, despite efforts to do so, has resulted in the waste of 
        billions of dollars that cannot be recovered.
            (6) Despite improvements achieved through implementation of 
        the Chief Financial Officers Act of 1990, most Federal agencies 
        cannot track the expenditures of Federal dollars and, thus, 
        expose the taxpayers to billions of dollars in waste, fraud, 
        abuse, and mismanagement.
            (7) Weak oversight and a lengthy acquisition process have 
        resulted in the American taxpayers not getting their money's 
        worth from the expenditure of $200,000,000,000 on information 
        systems during the decade preceding the enactment of this Act.
            (8) The Federal Government does an inadequate job of 
        planning for information technology acquisitions and how such 
        acquisitions will support the accomplishment of agency 
        missions.
            (9) Many Federal Government personnel lack the basic skills 
        necessary to effectively and efficiently use information 
        technology and other information resources in support of agency 
        programs and missions.
            (10) Federal regulations governing information technology 
        acquisitions are outdated, focus on process rather than 
        results, and prevent the Federal Government from taking timely 
        advantage of the rapid advances taking place in the competitive 
        and fast changing global information technology industry.
            (11) Buying, leasing, or developing information systems 
        should be a top priority for Federal agency management because 
        the high potential for the systems to substantially improve 
        Federal Government operations, including the delivery of 
        services to the public.
            (12) Organizational changes are necessary in the Federal 
        Government in order to improve Federal information management 
        and to facilitate Federal Government acquisition of the state-
        of-the-art information technology that is critical for 
        improving the efficiency and effectiveness of Federal 
        Government operations.

SEC. 3. PURPOSES.

    The purposes of this Act are as follows:
            (1) To create incentives for the Federal Government to 
        strategically use information technology in order to achieve 
        efficient and effective operations of the Federal Government, 
        to provide cost effective and efficient delivery of Federal 
        Government services to the taxpayers, to provide greater 
        protection of the health and safety of Americans, and to 
        enhance the national security of the United States.
            (2) To provide for the cost effective and timely 
        acquisition, management, and use of effective information 
        technology solutions.
            (3) To transform the process-oriented procurement system of 
        the Federal Government, as it relates to the acquisition of 
        information technology, into a results-oriented procurement 
        system.
            (4) To increase the responsibility of officials of the 
        Office of Management and Budget and other Federal Government 
        agencies, and the accountability of such officials to Congress 
        and the public, for
         achieving agency missions, including achieving improvements in 
the efficiency and effectiveness of Federal Government programs through 
the use of information technology and other information resources in 
support of agency missions.
            (5) To ensure that the heads of Federal Government agencies 
        are responsible and accountable for acquiring, using, and 
        strategically managing information resources in a manner that 
        achieves significant improvements in the performance of agency 
        missions in pursuit of a goal of achieving service delivery 
        levels and project management performance comparable to the 
        best in the private sector.
            (6) To promote the development and operation of secure, 
        multiple-agency and Governmentwide, interoperable, shared 
        information resources to support the performance of Federal 
        Government missions.
            (7) To reduce fraud, waste, abuse, and errors resulting 
        from a lack of, or poor implementation of, Federal Government 
        information systems.
            (8) To increase the capability of Federal Government 
        agencies to restructure and improve processes before applying 
        information technology.
            (9) To increase the emphasis placed by Federal agency 
        managers on completing effective planning and mission analysis 
        before applying information technology to the execution of 
        plans and the performance of agency missions.
            (10) To coordinate, integrate, and, to the extent 
        practicable and appropriate, establish uniform Federal 
        information resources management policies and practices in 
        order to improve the productivity, efficiency, and 
        effectiveness of Federal Government programs and the delivery 
        of services to the public.
            (11) To strengthen the partnership between the Federal 
        Government and State, local, and tribal governments for 
        achieving Federal Government missions, goals, and objectives.
            (12) To provide for the development of a well-trained core 
        of professional Federal Government information resources 
        managers.

SEC. 4. DEFINITIONS.

    In this Act:
            (1) Information resources.--The term ``information 
        resources'' means the resources used in the collection, 
        processing, maintenance, use, sharing, dissemination, or 
        disposition of information, including personnel, equipment, 
        funds, and information technology.
            (2) Information resources management.--The term 
        ``information resources management'' means the process of 
        managing information resources to accomplish agency missions 
        and to improve agency performance.
            (3) Information system.--The term ``information system'' 
        means a discrete set of information resources, whether 
        automated or manual, that are organized for the collection, 
        processing, maintenance, use, sharing, dissemination, or 
        disposition of information in accordance with defined 
        procedures and includes computer systems.
            (4) Information technology.--The term ``information 
        technology'', with respect to an executive agency--
                    (A) means any equipment or interconnected system or 
                subsystem of equipment, including software, services, 
                satellites, sensors, an information system, or a 
                telecommunication system, that is used in the 
                acquisition, storage, manipulation, management, 
                movement, control, display, switching, interchange, 
                transmission, or reception of data or information by 
                the executive agency or under a contract with the 
                executive agency which (i) requires the use of such 
                system or subsystem of equipment, or (ii) requires the 
                use, to a significant extent, of such system or 
                subsystem of equipment in the performance of a service 
                or the furnishing of a product; and
                    (B) does not include any such equipment that is 
                acquired by a Federal contractor incidental to a 
                Federal contract.
            (5) Information architecture.--The term ``information 
        architecture'', with respect to an executive agency, means a 
        framework or plan for evolving or maintaining existing 
        information technology, acquiring new information technology, 
        and integrating the agency's information technology to achieve 
        the agency's strategic goals and information resources 
        management goals.
            (6) Executive department.--The term ``executive 
        department'' means an executive department specified in section 
        101 of title 5, United States Code.
            (7) Executive agency.--The term ``executive agency'' has 
        the meaning given the term in section 4(1) of the Office of 
        Federal Procurement Policy Act (41 U.S.C. 403(1)).
            (8) High-risk information technology program.--The term 
        ``high-risk information technology program'' means an 
        acquisition of an information system, or components of an 
        information system, that requires special management attention 
        because--
                    (A) the program cost is at least $100,000,000;
                    (B) the system being developed under the program is 
                critical to the success of an executive agency in 
                fulfilling the agency's mission;
                    (C) there is a significant risk in the development 
                of the system because of--
                            (i) the size or scope of the development 
                        project;
                            (ii) the period necessary for completing 
                        the project;
                            (iii) technical configurations;
                            (iv) unusual security requirements;
                            (v) the special management skills necessary 
                        for the management of the project; or
                            (vi) the highly technical expertise 
                        necessary for the project; or
                    (D) it is or will be necessary to allocate a 
                significant percentage of the information technology 
                budget of an executive agency to paying the costs of 
                developing, operating, or maintaining the system.
            (9) Commercial item.--The term ``commercial item'' has the 
        meaning given that term in section 4(12) of the Office of 
        Federal Procurement Policy Act (41 U.S.C. 403(12)).
            (10) Nondevelopmental item.--The term ``nondevelopmental 
        item'' has the meaning given that term in section 4(13) of the 
        Office of Federal Procurement Policy Act (41 U.S.C. 403(13)).
   TITLE I--RESPONSIBILITY FOR ACQUISITIONS OF INFORMATION TECHNOLOGY

                     Subtitle A--General Authority

SEC. 101. AUTHORITY OF HEADS OF EXECUTIVE AGENCIES.

    The heads of the executive agencies may conduct acquisitions of 
information technology pursuant to their respective authorities under 
title III of the Federal Property and Administrative Services Act of 
1949 (41 U.S.C. 251, et seq.), chapters 4 and 137 of title 10, United 
States Code, and the National Aeronautics and Space Act of 1958 (42 
U.S.C. 2451 et seq.).
SEC. 102. SUPERIOR AUTHORITY OF DIRECTOR OF OFFICE OF MANAGEMENT AND 
              BUDGET.

    Notwithstanding section 101 and the authorities referred to in such 
section, the conduct of an acquisition of information technology by the 
head of an executive agency is subject to (1) the authority, direction, 
and control of the Director of the Office of Management and Budget and 
the Chief Information Officer of the United States, and (2) the 
provisions of this Act.

SEC. 103. REPEAL OF CENTRAL AUTHORITY OF THE ADMINISTRATOR OF GENERAL 
              SERVICES.

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

      Subtitle B--Director of the Office of Management and Budget

SEC. 121. RESPONSIBILITY OF DIRECTOR.

    (a) In General.--The Director of the Office of Management and 
Budget is responsible for the effective and efficient acquisition, use, 
and disposal of information technology and other information resources 
by the executive agencies.
    (b) Goal.--It shall be a goal of the Director to maximize the 
productivity, efficiency, and effectiveness of the information 
resources of the Federal Government to serve executive agency missions.
    (c) Actions To Be Taken Through Chief Information Officer.--The 
Director shall act through the Chief Information Officer of the United 
States in the exercise of authority under this Act.
SEC. 122. SPECIFIC RESPONSIBILITIES.

    (a) Responsibilities Stated.--The Director of the Office of 
Management and Budget has the following responsibilities with respect 
to the executive agencies:
            (1) To provide direction for, and oversee, the acquisition 
        and management of information resources.
            (2) To develop, coordinate, and supervise the 
        implementation of policies, principles, standards, and 
        guidelines for information resources, performance of 
        information resources management functions and activities, and 
        investment in information resources.
            (3) To determine the information resources that are to be 
        provided in common for executive agencies.
            (4) To designate (as the Director considers appropriate) 
        one or more heads of executive agencies as an executive agent 
        to contract for Governmentwide information technology.
            (5) To maintain a registry of most effective agency sources 
        of information technology program management and contracting 
        services, and to facilitate interagency use of such sources.
            (6) To promulgate standards and guidelines pertaining to 
        Federal information systems in accordance with section 124.
            (7) To carry out an information systems security and 
        privacy program for the information systems of the Federal 
        Government, including to administer the provisions of section 
        21 of the National Institute of Standards and Technology Act 
        (15 U.S.C. 278g-4) relating to the Computer System Security and 
        Privacy Advisory Board.
            (8) To provide for Federal information system security 
        training in accordance with section 5(c) of the Computer 
        Security Act of 1987 (40 U.S.C. 759(c)).
            (9) To encourage and advocate the adoption of national and 
        international information technology standards that are 
        technically and economically beneficial to the Federal 
        Government and the private sector.
    (b) Consultation With Federal Information Council.--(1) The 
Director shall consult with the Federal Information Council regarding 
actions to be taken under paragraphs (3) and (4) of subsection (a).
    (2) The Director may consult with the Federal Information Council 
regarding the performance of any other responsibility of the Director 
under this Act.

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

    (a) Evaluation of Agency Programs and Investments.--
            (1) Requirement.--The Director of the Office of Management 
        and Budget shall evaluate the information resources management 
        practices of the executive agencies and the performance and 
        results of the information technology investments of executive 
        agencies.
            (2) Consideration of advice and recommendations.--In 
        performing the evaluation, the Director shall consider any 
        advice and recommendations provided by the Federal Information 
        Council or in any interagency or independent review or vendor 
        or user survey conducted pursuant to this section.
    (b) Continuous Review Required.--The Director shall ensure, by 
reviewing each executive agency's budget proposals, information 
resources management plans, and performance measurements, and by other 
means, that--
            (1) the agency--
                    (A) provides adequately for the integration of the 
                agency's information resources management plans, 
                strategic plans prepared pursuant to section 306 of 
                title 5, United States Code, and performance plans 
                prepared pursuant to section 1115 of title 31, United 
                States Code; and
                    (B) budgets for the acquisition and use of 
                information technology;
            (2) the agency analyzes its missions and, based on the 
        analysis, revises its mission-related processes and 
        administrative processes as appropriate before making 
        significant investments in information technology to be used in 
        support of agency missions;
            (3) the agency's information resources management plan is 
        current and adequate and, to the maximum extent practicable, 
        specifically identifies how new information technology to be 
        acquired is expected to improve agency operations and otherwise 
        expected to benefit the agency;
            (4) efficient and effective interagency and Governmentwide 
        information technology investments are undertaken to improve 
        the accomplishment of common agency missions; and
            (5) agency information security is adequate.
    (c) Periodic Reviews.--
            (1) Reviews required.--The Director shall periodically 
        review selected information resources management activities of 
        the executive agencies in order to ascertain the efficiency and 
        effectiveness of such activities in improving agency 
        performance and the accomplishment of agency missions.
            (2) Independent reviewers.--(A) The Director may carry out 
        a review of an executive agency under this subsection through--
                    (i) the Comptroller General of the United States 
                (with the consent of the Comptroller General);
                    (ii) the Inspector General of the agency (in the 
                case of an agency having an Inspector General); or
                    (iii) in the case of a review requiring an 
                expertise not available to the Director for the review, 
                a panel of officials of executive agencies or a 
                contractor.
            (B) The Director shall notify the head of a Federal agency 
        of any determination made by the Director to provide for a 
        review to be performed by an independent reviewer from outside 
        the agency.
            (C) A review of an executive agency by the Comptroller 
        General of the United States may be carried out only pursuant 
        to an interagency agreement entered into by the Director and 
        the Comptroller General. The agreement shall provide for the 
        Director to pay the Comptroller General the amount necessary to 
        reimburse the Comptroller General for the costs of performing 
        the review.
            (3) Funding.--Funds available to an executive agency for 
        acquisition or use of information technology shall be available 
        for paying the costs of a review of activity of that agency 
        under this subsection.
            (4) Report and response.--The Director shall transmit to 
        the head of an executive agency reviewed under this subsection 
        a report on the results of the review. Within 30 days after 
        receiving the report, the head of the executive agency shall 
        submit to the Director a written plan (including milestones) on 
        the actions that the head of the executive agency determines 
        necessary in order--
                    (A) to resolve any information resources management 
                problems identified in the report; and
                    (B) to improve the performance of agency missions 
                and other agency performance.
    (d) Vendor Surveys.--The Director shall conduct surveys of vendors 
and other sources of information technology acquired by an executive 
agency in order to determine the level of satisfaction of those sources 
with the performance of the executive agency in conducting the 
acquisition or acquisitions involved. The Director shall afford the 
sources the opportunity to rate the executive agency anonymously.
    (e) User Surveys.--
            (1) Requirement.--The Director shall conduct surveys of 
        users of information technology acquired by an executive agency 
        in order to determine the level of satisfaction of the users 
        with the performance of the vendor.
            (2) Compilation of survey results.--The Director shall 
        compile the results of the surveys into an annual report and 
        make the annual report available electronically to the heads of 
        the executive agencies.
    (f) Enforcement of Accountability.--
            (1) In general.--The Director may take any action that the 
        Director considers appropriate, including an action involving 
        the budgetary process or appropriations management process, to 
        enforce accountability for poor performance of information 
        resources management in an executive agency.
            (2) Specific actions.--Actions taken by the Director in the 
        case of an executive agency may include such actions as the 
        following:
                    (A) Reduce the amount proposed by the head of the 
                executive agency to be included for information 
                resources in the budget submitted to Congress under 
                section 1105(a) of title 31, United States Code.
                    (B) Reduce or otherwise adjust apportionments and 
                reapportionments of appropriations for information 
                resources.
                    (C) Use other authorized administrative controls 
                over appropriations to restrict the availability of 
                funds for information resources.
                    (D) Disapprove the commencement or continuance of 
                an information technology investment by the executive 
                agency.
                    (E) Designate for the executive agency an executive 
                agent to contract with private sector sources for--
                            (i) the performance of information 
                        resources management (subject to the approval 
                        and continued oversight of the Director); or
                            (ii) the acquisition of information 
                        technology.
                    (F) Withdraw all or part of the head of the 
                executive agency's authority to contract directly for 
                information technology.
    (g) Enforcement Actions Related to Cost, Performance, and Schedule 
Goals.--
            (1) Required terminations of acquisitions.--The Director 
        shall terminate any high-risk information technology program or 
        phase or increment of the program that--
                    (A) is more than 50 percent over the cost goal 
                established for the program or a phase or increment of 
                the program;
                    (B) fails to achieve at least 50 percent of the 
                performance goals established for the program or a 
                phase or increment of a program; or
                    (C) is more than 50 percent behind schedule as 
                determined in accordance with the schedule goal 
                established for the program or a phase or increment of 
                the program.
            (2) Authorized terminations of acquisitions.--The Director 
        shall consider terminating any information technology 
        acquisition that--
                    (A) is more than 10 percent over the cost goal 
                established for the program or a phase or increment of 
                the program;
                    (B) fails to achieve at least 90 percent of the 
                performance goals established for the program or a 
                phase or increment of a program; or
                    (C) is more than 10 percent behind schedule as 
                determined in accordance with the schedule goal 
                established for the program or a phase or increment of 
                the program.
SEC. 124. STANDARDS AND GUIDELINES FOR FEDERAL INFORMATION SYSTEMS.

    (a) Promulgation Responsibility.--The Director of the Office of 
Management and Budget shall, on the basis of standards and guidelines 
developed pursuant to paragraphs (2) and (3) of section 20(a) of the 
National Institute of Standards and Technology Act (20 U.S.C. 278g-
3(a)), promulgate standards and guidelines pertaining to Federal 
information systems, making such standards compulsory and binding to 
the extent to which the Director determines necessary to improve the 
efficiency of operation, interoperability, security, and privacy of 
Federal information systems. In promulgating standards, the Director 
should minimize the use of unique standards and adopt market standards 
to the extent practicable.
    (b) More Stringent Standards Authorized.--The head of an executive 
agency may employ standards for the security and privacy of sensitive 
information in a Federal information system within or under the 
supervision of that agency that are more stringent than the standards 
promulgated by the Director, if such standards are approved by the 
Director, are cost effective, maintain interoperability, and contain, 
at a minimum, the provisions of those applicable standards made 
compulsory and binding by the Director.
    (c) Waiver Authority.--The standards determined to be compulsory 
and binding may be waived by the Director in writing upon a 
determination that compliance would adversely affect the accomplishment 
of the mission of an operator of a Federal information system, or cause 
a major adverse financial impact on the operator which is not offset by 
Governmentwide savings.
    (d) Special Rule of Applicability.--(1) Security standards 
promulgated by the Director of the Office of Management and Budget do 
not apply to information systems of the Department of Defense or the 
Central Intelligence Agency.
    (2) The Secretary of Defense shall prescribe security standards 
applicable to the information systems of the Department of Defense.
    (3) The Director of Central Intelligence shall prescribe security 
standards applicable to the information systems of the Central 
Intelligence Agency.

