II 

112TH CONGRESS 

1ST SESSION S. 801 

To amend chapter 113 of title 40, United States Code, to require executive 

agency participation in real-time transparency of investment projects, 

to require performance and governance reviews of all cost overruns on 

Federal information technology investment projects, and for other purposes. 

IN THE SENATE OF THE UNITED STATES 

APRIL 12, 2011 

Mr. CARPER (for himself, Ms. COLLINS, Mr. LIEBERMAN, and Mr. BROWN of 

Massachusetts) introduced the following bill; which was read twice and 

referred to the Committee on Homeland Security and Governmental Affairs 

A BILL 

To amend chapter 113 of title 40, United States Code, 

to require executive agency participation in real-time 

transparency of investment projects, to require performance and governance reviews of all cost overruns on 

Federal information technology investment projects, and 

for other purposes. 

1 Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled, 

3 SECTION 1. SHORT TITLE. 

4 This Act may be cited as the ‘‘Information Tech5 nology Investment Management Act of 2011’’. 


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1 SEC. 2. IT MANAGEMENT AND DEVELOPMENT PROGRAM. 

2 Section 11311 of title 40, United States Code is 

3 amended to read as follows: 

4 ‘‘§ 11311. Responsibilities 

5 ‘‘In fulfilling the responsibilities set forth in section 

6 3506 of title 44, the head of each executive agency shall— 

7 ‘‘(1) comply with the requirements under this 

8 subchapter; 

9 ‘‘(2) develop an information technology manage10 ment and development program in accordance with 

11 guidance disseminated by the Director of the Office 

12 of Management and Budget; and 

13 ‘‘(3) enter into the website established under 

14 section 11302, not less frequently than monthly— 

15 ‘‘(A) cost, schedule, and performance infor16 mation regarding the agency’s major IT invest17 ment projects, using earned value management 

18 or another objective, performance-based stand19 ard that has been approved by the E-Govern20 ment Administrator; and 

21 ‘‘(B) the planning information regarding 

22 core IT investment projects described in section 

23 11317(d)(2).’’. 


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1 SEC. 3. REAL-TIME TRANSPARENCY OF IT INVESTMENT 

2 PROJECTS. 

3 Section 11302 of title 40, United States Code, is 

4 amended by adding at the end the following: 

5 ‘‘(l) REAL-TIME TRANSPARENCY OF IT INVESTMENT

6 PROJECTS.—The Director shall— 

7 ‘‘(1) ensure the effective operation of a website; 

8 ‘‘(2) ensure that agency Chief Information Offi9 cers update the website on a monthly basis, at a 

10 minimum; 

11 ‘‘(3) include on the website, not later than 90 

12 days after the date of enactment of the Information 

13 Technology Investment Management Act of 2011— 

14 ‘‘(A) the available, accurate, current and 

15 historical cost, schedule, and performance infor16 mation of all major information technology in17 vestments, which shall be reported in a manner 

18 consistent with policy established by the Office 

19 of Management and Budget on the use of 

20 earned-value management data, or another ob21 jective performance-based management system 

22 approved by the E-Government Administrator, 

23 based on the current ANSI–EIA–748 standard. 

24 ‘‘(B) a graphical depiction of trend infor25 mation, to the extent practicable, since the com26 mencement of the major IT investment; 


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1 ‘‘(C) a clear delineation of major IT invest2 ments that have experienced a cost, schedule, or 

3 performance variance greater than 10 percent 

4 over the life cycle of the investment, including 

5 the extent of such variation; 

6 ‘‘(D) an explanation of the reasons the in7 vestment deviated from the benchmark estab8 lished at the commencement of the project; 

9 ‘‘(E) the dates on which investments were 

10 rebaselined; and 

11 ‘‘(F) any reports developed as a result of 

12 a comprehensive agency review or a comprehen13 sive Office of Management and Budget review; 

14 and 

15 ‘‘(4) ensure that the agency Chief Information 

16 Officers prevent inconsistencies in cost, schedule, 

17 and performance data.’’. 

18 SEC. 4. REVIEW OF MAJOR IT INVESTMENT PROJECTS. 

19 (a) SIGNIFICANT AND GROSS DEVIATIONS.—Section 

20 11317 of title 40, United States Code, is amended to read 

21 as follows: 

22 ‘‘SEC. 11317. SIGNIFICANT AND GROSS DEVIATIONS. 

