II 

110TH CONGRESS 

2D SESSION S. 3384 

To amend section 11317 of title 40, United States Code, to require greater 

accountability for cost overruns on Federal IT investment projects. 

IN THE SENATE OF THE UNITED STATES 

JULY 31, 2008 

Mr. CARPER (for himself, Ms. COLLINS, Mr. LIEBERMAN, Mr. COLEMAN, and 

Mrs. MCCASKILL) introduced the following bill; which was read twice and 

referred to the Committee on Homeland Security and Governmental Affairs 

A BILL 

To amend section 11317 of title 40, United States Code, 

to require greater accountability for cost overruns on 

Federal IT investment projects. 

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 Oversight Enhancement and Waste 

6 Prevention Act of 2008’’. 


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1 SEC. 2. IT INVESTMENT PROJECTS. 

2 (a) SIGNIFICANT AND GROSS DEVIATIONS.—Section 

3 11317 of title 40, United States Code, is amended to read 

4 as follows: 

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

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

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

8 means the head of the Federal agency that is pri9 marily responsible for the IT investment project 

10 under review. 

11 ‘‘(2) ANSI EIA–748 STANDARD.—The term 

12 ‘ANSI EIA–748 Standard’ means the measurement 

13 tool jointly developed by the American National 

14 Standards Institute and the Electronic Industries 

15 Alliance to analyze earned value management sys16 tems. 

17 ‘‘(3) APPROPRIATE CONGRESSIONAL COMMIT18 TEES.—The term ‘appropriate congressional com19 mittees’ means— 

20 ‘‘(A) the Committee on Homeland Security 

21 and Governmental Affairs of the Senate; 

22 ‘‘(B) the Committee on Oversight and Gov23 ernment Reform of the House of Representa24 tives; 

25 ‘‘(C) the Committee on Appropriations of 

26 the Senate; 


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1 ‘‘(D) the Committee on Appropriations of 

2 the House of Representatives; and 

3 ‘‘(E) any other relevant congressional com4 mittee with jurisdiction over an agency required 

5 to take action under this section. 

6 ‘‘(4) CHIEF INFORMATION OFFICER.—The term 

7 ‘Chief Information Officer’ means the Chief Infor8 mation Officer designated under section 3506(a)(2) 

9 of title 44 of the Federal agency that is primarily re10 sponsible for the IT investment project under review. 

11 ‘‘(5) CORE IT INVESTMENT PROJECT.—The 

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

13 mean a mission critical IT investment project jointly 

14 designated as such by the Agency Head and the Di15 rector under subsection (b). 

16 ‘‘(6) DIRECTOR.—The term ‘Director’ means 

17 the Director of the Office of Management and Budg18 et. 

19 ‘‘(7) GROSSLY DEVIATED.—The term ‘grossly 

20 deviated’ means cost, schedule, or performance vari21 ance that is at least 40 percent from the Original 

22 Baseline. 

23 ‘‘(8) INDEPENDENT COST ESTIMATE.—The 

24 term ‘independent cost estimate’ means a pragmatic 

25 and neutral analysis, assessment, and quantification 


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1 of all costs and risks associated with the acquisition 

2 of an IT investment project, which— 

3 ‘‘(A) is based on programmatic and tech4 nical specifications provided by the office within 

5 the agency with primary responsibility for the 

6 development, procurement, and delivery of the 

7 project; 

8 ‘‘(B) is formulated and provided by an en9 tity other than the office within the agency with 

10 primary responsibility for the development, pro11 curement, and delivery of the project; 

12 ‘‘(C) contains sufficient detail to inform 

13 the selection of a baseline benchmark measure 

14 under the ANSI EIA–748 standard; and 

15 ‘‘(D) accounts for the full life cycle cost 

16 plus associated operations and maintenance ex17 penses over the usable life of the project’s 

18 deliverables. 