SEC. 125. CONTRACTING FOR PERFORMANCE OF INFORMATION RESOURCES 
              MANAGEMENT FUNCTIONS.

    The Director of the Office of Management and Budget may contract 
for the performance of an information resources management function for 
the executive branch.

SEC. 126. REGULATIONS.

    (a) Authority.--The Director of the Office of Management and Budget 
may prescribe regulations to carry out the provisions of this Act.
    (b) Simplicity of Regulations.--To the maximum extent practicable, 
the Director shall minimize the length and complexity of the 
regulations and establish clear and concise implementing regulations.
    (c) Incorporation Into FAR.--The regulations shall be made a part 
of the Federal Acquisition Regulation.
    (d) Prohibition Against Agency Supplemental Regulations.--The head 
of an executive agency may not prescribe supplemental regulations for 
the regulations prescribed by the Director under subsection (a).

       Subtitle C--Chief Information Officer of the United States

SEC. 131. OFFICE OF THE CHIEF INFORMATION OFFICER OF THE UNITED STATES.

    (a) Establishment.--There is established in the Office of 
Management and Budget an Office of the Chief Information Officer of the 
United States.
    (b) Chief Information Officer of the United States.--
            (1) Appointment.--The Chief Information Officer of the 
        United States is appointed by the President, by and with the 
        advice and consent of the Senate, from among persons who have 
        demonstrated the knowledge, skills, and abilities in management 
        and in information resources management that are necessary to 
        perform the functions of the Office of the Chief Information 
        Officer of the United States effectively. The qualifications 
        considered shall include education, work experience, and 
        professional activities related to information resources 
        management.
            (2) Head of office.--The Chief Information Officer is the 
        head of the Office of the Chief Information Officer of the 
        United States.
            (3) Executive level ii.--Section 5313 of title 5, United 
        States Code, is amended by adding at the end the following:
                    ``Chief Information Officer of the United 
                States.''.
    (c) Administrative Provisions.--
            (1) Appointment of employees.--The Chief Information 
        Officer appoints the employees of the office.
            (2) Employee qualifications.--In selecting a person for 
        appointment as an employee in an information resources 
        management position, the Chief Information Officer shall afford 
        special attention to the person's demonstrated abilities to 
        perform the information resources management functions of the 
        position. The qualifications considered shall include 
        education, work experience, and professional activities related 
        to information resources management.
            (3) Pay for performance.--(A) The Chief Information Officer 
        shall establish a pay for performance system for the employees 
        of the office and pay the employees in accordance with that 
        system.
            (B) Subject to the approval of the Director of the Office 
        of Management and Budget, the Chief Information Officer may 
        submit to Congress any recommendations for legislation that the 
        Chief Information Officer considers necessary to implement 
        fully the pay for performance system.
            (4) Support from other agencies.--Upon the request of the 
        Chief Information Officer, the head of an executive agency 
        (other than an independent regulatory agency) shall, to the 
        extent practicable, make services, personnel, or facilities of 
        the agency available to the Office of the Chief Information 
        Officer of the United States for the performance of functions 
        of the Chief Information Officer.
SEC. 132. RELATIONSHIP OF CHIEF INFORMATION OFFICER TO DIRECTOR OF THE 
              OFFICE OF MANAGEMENT AND BUDGET; PRINCIPAL DUTIES.

    (a) Reporting Authority.--The Chief Information Officer of the 
United States reports directly to the Director.
    (b) Principal Adviser to Director of OMB on Information Resources 
Management.--The Chief Information Officer is the principal adviser to 
the Director on information resources management policy, including 
policy on acquisition of information technology for the Federal 
Government.
    (c) Performance of Duties of Director of OMB.--
            (1) In general.--The Chief Information Officer shall 
        perform the responsibilities of the Director under this Act.
            (2) Continued responsibility of director.--Paragraph (1) 
        does not relieve the Director of responsibility and 
        accountability for the performance of such responsibilities.
    (d) Authority Subject to Control of Director of OMB.--The 
performance of duties and exercise of authority by the Chief 
Information Officer is subject to the authority, direction, and control 
of the Director of the Office of Management and Budget.
SEC. 133. ADDITIONAL DUTIES.

    The Chief Information Officer has the following additional duties:
            (1) To encourage the executive agencies to develop and use 
        the best practices in information resources management and in 
        acquisitions of information technology by--
                    (A) identifying and collecting information 
                regarding the best practices, including information on 
                the development and implementation of the best 
                practices by the executive agencies; and
                    (B) providing the executive agencies with 
                information on the best practices and with advice and 
                assistance regarding use of the best practices.
            (2) To assess, on a continuing basis, the experiences of 
        executive agencies, State and local governments, international 
        organizations, and the private sector in managing information 
        resources.
            (3) To compare the performances of the executive agencies 
        in using information resources and to disseminate the 
        comparisons to the executive agencies.
            (4) To develop and maintain a Governmentwide strategic plan 
        for information resources management and acquisitions of 
        information technology, including guidelines and standards for 
        the development of an information resources management plan to 
        be used by the executive agencies.
            (5) To ensure that the information resources management 
        plan and the information systems of executive agencies conform 
        to the guidelines and standards set forth in the Governmentwide 
        strategic plan.
            (6) To develop and submit to the Director of the Office of 
        Management and Budget proposed legislation and proposed changes 
        or additions to regulations and agency procedures as the Chief 
        Information Officer considers necessary in order to improve 
        information resources management by the executive agencies.
            (7) To review the regulations, policies, and practices of 
        executive agencies regarding information resources management 
        and acquisitions of information technology in order to identify 
        the regulations, policies, and practices that should be 
        eliminated or adjusted so as not to hinder or impede 
        information resources management or acquisitions of information 
        technology.
            (8) To monitor the development and implementation of 
        training in information resources management for executive 
        agency management personnel and staff.
            (9) To keep Congress fully informed on high-risk 
        information technology programs of the executive agencies, and 
        the extent to which the executive agencies are improving 
        program performance and the accomplishment of agency missions 
        through the use of the best practices in information resources 
        management.
            (10) To review Federal procurement policies on acquisitions 
        of information technology and to coordinate with the 
        Administrator for Federal Procurement Policy regarding the 
        development of Federal procurement policies for such 
        acquisitions.
            (11) To facilitate the establishment and maintenance of an 
        electronic clearinghouse of information on the availability of 
        nondevelopmental items of information technology for the 
        Federal Government.
            (12) To perform the functions of the Director of the Office 
        of Management and Budget under chapter 35 of title 44, United 
        States Code.
SEC. 134. ACQUISITIONS UNDER HIGH-RISK INFORMATION TECHNOLOGY PROGRAMS.

    (a) Advance Program Review.--The Chief Information Officer of the 
United States shall review each proposed high-risk information 
technology program.
    (b) Advance Approval Required.--No program referred to in 
subsection (a) may be carried out by the head of an executive agency 
without the advance approval of the Chief Information Officer of the 
United States.

SEC. 135. ELECTRONIC DATA BASE ON CONTRACTOR PERFORMANCE.

    (a) Establishment.--The Chief Information Officer of the United 
States shall establish in the Office of the Chief Information Officer 
of the United States an electronic data base containing a record of the 
performance of each contractor under a Federal Government contract for 
the acquisition of information technology or other information 
resources.
    (b) Reporting of Information to Data Base.--
            (1) Requirement.--The head of each executive agency shall, 
        in accordance with regulations prescribed by the Director of 
        the Office of Management and Budget, report to the Chief 
        Information Officer information on contractor performance that 
        is to be included in the data base.
            (2) When submitted.--The head of an executive agency shall 
        submit to the Director--
                    (A) an annual report on contractor performance 
                during the year covered by the report; and
                    (B) upon the completion or termination of 
                performance under a contract, a report on the 
                contractor performance under that contract.
    (c) Period for Information To Be Maintained.--Information on the 
performance of a contractor under a contract shall be maintained in the 
data base for five years following completion of the performance under 
that contract. Information not required to be maintained under the 
preceding sentence shall be removed from the data base or rendered 
inaccessible.

                     Subtitle D--Executive Agencies

SEC. 141. RESPONSIBILITIES.

    (a) In General.--The head of an executive agency is responsible 
for--
            (1) carrying out the information resources management 
        activities of the agency in a manner that fulfills the agency's 
        missions and improves agency productivity, efficiency, and 
        effectiveness; and
            (2) complying with the requirements of this Act and the 
        policies, regulations, and directives issued by the Director of 
        the Office of Management and Budget or the Chief Information 
        Officer of the United States under the provisions of this Act.
    (b) Information Resources Management Plan.--
            (1) Plan required.--The head of an executive agency shall 
        develop, maintain, and oversee the implementation of an agency-
        wide information resources management plan that is consistent 
        with the strategic plan prepared by the head of the agency 
        pursuant to section 306 of title 5, United States Code, and the 
        agency head's mission analysis, and ensure that the agency 
        information systems conform to those plans.
            (2) Content of plan.--The information resources management 
        plan shall provide for applying information technology and 
        other information resources in support of the performance of 
        the missions of the agency and shall include the following:
                    (A) A statement of goals for improving the 
                contribution of information resources to program 
                productivity, efficiency, and effectiveness.
                    (B) Methods for measuring progress toward achieving 
                the goals.
                    (C) Assignment of clear roles, responsibilities, 
                and accountability for achieving the goals.
                    (D) Identification of--
                            (i) the existing and planned information 
                        technology components (such as information 
                        systems and telecommunication networks) of the 
                        agency and the relationship among the 
                        information technology components; and
                            (ii) the information architecture for the 
                        agency.
    (c) Agency Records.--The head of an executive agency shall 
periodically evaluate and, as necessary, improve the accuracy, 
completeness, and reliability of data and records in the information 
systems of the agency.
    (d) Budgeting.--The head of an executive agency shall use the 
strategic plan, performance plans, and information resources management 
plan of the agency in preparing and justifying the agency's budget 
proposals to the Director of the Office of Management and Budget and to 
Congress.

SEC. 142. SPECIFIC AUTHORITY.

    The authority of the head of an executive agency under section 101 
and the authorities referred to in such section includes the following 
authorities:
            (1) To acquire information technology--
                    (A) in the case of an acquisition of less than 
                $100,000,000, without the advance approval of the Chief 
                Information Officer of the United States; and
                    (B) in the case of an acquisition of a high-risk 
                information technology program, with the advance 
                approval of the Director of the Office of Management 
                and Budget.
            (2) To enter into a contract that provides for multi-agency 
        acquisitions of information technology subject to the approval 
        and guidance of the Federal Information Council.
            (3) If the Federal Information Council and the heads of the 
        executive agencies concerned find that it would be advantageous 
        for the Federal Government to do so, to enter into a multi-
        agency contract for procurement of commercial items that 
        requires each agency covered by the contract, when procuring 
        such items, either to procure the items under that contract or 
        to justify an alternative procurement of the items.
            (4) To establish one or more independent technical review 
        committees, composed of diverse agency personnel (including 
        users) and outside experts selected by the head of the 
        executive agency, to advise the head of the executive agency 
        about information systems programs.

SEC. 143. AGENCY CHIEF INFORMATION OFFICER.

    (a) Designation of Chief Information Officers.--
            (1) Agencies required to have chief information officers.--
        There shall be a chief information officer within each 
        executive agency named in section 901(b) of title 31, United 
        States Code. The head of the executive agency shall designate 
        the chief information officer for the executive agency.
            (2) Agencies authorized to have chief information 
        officers.--The head of any executive agency not required by 
        paragraph (1) to have a chief information officer may designate 
        a chief information officer for the executive agency.
    (b) Relationship to Agency Head.--
            (1) Principal adviser.--The chief information officer of an 
        executive agency is the principal adviser to the head of the 
        executive agency regarding acquisition of information 
        technology and management of information resources for the 
        agency.
            (2) Reporting authority.--The chief information officer of 
        an executive agency reports directly to the head of the 
        executive agency.
            (3) Control by agency head.--The performance of duties and 
        exercise of authority by the chief information officer of an 
        executive agency is subject to the authority, direction, and 
        control of the head of the executive agency.
    (c) Duties.--
            (1) In general.--The chief information officer of an 
        executive agency shall provide advice and other assistance to 
        the head of the executive agency and other senior management 
        personnel of the executive agency to ensure that information 
        technology is acquired and information resources are managed 
        for the agency in a manner that--
                    (A) maximizes--
                            (i) the benefits derived by the agency and 
                        the public served by the agency from use of 
                        information technology; and
                            (ii) the public accountability of the 
                        agency for delivery of services and 
                        accomplishment of the agency's mission; and
                    (B) is consistent with the policies, requirements, 
                and procedures that are applicable in accordance with 
                this Act to the acquisition and management of 
                information technology.
            (2) Establishment of goals.--The chief information officer 
        of an executive agency shall--
                    (A) establish goals for improving the efficiency 
                and effectiveness of agency operations and the delivery 
                of services to the public through the effective use of 
                information resources; and
                    (B) submit to the head of the executive agency an 
                annual report, to be included in the budget submission 
                for the executive agency, on the progress in achieving 
                the goals.
            (3) Information resources management.--(A) The chief 
        information officer of an executive agency shall administer the 
        information resources management functions, including the 
        acquisition functions, of the head of the executive agency.
            (B) Subparagraph (A) does not relieve the head of an 
        executive agency of responsibility and accountability for the 
        administration of such functions.
            (4) Agency policies.--The chief information officer shall 
        prescribe policies and procedures that--
                    (A) minimize the layers of review for acquisitions 
                of information technology within the executive agency;
                    (B) foster timely communications between vendors of 
                information technology and the agency; and
                    (C) set forth and require the use of information 
                resources management practices and information 
                technology acquisition practices that the chief 
                information officer considers as being among the best 
                of such practices.
            (5) Agency planning.--The chief information officer shall--
                    (A) develop and maintain an information resources 
                management plan for management of information resources 
                and acquisition of information technology for the 
                executive agency; and
                    (B) ensure that there is adequate advance planning 
                for acquisitions of information technology, including 
                assessing and revising the mission-related processes 
                and administrative processes of the agency as 
                determined appropriate before making information system 
                investments.
            (6) Performance measurements.--(A) The chief information 
        officer shall ensure that--
                    (i) performance measurements are prescribed for 
                information technology used by or to be acquired for 
                the executive agency; and
                    (ii) the performance measurements measure how well 
                the information technology supports agency programs.
            (B) In carrying out the duty set forth in subparagraph (A), 
        the chief information officer shall consult with the head of 
        the executive agency, agency managers, users, and program 
        managers regarding the performance measurements that are to be 
        prescribed for information technology.
            (7) Monitoring of program performance.--The chief 
        information officer shall monitor the performance of 
        information technology programs of the executive agency, 
        evaluate the performance on the basis of the applicable 
        performance measurements, and advise the head of the executive 
        agency regarding whether to continue or terminate programs.
            (8) Program performance reports.--(A) Not later than 
        February 1, 1997, and not later than February 1 of each year 
        thereafter, the chief information officer of an executive 
        agency shall prepare and submit to the head of the executive 
        agency an annual program performance report for the information 
        technology programs of the executive agency. The report shall 
        satisfy the requirements of section 1116(d) of title 31, United 
        States Code.
            (B) The head of the executive agency shall transmit a copy 
        of the annual report to the Chief Information Officer of the 
        United States.
            (9) Additional assigned duties.--A chief information 
        officer designated under subsection (a)(1) may not be assigned 
        any duty that is not related to information resources 
        management.
    (d) Office of Chief Information Officer.--
            (1) Establishment.--The head of an executive agency 
        designating a chief information officer shall establish within 
        the agency an Office of the Chief Information Officer.
            (2) Head of office.--The chief information officer of the 
        executive agency shall be the head of the office.
            (3) Staff.--(A) The head of the executive agency appoints 
        the employees of the office. The chief information officer of 
        the executive agency may make recommendations for appointments 
        to positions in the office.
            (B) In selecting a person for appointment to an information 
        resources management position in the office, the head of the 
        executive agency shall afford special attention to the 
        demonstrated abilities of the person to perform the information 
        resources management functions of the position. To the maximum 
        extent practicable, the head of the executive agency shall 
        appoint to the position a person who has direct and substantial 
        experience in successfully achieving major improvements in 
        organizational performance through the use of information 
        technology.
    (e) Executive Level IV.--Section 5315 of title 5, United States 
Code, is amended by adding at the end the following:
            ``Chief information officers designated under section 143 
        of the Information Technology Management Reform Act of 1995.''.

SEC. 144. ACCOUNTABILITY.

    (a) Information Technology Investments.--The head of an executive 
agency shall be accountable to the Director of the Office of Management 
and Budget, through the budget process and otherwise as the Director 
may prescribe, for attaining or failing to attain success in the 
achievement of the program objectives established for the information 
technology investments of the agency.
    (b) System of Controls.--The head of an executive agency, in 
consultation with the chief financial officer of the agency (or, in the 
case of an agency without a chief financial officer, any comparable 
official) shall establish policies and procedures that--
            (1) provide for sound management of expenditures for 
        information technology investments of the agency;
            (2) ensure that the accounting, financial, and asset 
        management systems and other information systems of the agency 
        are designed, developed, maintained, and used effectively to 
        provide financial or program performance data for financial 
        statements of the agency;
            (3) ensure that financial and related program performance 
        data are provided on a reliable, consistent, and timely basis 
        to agency financial management systems;
            (4) ensure that there is a full and accurate accounting for 
        information technology expenditures, including expenditures for 
        related expenses, and for the results derived by the agency 
        from the expenditures; and
            (5) ensure that financial statements support--
                    (A) assessment and revision of mission-related 
                processes and administrative processes of the agency; 
                and
                    (B) performance measurement in the case of 
                information system investments made by the agency.
    (c) Protection of Sensitive Information.--Section 6 of the Computer 
Security Act of 1987 (Public Law 100-235; 101 Stat. 1729) is amended--
            (1) in subsection (a), by striking out ``Within 6 months 
        after the date of enactment of this Act, each'' and inserting 
        in lieu thereof ``Each''; and
            (2) in the first sentence of subsection (b)--
                    (A) by striking out ``Within one year after the 
                date of enactment of this Act, each'' and inserting in 
                lieu thereof ``Each''; and
                    (B) by striking out ``section 111(d) of the Federal 
                Property and Administrative Services Act of 1949'' and 
                inserting in lieu thereof ``section 124 of the 
                Information Technology Management Reform Act of 1995''.
SEC. 145. AGENCY MISSIONS AND THE APPROPRIATENESS OF INFORMATION 
              TECHNOLOGY INITIATIVES.