23 ‘‘(a) DEFINITIONS.—In this subchapter: 

24 ‘‘(1) AGENCY HEAD.—The term ‘Agency Head’ 

25 means the head of the Federal agency that is priVerDate Mar 15 2010 20:47 Apr 13, 2011 Jkt 099200 PO 00000 Frm 00004 Fmt 6652 Sfmt 6201 E:\BILLS\S801.IS S801

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1 marily responsible for the major IT investment 

2 project under review. 

3 ‘‘(2) AGENCY PERFORMANCE AND GOVERNANCE

4 REVIEW.—The term ‘agency performance and gov5 ernance review’ means a systematic review of invest6 ments experiencing performance problems that— 

7 ‘‘(A) is conducted by relevant agency lead8 ership and the Chief Information Officer; and 

9 ‘‘(B) includes an analysis and discussion 

10 of— 

11 ‘‘(i) the project’s overall intent and 

12 purpose and measurable goals and objec13 tives; 

14 ‘‘(ii) rationale for the project’s vari15 ance from the original goals and perform16 ance measures; 

17 ‘‘(iii) any additional scope that may 

18 have been added to the project, including 

19 cost, schedule, and performance impact; 

20 ‘‘(iv) any previous corrective action 

21 plans and outcomes and forward thinking 

22 plans to prevent subsequent variances; 

23 ‘‘(v) a presentation of significant risks 

24 with mitigation strategies and assignment 

25 of risk owners; and 


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1 ‘‘(vi) the Chief Information Officer’s 

2 concerns with the investment and assess3 ment of whether the project is viable. 

4 ‘‘(3) ANSI EIA–748 STANDARD.—The term 

5 ‘ANSI EIA–748 Standard’ means the measurement 

6 tool jointly developed by the American National 

7 Standards Institute and the Electronic Industries 

8 Alliance to analyze Earned Value Management sys9 tems. 

10 ‘‘(4) APPROPRIATE CONGRESSIONAL COMMIT11 TEES.—The term ‘appropriate congressional com12 mittees’ means— 

13 ‘‘(A) the Committee on Homeland Security 

14 and Governmental Affairs of the Senate; 

15 ‘‘(B) the Committee on Oversight and Gov16 ernment Reform of the House of Representa17 tives; 

18 ‘‘(C) the Committee on Appropriations of 

19 the Senate; 

20 ‘‘(D) the Committee on Appropriations of 

21 the House of Representatives; and 

22 ‘‘(E) any other relevant congressional com23 mittee with jurisdiction over an agency required 

24 to take action under this section. 


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1 ‘‘(5) CHIEF INFORMATION OFFICER.—The term 

2 ‘Chief Information Officer’ means the Chief Infor3 mation Officer designated under section 3506(a)(2) 

4 of title 44 of the Executive department (as defined 

5 in section 101 of title 5) that is primarily respon6 sible for the major IT investment project under re7 view. 

8 ‘‘(6) CORE IT INVESTMENT PROJECT.—The 

9 terms ‘core IT investment project’ and ‘core project’ 

10 mean a mission critical major IT investment project 

11 so designated in accordance with subsection (d). 

12 ‘‘(7) DIRECTOR.—The term ‘Director’ means 

13 the Director of the Office of Management and Budg14 et. 

15 ‘‘(8) EARNED VALUE MANAGEMENT.—The term 

16 ‘Earned Value Management’ means the cost, sched17 ule, and performance data used to determine project 

18 status and developed in accordance with the ANSI 

19 EIA–748 Standard. 

20 ‘‘(9) GROSSLY DEVIATED.—The term ‘grossly 

21 deviated’ means cost, schedule, or performance vari22 ance that is at least 40 percent from the original 

23 baseline. 

24 ‘‘(10) LIFE CYCLE COST.—The term ‘life cycle 

25 cost’ means the total cost of a major IT investment 


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1 project for planning, research and development, 

2 modernization, enhancement, operation, and mainte3 nance. 

4 ‘‘(11) MAJOR IT INVESTMENT PROJECT.—The 

5 term ‘major IT investment project’ means an infor6 mation technology system or information technology 

7 acquisition that— 

8 ‘‘(A) requires special management atten9 tion because of its importance to the mission or 

10 function of the agency, a component of the 

11 agency, or another organization; 

12 ‘‘(B) is for financial management and obli13 gates more than $500,000 annually; 

14 ‘‘(C) has significant program or policy im15 plications; 

16 ‘‘(D) has high executive visibility; 

17 ‘‘(E) has high development, operating, or 

18 maintenance costs; 

19 ‘‘(F) is funded through other than direct 

20 appropriations; or 

21 ‘‘(G) is defined as major by the agency’s 

22 capital planning and investment control process. 