19 ‘‘(9) IT INVESTMENT PROJECT.—The terms ‘IT 

20 investment project’ and ‘project’ mean an informa21 tion technology system or acquisition that— 

22 ‘‘(A) requires special management atten23 tion because of its importance to the mission or 

24 function of the agency, a component of the 

25 agency, or another organization; 


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1 ‘‘(B) is for financial management and obli2 gates more than $500,000 annually; 

3 ‘‘(C) has significant program or policy im4 plications; 

5 ‘‘(D) has high executive visibility; 

6 ‘‘(E) has high development, modernization, 

7 or enhancement costs; 

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

9 appropriations; or 

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

11 capital planning and investment control process. 

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

13 cost’ means the total cost of an IT investment 

14 project for planning, research and development, 

15 modernization, and enhancement. 

16 ‘‘(11) ORIGINAL BASELINE.— 

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

18 under subparagraph (B), the term ‘Original 

19 Baseline’ means the ANSI EIA–748 Standard20 compliant cost, schedule, and performance 

21 benchmark established at the commencement of 

22 an IT investment project contract. 

23 ‘‘(B) GROSSLY DEVIATED PROJECT.—If an 

24 IT investment project grossly deviates from its 

25 Original Baseline (as defined in subparagraph 


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1 (A)), the term ‘Original Baseline’ means the 

2 ANSI EIA–748 Standard-compliant cost, 

3 schedule, and performance benchmark estab4 lished under subsection (e)(3)(C). 

5 ‘‘(12) SIGNIFICANTLY DEVIATED.—The term 

6 ‘significantly deviated’ means cost, schedule, or per7 formance variance that is at least 20 percent from 

8 the Original Baseline. 

9 ‘‘(b) CORE IT INVESTMENT PROJECTS.— 

10 ‘‘(1) DESIGNATION.—Except as provided under 

11 paragraph (2), each Agency Head and the Director 

12 shall jointly designate not fewer than 5 of the agen13 cy’s most mission critical IT investment projects as 

14 ‘core IT investment projects’ or ‘core projects’, after 

15 considering, among other factors— 

16 ‘‘(A) whether the project represents a 

17 high-dollar value relative to the average IT in18 vestment project in the agency’s portfolio; 

19 ‘‘(B) whether the project delivers a capa20 bility critical to the successful completion of the 

21 agency mission, or a portion of such mission; 

22 and 

23 ‘‘(C) whether the project incorporates 

24 unproven or previously undeveloped technology 

25 to meet primary project technical requirements. 


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1 ‘‘(2) EXCEPTION.—If the Agency Head and the 

2 Director jointly determine that fewer than 5 IT in3 vestment projects meet the criteria described in 

4 paragraph (1), the Director— 

5 ‘‘(A) may provide the agency with written 

6 authorization to designate fewer than 5 

7 projects; and 

8 ‘‘(B) shall submit a report to the appro9 priate congressional committees that contains 

10 notice of, and justification for, any such author11 ization. 

12 ‘‘(c) COST, SCHEDULE, AND PERFORMANCE RE13 PORTS.— 

14 ‘‘(1) QUARTERLY REPORTS.—Not later than 7 

15 days after the end of each fiscal quarter, the project 

16 manager for an IT investment project shall submit 

17 a written report to the Chief Information Officer 

18 that includes, as of the last day of the applicable 

19 quarter— 

20 ‘‘(A) a description of the cost, schedule, 

21 and performance of all projects under the 

22 project manager’s supervision; 

23 ‘‘(B) the original and current project cost, 

24 schedule, and performance benchmarks for each 

25 project under the project manager’s supervision; 


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1 ‘‘(C) the cost, schedule, or performance 

2 variance related to each IT investment project 

3 under the project manager’s supervision since 

4 the commencement of the contract; 

5 ‘‘(D) for each project under the project 

6 manager’s supervision, any known, expected, or 

7 anticipated changes to project schedule mile8 stones or project performance benchmarks in9 cluded as part of the original or current base10 line description; and 

11 ‘‘(E) the current cost, schedule, and per12 formance status of all projects under super13 vision that were previously identified as signifi14 cantly deviated or grossly deviated. 