    (a) Providing for Appropriate Initiatives.--Before making 
investments in information technology or other information resources 
for the performance of agency missions, the head of each executive 
agency shall--
            (1) identify opportunities to revise mission-related 
        processes and administrative processes, assess the desirability 
        of making the revisions, and, if determined desirable, take 
        appropriate action to make and complete the revisions; and
            (2) determine the most efficient and effective manner for 
        carrying out the agency missions.
    (b) Mission Analysis.--
            (1) Continuous studies.--In order to be prepared to carry 
        out subsection (a) in an efficient, effective, and timely 
        manner, the head of an executive agency shall provide for 
        studies to be conducted on a continuing basis within the agency 
        for the purpose of analyzing the missions of the agency.
            (2) Analysis.--The purpose of an analysis of a mission 
        under subsection (a) is to determine--
                    (A) whether the mission should be performed in the 
                private sector rather than by an agency of the Federal 
                Government and, if so, whether the component of the 
                agency performing that function should be converted 
                from a governmental organization to a private sector 
                organization; or
                    (B) whether the mission should be performed by the 
                executive agency and, if so, whether the mission should 
                be performed by--
                            (i) a private sector source under a 
                        contract entered into by head of the executive 
                        agency; or
                            (ii) executive agency personnel.
    (c) Process Improvement Studies.--The head of the executive agency 
shall require that studies be conducted of ways to improve processes 
used in the performance of missions determined, in accordance with 
subsection (b) or otherwise, as being appropriate for the agency to 
perform.

SEC. 146. SIGNIFICANT FAILURES OF PROGRAMS TO ACHIEVE COST, 
              PERFORMANCE, OR SCHEDULE GOALS.

    (a) In General.--The head of an executive agency shall monitor the 
performance of information technology acquisition programs of the 
executive agency with regard to meeting the cost, performance, and 
schedule goals approved or defined for the programs pursuant to section 
313(b) of the Federal Property and Administrative Services Act of 1949 
(41 U.S.C. 263(b)) or section 2220(a) of title 10, United States Code.
    (b) Required Terminations of Acquisitions.--The head of an 
executive agency shall terminate any information technology acquisition 
program of the executive agency, or any phase or increment of such a 
program, that--
            (1) is more than 50 percent over the cost goal established 
        for the program or any phase or increment of the program;
            (2) fails to achieve at least 50 percent of the performance 
        goals established for the program or any phase or increment of 
        the program; or
            (3) is more than 50 percent behind schedule as determined 
        in accordance with the schedule goal established for the 
        program or any phase or increment of the program.
    (c) Acquisitions Required To Be Considered for Termination.--The 
head of an executive agency shall consider for termination any 
information technology acquisition program of the executive agency, or 
any phase or increment of such a program, that--
            (1) is more than 10 percent over the cost goal established 
        for the program or any phase or increment of the program;
            (2) fails to achieve at least 90 percent of the performance 
        goals established for the program or any phase or increment of 
        the program; or
            (3) is more than 10 percent behind schedule as determined 
        in accordance with the schedule goal established for the 
        program or any phase or increment of the program.

SEC. 147. INTERAGENCY SUPPORT.

    The head of an executive agency shall make personnel of the agency 
and other forms of support available for Governmentwide independent 
review committees and interagency groups established under this Act.

SEC. 148. MONITORING OF MODIFICATIONS IN INFORMATION TECHNOLOGY 
              ACQUISITION PROGRAMS.

    (a) Requirement To Monitor and Report.--The program manager for an 
information technology acquisition program of an executive agency shall 
monitor the modifications made in the program or any phase or increment 
of the program, including modifications of cost, schedule, or 
performance goals, and shall periodically report on such modifications 
to the chief information officer of the agency.
    (b) Determinations of high risk.--The number and type of the 
modifications in a program shall be a critical consideration in 
determinations of whether the program is a high-risk information 
technology program (without regard to the cost of the program).
    (c) Assessments of Agency Performance.--The Chief Information 
Officer of the United States shall consider the number and type of the 
modifications in an information technology acquisition program of an 
executive agency for purposes of assessing agency performance.
    (d) Contract Terminations.--The chief information officer of an 
executive agency shall--
            (1) closely review the modifications in an information 
        technology acquisition program of the agency;
            (2) consider whether the frequency and extent of the 
        modifications justify termination of a contract under the 
        program; and
            (3) if a termination is determined justified, submit to the 
        head of the executive agency a recommendation to terminate the 
        contract.

SEC. 149. SPECIAL PROVISIONS FOR DEPARTMENT OF DEFENSE.

    (a) Oversight of Implementation Within the Department of Defense.--
            (1) Delegation of authority for individual programs and 
        systems.--(A) Subject to subparagraph (B), the Director of the 
        Office of Management and Budget shall delegate to the Secretary 
        of Defense the authority to perform the responsibilities of the 
        Director for supervision of the implementation of the 
        requirements of this Act and the policies, regulations, and 
        procedures prescribed by the Director under this Act in the 
        case of individual information technology programs, including 
        acquisition programs, and information systems of the Department 
        of Defense.
            (B) The Director may revoke, in whole or in part, the 
        delegation of authority under subparagraph (A) at any time that 
        the Director determines that it is in the interests of the 
        United States to do so. In considering whether to revoke the 
        authority, the Director shall take into consideration the 
        reports received under subsection (d).
            (2) Responsibility of director of omb.--The Director of the 
        Office of Management and Budget shall continue to exercise 
        overall responsibility for compliance by the Department of 
        Defense with the provisions of this Act and the policies, 
        regulations, and procedures prescribed by the Director under 
        this Act.
    (b) Implementation.--
            (1) Requirement.--The Secretary of Defense shall implement 
        the provisions of this Act within the Department of Defense.
            (2) Covered programs.--The Secretary of Defense shall 
        ensure that the provisions of this Act and the policies and 
        regulations prescribed by the Director of the Office of 
        Management and Budget are applied to all information technology 
        programs of the Department of Defense, including--
                    (A) all such programs that are acquisition 
                programs, including major defense acquisition programs;
                    (B) programs that involve intelligence activities, 
                cryptologic activities related to national security, 
                command and control of military forces, and information 
                technology integral to a weapon or weapons system; and
                    (C) programs that are critical to the direct 
                fulfillment of military or intelligence missions.
    (c) Chief Information Officer.--
            (1) Designation.--The Secretary of Defense shall--
                    (A) designate the Under Secretary of Defense for 
                Acquisition and Technology as the chief information 
                officer of the Department of Defense; and
                    (B) delegate to the Under Secretary the duty to 
                perform the responsibilities of the Secretary under 
                this Act.
            (2) Other duties.--Section 143(c)(9) does not apply to the 
        chief information officer of the Department of Defense.
    (d) Annual Report.--The Secretary of Defense shall submit to the 
Director of the Office of Management and Budget an annual report on the 
implementation of this Act within the Department of Defense.
    (e) Pilot Programs.--
            (1) Recommendations by secretary of defense.--The Secretary 
        of Defense may submit to the Chief Information Officer of the 
        United States a recommendation that a specific information 
        technology pilot program be carried out under section 401.
            (2) Oversight of recommended program.--If the Chief 
        Information Officer determines to carry out a pilot program in 
        the Department of Defense under section 401, the Director of 
        the Office of Management and Budget shall supervise the pilot 
        program without regard to any delegation of authority under 
        subsection (a).

SEC. 150. SPECIAL PROVISIONS FOR CENTRAL INTELLIGENCE AGENCY.

    (a) Oversight of Implementation Within the CIA.--
            (1) Delegation of authority for individual programs and 
        systems.--(A) Subject to subparagraph (B), the Director of the 
        Office of Management and Budget shall delegate to the Director 
        of Central Intelligence the authority to perform the 
        responsibilities of the Director of the Office of Management 
        and Budget for supervision of the implementation of the 
        requirements of this Act and the policies, regulations, and 
        procedures prescribed by the Director of the Office of 
        Management and Budget under this Act in the case of individual 
        information technology programs (including acquisition 
        programs) and information systems of the Central Intelligence 
        Agency.
            (B) The Director of the Office of Management and Budget may 
        revoke, in whole or in part, the delegation of authority under 
        subparagraph (A) at any time that the Director determines that 
        it is in the interests of the United States to do so. In 
        considering whether to revoke the authority, the Director shall 
        take into consideration the reports received under subsection 
        (d).
            (2) Responsibility of director of omb.--The Director of the 
        Office of Management and Budget shall continue to exercise 
        overall responsibility for compliance by the Central 
        Intelligence Agency with the provisions of this Act and the 
        policies, regulations, and procedures prescribed by the 
        Director under this Act.
    (b) Implementation.--
            (1) Requirement.--The Director of Central Intelligence 
        shall implement the provisions of this Act within the Central 
        Intelligence Agency.
            (2) Covered programs.--The Director of Central Intelligence 
        shall ensure that the provisions of this Act and the policies 
        and regulations prescribed by the Director of the Office of 
        Management and Budget are applied to all information technology 
        programs of the Central Intelligence Agency, including 
        information technology acquisition programs.
    (c) Chief Information Officer.--
            (1) Designation.--The Director of Central Intelligence 
        shall--
                    (A) designate the Deputy Director of Central 
                Intelligence as the chief information officer of the 
                Central Intelligence Agency; and
                    (B) delegate to the Deputy Director the duty to 
                perform the responsibilities of the Director of Central 
                Intelligence under this Act.
            (2) Other duties.--Section 143(c)(9) does not apply to the 
        chief information officer of the Central Intelligence Agency.
    (d) Annual Report.--The Director of Central Intelligence shall 
submit to the Director of the Office of Management and Budget an annual 
report on the implementation of this Act within the Central 
Intelligence Agency.
    (e) Pilot Programs.--
            (1) Recommendations by director of central intelligence.--
        The Director of Central Intelligence may submit to the Chief 
        Information Officer of the United States a recommendation that 
        a specific information technology pilot program be carried out 
        under section 401.
            (2) Oversight of recommended program.--If the Chief 
        Information Officer determines to carry out a pilot program in 
        the Central Intelligence Agency under section 401, the Director 
        of the Office of Management and Budget shall supervise the 
        pilot program without regard to any delegation of authority 
        under subsection (a).

                Subtitle E--Federal Information Council

SEC. 151. ESTABLISHMENT OF FEDERAL INFORMATION COUNCIL.

    There is established in the executive branch a ``Federal 
Information Council''.

SEC. 152. MEMBERSHIP.

    The members of the Federal Information Council are as follows:
            (1) The chief information officer of each executive 
        department.
            (2) The chief information officer or senior information 
        resources management official of each executive agency who is 
        designated as a member of the Council by the Director of the 
        Office of Management and Budget.
            (3) Other officers or employees of the Federal Government 
        designated by the Director.

SEC. 153. CHAIRMAN; EXECUTIVE DIRECTOR.

    (a) Chairman.--The Director of the Office of Management and Budget 
is the Chairman of the Federal Information Council.
    (b) Executive Director.--The Chief Information Officer of the 
United States is the Executive Director of the Council. The Executive 
Director provides administrative and other support for the Council.

SEC. 154. DUTIES.

    The duties of the Federal Information Council are as follows:
            (1) To obtain advice on information resources, information 
        resources management, and information technology from State, 
        local, and tribal governments and from the private sector.
            (2) To make recommendations to the Director of the Office 
        of Management and Budget regarding Federal policies and 
        practices on information resources management.
            (3) To establish strategic direction and priorities for a 
        Governmentwide information infrastructure.
            (4) To assist the Chief Information Officer of the United 
        States in developing and maintaining the Governmentwide 
        strategic information resources management plan.
            (5) To coordinate Governmentwide and multi-agency programs 
        and projects for achieving improvements in the performance of 
        Federal Government missions, including taking such actions as--
                    (A) identifying program goals and requirements that 
                are common to several agencies;
                    (B) establishing interagency functional groups 
                under section 161;
                    (C) establishing an interagency group of senior 
                managers of information resources to review high-risk 
                information technology programs;
                    (D) identifying opportunities for undertaking 
                information technology programs on a shared basis or 
                providing information technology services on a shared 
                basis;
                    (E) providing for the establishment of temporary 
                special advisory groups, composed of senior officials 
                from industry and the Federal Government, to review 
                Governmentwide information technology programs, high-
                risk information technology acquisitions, and issues of 
                information technology policy;
                    (F) coordinating budget estimates and information 
                technology acquisitions in order to develop a 
                coordinated approach for meeting common information 
                technology goals and requirements; and
                    (G) reviewing agency programs and processes, to 
                identify opportunities for consolidation of activities 
                or cooperation.
            (6) To coordinate the provision, planning, and acquisition 
        of common infrastructure services, such as telecommunications, 
        Governmentwide E-mail, electronic benefits transfer, electronic 
        commerce, and Governmentwide data sharing, by--
                    (A) making recommendations to the Director of the 
                Office of Management and Budget regarding services that 
                can be provided in common;
                    (B) making recommendations to the Director 
                regarding designation of an executive agent to contract 
                for common infrastructure services on behalf of the 
                Federal Government;
                    (C) approving overhead charges by executive agents;
                    (D) approving a surcharge which may be imposed on 
                selected common infrastructure services and is to be 
                credited to the Common Use Account established by 
                section 331; and
                    (E) monitoring and providing guidance for the 
                administration of the Common Use Account established by 
                section 331 and the Innovation Loan Account established 
                by section 321 for purposes of encouraging innovation 
                by making financing available for high-opportunity 
                information technology programs, including common 
                infrastructure systems and services.
            (7) To assess ways to revise and reorganize Federal 
        Government mission-related and administrative processes before 
        acquiring information technology in support of agency missions.
            (8) To monitor and provide guidance for the development of 
        performance measures for agency information resources 
        management activities for Governmentwide applicability.
            (9) To submit to the Chief Information Officer of the 
        United States recommendations for conducting pilot projects for 
        the purpose of identifying better ways for Federal Government 
        agencies to plan for, acquire, and manage information 
        resources.
            (10) To identify opportunities for sharing information at 
        the Federal, State, and local levels of government and to 
        improve information sharing and communications.
            (11) To ensure that United States interests in 
        international information-related activities are served, 
        including coordinating United States participation in the 
        activities of international information organizations.

SEC. 155. SOFTWARE REVIEW COUNCIL.

    (a) Establishment.--The Federal Information Council shall establish 
a Federal Software Review Council.
    (b) Membership.--
            (1) Composition.--The Federal Information Council, in 
        consultation with the Chief Information Officer of the United 
        States, shall determine the membership of the Federal Software 
        Council. The number of members of the Council may not exceed 10 
        members.
            (2) Certain representation required.--The Federal 
        Information Council shall provide for the Government, private 
        industry, and college and universities to be represented on the 
        membership of the Software Review Council.
    (c) Chairman.--The Chief Information Officer of the United States 
shall serve as Chairman of the Federal Software Review Council.
    (d) Duties.--
            (1) Clearinghouse function.--(A) The Federal Software 
        Review Council shall act as a clearinghouse of information on 
        the software that--
                    (i) is commercially available to the Federal 
                Government; and
                    (ii) has been uniquely developed for use by one or 
                more executive agencies.
            (B) The Federal Software Review Council shall provide 
        advice to heads of executive agencies regarding recommended 
        software engineering techniques and commercial software 
        solutions appropriate to the agency's needs.
            (2) Software for use in development of agency systems.--The 
        Federal Software Review Council shall submit to the Federal 
        Information Council proposed guidelines and standards regarding 
        the use of commercial software, nondevelopmental items of 
        software, and uniquely developed software in the development of 
        executive agency information systems.
            (3) Integration of multiple software.--The Federal Software 
        Review Council shall submit to the Federal Information Council 
        proposed guidance regarding integration of multiple software 
        components into executive agency information systems.
            (4) Review of proposals for uniquely developed items of 
        software.--(A) In each case in which an executive agency 
        undertakes to acquire
         a uniquely developed item of software for an information 
system used or to be used by the agency, the Federal Software Review 
Council shall--
                    (i) determine whether it would be more beneficial 
                to the executive agency to use commercial items or 
                nondevelopmental items to meet the needs of the 
                executive agency; and
                    (ii) submit the Federal Software Review Council's 
                determination to the head of the executive agency.
            (B) Subparagraph (A) applies to an information technology 
        acquisition program in excess of $1,000,000.

               Subtitle F--Interagency Functional Groups

SEC. 161. ESTABLISHMENT.

    (a) In General.--The heads of executive agencies may jointly 
establish one or more interagency groups, known as ``functional 
groups''--
            (1) to examine issues that would benefit from a 
        Governmentwide or multi-agency perspective;
            (2) to submit to the Federal Information Council proposed 
        solutions for problems in specific common operational areas; 
        and
            (3) to promote cooperation among agencies on information 
        technology matters.
    (b) Requirement for Common Interests.--The representatives of the 
executive agencies participating in a functional group shall have the 
following common interests:
            (1) Involvement in the same or similar functional areas of 
        agency operations.
            (2) Mission-related processes or administrative processes 
        that would benefit from common or similar applications of 
        information technology.
            (3) The same or similar requirements for--
                    (A) information technology; or
                    (B) meeting needs of the common recipients of 
                services of the agencies.

SEC. 162. SPECIFIC FUNCTIONS.