23 ‘‘(12) OFFICE OF MANAGEMENT AND BUDGET

24 PERFORMANCE AND GOVERNANCE REVIEW.—The 

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1 ance and governance review’ means a systematic re2 view of investments experiencing performance prob3 lems that— 

4 ‘‘(A) is conducted by relevant agency lead5 ership, the Chief Information Officer, and the 

6 E-Government Administrator; and 

7 ‘‘(B) includes an analysis and discussion 

8 of— 

9 ‘‘(i) the project’s overall intent and 

10 purpose and measurable goals and objec11 tives; 

12 ‘‘(ii) rationale for the project’s vari13 ance from the original goals and perform14 ance measures; 

15 ‘‘(iii) any additional scope that may 

16 have been added to the project, including 

17 cost, schedule, and performance impact; 

18 ‘‘(iv) any previous corrective action 

19 plans and outcomes and forward thinking 

20 plans to prevent subsequent variances; 

21 ‘‘(v) a presentation of significant risks 

22 with mitigation strategies and assignment 

23 of risk owners; and 

24 ‘‘(vi) the concerns of the Chief Infor25 mation Officer and the E-Government AdVerDate Mar 15 2010 20:47 Apr 13, 2011 Jkt 099200 PO 00000 Frm 00009 Fmt 6652 Sfmt 6201 E:\BILLS\S801.IS S801

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1 ministrator with the investment and their 

2 assessment of whether the project is viable. 

3 ‘‘(13) ORIGINAL BASELINE.— 

4 ‘‘(A) IN GENERAL.—Except as provided 

5 under subparagraphs (B) and (C), the term 

6 ‘original baseline’ means— 

7 ‘‘(i) the ANSI EIA–748 Standard8 compliant Earned Value Management 

9 benchmark; or 

10 ‘‘(ii) an equivalent benchmark ap11 proved by the Office of Management and 

12 Budget and established at the commence13 ment of an IT investment project. 

14 ‘‘(B) GROSSLY DEVIATED PROJECT.—If a 

15 major IT investment project grossly deviates 

16 from its original baseline (as defined in sub17 paragraph (A)), the term ‘original baseline’ 

18 means— 

19 ‘‘(i) the ANSI EIA–748 Standard20 compliant Earned Value Management 

21 benchmark; or 

22 ‘‘(ii) an equivalent benchmark ap23 proved by the Office of Management and 

24 Budget after the commencement of an IT 

25 investment project. 


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1 ‘‘(C) STATUTORY OR BUDGETARY

2 CHANGES.—If a project significantly or grossly 

3 deviates solely as a result of a substantial statu4 tory change or a substantial reduction in Fed5 eral funding for the project, and the deviation 

6 cannot be prevented through proper project 

7 management, the Agency Head may authorize 

8 the Chief Information Officer to establish a new 

9 baseline. The Agency Head shall notify Con10 gress of any new baselines authorized under 

11 this subparagraph not later than 30 days after 

12 such authorization. 

13 ‘‘(14) SIGNIFICANTLY DEVIATED.—The term 

14 ‘significantly deviated’ means cost, schedule, or per15 formance variance that has deviated at least 20 per16 cent from the original baseline. 

17 ‘‘(b) RESPONSE TO SIGNIFICANT DEVIATION.— 

18 ‘‘(1) RESPONSIBILITIES OF CHIEF INFORMA19 TION OFFICER.—If a Chief Information Officer, 

20 while entering project data under section 

21 11311(3)(A), determines that a major IT investment 

22 project of an agency has significantly deviated, the 

23 Chief Information Officer shall— 

24 ‘‘(A) notify the Agency Head of such devi25 ation; and 


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1 ‘‘(B) conduct an agency performance and 

2 governance review. 

3 ‘‘(2) REPORT.— 

4 ‘‘(A) IN GENERAL.—Using the results of 

5 the review conducted under paragraph (1)(B), 

6 the Agency Head shall submit a report con7 taining the information described in subpara8 graph (B), not later than 30 days after the end 

9 of the month upon which such information is 

10 based, to the appropriate congressional commit11 tees, the Director, and the Comptroller General 

12 of the United States. 

13 ‘‘(B) CONTENTS OF REPORT.—The report 

14 submitted under subparagraph (A) shall contain 

15 the results of the review conducted under para16 graph (1)(B), including— 

17 ‘‘(i) the challenges and causes of the 

18 variance from the project baseline; 

19 ‘‘(ii) a summary of risks, mitigation 

20 strategies, and clear lines of responsibility 

21 and accountability for project deviations; 

22 ‘‘(iii) enhanced contractor perform23 ance metrics and controls for existing con24 tracts; 


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1 ‘‘(iv) a revised acquisition plan for 

2 contracts expected to be executed during 

3 the following fiscal year that address the 

4 issues identified in the report; 

5 ‘‘(v) a high-level schedule that articu6 lates critical path items; 

7 ‘‘(vi) a description of how— 

8 ‘‘(I) the project’s governance will 

9 be more rigorous because of the im10 provement plan laid out in the report; 

11 and 

12 ‘‘(II) the agency will improve the 

13 internal oversight of contract and pro14 gram management to ensure better 

15 performance; and 

16 ‘‘(vii) a list of specific corrective ac17 tions to turn around the project. 

18 ‘‘(3) EXEMPTION.— 

19 ‘‘(A) IN GENERAL.—A Chief Information 

20 Officer is exempt from conducting an agency 

21 performance and governance review of a project 

22 experiencing a significant deviation if the Agen23 cy Head certifies that— 

24 ‘‘(i) the deviation was solely the result 

25 of— 


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1 ‘‘(I) a substantial change in 

2 project requirements due to a Federal 

3 law that was enacted after the com4 mencement of the project; or 

5 ‘‘(II) a substantial reduction in 

6 Federal funding for the project be7 cause of congressional action; and 

8 ‘‘(ii) the significant deviation could 

9 not have been prevented through proper 

10 project management. 

11 ‘‘(B) CONGRESSIONAL NOTIFICATION.— 

12 Not later than 30 days after the discovery of a 

13 significant deviation about which the Agency 

14 Head certifies that an exemption is warranted 

15 under subparagraph (A), the Agency Head shall 

16 notify Congress of such significant deviation 

17 and the reason for such exemption. 

18 ‘‘(c) RESPONSE TO GROSS DEVIATION.— 

19 ‘‘(1) RESPONSIBILITIES OF CHIEF INFORMA20 TION OFFICER.—If a Chief Information Officer, 

21 while entering project data under section 

22 11311(3)(A), determines that a major IT investment 

23 project of an agency has grossly deviated or that a 

24 core IT investment project has significantly deviated, 

25 the E-Government Administrator shall— 


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1 ‘‘(A) conduct an Office of Management 

2 and Budget performance and governance review 

3 of the project; and 

4 ‘‘(B) using the results of such review, sub5 mit a report containing the information de6 scribed in paragraph (2), not later than 30 days 

7 after the end of the month upon which such in8 formation is based, to the appropriate congres9 sional committees and the Comptroller General 

10 of the United States. 

11 ‘‘(2) CONTENTS OF REPORT.—The report sub12 mitted under paragraph (1)(B) shall contain the re13 sults of the review conducted under paragraph 

14 (1)(A), including— 

15 ‘‘(A) all the information required under 

16 subsection (b)(2); 

17 ‘‘(B) the original and expected life cycle 

18 costs of the investment, expressed in constant 

19 base year dollars and in current dollars; 

20 ‘‘(C) a certification by the Agency Head, 

21 after consultation with the Chief Information 

22 Officer, that all technical and business require23 ments have been reviewed and validated to en24 sure alignment with the business case; 


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1 ‘‘(D) a recommendation from the Office of 

2 Management and Budget on whether the scope 

3 of the project should be substantively changed 

4 or terminated; 

5 ‘‘(E) a new baseline for the project; 

6 ‘‘(F) the number of times the project has 

7 been rebaselined and the former baselines; and 

8 ‘‘(G) a referral to the agency Inspector 

9 General to review the project. 

10 ‘‘(3) PROJECT DESIGNATION.—After a Chief 

11 Information Officer determines that a major IT in12 vestment project has grossly deviated, the project 

13 shall be treated as a core IT investment project in 

14 accordance with subsection (d). 

15 ‘‘(4) EXEMPTION.— 

16 ‘‘(A) IN GENERAL.—The E-Government 

17 Administrator is exempt from conducting an 

18 Office of Management and Budget performance 

19 and governance review for a project experi20 encing a gross deviation if the E-Government 

21 Administrator certifies that— 

22 ‘‘(i) the deviation was solely the result 

23 of— 

24 ‘‘(I) a substantial change in 

25 project requirements due to a Federal 


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1 law that was enacted after the com2 mencement of the project; or 

3 ‘‘(II) a substantial reduction in 

4 Federal funding for the project be5 cause of congressional action; and 

6 ‘‘(ii) the gross deviation could not 

7 have been prevented through proper 

8 project management. 

9 ‘‘(B) CONGRESSIONAL NOTIFICATION.— 

10 Not later than 30 days after the discovery of a 

11 gross deviation about which the E-Government 

12 Administrator certifies that an exemption is 

13 warranted under subparagraph (A), the E-Gov14 ernment Administrator shall notify Congress of 

15 such gross deviation and the reason for such ex16 emption. 