    The functions of an interagency functional group are as follows:
            (1) To identify common goals and requirements for common 
        agency programs.
            (2) To develop a coordinated approach to meeting agency 
        requirements, including coordinated budget estimates and 
        procurement programs.
            (3) To identify opportunities to share information for 
        improving the quality of the performance of agency functions, 
        for reducing the cost of agency programs, and for reducing 
        burdens of agency activities on the public.
            (4) To coordinate activities and the sharing of information 
        with other functional groups.
            (5) To make recommendations to the heads of executive 
        agencies and to the Director of the Office of Management and 
        Budget regarding the selection of protocols and other standards 
        for information technology, including security standards.
            (6) To support interoperability among information systems.
            (7) To perform other functions, related to the purposes set 
        forth in section 161(a), that are assigned by the Federal 
        Information Council.

                  Subtitle G--Congressional Oversight

SEC. 171. ESTABLISHMENT AND ORGANIZATION OF JOINT COMMITTEE ON 
              INFORMATION.

    (a) Establishment.--There is established in Congress a Joint 
Committee on Information composed of eight members as follows:
            (1) Four members of the Committee on Governmental Affairs 
        of the Senate appointed by the Chairman of that committee.
            (2) Four members of the Committee on Government Reform and 
        Oversight of the House of Representatives appointed by the 
        Chairman of that committee.
    (b) Term of Appointment.--The term of service of a member on the 
joint committee shall expire immediately before the convening of the 
Congress following the Congress during which the member is appointed. A 
member may be reappointed to serve on the joint committee.
    (c) Vacancies.--A vacancy in the membership of the joint committee 
does not affect the power of the remaining members to carry out the 
responsibilities of the joint committee. The vacancy shall be filled in 
the same manner as the original appointment.
    (d) Chairman and Vice Chairman.--
            (1) Election by committee.--The chairman and vice chairman 
        of the joint committee shall be elected by the members of the 
        joint committee from among the members of the joint committee.
            (2) Bicameral committee leadership.--The chairman and vice 
        chairman may not be members of the same House of Congress.
            (3) Rotation of leadership positions between houses.--The 
        eligibility for election as chairman and for election as vice 
        chairmanship shall
         alternate annually between the members of one house of 
Congress and the members of the other house of Congress.

SEC. 172. RESPONSIBILITIES OF JOINT COMMITTEE ON INFORMATION.

    (a) In General.--The Joint Committee on Information has the 
following responsibilities:
            (1) To review information-related operations of the Federal 
        Government, including the acquisition and management of 
        information technology and other information resources.
            (2) To perform studies of major information resources 
        management issues regarding such matters as the following:
                    (A) Compatibility and interoperability of systems.
                    (B) Electronic commerce.
                    (C) Performance measurement.
                    (D) Process improvement.
                    (E) Paperwork and regulatory burdens imposed on the 
                public.
                    (F) Statistics.
                    (G) Management and disposition of records.
                    (H) Privacy and confidentiality.
                    (I) Security and protection of information 
                resources.
                    (J) Accessibility and dissemination of Government 
                information.
                    (K) Information technology, including printing and 
                other media.
                    (L) Information technology procurement policy, 
                training, and personnel.
            (3) To submit to the Committees on Governmental Affairs and 
        on Appropriations of the Senate and the Committees on 
        Government Reform and Oversight and on Appropriations of the 
        House of Representatives recommendations for legislation 
        developed on the basis of the reviews and studies.
            (4) To carry out the responsibilities of the joint 
        committee under chapter 1 of title 44, United States Code.
            (5) To carry out responsibilities regarding the Library of 
        Congress as provided by the Senate and the House of 
        Representatives.
    (b) Study Required.--Upon the organization of the Joint Committee 
on Information, the joint committee shall consider and develop policies 
and procedures providing for cooperation among the committees of 
Congress having jurisdiction over authorizations of appropriations, 
appropriations, and oversight of departments and agencies of the 
Federal Government in order to provide incentives for such departments 
and agencies to maximize effectiveness in the administration of this 
Act and the amendments made by this Act.
    (c) Transfers.--
            (1) Functions.--The functions of the Joint Committee on 
        Printing and the functions of the Joint Committee of Congress 
        on the Library are transferred to the Joint Committee on 
        Information.
            (2) Records.--The records of the Joint Committee on 
        Printing and the records of the Joint Committee of Congress on 
        the Library are transferred to the Joint Committee on 
        Information.
    (d) Termination of Superseded Joint Committees.--The Joint 
Committee on Printing and the Joint Committee of Congress on the 
Library are terminated.

SEC. 173. RULEMAKING AUTHORITY OF CONGRESS.

    This subtitle is enacted--
            (1) as an exercise of the rulemaking power of the Senate 
        and House of Representatives, respectively, and as such it is 
        deemed a part of the rules of each House, respectively, and it 
        supersedes other rules only to the extent that it is 
        inconsistent with such rules; and
            (2) with full recognition of the constitutional right of 
        either House to change the rules (so far as the rules relate to 
        that House) at any time, in the same manner, and to the same 
        extent as in the case of any other rule of that House.
                   Subtitle H--Other Responsibilities

SEC. 181. RESPONSIBILITIES UNDER THE NATIONAL INSTITUTE OF STANDARDS 
              AND TECHNOLOGY ACT.

    (a) Standards Program.--
            (1) Mission and duties.--Subsection (a) of section 20 of 
        the National Institute of Standards and Technology Act (15 
        U.S.C. 278g-3) is amended--
                    (A) by striking out ``The Institute--'' in the 
                matter preceding paragraph (1) and inserting in lieu 
                thereof ``To the extent authorized by the Director of 
                the Office of Management and Budget, the Director of 
                the Institute shall--'';
                    (B) in paragraph (3), by striking out ``have 
                responsibility within the Federal Government'' and 
                inserting in lieu thereof ``carry out the 
                responsibility of the Director of the Office of 
                Management and Budget''; and
                    (C) in paragraph (4), by striking out ``to the 
                Secretary of Commerce for promulgation under section 
                111(d) of the Federal Property and Administrative 
                Services Act of 1949'' and inserting in lieu thereof 
                ``to the Director of the Office of Management and 
                Budget under section 124 of the Information Technology 
                Management Reform Act of 1995''
            (2) Authority.--Subsection (b) of such section is amended--
                    (A) by striking out ``In fulfilling subsection (a) 
                of this section, the Institute is authorized'' in the 
                matter preceding paragraph (1) and inserting in lieu 
                thereof ``In order to carry out duties authorized under 
                subsection (a), the Director of the Institute may, to 
                the extent authorized by the Director of the Office of 
                Management and Budget--'';
                    (B) in paragraph (2), by striking out 
                ``Administrator of General Services on policies and 
                regulations proposed pursuant to section 111(d) of the 
                Federal Property and Administrative Services Act of 
                1949'' and inserting in lieu thereof ``Director of the 
                Office of Management and Budget on policies and 
                regulations proposed pursuant section 124 of the 
                Information Technology Management Reform Act of 1995'';
                    (C) in paragraph (3), by striking out ``section 
                111(d) of the Federal Property and Administrative 
                Services Act of 1949'' and inserting in lieu thereof 
                ``section 124 of the Information Technology Management 
                Reform Act of 1995''; and
                    (D) in paragraph (4), by striking out ``Office of 
                Personnel Management in developing regulations 
                pertaining to training, as required by'' and inserting 
                in lieu thereof ``Director of the Office of Management 
                and Budget in carrying out the responsibilities 
                regarding training regulations provided under''.
            (3) Authority of director of omb.--Such section is 
        amended--
                    (A) by redesignating subsection (d) as subsection 
                (e); and
                    (B) by inserting after subsection (c) the following 
                new subsection (d):
    ``(d) Authority of Director of OMB.--The Director of the Office of 
Management and Budget may--
            ``(1) authorize the Director of the Institute to perform 
        any of the functions and take any of the actions provided in 
        subsections (a), (b), or (c), or limit, withdraw, or withhold 
        such authority;
            ``(2) perform any of the functions and take any of the 
        actions provided in subsections (a), (b), or (c); and
            ``(3) designate any other officer of the Federal Government 
        in the executive branch to perform any of such functions and 
        exercise any of such authorities.''.
            (4) Terminology.--Such section is further amended by 
        striking out ``computer system'' each place it appears and 
        inserting in lieu thereof ``information system''.
            (5) Definitions.--Subsection (e) of such section, as 
        redesignated by paragraph (3), is amended--
                    (A) in paragraph (1)(B)(v) by striking out 
                ``Administrator of General Services pursuant to section 
                111 of the Federal Property and Administrative Services 
                Act of 1949'' and inserting in lieu thereof ``Director 
                of the Office of Management and Budget''; and
                    (B) in paragraph (2)(B), by striking out ``as that 
                term is defined in section 111(a)(2) of the Federal 
                Property and Administrative Services Act of 1949''.
    (b) Information System Security and Privacy Advisory Board.--
            (1) Establishment.--Subsection (a) of section 21 of the 
        National Institute of Standards and Technology Act (15 U.S.C. 
        278g-4) is amended--
                    (A) by striking out ``within the Department of 
                Commerce'' in the first sentence and inserting in lieu 
                thereof ``within the Office of the Chief Information 
                Officer of the United States''; and
                    (B) by striking out ``Secretary of Commerce'' both 
                places it appears and inserting in lieu thereof 
                ``Director of the Office of Management and Budget''.
            (2) Recipients of advice and reports from board.--
        Subsection (b) of such section is amended--
                    (A) by striking out ``Institute and the Secretary 
                of Commerce'' in paragraph (2) and inserting in lieu 
                thereof ``Director of the Office of Management and 
                Budget''; and
                    (B) by striking out ``the Secretary of Commerce,'' 
                in paragraph (3).
            (3) Terminology.--Such section is further amended by 
        striking out ``computer system'' each place it appears and 
        inserting in lieu thereof ``information system''.
            (4) Definitions.--Subsection (g) of such section is amended 
        by striking out ``section 20(d)'' and inserting in lieu thereof 
        ``section 20(e)''.

SEC. 182. RESPONSIBILITIES UNDER THE COMPUTER SECURITY ACT OF 1987.

    (a) Responsibility for Training Regulations.--Section 5(c) of the 
Computer Security Act of 1987 (Public Law 100-235; 101 Stat. 1729) is 
amended by striking out ``Within six months after the date of the 
enactment of this Act, the Director of the Office of Personnel 
Management'' and inserting in lieu thereof ``The Director of the Office 
of Management and Budget''.
    (b) Repeal of Executed Provision.--Section 5(b) of such Act is 
amended by striking out ``shall be started within 60 days after the 
issuance of the regulations described in subsection (c). Such 
training''.
      TITLE II--PROCESS FOR ACQUISITIONS OF INFORMATION TECHNOLOGY

                         Subtitle A--Procedures

SEC. 201. PROCUREMENT PROCEDURES.

    (a) Responsibility.--The Director of the Office of Management and 
Budget of the United States shall prescribe in regulations the 
procedures to be used in conducting information technology 
acquisitions. The procedures shall be made a part of the Federal 
Acquisition Regulation.
    (b) Standards for Procedures.--The Director shall ensure that the 
process for acquisition of information technology is, in general, a 
simplified, clear, and understandable process that, for higher cost and 
higher risk acquisitions, provides progressively more stringent 
precautions for ensuring that there is full and open competition in an 
acquisition and that each acquisition timely and effectively satisfies 
the needs of the Federal Government.
    (c) Performance Measurements.--The regulations shall include 
performance measurements and other performance requirements that the 
Director determines appropriate.
    (d) Use of Commercial Items.--The regulations shall require the 
head of each executive agency to use, to the maximum extent 
practicable, commercial items to meet the information technology 
requirements of the executive agency.
    (e) Differentiated Procedures and Requirements.--Subject to 
subsection (b), the Director shall prescribe different sets of 
procedures and requirements for acquisitions in each of the following 
categories of acquisitions:
            (1) Acquisitions not in excess of $5,000,000.
            (2) Acquisitions in excess of $5,000,000 and not in excess 
        of $25,000,000.
            (3) Acquisitions in excess of $25,000,000 and not in excess 
        of $100,000,000.
            (4) Acquisitions in excess of $100,000,000.
            (5) Acquisitions considered as high-risk acquisitions.
    (f) Differentiation on the Basis of Other Factors.--In prescribing 
regulations under this title, the Director shall consider whether and, 
to the extent appropriate, how to differentiate in the treatment and 
conduct of acquisitions of information technology on any of the 
following additional bases:
            (1) The information technology to be acquired, including 
        such considerations as whether the item is a commercial item or 
        an item being developed or modified uniquely for use by one or 
        more executive agencies.
            (2) The complexity of the information technology 
        acquisition, including such considerations as size and scope.
            (3) The level of risk (at levels other than high risk 
        covered by procedures and requirements prescribed pursuant to 
        subsection (e)), including technical and schedule risks.
            (4) The level of experience or expertise of the critical 
        personnel in the program office, mission unit, or office of the 
        chief information officer of the executive agency concerned.
            (5) The extent to which the information technology may be 
        used Government wide or by several agencies.
    (g) Required Actions.--The regulations shall require the heads of 
executive agencies, in planning for and undertaking acquisitions of 
information technology, to apply sound methodologies and approaches 
that result in realistic and comprehensive advance assessments of 
risks, reasonable management of the risks, and maximization of the 
benefit derived by the Federal Government toward meeting the 
requirements for which the technology is acquired.
SEC. 202. AGENCY PROCESS.

    (a) Responsibility.--The head of each executive agency shall, 
consistent with the regulations prescribed under section 201, design 
and apply in the executive agency a process for maximizing the value 
and assessing and managing the risks of the information technology 
acquisitions of the agency.
    (b) Design of Process.--The process shall--
            (1) provide for the selection, control, and evaluation of 
        the results of information technology investments of the 
        agency;
            (2) be integrated with budget, financial, and program 
        management decisions of the agency; and
            (3) incorporate the procedures and satisfy the 
        requirements, including procedures and requirements applicable 
        under various threshold criteria, that are prescribed pursuant 
        to section 201.
    (c) Benefit and Risk Measurements.--
            (1) Requirement.--The process shall provide for clearly 
        identifying in advance of the acquisition quantifiable 
        measurements for determining the net benefits and risks of each 
        proposed information technology investment.
            (2) Examples of measures.--(A) Measurements of net benefits 
        could include such measures as cost reductions, decreases in 
        program cycle time, return on investment, increases in 
        productivity, enhanced capability, reductions in the paperwork 
        burden imposed on the public, and improvements in the level of 
        public satisfaction with services provided.
            (B) Measures of risk could include such measures as project 
        size and scope, project longevity, technical configurations, 
        unusual security requirements, special project management 
        skills, software complexity, system integration requirements, 
        and existing technical and management expertise.
    (d) Evaluation of Value of Proposed Investments.--The process shall 
require evaluation of the value of a proposed information technology 
investment to the performance of agency missions, including the 
provision of services to the public, on the basis of--
            (1) the measurements applicable under subsection (c) as 
        well as other applicable criteria and standards; and
            (2) a comparison of that investment with other information 
        technology investments proposed to be undertaken by or for the 
        agency.
    (e) Periodic Review by Senior Managers.--
            (1) In general.--The process shall provide for senior 
        managers of the executive agency--
                    (A) to review on a periodic basis the development, 
                implementation, and operation of information technology 
                investments undertaken or to be undertaken by the 
                agency and the information technology acquired under 
                such investments; and
                    (B) in the case of each investment, to make 
                recommendations to the head of the executive agency 
                regarding actions that should be taken in order to 
                ensure that suitable progress is made toward achieving 
                the goals established for the investment or that the 
                investment, if not making suitable progress, is 
                terminated in a timely manner.
            (2) Reviews after implementation.--The implementation and 
        operation reviews provided for under paragraph (1) shall 
        include provisions for senior managers of the executive 
        agency--
                    (A) upon the implementation of the investment, to 
                evaluate the results of the investment in order to 
                determine whether the benefits projected for the 
                investment were achieved; and
                    (B) after operation of information systems under 
                the investment begins, to conduct periodic reviews of 
                the systems in order--
                            (i) to determine whether the benefits to 
                        mission performance resulting from the use of 
                        such systems are satisfactory; and
                            (ii) to identify opportunities for 
                        additional improvement in mission performance 
                        that can be derived from use of such systems.
    (f) Specific Acquisition Procedures.--In the awarding of contracts 
for the acquisition of information technology, the head of an executive 
agency shall consider the information on the past performance of 
offerors that is available from the Director of the Office of 
Management and Budget.

SEC. 203. INCREMENTAL ACQUISITION OF INFORMATION TECHNOLOGY.

    (a) In General.--The regulations prescribed under section 201 shall 
require that, to the maximum extent practicable, an executive agency's 
needs for information technology be satisfied in successive, 
incremental acquisitions of interoperable systems the characteristics 
of which comply with readily available standards and, therefore, can be 
connected to other systems that comply with such standards.
    (b) Division of Acquisitions Into Increments.--Under the 
successive, incremental acquisition
 process, an extensive acquisition of information technology shall be 
divided into several smaller acquisition increments that--
            (1) are easier to manage individually than would be one 
        extensive acquisition;
            (2) address complex information technology problems 
        incrementally in order to enhance the likelihood of achieving 
        workable solutions for those problems;
            (3) provide for delivery, implementation, and testing of 
        workable systems or solutions in discrete increments each of 
        which comprises a system or solution that is not dependent on 
        any other increment in order to be workable for the purposes 
        for which acquired; and
            (4) provide an opportunity for later increments of the 
        acquisition to take advantage of any evolution in technology or 
        needs that occurs during conduct of the earlier increments.
    (c) Timely Acquisitions.--
            (1) Award of contract.--If a contract for an increment of 
        an information technology acquisition is not awarded within 180 
        days after the date on which the solicitation is issued, that 
        increment of the acquisition shall be canceled. A subsequent 
        solicitation for that increment of the solicitation, or for a 
        revision of that increment, may be issued. A contract may be 
        awarded on the basis of offers received in response to a 
        subsequent solicitation.
            (2) Delivery.--(A) The information technology provided for 
        in a contract for acquisition of information technology shall 
        be delivered within 18 months after the date on which the 
        solicitation resulting in award of the contract was issued.
            (B) The Chief Information Officer of the United States may 
        waive the requirement under subparagraph (A) in the case of a 
        particular contract. The Chief Information Officer shall notify 
        Congress in writing of each waiver granted under this 
        subparagraph.
            (C) If the information technology to be acquired under a 
        contract is not timely delivered as provided in subparagraph 
        (A) and a waiver is not granted in such case, the contract 
        shall be terminated and the contracting official concerned may 
        issue a new solicitation that--
                    (i) provides for taking advantage of advances in 
                information technology that have occurred during the 
                18-month period described in subparagraph (A) and 
                advances in information technology that are anticipated 
                to occur within the period necessary for completion of 
                the acquisition; and
                    (ii) adjusts for any changes in identified mission 
                requirements to be satisfied by the information 
                technology.
    (d) Full-Increment Funding for Major and High-Risk Acquisitions.--
            (1) Submission of program increment details to congress.--
        Before initial funding is made available for an information 
        technology acquisition program that is in excess of 
        $100,000,000, the head of the executive agency for which the 
        program is carried out shall submit to Congress information 
        about the objectives and plans for the conduct of that 
        acquisition program and the funding requirements for each 
        increment of the acquisition program. The information shall 
        identify the intended user of the information technology items 
        to be acquired under the program and each increment and shall 
        include objective, quantifiable criteria for assessing the 
        extent to which the objectives and goals established for the 
        program are achieved.
            (2) Requirement for full increment funding.--(A) In 
        authorizing appropriations for an increment of an information 
        technology acquisition program, Congress shall provide an 
        authorization of appropriations for the program increment in a 
        single amount that is sufficient for carrying out that 
        increment of the program. Each such authorization of 
        appropriations shall be stated in the authorization law as a 
        specific item.
            (B) In each law making appropriations for an increment of 
        information technology acquisition program, Congress shall 
        specify the program increment for which an appropriation is 
        made and the amount appropriated for that program increment.
    (e) Commercial Items.--
            (1) Source.--Except as provided in paragraph (2), a 
        commercial item used in the development of an information 
        system or otherwise being acquired for an executive agency 
        shall be acquired through any of the following means available 
        for the agency that can supply an item satisfying the needs of 
        the agency for the acquisition:
                    (A) A multiple award schedule contract.
                    (B) A task or delivery order contract.
                    (C) A Federal Government on-line purchasing network 
                established by the Chief Information Officer of the 
                United States.
            (2) Exception.--A commercial item need not be acquired from 
        a source referred to in paragraph (1) if an item satisfying 
        such needs is available at a lower cost from another source.

SEC. 204. AUTHORITY TO LIMIT NUMBER OF OFFERORS.

    (a) Civilian Agency Acquisitions.--Section 303B(d) of the Federal 
Property and Administrative Services Act of 1949 (41 U.S.C. 253b(d)) is 
amended by adding at the end the following:
    ``(3) Under regulations prescribed by the Director of the Office of 
Management and Budget, a contracting officer of an executive agency 
receiving more than three competitive proposals for a proposed contract 
for acquisition of information technology may solicit best and final 
offers from the three offerors who submitted the best offers within the 
competitive range, as determined on the basis of the evaluation factors 
established for the procurement. Notwithstanding paragraph (1)(A), the 
contracting officer should first conduct discussions with all of the 
responsible parties that submit offers within the competitive range.''.
    (b) Armed Services Acquisitions.--Section 2305(b) of title 10, 
United States Code, is amended by adding at the end the following:
    ``(5) Under regulations prescribed by the Director of the Office of 
Management and Budget, a contracting officer of an agency receiving 
more than three competitive proposals for a proposed contract for 
acquisition of information technology may solicit best and final offers 
from the three offerors who submitted the best offers within the 
competitive range. Notwithstanding paragraph (4)(A)(i), the contracting 
officer should first conduct discussions with all of the responsible 
parties that submit offers within the competitive range.''.

SEC. 205. EXCEPTION FROM TRUTH IN NEGOTIATION REQUIREMENTS.

    (a) Civilian Agency Acquisitions.--Section 304A of the Federal 
Property and Administrative Services Act of 1949 is amended--
            (1) by redesignating subsection (i) as subsection (j) and, 
        as so redesignated, is amended by adding at the end the 
        following:
            ``(4) The term `information technology' has the meaning 
        given that term in section 4 of the Information Technology 
        Management Reform Act of 1995.''; and
            (2) by inserting after subsection (h) the following new 
        subsection (i):
    ``(i) Additional Exception for Information Technology Commercial 
Items.--The head of an executive agency may not require the submission 
of cost or pricing data in a procurement of any information technology 
that is a commercial item. However, the head of the executive agency 
shall seek to obtain from each offeror or contractor the information 
described in subsection (d)(2)(A)(ii) for the procurement.''.
    (b) Armed Services Acquisitions.--Section 2306a of title 10, United 
States Code, is amended--
            (1) by redesignating subsection (i) as subsection (j) and, 
        as so redesignated, is amended by adding at the end the 
        following:
            ``(4) The term `information technology' has the meaning 
        given that term in section 4 of the Information Technology 
        Management Reform Act of 1995.''; and
            (2) by inserting after subsection (h) the following new 
        subsection (i):
    ``(i) Additional Exception for Information Technology Commercial 
Items.--The head of an agency may not require the submission of cost or 
pricing data in a procurement of any information technology that is a 
commercial item. However, the head of an agency shall seek to obtain 
from each offeror or contractor the information described in subsection 
(d)(2)(A)(ii) for the procurement''.

SEC. 206. UNRESTRICTED COMPETITIVE PROCUREMENT OF COMMERCIAL OFF-THE-
              SHELF ITEMS OF INFORMATION TECHNOLOGY.

    (a) Full and Open Competition Required.--Full and open competition 
shall be used for each procurement of commercial off-the-shelf items of 
information technology by or for an executive agency.
    (b) Inapplicability of Certain Procurement Laws.--
            (1) FAR list.--The Federal Acquisition Regulation shall 
        include a list of provisions of law that are inapplicable to 
        contracts for the procurement of commercial, off-the-shelf 
        items of information technology. A provision of law that is 
        properly included on the list pursuant to paragraph (2) may not 
        be construed as being applicable to such contracts. Nothing in 
        this section shall be construed to render inapplicable to such 
        contracts any provision of law that is not included on such 
        list.
            (2) Provisions to be included.--A provision of law 
        described in subsection (c) shall be included on the list of 
        inapplicable provisions of law required by paragraph (1) unless 
        the Chief Information Officer of the United States, in 
        consultation with the Federal Information Council, makes a 
        written determination that it would not be in the best interest 
        of the United States to exempt such contracts from the 
        applicability of that provision of law.
    (c) Covered Law.--The list referred to in subsection (b)(1) shall 
include each provision of law that, as determined by the Chief 
Information Officer, sets forth policies, procedures, requirements, or 
restrictions for the procurement of property or services by the Federal 
Government, except the following:
            (1) A provision of this Act.
            (2) A provision of law that is amended by this Act.
            (3) A provision of law that is made applicable to 
        procurements of commercial, off-the-shelf items of information 
        technology by this Act.
            (4) A provision of law that prohibits or limits the use of 
        appropriated funds.
            (5) A provision of law that specifically refers to this 
        section and provides that, notwithstanding this section, such 
        provision of law shall be applicable to contracts for the 
        procurement of commercial off-the-shelf items of information 
        technology.
    (d) Petition To Include Omitted Provision.--
            (1) Petition authorized.--Any person may submit to the 
        Chief Information Officer a petition to include on the list 
        referred to in subsection (b)(1) a provision of law not 
        included on that list.
            (2) Action on petition.--The Federal Acquisition Regulatory 
        Council shall amend the Federal Acquisition Regulation to 
        include the item on the list unless the Chief Information 
        Officer, in consultation with the Federal Information Council--
                    (A) has made a written determination described in 
                subsection (b)(2) with respect to that provision of law 
                before receiving the request; or
                    (B) within 60 days after the date of receipt of the 
                request, makes such written determination regarding the 
                provision of law.
    (e) Definition.--In this subsection, the term ``commercial, off-
the-shelf item of information technology'' means an item of information 
technology that--
            (A) is a commercial item described in section 4(12)(A) of 
        the Office of Federal Procurement Policy Act (41 U.S.C. 403);
            (B) is sold in substantial quantities in the commercial 
        marketplace; and
            (C) is offered to the Government, without modification, in 
        the same form in which it is sold in the commercial 
        marketplace.
SEC. 207. TASK AND DELIVERY ORDER CONTRACTS.

    (a) Civilian Agency Acquisitions.--
            (1) Requirement for multiple awards.--Section 303H(d) of 
        the Federal Property and Administrative Services Act of 1949 
        (41 U.S.C. 253h(d)) is amended by adding at the end the 
        following new paragraph:
    ``(4) In exercising the authority under this section for 
procurement of information technology, the head of an executive agency 
shall award at least two task or delivery order contracts for the same 
or similar information technology services or property unless the Chief 
Information Officer of the United States determines that, because of 
unusual circumstances, it is not in the best interests of the United 
States to award two such contracts.''.
            (2) Definition.--Section 303K of such Act (41 U.S.C. 253k) 
        is amended by adding at the end the following new paragraph:
    ``(3) The term `information technology' has the meaning given that 
term in section 4 of the Information Technology Management Reform Act 
of 1995.''.
    (b) Armed Services Acquisitions.--
            (1) Requirement for multiple awards.--Section 2304a(d) of 
        title 10, United States Code, is amended by adding at the end 
        the following new paragraph:
    ``(4) In exercising the authority under this section for 
procurement of information technology, the head of an executive agency 
shall award at least two task or delivery order contracts for the same 
or similar information technology services or property unless the Chief 
Information Officer of the United States determines that, because of 
unusual circumstances, it is not in the best interests of the United 
States to award two such contracts.''.
            (2) Definition.--Section 2304d of title 10, United States 
        Code, is amended by adding at the end the following new 
        paragraph:
    ``(3) The term `information technology' has the meaning given that 
term in section 4 of the Information Technology Management Reform Act 
of 1995.''.
SEC. 208. TWO-PHASE SELECTION PROCEDURES.

    (a) Civilian Agencies.--
            (1) Procedures authorized.--Title III of the Federal 
        Property and Administrative Services Act of 1949 (41 U.S.C. 251 
        et seq.) is amended by inserting after section 303H the 
        following new section:

                    ``two-phase selection procedures

    ``Sec. 303I. (a) Procedures Authorized.--The head of an executive 
agency may use two-phase selection procedures for entering into a 
contract for the acquisition of information technology when the agency 
head determines that three or more offers will be received for such 
contract, substantial design work must be performed before an offeror 
can develop a reliable price or cost proposal for such contract, and 
the offerors will incur a substantial amount of expenses in preparing 
the offers.
    ``(b) Procedures Described.--Two-phase selection procedures consist 
of the following:
            ``(1) The agency head solicits proposals that--
                    ``(A) include information on the offerors'--
                            ``(i) technical approach; and
                            ``(ii) technical and management 
                        qualifications; and
                    ``(B) do not include--
                            ``(i) detailed design information; or
                            ``(ii) cost or price information.
            ``(2) The agency head evaluates the proposals on the basis 
        of evaluation criteria set forth in the solicitation, except 
        that the agency head does not consider cost-related or price-
        related evaluation factors.
            ``(3) The agency head selects at least three offerors as 
        the most highly qualified to provide the property or services 
        under the contract and requests the selected offerors to submit 
        competitive proposals that include cost and price information.
            ``(4) The agency head awards the contract in accordance 
        with section 303B(d).
    ``(c) Resource Comparison Criteria Required.--In using two-phase 
selection procedures for entering into a contract, the agency head 
shall establish resource criteria and financial criteria applicable to 
the contract in order to provide a consistent basis for comparing the 
offerors and their proposals.
    ``(d) Two-Phase Selection Procedures Defined.--In this section, the 
term `two-phase selection procedures' means procedures described in 
subsection (b) that are used for the selection of a contractor on the 
basis of cost and price and other evaluation criteria to provide 
property or services in accordance with the provisions of a contract 
which requires the contractor to design the property to be acquired 
under the contract and produce or construct such property.
    ``(e) Definition.--In this section, the term `information 
technology' has the meaning given the term in section 4 of the 
Information Technology Management Reform Act of 1995.''.
            (2) Clerical amendment.--The table of contents in the first 
        section of such Act is amended by inserting after the item 
        relating to section 303H the following new item:

``Sec. 303I. Two-phase selection procedures.''.
    (b) Department of Defense.--
            (1) Procedures authorized.--Chapter 137 of title 10, United 
        States Code, is amended by inserting after section 2305 the 
        following new section:
``Sec. 2305a. Two-phase selection procedures
    ``(a) Procedures Authorized.--The head of an agency may use two-
phase selection procedures for entering into a contract for the 
acquisition of information technology when the head of the agency 
determines that three or more offers will be received for such 
contract, substantial design work must be performed before an offeror 
can develop a reliable price or cost proposal for such contract, and 
the offerors will incur a substantial amount of expenses in preparing 
the offers.
    ``(b) Procedures Described.--Two-phase selection procedures consist 
of the following:
            ``(1) The head of the agency solicits proposals that--
                    ``(A) include information on the offerors'--
                            ``(i) technical approach; and
                            ``(ii) technical and management 
                        qualifications; and
                    ``(B) do not include--
                            ``(i) detailed design information; and
                            ``(ii) cost or price information.
            ``(2) The head of the agency evaluates the proposals on the 
        basis of evaluation criteria set forth in the solicitation, 
        except that the head of the agency does not consider cost-
        related or price-related evaluation factors.
            ``(3) The head of the agency selects at least three 
        offerors as the most highly qualified to provide the property 
        or services under the contract and requests the selected 
        offerors to submit competitive proposals that include cost and 
        price information.
            ``(4) The head of the agency awards the contract in 
        accordance with section 2305(b)(4) of this title.
    ``(c) Resource Comparison Criteria Required.--In using two-phase 
selection procedures for entering into a contract, the head of the 
agency shall establish resource criteria and financial criteria 
applicable to the contract in order to provide a consistent basis for 
comparing the offerors and their proposals.
    ``(d) Two-Phase Selection Procedures Defined.--In this section, the 
term `two-phase selection procedures' means procedures described in 
subsection (b) that are used for the selection of a contractor on the 
basis of cost and price and other evaluation criteria to provide 
property or services in accordance with the provisions of a contract 
which requires the contractor to design the property to be acquired 
under the contract and produce or construct such property.
    ``(e) Definition.--In this section, the term `information 
technology' has the meaning given the term in section 4 of the 
Information Technology Management Reform Act of 1995.''.
            (2) Clerical amendment.--The table of sections at the 
        beginning of such chapter is amended by inserting after the 
        item relating to section 2305 the following:

``2305a. Two-phase selection procedures.''.
SEC. 209. CONTRACTOR SHARE OF GAINS AND LOSSES FROM COST, SCHEDULE, AND 
              PERFORMANCE EXPERIENCE.

    The Director of the Office of Management and Budget shall prescribe 
in regulations a clause, to be included in each cost-type or incentive-
type contract for procurement of information technology for an 
executive agency, that provides a system for the contractor--
            (1) to be rewarded for contract performance exceeding the 
        contract cost, schedule, or performance goals to the benefit of 
        the United States; and
            (2) to be penalized for failing--
                    (A) to adhere to cost, schedule, or performance 
                goals to the detriment of the United States; or
                    (B) to provide an operationally effective solution 
                for the information technology problem covered by the 
                contract.

                   Subtitle B--Acquisition Management

SEC. 221. ACQUISITION MANAGEMENT TEAM.

    (a) In General.--
            (1) Use of agency personnel.--The head of each executive 
        agency planning an acquisition of information technology shall 
        determine whether agency personnel satisfying the requirements 
        of subsection (b) are available and are to be used for carrying 
        out the acquisition.
            (2) Use of outside acquisition team.--If the head of the 
        executive agency determines that such personnel are not 
        available for carrying out the acquisition, the head of that 
        agency shall consider designating a capable executive agent to 
        carry out the acquisition.
    (b) Capabilities of Agency Personnel.--
            (1) In general.--The head of each executive agency shall 
        ensure that the agency personnel involved in an acquisition of 
        information technology have the experience, and have 
        demonstrated the skills and knowledge, necessary to carry out 
        the acquisition competently.
            (2) High-risk information technology program 
        acquisitions.--For an acquisition under a high-risk information 
        technology program--
                    (A) each of the members of the acquisition program 
                management team (including the management, technical, 
                program, procurement, and legal personnel) shall have 
                experience and demonstrated competence in the team 
                member's area of responsibility; and
                    (B) the team manager, deputy team manager, and each 
                procurement official on the acquisition management team 
                shall have demonstrated competence in participating in 
                other major information system acquisitions or have 
                other comparable experience.
    (c) Acquisition Workforce Training.--The head of each executive 
agency shall ensure that agency personnel used for information 
technology acquisitions of the agency receive continuing training in 
management of information resources and the acquisition of information 
technology in order to maintain the competence of such personnel in the 
skills and knowledge necessary for carrying out such acquisitions 
successfully.

SEC. 222. OVERSIGHT OF ACQUISITIONS.

    It is the sense of Congress that the Director of the Office of 
Management and Budget, the Chief Information Officer of the United 
States, the heads of executive agencies, and the inspectors general of 
executive agencies, in performing responsibilities for oversight of 
information technology acquisitions, should emphasize reviews of the 
operational justifications for the acquisitions, the results of the 
acquisition programs, and the performance measurements established for 
the information technology rather than reviews of the acquisition 
process.
      TITLE III--SPECIAL FISCAL SUPPORT FOR INFORMATION INNOVATION

                Subtitle A--Information Technology Fund

SEC. 301. ESTABLISHMENT.

    There is established on the books of the Treasury a fund to be 
known as the ``Information Technology Fund''.

SEC. 302. ACCOUNTS.

    The Information Technology Fund shall have two accounts as follows:
            (1) The Innovation Loan Account.
            (2) The Common Use Account.

                  Subtitle B--Innovation Loan Account

SEC. 321. AVAILABILITY OF FUND FOR LOANS IN SUPPORT OF INFORMATION 
              INNOVATION.