17 ‘‘(d) CORE IT INVESTMENT PROJECTS.— 

18 ‘‘(1) DESIGNATION.—Each Agency Head, in 

19 consultation with the Chief Information Officer of 

20 the agency, shall designate the most costly and crit21 ical major IT investment projects within the agency 

22 as core IT investment projects after weighing the 

23 following factors: 

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1 tion of the agency’s mission or a portion of 

2 such mission. 

3 ‘‘(B) The relative dollar value of the 

4 project relative to the average IT investment 

5 project in the agency’s portfolio. 

6 ‘‘(C) The incorporation of unproven or pre7 viously undeveloped technology to meet primary 

8 project technical requirements. 

9 ‘‘(D) The likelihood that significant cost, 

10 schedule, or performance deviations would have 

11 a considerable negative impact on the successful 

12 completion of the agency mission. 

13 ‘‘(E) The cruciality of management and 

14 oversight to prevent the negative impacts that 

15 would result from the project’s failure. 

16 ‘‘(2) SUBMISSION OF ADDITIONAL PLANNING

17 INFORMATION.—While entering project data under 

18 section 11311(3)(A), the Chief Information Officer 

19 shall submit additional planning information regard20 ing core projects to the IT Dashboard, including— 

21 ‘‘(A) a description of the primary business 

22 case and key functional performance capabili23 ties for the core project; 


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1 ‘‘(B) an identification and description of 

2 mission benefits, key milestones, and lifecycle 

3 costs for the core project; 

4 ‘‘(C) an independent cost estimate for the 

5 core project; 

6 ‘‘(D) a certification by the Chief Informa7 tion Officer that all technical and business re8 quirements have been reviewed and validated to 

9 ensure alignment with the reported business 

10 case; and 

11 ‘‘(E) any changes to the primary business 

12 case or key functional performance capabilities 

13 that have occurred since project inception. 

14 ‘‘(e) EFFECT OF AGENCY NONCOMPLIANCE.—If an 

15 Agency Head fails to timely submit the information re16 quired under section 11311 for a major IT investment 

17 project or conduct a review required under subsection 

18 (b)(1)(A) of such project in a timely manner, the Director 

19 may prohibit additional expenditures for the project (other 

20 than expenditures needed to meet the requirements of this 

21 chapter) until such requirements have been met.’’. 


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1 SEC. 5. PERSONNEL AWARDS FOR EXCELLENCE IN THE AC2 QUISITION OF INFORMATION SYSTEMS AND 

3 INFORMATION TECHNOLOGY. 

4 (a) IN GENERAL.—Not later than 180 days after the 

5 date of the enactment of this Act, the Director of the Of6 fice of Personnel Management shall develop policy and 

7 guidance for agencies to develop a program to recognize 

8 excellent performance by Federal Government employees 

9 and teams of such employees in the acquisition of informa10 tion systems and information technology for the agency. 

11 (b) ELEMENTS.—The program referred to in sub12 section (a) shall, to the extent practicable— 

13 (1) obtain objective outcome measures; and 

14 (2) include procedures for— 

15 (A) the nomination of Federal Government 

16 employees and teams of such employees for eli17 gibility for recognition under the program; and 

18 (B) the evaluation of nominations for rec19 ognition under the program by 1 or more agen20 cy panels of individuals from government, aca21 demia, and the private sector who have such ex22 pertise, and are appointed in such a manner, as 

23 the Director of the Office of Personal Manage24 ment shall establish for purposes of the pro25 gram. 


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1 (c) AWARD OF CASH BONUSES AND OTHER INCEN2 TIVES.—In carrying out the program referred to in sub3 section (a), the Director of the Office of Personnel Man4 agement, in consultation with the Director of the Office 

5 of Management and Budget, shall establish policies and 

6 guidance for agencies to reward any Federal Government 

7 employee or teams of such employees recognized pursuant 

8 to the program— 

9 (1) with a cash bonus, to the extent that the 

10 performance of such individual or team warrants the 

11 award of such bonus and is authorized by any provi12 sion of law; 

13 (2) through promotions and other nonmonetary 

14 awards; 

15 (3) by publicizing— 

16 (A) acquisition accomplishments by indi17 vidual employees; and 

18 (B) the tangible end benefits that resulted 

19 from such accomplishments, as appropriate; 

20 and 

21 (4) through other awards, incentives, or bo22 nuses that the head of the agency considers appro23 priate. 

Æ 


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