    Amounts in the Innovation Loan Account shall be available to the 
Director of the Office of Management and Budget, without fiscal year 
limitation, for lending to an executive agency for carrying out an 
information innovation program to improve the productivity of the 
agency.

SEC. 322. REPAYMENT OF LOANS.

    (a) Repayment Required.--The head of an executive agency shall 
repay the Innovation Loan Account the amount loaned to the executive 
agency.
    (b) Terms and Conditions.--The Director of the Office of Management 
and Budget shall prescribe the terms and conditions for repayment of 
the loan.
    (c) Repayment out of Savings.--The funds to be used by the head of 
an executive agency for repaying a loan shall be derived as provided in 
section 323 from savings realized by the agency through increases in 
the productivity of the agency that result from the information 
innovation funded (in whole or in part) by the loan. The Director shall 
prescribe guidelines for computing the amount of the savings.

SEC. 323. SAVINGS FROM INFORMATION INNOVATIONS.

    (a) Disposition of Savings.--Of the total amount saved by an 
executive agency in a fiscal year through increases in the productivity 
of the agency that result from information innovations funded (in whole 
or in part) by loans from the Innovation Loan Account 50 percent shall 
be credited to the Innovation Loan Account in repayment of loans to the 
agency from the Fund.
    (b) Employee Incentives.--The head of an executive agency is 
authorized to pay monetary incentives to agency personnel who made 
significant contributions to the achievement of increases in agency 
productivity that resulted in the savings.
    (c) Computation of Savings.--For purposes of this section, the 
amount saved by an executive agency in a fiscal year as a result of 
increases in the productivity of the agency that are attributable to 
information innovations funded (in whole or in part) by loans from the 
Innovation Loan Account shall be computed by the head of the agency in 
consultation with the chief information officer and chief financial 
officer of the agency and in accordance with the guidelines prescribed 
pursuant to section 322(c).

SEC. 324. FUNDING.

    (a) Initial Capitalization.--The head of each executive agency 
shall transfer to the Innovation Loan Account at the beginning of each 
fiscal year for fiscal years 1996 through 2000 the amount equal to 5 
percent of the total amount available to that executive agency for such 
fiscal year for information resources, as determined by the Chief 
Information Officer of the United States.
    (b) Authorization of Appropriations.--There is authorized to be 
appropriated to the Innovation Loan Account, to be available without 
fiscal year limitation, such sums as may be necessary for making loans 
authorized by section 321.

                     Subtitle C--Common Use Account

SEC. 331. SUPPORT OF MULTIAGENCY ACQUISITIONS OF INFORMATION 
              TECHNOLOGY.

    (a) In General.--Amounts in the Common Use Account shall be 
available to the Director of the Office of Management and Budget, 
without fiscal year limitation for the following purposes:
            (1) Acquisitions of information technology to be used by 
        two or more executive agencies.
            (2) Expenses, including cost of personal services, incurred 
        for developing and implementing information technology for 
        support of two or more executive agencies.
    (b) Projects Funded.--The Director of the Office of Management and 
Budget shall select for funding out of the Common Use Account projects 
that are projected to meet the following requirements:
            (1) Demonstrate the innovative use of information 
        technology to reorganize and improve work processes or to 
        integrate programs and link the information systems of 
        executive agencies.
            (2) Provide substantial benefits to the public, such as 
        improved dissemination of information, increased timeliness in 
        delivery of services, and increased quality of services.
            (3) Substantially lower the operating costs of two or more 
        executive agencies or programs.
    (c) Limitation of Funding.--Funding for a particular project shall 
ordinarily be limited to two fiscal years.
    (d) Additional Requirement for Selection.--In addition to meeting 
the requirements in subsection (b), the proposal for a project shall 
include a transition plan for proceeding from a pilot program or the 
initial stage of the project into operation of the information 
technology. The transition plan shall identify funding sources for the 
transition and for the sustainment of operations.

SEC. 332. FUNDING.

    (a) Initial Capitalization.--
            (1) Transfer of funds.--The initial capitalization of the 
        Common Use Account shall be accomplished by transfer of funds 
        under paragraph (2).
            (2) Amount and source.--For purposes of paragraph (1), the 
        Administrator of General Services shall transfer, out of the 
        Information Technology Fund established by section 110 of the 
        Federal Property and Administrative Services Act of 1949 (40 
        U.S.C. 757), the amount equal to the excess of--
                    (A) the amount of the unobligated balance in that 
                Fund, over
                    (B) the portion of that unobligated balance that 
                the Administrator, with the approval of the Director of 
                the Office of Management and Budget, determines is 
                necessary to retain for meeting the requirements of the 
                fund for the remainder of the fiscal year in which this 
                Act takes effect under section 1001(a) and the next 
                fiscal year.
            (3) Termination of information technology fund.--Effective 
        at the end of the fiscal year immediately following the fiscal 
        year in which this Act takes effect under section 1001(a)--
                    (A) section 110 of the Federal Property and 
                Administrative Services Act (40 U.S.C. 757) is 
                repealed; and
                    (B) the Information Technology Fund established by 
                that section is terminated.
    (b) Charges for Common Infrastructure Services.--The Director of 
the Office of Management and Budget may impose on executive agencies a 
charge for common infrastructure services to fund the Common Use 
Account.
    (c) Authorization of Appropriations.--There is authorized to be 
appropriated to the Common Use Account, to be available without fiscal 
year limitation, such sums as may be necessary to fund multiagency 
acquisitions of information technology.

                   Subtitle D--Other Fiscal Policies

SEC. 341. LIMITATION ON USE OF FUNDS.

    Funds available to an executive agency for information technology 
may not be expended for a proposed information technology acquisition 
until the head of the agency certifies in writing in the agency records 
of that acquisition that the head of the agency has completed a review 
of the agency's mission-related processes and administrative processes 
to be supported by the proposed investment in information technology 
and has established performance measurements for determining 
improvements in agency performance.

SEC. 342. SENSE OF CONGRESS.

    It is the sense of Congress that executive agencies should achieve 
a 5 percent per year decrease in the cost incurred by the agency for 
operating and maintaining information technology, and a 5 percent per 
year increase in the efficiency of the agency operations, by reason of 
improvements in information resources management by the agency.

SEC. 343. REVIEW BY GAO AND INSPECTORS GENERAL.

    (a) Review Required.--During fiscal year 1996 and each of the first 
four fiscal years following that fiscal year, the Comptroller General 
of the United States and the Inspector General of each executive agency 
or (in the case of an executive agency that does not have an Inspector 
General) an appropriate audit agency shall, in coordination with each 
other, review the plans of the executive agency for acquisitions of 
information technology, the information technology acquisition programs 
being carried out by the executive agency, and the information 
resources management of the executive agency.
    (b) Purpose of Reviews.--The purpose of each of the reviews of an 
executive agency is to determine, for each of the agency's functional 
areas supported by information technology, the following:
            (1) Whether the cost of operating and maintaining 
        information technology for the agency has decreased below the 
        cost incurred by the agency for operating and maintaining 
        information technology for the agency for fiscal year 1995 by 
        at least 5 percent (in constant fiscal year 1995 dollars) for 
        each of five fiscal years.
            (2) Whether, in terms of the applicable performance 
        measurements established by the head of the executive agency, 
        the efficiency of the operations of the agency has increased 
        over the efficiency of the operations of the agency in fiscal 
        year 1995 by at least 5 percent by reason of improvements in 
        information resources management by the agency for each of five 
        fiscal years.
      TITLE IV--INFORMATION TECHNOLOGY ACQUISITION PILOT PROGRAMS

                 Subtitle A--Conduct of Pilot Programs

SEC. 401. REQUIREMENT TO CONDUCT PILOT PROGRAMS.

    (a) In General.--
            (1) Purpose.--The Chief Information Officer of the United 
        States shall conduct pilot programs in order to test 
        alternative approaches for acquisition of information 
        technology and other information resources by executive 
        agencies.
            (2) Multiagency, multiactivity conduct of each program.--
        Except as otherwise provided in this title, each pilot program 
        conducted under this title shall be carried out in not more 
        than two procuring activities in each of two executive agencies 
        designated by the Chief Information Officer. The head of each 
        designated executive agency shall, with the approval of the 
        Chief Information Officer, select the procuring activities of 
        the agency to participate in the test and shall designate a 
        procurement testing official who shall be responsible for the 
        conduct and evaluation of the pilot program within the agency.
    (b) Limitations.--
            (1) Number.--Not more than five pilot programs shall be 
        conducted under the authority of this title, including one 
        pilot program each pursuant to the requirements of sections 
        421, 422, and 423, and two pilot programs pursuant to section 
        424.
            (2) Amount.--The total amount obligated for contracts 
        entered into under the pilot programs conducted under the 
        authority of this title may not exceed $1,500,000,000. The 
        Chief Information Officer shall monitor such contracts and 
        ensure that contracts are not entered into in violation of the 
        limitation in the preceding sentence.
    (c) Involvement of Federal Information Council.--The Chief 
Information Officer may--
            (1) conduct pilot programs recommended by the Federal 
        Information Council; and
            (2) consult with the Federal Information Council regarding 
        development of pilot programs to be conducted under this 
        section.
    (d) Period of Programs.--
            (1) In general.--Subject to paragraph (2), the Chief 
        Information Officer shall conduct a pilot program for the 
        period, not in excess of five years, that is determined by the 
        Chief Information Officer to be sufficient to establish 
        reliable results.
            (2) Continuing validity of contracts.--A contract entered 
        into under the pilot program before the expiration of that 
        program shall remain in effect according to the terms of the 
        contract after the expiration of the program.

SEC. 402. TESTS OF INNOVATIVE PROCUREMENT METHODS AND PROCEDURES.

    (a) In General.--The Chief Information Officer of the United States 
shall exercise the authority of the Administrator for Federal 
Procurement Policy under section 15 of the Office of Federal 
Procurement Policy Act (41 U.S.C. 413) with regard to the acquisition 
of information technology and other information resources by executive 
agencies.
    (b) Relationship to Pilot Program Authority.--The authority under 
paragraph (1) is in addition to the authority provided in this title to 
conduct pilot programs. A test program conducted under subsection (a), 
and each contract awarded under such test program, are not subject to 
the limitations on pilot programs provided in this title.

SEC. 403. EVALUATION CRITERIA AND PLANS.

    (a) Measurable Test Criteria.--The Chief Information Officer of the 
United States shall require the head of each executive agency 
conducting a pilot program under section 401 or a test program under 
section 402 to establish, to the maximum extent practicable, measurable 
criteria for evaluating the effects of the procedures or techniques to 
be tested under the program.
    (b) Test Plan.--Before a pilot program or a test program may be 
conducted under section 401 or 402, respectively, the Chief Information 
Officer shall submit to the Committee on Governmental Affairs of the 
Senate and the Committee on Government Reform and Oversight of the 
House of Representatives a detailed test plan for the program, 
including a detailed description of the procedures to be used and a 
list of any regulations that are to be waived.

SEC. 404. REPORT.

    (a) Requirement.--Not later than 180 days after the completion of a 
pilot program conducted under this title or a test program conducted 
under section 402, the Chief Information Officer of the United States 
shall--
            (1) submit to the Director of the Office of Management and 
        Budget a report on the results and findings under the program; 
        and
            (2) provide a copy of the report to the Committee on 
        Governmental Affairs of the Senate and the Committee on 
        Government Reform and Oversight of the House of 
        Representatives.
    (b) Content.--The report shall include the following:
            (1) A detailed description of the results of the program, 
        as measured by the criteria established for the program.
            (2) A discussion of any legislation that the Chief 
        Information Officer recommends, or changes in regulations that 
        the Chief Information Officer considers necessary, in order to 
        improve overall information resources management within the 
        Federal Government.

SEC. 405. RECOMMENDED LEGISLATION.

    If the Director of the Office of Management and Budget determines 
that the results and findings under a pilot program under this title 
indicate that legislation is necessary or desirable in order to improve 
the process for acquisition of information technology, the Director 
shall transmit the Director's recommendations for such legislation to 
the Committee on Governmental Affairs of the Senate and the Committee 
on Government Reform and Oversight of the House of Representatives.

SEC. 406. RULE OF CONSTRUCTION.

    Nothing in this title shall be construed as authorizing the 
appropriation or obligation of funds for the pilot programs or test 
programs conducted pursuant to this title.
                  Subtitle B--Specific Pilot Programs

SEC. 421. SHARE-IN-SAVINGS PILOT PROGRAM.

    (a) Requirement.--The Chief Information Officer of the United 
States shall carry out a pilot program to test the feasibility of--
            (1) contracting on a competitive basis with a private 
        sector source to provide the Federal Government with an 
        information technology solution for improving mission-related 
        or administrative processes of the Federal Government; and
            (2) paying the private sector source an amount equal to a 
        portion of the savings derived by the Federal Government from 
        any improvements in mission-related processes and 
        administrative processes that result from implementation of the 
        solution, as determined by the Chief Information Officer.
    (b) Program Contracts.--Up to five contracts for one project each 
may be entered into under the pilot program.
    (c) Selection of Projects.--The projects shall be selected by the 
Chief Information Officer from among projects recommended by the 
Federal Information Council.

SEC. 422. SOLUTIONS-BASED CONTRACTING PILOT PROGRAM.

    (a) In General.--The Chief Information Officer shall carry out a 
pilot program to test the feasibility of the use of solutions-based 
contracting for acquisition of information technology.
    (b) Solutions-Based Contracting Defined.--For purposes of this 
section, solutions-based contracting is an acquisition method under 
which the Federal Government user of the technology to be acquired 
defines the acquisition objectives, uses a streamlined contractor 
selection process, and allows industry sources to provide solutions 
that attain the objectives effectively. The emphasis of the method is 
on obtaining from industry an optimal solution.
    (c) Process.--The Chief Information Officer shall require use of 
the following process for acquisitions under the pilot program:
            (1) Acquisition plan emphasizing desired result.--
        Preparation of an acquisition plan that defines the functional 
        requirements of the intended users of the information 
        technology to be acquired, identifies the operational 
        improvement results to be achieved, and defines the performance 
        measurements to be applied in determining whether the 
        information technology acquired satisfies the defined 
        requirements and attains the identified results.
            (2) Results-oriented statement of work.--Use of a statement 
        of work that is limited to an expression of the end results or 
        performance capabilities desired under the acquisition plan.
            (3) Small acquisition organization.--Assembly of small 
        acquisition organization consisting of the following:
                    (A) An acquisition management team, the members of 
                which are to be evaluated and rewarded under the pilot 
                program for contributions toward attainment of the 
                desired results identified in the acquisition plan.
                    (B) A small source selection team composed of 
                representatives in the specific mission or 
                administrative area to be supported by the information 
                technology to be acquired, a contracting officer, and 
                persons with relevant expertise.
            (4) Use of source selection factors emphasizing source 
        qualifications.--Use of source selection factors that are 
        limited to determining the qualifications of the offeror, 
        including such factors as personnel skills, previous experience 
        in providing other private or public sector organizations with 
        solutions for attaining objectives similar to the objectives to 
        be attained in the acquisition, past contract performance, 
        qualifications of the proposed program manager, and the 
        proposed management plan.
            (5) Open communications with contractor community.--Open 
        availability of the following information to potential 
        offerors:
                    (A) The agency mission to be served by the 
                acquisition.
                    (B) The functional process to be performed by use 
                of information technology.
                    (C) The process improvements to be attained.
            (6) Simple solicitation.--Use of a simple solicitation that 
        sets forth only the functional work description, source 
        selection factors, the required terms and conditions, 
        instructions regarding submission of offers, and the estimate 
        of the Federal Government's budget for the desired work.
            (7) Simple proposals.--Submission of oral proposals and 
        acceptance of written supplemental submissions that are limited 
        in size and scope and contain information on the offeror's 
        qualifications to
         perform the desired work together with information of past 
contract performance.
            (8) Simple evaluation.--Use of a simple evaluation process, 
        to be completed within 45 days after receipt of proposals, 
        which consists of the following:
                    (A) Identification of the offerors that are within 
                the competitive range of most of the qualified 
                offerors.
                    (B) Issuance of invitations for at least three and 
                not more than five of the identified offerors to make 
                oral presentations to, and engage in discussions with, 
                the evaluating personnel regarding the qualifications 
                of the offerors, including how the qualifications of 
                each offeror relate to the approaches proposed to be 
                taken by the offeror in the acquisition.
                    (C) Evaluation of the qualifications of the 
                identified offerors on the basis of submissions 
                required under the process and any oral presentations 
                made by, and any discussions with, the offerors.
            (9) Selection of most qualified offeror.--A selection 
        process consisting of the following:
                    (A) Identification of the most qualified source, 
                and ranking of alternative sources, primarily on the 
                basis of the oral proposals, presentations, and 
                discussions, but taking into consideration supplemental 
                written submissions.
                    (B) Conduct for 30 to 60 days of a program 
                definition phase, funded by the Federal Government--
                            (i) during which the selected source, in 
                        consultation with one or more intended users, 
                        develops a conceptual system design and 
                        technical approach, defines logical phases for 
                        the project, and estimates the total cost and 
                        the cost for each phase; and
                            (ii) after which a contract for performance 
                        of the work may be awarded to that source on 
                        the basis of cost, the responsiveness, 
                        reasonableness, and quality of the proposed 
                        performance, and a sharing of risk and benefits 
                        between the source and the Government.
                    (C) Conduct of as many successive program 
                definition phases with the alternative sources (in the 
                order ranked) as is necessary in order to award a 
                contract in accordance with subparagraph (B).
            (10) System implementation phasing.--System implementation 
        to be executed in phases that are tailored to the solution, 
        with various contract arrangements being used, as appropriate, 
        for various phases and activities.
            (11) Mutual authority to terminate.--Authority for the 
        Federal Government or the contractor to terminate the contract 
        without penalty at the end of any phase defined for the 
        project.
            (12) Time management discipline.--Application of a standard 
        for awarding a contract within 60 to 90 days after issuance of 
        the solicitation.
    (d) Pilot Program Design.--
            (1) Joint public-private working group.--The Chief 
        Information Officer shall establish a joint working group of 
        Federal Government personnel and representatives of the 
        information technology industry to design a plan for conduct of 
        the pilot program.
            (2) Content of plan.--The plan shall provide for use of 
        solutions-based contracting in the Department of Defense and 
        not more than two other executive agencies for a total of--
                    (A) 10 projects, each of which has an estimated 
                cost of between $25,000,000 and $100,000,000; and
                    (B) 10 projects, each of which has an estimated 
                cost of between $1,000,000 and $5,000,000, to be set 
                aside for small business concerns.
            (3) Complexity of projects.--(A) Subject to subparagraph 
        (C), each acquisition project under the pilot program shall be 
        sufficiently complex to provide for meaningful evaluation of 
        the use of solutions-based contracting for acquisition of 
        information technology for executive agencies.
            (B) In order for an acquisition project to satisfy the 
        requirement in subparagraph (A)--
                    (i) the solution for attainment of the executive 
                agency's objectives under the project should not be 
                obvious, but rather shall involve a need for some 
                innovative development; and
                    (ii) the project shall incorporate all elements of 
                system integration.
            (C) An acquisition project should not be so extensive or 
        lengthy as to result in undue delay in the evaluation of the 
        use of solutions-based contracting.
    (e) Use of Experienced Federal Personnel.--Only Federal Government 
personnel who are experienced, and have demonstrated success, in 
managing or otherwise performing significant functions in complex 
acquisitions shall be used for evaluating offers, selecting sources, 
and carrying out the performance phases in an acquisition under the 
pilot program.
    (f) Monitoring by GAO.--
            (1) Requirement.--The Comptroller General of the United 
        States shall--
                    (A) monitor the conduct, and review the results, of 
                acquisitions under the pilot program; and
                    (B) submit to Congress periodic reports containing 
                the views of the Comptroller General on the activities, 
                results, and findings under the pilot program.
            (2) Expiration of requirement.--The requirement under 
        paragraph (1)(B) shall terminate after submission of the report 
        that contains the final views of the Comptroller General on the 
        last of the acquisition projects completed under the pilot 
        program.

SEC. 423. PILOT PROGRAM FOR CONTRACTING FOR PERFORMANCE OF ACQUISITION 
              FUNCTIONS.

    (a) Requirement.--The Chief Information Officer of the United 
States shall carry out a pilot program which provides for the head of 
an executive agency, or an executive agent acting for the head of an 
executive agency, to contract for the performance of the contracting 
and program management functions for an information technology 
acquisition for the agency.
    (b) Participating Agencies.--The Chief Information Officer shall 
select five executive agencies to participate, with the consent of the 
head of the agency, in the pilot program.
    (c) Obligation of Funds To Be by Federal Officials.--Funds of the 
United States may not be obligated by a contractor in the performance 
of contracting or program management functions of an executive agency 
under the pilot program.
    (d) GAO Review and Analysis.--The Comptroller General of the United 
States shall--
            (1) monitor and review the results of the pilot program;
            (2) compare the use of contract personnel for performance 
        of the contracting and program management functions for an 
        information technology acquisition under the pilot program with 
        the use of agency personnel to perform such functions; and
            (3) submit to the Committee on Governmental Affairs of the 
        Senate and the Committee on Government Reform and Oversight a 
        report on the comparison, including any conclusions of the 
        Comptroller General.

SEC. 424. MAJOR ACQUISITIONS PILOT PROGRAMS.

    (a) Flexible Acquisitions Pilot Programs.--The Chief Information 
Officer of the United States shall carry out two pilot programs, one in 
the Department of Defense and one in another executive agency, to test 
and demonstrate for use in major information technology acquisition 
programs flexible acquisition procedures that accommodate the following 
during the conduct of the acquisition:
            (1) Continuous refinement of--
                    (A) the agency information architecture for which 
                the information technology is being procured; and
                    (B) the requirements to be satisfied by such 
                technology within that information architecture.
            (2) Incremental development of system capabilities.
            (3) Integration of new technology as it becomes available.
            (4) Rapid fielding of effective systems.
            (5) Completion of the operational increments of the 
        acquisition within 18 months (subject to supplementation or 
        further evolution of the agency information system through 
        follow-on procurements).
    (b) Covered Acquisition Programs.--Each pilot program shall involve 
one acquisition of information technology that satisfies the following 
requirements:
            (1) The acquisition is in an amount greater than 
        $100,000,000, but the amount of the increments of the 
        acquisition covered by the pilot program does not exceed 
        $300,000,000.
            (2) The information technology is to be procured for 
        support of one or more agency processes or missions that have 
        been, or are being, reevaluated and substantially revised to 
        improve the efficiency with which the agency performs agency 
        missions or delivers services.
            (3) The acquisition is to be conducted as part of a 
        sustained effort of the executive agency concerned to attain a 
        planned overall information architecture for the agency that is 
        designed to support
         improved performance of the agency missions and improved 
delivery of services.
            (4) The acquisition program provides for an evolution of an 
        information system that is guided by the overall information 
        architecture planned for the agency.
            (5) The acquisition is being conducted with a goal of 
        completing two or more major increments in the evolution of the 
        agency's information system within a 3-year period.
    (c) Waiver of Procurement Laws.--
            (1) Waiver authority.--The head of an executive agency 
        carrying out a pilot program under this section may, with the 
        approval of the Chief Information Officer of the United States, 
        waive any provision of procurement law referred to in paragraph 
        (2) to the extent that the head of the agency considers 
        necessary to carry out the pilot program in accordance with 
        this section.
            (2) Covered procurement laws.--The waiver authority under 
        paragraph (1) applies to the following procurement laws:
                    (A) Title III of the Federal Property and 
                Administrative Services Act of 1949 (41 U.S.C. 251 et 
                seq.).
                    (B) Chapter 137 of title 10, United States Code.
                    (C) The Office of Federal Procurement Policy Act 
                (41 U.S.C. 401 et seq.).
                    (D) Sections 8, 9, and 15 of the Small Business Act 
                (15 U.S.C. 637, 638, and 644).
                    (E) Any provision of law that, pursuant to section 
                34 of the Office of Federal Procurement Policy Act (41 
                U.S.C. 430), is listed in the Federal Acquisition 
                Regulation as being inapplicable--
                            (i) to contracts for the procurement of 
                        commercial items; or
                            (ii) in the case of a subcontract under the 
                        pilot program, to subcontracts for the 
                        procurement of commercial items.
                    (F) Any other provision of law that imposes 
                requirements, restrictions, limitations, or conditions 
                on Federal Government contracting (other than a 
                limitation on use of appropriated funds), as determined 
                by the Chief Information Officer of the United States.
    (d) OMB Involvement.--
            (1) In general.--The Chief Information Officer of the 
        United States shall closely and continuously monitor the 
        conduct of the pilot programs carried out under this section.
            (2) Assignment of omb personnel to program team.--In order 
        to carry out paragraph (1) effectively, the Chief Information 
        Officer of the United States shall assign one or more 
        representatives to the acquisition program management team for 
        each pilot program.
    (e) Termination of Pilot Program for Unsatisfactory Performance.--
The Chief Information Officer of the United States shall terminate a 
pilot program under this section at any time that the Chief Information 
Officer determines that the acquisition under the program has failed to 
a significant extent to satisfy cost, schedule, and performance 
requirements established for the acquisition.
    (f) Reports to Congress.--
            (1) Requirement.--The Director of the Office of Management 
        and Budget shall submit to Congress reports on each pilot 
        program carried out under this section as follows:
                    (A) An interim report upon the completion of each 
                increment of the acquisition under the pilot program.
                    (B) A final report upon completion of the pilot 
                program.
            (2) Content of final report.--The final report on a pilot 
        program shall include any recommendations for waiver of the 
        applicability of procurement laws to further evolution of 
        information systems acquired under the pilot program.
        TITLE V--OTHER INFORMATION RESOURCES MANAGEMENT REFORMS

SEC. 501. TRANSFER OF RESPONSIBILITY FOR FACNET.

    Section 30 of the Office of Federal Procurement Policy Act (41 
U.S.C. 426) is amended--
            (1) in subsection (a), by striking out ``Administrator'' 
        the first place it appears and inserting in lieu thereof 
        ``Chief Information Officer of the United States''; and
            (2) by striking out ``Administrator'' each place it appears 
        and inserting in lieu thereof ``Chief Information Officer''.

SEC. 502. ON-LINE MULTIPLE AWARD SCHEDULE ORDERING.

    (a) Development and Implementation of System Designs.--In order to 
provide for the economic and efficient procurement of commercial 
information technology, the Chief Information Officer of the United 
States shall establish competing programs for the development and 
testing of up to three system designs for providing for Governmentwide, 
on-line computer purchasing of commercial items of information 
technology.
    (b) Required System Capabilities.--Each of the system designs shall 
be established as an element of the Federal acquisition computer 
network (FACNET) architecture and shall, at a minimum--
            (1) provide basic information on the prices, features, and 
        performance of all commercial items of information technology 
        available for purchasing;
            (2) provide for updating that information to reflect 
        changes in prices, features, and performance as soon as 
        information on the changes becomes available;
            (3) enable users to make on-line computer comparisons of 
        the prices, features, and performance of similar products and 
        services offered by various vendors;
            (4) enable users to place, and vendors to receive, on-line 
        computer orders for products and services available for 
        purchasing;
            (5) enable ordering users to make payments to vendors by 
        bank card, electronic funds transfer, or other automated 
        methods in cases in which it is practicable and in the interest 
        of the Federal Government to do so; and
            (6) archive data relating to each order placed against 
        multiple award schedule contracts using such system, including, 
        at a minimum, data on--
                    (A) the agency or office placing the order;
                    (B) the vendor receiving the order;
                    (C) the products or services ordered; and
                    (D) the total price of the order.
    (c) Use of Systems.--Under guidelines and procedures prescribed 
pursuant to subsection (d), the head of an executive agency may use a 
system developed and tested under this section to make purchases in a 
total amount of not more than $5,000,000 for each order.
    (d) Guidelines and Procedures.--The Chief Information Officer shall 
prescribe guidelines and procedures for making purchases authorized by 
subsection (c). The guidelines and procedures shall ensure that orders 
placed on the system referred to in that subsection do not place any 
requirements on vendors that are not customary for transactions 
involving sales of the purchased commodities to private sector 
purchasers.
    (e) Report to Congress.--Not later than one year after the date of 
the enactment of this Act, the Chief Information Officer shall submit 
to Congress a report on the Chief Information Officer's decision on 
implementation of an electronic marketplace for information technology. 
The report shall contain a description of the results of the programs 
established under subsection (a).
SEC. 503. UPGRADING INFORMATION EQUIPMENT IN AGENCY FIELD OFFICES.

    (a) Authority To Use Micro-Purchase Procedures.--Under the 
authority, direction, and control of the head of an executive agency 
and subject to subsection (b), the head of a field office of that 
agency may use micro-purchase procedures to procure up to $20,000 of 
upgrades for the computer equipment of that office each year in 
increments not exceeding $2,500 each. Procurements within that 
limitation shall not be counted against the $20,000 annual limitation 
provided under section 32(c)(2) of the Office of Federal Procurement 
Policy Act (41 U.S.C. 428(c)(2)).
    (b) Certification Requirement.--The head of a field office may 
procure an upgrade for computer equipment in accordance with subsection 
(a) only if the head of the field office determines in writing that the 
cost of the upgrade does not exceed 50 percent of the cost of 
purchasing replacement equipment for the equipment to be upgraded. The 
head of the field office shall include a written record of the 
determination in the agency records of the procurement.
    (c) Micro-Purchase Procedures Defined.--In this section, the term 
``micro-purchase procedures'' means the procedures prescribed under 
section 32 of the Office of Federal Procurement Policy Act (41 U.S.C. 
428) for purchases not in excess of the micro-purchase threshold (as 
defined in that section).
SEC. 504. DISPOSAL OF EXCESS COMPUTER EQUIPMENT.

    (a) Authority To Donate.--The head of an executive agency may, 
without regard to the procedures otherwise applicable under title II of 
the Federal Property and Administrative Services Act of 1949 (40 U.S.C. 
481 et seq.), convey without consideration all right, title, and 
interest of the United States in any computer equipment under the 
control of such official that is determined under title II of such Act 
as being excess property or surplus property to a recipient in the 
following order of priority:
            (1) Elementary and secondary schools under the jurisdiction 
        of a local educational agency and schools funded by the Bureau 
        of Indian Affairs.
            (2) Public libraries.
            (3) Public colleges and universities.
    (b) Inventory Required.--Upon the enactment of this Act, the head 
of an executive agency shall inventory all computer equipment under the 
control of that official and identify in accordance with title II of 
the Federal Property and Administrative Services Act of 1949 (40 U.S.C. 
481 et seq.) the equipment, if any, that is excess property or surplus 
property.
    (c) Definitions.--In this section:
            (1) The terms ``excess property'' and ``surplus property'' 
        have the meanings given such terms in section 3 of the Federal 
        Property and Administrative Services Act of 1949 (40 U.S.C. 
        472).
            (2) The terms ``local educational agency'', ``elementary 
        school'', and ``secondary school'' have the meanings given such 
        terms in section 14101 of the Elementary and Secondary 
        Education Act of 1965 (20 U.S.C. 8801).

SEC. 505. LEASING INFORMATION TECHNOLOGY.

    (a) Analysis by GAO.--The Comptroller General of the United States 
shall perform a comparative analysis of--
            (1) the costs and benefits of purchasing new information 
        technology for executive agencies;
            (2) the costs and benefits of leasing new information 
        technology for executive agencies;
            (3) the costs and benefits of leasing used information 
        technology for executive agencies; and
            (4) the costs and benefits of purchasing used information 
        technology.
    (b) Leasing Guidelines.--Based on the analysis, the Comptroller 
General shall develop recommended guidelines for leasing information 
technology for executive agencies.
SEC. 506. CONTINUATION OF ELIGIBILITY OF CONTRACTOR FOR AWARD OF 
              INFORMATION TECHNOLOGY CONTRACT AFTER PROVIDING DESIGN 
              AND ENGINEERING SERVICES.

    Notwithstanding any other provision of law, a contractor that 
provides architectural design and engineering services for an 
information system under an information technology program of an 
executive agency is not, solely by reason of having provided such 
services, ineligible for award of a contract for procurement of 
information technology under that program or for a subcontract under 
such a contract.

SEC. 507. ENHANCED PERFORMANCE INCENTIVES FOR INFORMATION TECHNOLOGY 
              ACQUISITION WORKFORCE.

    (a) Armed Services Acquisitions.--
            (1) Clarification of requirements for system of 
        incentives.--Subsection (b) of section 5001 of the Federal 
        Acquisition Streamlining Act of 1994 (Public Law 103-355; 108 
        Stat. 3350; 10 U.S.C. 2220 note) is amended--
                    (A) by redesignating paragraphs (1) and (2) as 
                subparagraphs (A) and (B), respectively;
                    (B) by designating the second sentence as paragraph 
                (2);
                    (C) by inserting ``(1)'' after ``(b) Enhanced 
                System of Performance Incentives.--''; and
                    (D) by adding at the end the following:
    ``(3) The Secretary shall include in the enhanced system of 
incentives, to the extent that the system applies with respect to 
programs for the acquisition of information technology (as defined in 
section 4 of the Information Technology Management Reform Act of 1995), 
the following:
            ``(A) Pay bands.
            ``(B) Significant and material pay and performance 
        incentives to be awarded, and significant and material 
        unfavorable personnel actions to be imposed, under the system 
        exclusively, or primarily, on the basis of the contributions of 
        personnel to the performance of the information technology 
        acquisition program in relation to cost goals, performance 
        goals, and schedule goals.
            ``(C) Provisions for pay incentives and performance 
        incentives to be awarded under the system only if--
                    ``(i) the cost of the information technology 
                acquisition program is less than 90 percent of the 
                baseline established for the cost of the program;
                    ``(ii) the period for completion of the information 
                technology program is less than 90 percent of the 
                period provided under the baseline established for the 
                program schedule; and
                    ``(iii) the results of the phase of the information 
                technology program being executed exceed the 
                performance baselines established for the system by 
                more than 10 percent.
            ``(D) Provisions for unfavorable personnel actions to be 
        taken under the system only if the information technology 
        acquisition program performance for the phase being executed 
        exceeds by more than 10 percent the cost and schedule 
        parameters established for the program phase and the 
        performance of the system acquired or to be acquired under the 
        program fails to achieve at least 90 percent of the baseline 
        goals established for performance of the program.''.
            (2) Recommended legislation.--Subsection (c) of such 
        section is amended by adding at the end the following: ``The 
        Secretary shall include in the recommendations provisions 
        necessary to implement the requirements of subsection 
        (b)(3).''.
            (3) Implementation of incentives system.--Section 5001 of 
        the Federal Acquisition Streamlining Act of 1994 is further 
        amended by adding at the end the following:
    ``(d) Implementation of Incentives System.--(1) The Secretary shall 
complete the review required by subsection (b) and take such actions as 
are necessary to provide an enhanced system of incentives in accordance 
with such subsection not later than October 1, 1997.
    ``(2) Not later than October 1, 1996, the Secretary shall submit to 
the Committees on Armed Services and on Governmental Affairs of the 
Senate and the Committees on National Security and on Government Reform 
and Oversight of the House of Representatives a report on the actions 
taken to satisfy the requirements of paragraph (1).''.
    (b) Civilian Agency Acquisitions.--
            (1) Clarification of requirements for system of 
        incentives.--Subsection (b) of section 5051 of the Federal 
        Acquisition Streamlining Act of 1994 (Public Law 103-355; 108 
        Stat. 3351; 41 U.S.C. 263 note) is amended--
                    (A) by redesignating paragraphs (1) and (2) as 
                subparagraphs (A) and (B), respectively;
                    (B) by designating the second sentence as paragraph 
                (2);
                    (C) by inserting ``(1)'' after ``(b) Enhanced 
                System of Performance Incentives.--''; and
                    (D) by adding at the end the following:
    ``(3) The Deputy Director shall include in the enhanced system of 
incentives, to the extent that the system applies with respect to 
programs for the acquisition of information technology (as defined in 
section 4 of the Information Technology Management Act of 1995), the 
following:
            ``(A) Pay bands.
            ``(B) Significant and material pay and performance 
        incentives to be awarded, and significant and material 
        unfavorable personnel actions to be imposed, under the system 
        exclusively, or primarily, on the basis of the contributions of 
        personnel to the performance of the information technology 
        acquisition program in relation to cost goals, performance 
        goals, and schedule goals.
            ``(C) Provisions for pay incentives and performance 
        incentives to be awarded under the system only if--
                    ``(i) the cost of the information technology 
                acquisition program is less than 90 percent of the 
                amount established as the cost goal for the program 
                under section 313 of the Federal Property and 
                Administrative Services Act of 1949 (41 U.S.C. 263);
                    ``(ii) the period for completion of the program is 
                less than 90 percent of the period established as the 
                schedule goal for the program under such section; and
                    ``(iii) the results of the phase of the program 
                being executed exceed the performance goal established 
                for the program under such section by more than 10 
                percent.
            ``(D) Provisions for unfavorable personnel actions to be 
        taken under the system only if the information technology 
        acquisition program performance for the phase being executed 
        exceeds by more than 10 percent the cost and schedule goals 
        established for the program phase under section 313 of the 
        Federal Property and Administrative Services Act of 1949 (41 
        U.S.C. 263) and the performance of the system acquired or to be 
        acquired under the program fails to achieve at least 90 percent 
        of the performance goal established for the program under such 
        section.''.
            (2) Recommended legislation.--Subsection (c) of such 
        section is amended by adding at the end the following: ``The 
        Deputy Director shall include in the recommendations provisions 
        necessary to implement the requirements of subsection 
        (b)(3).''.
            (3) Implementation of incentives system.--Section 5051 of 
        the Federal Acquisition Streamlining Act of 1994 is further 
        amended by adding at the end the following:
    ``(d) Implementation of Incentives System.--(1) The Deputy Director 
shall complete the review required by subsection (b) and take such 
actions as are necessary to provide an enhanced system of incentives in 
accordance with such subsection not later than October 1, 1997.
    ``(2) Not later than October 1, 1996, the Deputy Director shall 
submit to the Committee on Governmental Affairs of the Senate and the 
Committee on Government Reform and Oversight of the House of 
Representatives a report on the actions taken to satisfy the 
requirements of paragraph (1).''.
  TITLE VI--ACTIONS REGARDING CURRENT INFORMATION TECHNOLOGY PROGRAMS

SEC. 601. PERFORMANCE MEASUREMENTS.

    (a) Implementation of Requirement for Performance Measurements.--
The chief information officer of an executive agency shall ensure that 
performance measurements are prescribed for each significant current 
information technology acquisition program of the agency.
    (b) Quality of Measurements.--The performance measurements shall be 
sufficient to provide--
            (1) the head of the executive agency with adequate 
        information for making determinations for purposes of 
        subsections (b)(2) and (c)(2) of section 146; and
            (2) the Director of the Office of Management and Budget 
        with adequate information for making determinations for 
        purposes of paragraphs (1)(B) and (2)(B) of section 123(g).

SEC. 602. INDEPENDENT ASSESSMENT OF PROGRAMS.

    (a) Assessment Required.--The head of each executive agency shall 
provide for an assessment to be made of each of the current information 
technology acquisition programs of the agency that exceed $100,000,000.
    (b) Independence of Assessment.--The head of the executive agency 
shall provide for the assessment to be carried out by the Inspector 
General of the agency (in the case of an agency having an Inspector 
General), a contractor, or another entity who is independent of the 
head of the executive agency.
    (c) Purposes.--The purposes of the assessment of a program are to 
determine the following:
            (1) To determine the status of the program in terms of 
        performance objectives and cost and schedule baselines.
            (2) To identify any need or opportunity for improving the 
        process to be supported by the program.
            (3) To determine the potential for use of the information 
        technology by other executive agencies on a shared basis or 
        otherwise.
            (4) To determine the adequacy of the program plan, the 
        architecture of the information technology being acquired, and 
        the program management.

SEC. 603. CURRENT INFORMATION TECHNOLOGY ACQUISITION PROGRAM DEFINED.

    For purposes of this title, a current information technology 
acquisition program is--
            (1) an information technology acquisition program being 
        carried out on the date of the enactment of this Act; and
            (2) any other information technology acquisition program 
        that is carried out through any contract entered into on the 
        basis of offers received in response to a solicitation of 
        offers issued before such date.
  TITLE VII--PROCUREMENT PROTEST AUTHORITY OF THE COMPTROLLER GENERAL

SEC. 701. REMEDIES.

    Section 3554(b) of title 31, United States Code, is amended by 
adding at the end the following:
    ``(4) If the Comptroller General makes a determination described in 
paragraph (1) in the case of a protest in a procurement of information 
technology, the Comptroller General may submit to the Chief Information 
Officer of the United States a recommendation to suspend the 
procurement authority of a Federal agency for the protested 
procurement.''.

SEC. 702. PERIOD FOR PROCESSING PROTESTS.

    Section 3554(a) of title 31, United States Code, is amended--
            (1) in paragraph (1), by striking out ``paragraph (2)'' in 
        the second sentence and inserting in lieu thereof ``paragraphs 
        (2) and (5)''; and
            (2) by adding at the end the following:
    ``(5)(A) The requirements and restrictions set forth in this 
paragraph apply in the case of a protest in a procurement of 
information technology.
    ``(B) The Comptroller General shall issue a final decision 
concerning a protest referred to in subparagraph (A) within 45 days 
after the date the protest is submitted to the Comptroller General.
    ``(C) The disposition under this subchapter of a protest in a 
procurement referred to in subparagraph (A) bars any further protest 
under this subchapter by the same interested party on the same 
procurement.''.

SEC. 703. DEFINITION.

    Section 3551 of title 31, United States Code, is amended by adding 
at the end the following:
            ``(4) The term `information technology' has the meaning 
        given that term in section 4 of the Information Technology 
        Management Reform Act of 1995.''.
 TITLE VIII--RELATED TERMINATIONS, CONFORMING AMENDMENTS, AND CLERICAL 
                               AMENDMENTS

                    Subtitle A--Related Terminations

SEC. 801. OFFICE OF INFORMATION AND REGULATORY AFFAIRS.

    The Office of Information and Regulatory Affairs in the Office of 
Management and Budget is terminated.

SEC. 802. SENIOR INFORMATION RESOURCES MANAGEMENT OFFICIALS.

    In each executive agency for which a chief information officer is 
designated under section 143(a), the designation of a senior 
information resources management official under section 3506(a)(2) of 
title 44, United States Code, is terminated.

                   Subtitle B--Conforming Amendments

SEC. 811. AMENDMENTS TO TITLE 10, UNITED STATES CODE.

    (a) Multiyear Contracts.--Section 2306b(k) of title 10, United 
States Code, is amended by striking out ``property to which section 111 
of the Federal Property and Administrative Services Act of 1949 (40 
U.S.C. 759) applies'' and inserting in lieu thereof ``information 
technology (as defined in section 4 of the Information Technology 
Management Reform Act of 1995''.
    (b) Sensitive Defense Activities.--Section 2315 of such title is 
repealed.

SEC. 812. AMENDMENTS TO TITLE 28, UNITED STATES CODE.

    Section 612 of title 28, United States Code, is amended--
            (1) in subsection (f), by striking out ``section 111 of the 
        Federal Property and Administrative Services Act of 1949 (40 
        U.S.C. 759)'' and inserting in lieu thereof ``the provisions of 
        law, policies, and regulations applicable to executive agencies 
        under the Information Technology Management Reform Act of 
        1995'';
            (2) in subsection (g), by striking out ``sections 111 and 
        201 of the Federal Property and Administrative Services Act of 
        1949 (40 U.S.C. 481 and 759)'' and inserting in lieu thereof 
        ``section 201 of the Federal Property and Administrative 
        Services Act of 1949 (40 U.S.C. 481)'';
            (3) by striking out subsection (l); and
            (4) by redesignating subsection (m) as subsection (l).

SEC. 813. AMENDMENTS TO TITLE 31, UNITED STATES CODE.

    (a) Availability of Funds Following Resolution of a Protest.--
Section 1558(b) of title 31, United States Code, is amended by striking 
out ``or under section 111(f) of the Federal Property and 
Administrative Services Act of 1949 (40 U.S.C. 759(f))''.
    (b) GAO Procurement Protest System.--Section 3552 of such title is 
amended by striking out the second sentence.

SEC. 814. AMENDMENTS TO TITLE 38, UNITED STATES CODE.

    Section 310 of title 38, United States Code, is amended to read as 
follows:
``Sec. 310. Chief information officer
    ``(a) The Secretary shall designate a chief information officer for 
the Department in accordance with section 143(a) of the Information 
Technology Management Reform Act of 1995.
    ``(b) The chief information officer shall perform the duties 
provided for chief information officers of executive agencies under the 
Information Technology Management Reform Act of 1995.''.

SEC. 815. PROVISIONS OF TITLE 44, UNITED STATES CODE, AND OTHER LAWS 
              RELATING TO CERTAIN JOINT COMMITTEES OF CONGRESS.

    (a) Joint Committee on Information.--
            (1) Replacement of joint committee on printing.--Chapter 1 
        of title 44, United States Code, is amended by striking out the 
        chapter heading and all that follows through the heading for 
        section 103 and inserting in lieu thereof the following:
              ``CHAPTER 1--JOINT COMMITTEE ON INFORMATION
``Sec.
``101. Joint Committee on Information.
``102. Remedial powers.
``Sec. 101. Joint Committee on Information
    ``There is a Joint Committee on Information established by section 
101 of the Information Technology Management Reform Act of 1995.
``Sec. 102. Remedial powers''.
            (2) References to joint committee.--The provisions of title 
        44, United States Code, are amended by striking out ``Joint 
        Committee on Printing'' each place it appears and inserting in 
        lieu thereof ``Joint Committee on Information''.
    (b) References to Joint Committee of Congress on the Library.--
            (1) Miscellaneous references.--Section 82 of the Revised 
        Statutes (2 U.S.C. 132a), section 203(i) of the Legislative 
        Reorganization Act of 1946 (2 U.S.C. 166(i)), section 1831 of 
        the Revised Statutes (40 U.S.C. 188), and section 801(b)(2) of 
        Public Law 100-696 (102 Stat. 4608; 40 U.S.C. 188a(b)(2)) are 
        amended by striking out ``Joint Committee of Congress on the 
        Library'' and inserting in lieu thereof ``Joint Committee on 
        Information''.
            (2) Superseded provision.--Section 223 of the Legislative 
        Reorganization Act of 1946 (2 U.S.C. 132b) is repealed.
            (3) Continuation of authority.--Section 2 of the Act of 
        March 3, 1883 (22 Stat. 587) is amended under the heading 
        ``SENATE.'' by striking out the undesignated paragraph relating 
        to the exercise of powers and discharge of duties of the Joint 
        Committee of Congress on the Library by the Senate members of 
        the joint committee during the recess of Congress (22 Stat. 
        592; 2 U.S.C. 133).
    (c) Other References.--A reference to a joint committee of Congress 
terminated by section 102(d) in any law or in any document of the 
Federal Government shall be deemed to refer to the Joint Committee on 
Information established by section 101.

SEC. 816. PROVISIONS OF TITLE 44, UNITED STATES CODE, RELATING TO 
              PAPERWORK REDUCTION.

    (a) Definition.--Section 3502 of title 44, United States Code, is 
amended by striking out paragraph (9) and inserting in lieu thereof the 
following:
            ``(9) the term `information technology' has the meaning 
        given that term in section 4 of the Information Technology 
        Management Reform Act of 1995;''.
    (b) Office of Information and Regulatory Affairs.--Chapter 35 of 
such title is amended--
            (1) by striking out section 3503 and inserting in lieu 
        thereof the following:
``Sec. 3503. Chief Information Officer of the United States
    ``The Director of the Office of Management and Budget shall 
delegate to the Chief Information Officer of the United States the 
authority to administer all functions under this chapter, except that 
any such delegation shall not relieve the Director of responsibility 
for the administration of such functions.''; and
            (2) by striking out section 3520.
    (c) Development of Standards and Guidelines by NIST.--Section 
3504(h)(1)(B) of such title is amended by striking out ``section 111(d) 
of the Federal Property and Administrative Services Act of 1949 (40 
U.S.C. 759(d))'' and inserting in lieu thereof ``paragraphs (2) and (3) 
of section 20(a) of the National Institute of Standards and Technology 
Act (20 U.S.C. 278g-3(a))''.
    (d) Compliance With Directives.--Section 3504(h)(2) of such title 
is amended by striking out ``sections 110 and 111 of the Federal 
Property and Administrative Services Act of 1949 (40 U.S.C. 757 and 
759)'' and inserting in lieu thereof ``the Information Technology 
Management Reform Act of 1995 and directives issued under section 110 
of the Federal Property and Administrative Services Act of 1949 (40 
U.S.C. 757)''.
    (e) Senior Information Resources Management Officials.--Section 
3506(a)(2) of such title is amended--
            (1) in subparagraph (A), by striking out ``subparagraph 
        (B)'' and inserting in lieu thereof ``subparagraphs (B) and 
        (C)''; and
            (2) by adding at the end the following:
    ``(C) An agency for which a chief information officer is designated 
under section 143(a) of the Information Technology Management Reform 
Act of 1995 may not designate a senior official under this 
paragraph.''.

SEC. 817. AMENDMENT TO TITLE 49, UNITED STATES CODE.

    Section 40112(a) of title 49, United States Code, is amended by 
striking out ``or a contract to purchase property to which section 111 
of the Federal Property and Administrative Services Act of 1949 (40 
U.S.C. 759) applies''.

SEC. 818. OTHER LAWS.

    (a) Computer Security Act of 1987.--Section 2(b)(2) of the Computer 
Security Act of 1987 (Public Law 100-235; 101 Stat. 1724) is amended by 
striking out ``by amending section 111(d) of the Federal Property and 
Administrative Services Act of 1949 (40 U.S.C. 759(d))''.
    (b) Public Law 101-520.--Section 306(b) of Public Law 101-520 (40 
U.S.C. 166 note) is amended by striking out paragraph (1) and inserting 
in lieu thereof the following:
            ``(1) the Information Technology Management Reform Act of 
        1995; and''.
    (c) National Energy Conservation Policy Act.--Section 801(b)(3) of 
the National Energy Conservation Policy Act (42 U.S.C. 8287(b)(3)) is 
amended by striking out the second sentence.
    (d) National Security Act of 1947.--Section 3 of the National 
Security Act of 1947 (50 U.S.C. 403c) is amended by striking out 
subsection (e).

                    Subtitle B--Clerical Amendments

SEC. 821. AMENDMENT TO TITLE 10, UNITED STATES CODE.

    The table of sections at the beginning of chapter 137 of title 10, 
United States Code, is amended by striking out the item relating to 
section 2315.

SEC. 822. AMENDMENT TO TITLE 38, UNITED STATES CODE.

    The table of sections at the beginning of chapter 3 of title 38, 
United States Code, is amended by striking out the item relating to 
section 310 and inserting in lieu thereof the following:

``310. Chief information officer.''.
SEC. 823. AMENDMENTS TO TITLE 44, UNITED STATES CODE.

    (a) Chapter 1.--The item relating to chapter 1 in the table of 
chapters at the beginning of title 44, United States Code, is amended 
to read as follows:

``1. Joint Committee on Information.........................     101''.
    (b) Chapter 35.--The table of sections at the beginning of chapter 
35 of such title is amended--
            (1) by striking out the item relating to section 3503 and 
        inserting in lieu thereof the following:

``3503. Chief Information Officer of the United States.'';
        and
            (2) by striking out the item relating to section 3520.
                      TITLE IX--SAVINGS PROVISIONS

SEC. 901. SAVINGS PROVISIONS.

    (a) Regulations, Instruments, Rights, and Privileges.--All rules, 
regulations, contracts, orders, determinations, permits, certificates, 
licenses, grants, and privileges--
            (1) which have been issued, made, granted, or allowed to 
        become effective by the Administrator of General Services or 
        the General Services Administration Board of Contract Appeals, 
        or by a court of competent jurisdiction, in connection with an 
        acquisition activity carried out under the section 111 of the 
        Federal Property and Administrative Services Act of 1949 (40 
        U.S.C. 759), and
            (2) which are in effect on the effective date of this 
        title,
shall continue in effect according to their terms until modified, 
terminated, superseded, set aside, or revoked in accordance with law by 
the Director of the Office of Management and Budget, the Chief 
Information Officer of the United States, any other authorized 
official, by a court of competent jurisdiction, or by operation of law.
    (b) Proceedings and Applications.--
            (1) Transfers of functions not to affect proceedings.--This 
        Act and the amendments made by this Act shall not affect any 
        proceeding, including any proceeding involving a claim or 
        application, in connection with an acquisition activity carried 
        out under section 111 of the Federal Property and 
        Administrative Services Act of 1949 (40 U.S.C. 759) that is 
        pending before the Administrator of General Services or the 
        General Services Administration Board of Contract Appeals on 
        the effective date of this Act.
            (2) Orders in proceedings.--Orders may be issued in any 
        such proceeding, appeals may be taken therefrom, and payments 
        may be made pursuant to such orders, as if this Act had not 
        been enacted. An order issued in any such proceeding shall 
        continue in effect until modified, terminated, superseded, or 
        revoked by the Director of the Office of Management and Budget, 
        the Chief Information Officer of the United States, or any 
        other authorized official, by a court of competent 
        jurisdiction, or by operation of law.
            (3) Discontinuance or modification of proceedings not 
        prohibited.--Nothing in this subsection prohibits the 
        discontinuance or modification of any such proceeding under the 
        same terms and conditions and to the same extent that such 
        proceeding could have been discontinued or modified if this Act 
        had not been enacted.
            (4) Regulations for transfer of proceedings.--The Director 
        of the Office of Management and Budget may prescribe 
        regulations providing for the orderly transfer of proceedings 
        continued under paragraph (1).

                        TITLE X--EFFECTIVE DATES

SEC. 1001. EFFECTIVE DATES.

    (a) In General.--Except as provided in subsection (b), this Act and 
the amendments made by this Act shall take effect one year after the 
date of the enactment of this Act.
    (b) Title VI.--Title VI shall take effect on the date of the 
enactment of this Act.
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