15 ‘‘(2) INTERIM REPORTS.—If the project man16 ager for an IT investment project determines that 

17 there is reasonable cause to believe that an IT in18 vestment project has significantly deviated or grossly 

19 deviated since the issuance of the latest quarterly re20 port, the project manager shall submit to the Chief 

21 Information Officer, not later than 7 days after such 

22 determination, a report on the project that includes, 

23 as of the date of the report— 


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1 ‘‘(A) a description of the original and cur2 rent program cost, schedule, and performance 

3 benchmarks; 

4 ‘‘(B) the cost, schedule, or performance 

5 variance related to the IT investment project 

6 since the commencement of the contract; 

7 ‘‘(C) any known, expected, or anticipated 

8 changes to the project schedule milestones or 

9 project performance benchmarks included as 

10 part of the original or current baseline descrip11 tion; and 

12 ‘‘(D) the major reasons underlying the sig13 nificant or gross deviation of the project. 

14 ‘‘(d) DETERMINATION OF SIGNIFICANT DEVI15 ATION.— 

16 ‘‘(1) CHIEF INFORMATION OFFICER.—Upon re17 ceiving a report under subsection (c), the Chief In18 formation Officer shall— 

19 ‘‘(A) determine if any IT investment 

20 project has significantly deviated; and 

21 ‘‘(B) report such determination to the 

22 Agency Head. 

23 ‘‘(2) CONGRESSIONAL NOTIFICATION.—If the 

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1 cantly deviated and the Agency Head has not issued 

2 a report to the appropriate congressional committees 

3 of a significant deviation for that project under this 

4 section since the project was last required to be re5 baselined under this section, the Agency Head shall 

6 submit a report to the appropriate congressional 

7 committees and to the Government Accountability 

8 Office that includes— 

9 ‘‘(A) written notification of such deter10 mination; 

11 ‘‘(B) the date on which such determination 

12 was made; 

13 ‘‘(C) the amount of the cost increases and 

14 the extent of the schedule delays with respect to 

15 such project; 

16 ‘‘(D) any requirements that— 

17 ‘‘(i) were added subsequent to the 

18 original contract; or 

19 ‘‘(ii) were originally contracted for, 

20 but were changed by deferment or deletion 

21 from the original schedule, or were other22 wise no longer included in the require23 ments contracted for; 

24 ‘‘(E) an explanation of the differences be25 tween— 


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1 ‘‘(i) the estimate at completion be2 tween the project manager, any contractor, 

3 and any independent analysis; and 

4 ‘‘(ii) the original budget at comple5 tion; 

6 ‘‘(F) the rough order of magnitude of the 

7 costs of any reasonable alternative system, or 

8 reasonable alternative approach to establishing 

9 an equivalent outcome or capability; 

10 ‘‘(G) a statement of the reasons underlying 

11 the project’s significant deviation; 

12 ‘‘(H) the identities of the project managers 

13 responsible for program management and cost 

14 control of the program; and 

15 ‘‘(I) a summary of the plan of action to 

16 remedy the significant deviation. 

17 ‘‘(3) DEADLINE.— 

18 ‘‘(A) NOTIFICATION BASED ON QUARTERLY

19 REPORT.—If the determination of significant 

20 deviation is based on a report submitted under 

21 subsection (b)(1), the Agency Head shall notify 

22 Congress in accordance with paragraph (2) not 

23 later than 14 days after the end of the quarter 

24 upon which such report is based. 


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1 ‘‘(B) NOTIFICATION BASED ON INTERIM

2 REPORT.—If the determination of significant 

3 deviation is based on a report submitted under 

4 subsection (b)(2), the Secretary shall notify 

5 Congress in accordance with paragraph (2) not 

6 later than 14 days after the submission of such 

7 report. 

8 ‘‘(e) DETERMINATION OF GROSS DEVIATION.— 

9 ‘‘(1) CHIEF INFORMATION OFFICER.—Upon re10 ceiving a report under subsection (c), the Chief In11 formation Officer shall— 

12 ‘‘(A) determine if any IT investment 

13 project has grossly deviated; and 

14 ‘‘(B) report any such determination to the 

15 Agency Head. 

16 ‘‘(2) CONGRESSIONAL NOTIFICATION.—If the 

17 Chief Information Officer determines under para18 graph (1) that an IT investment project has grossly 

19 deviated and the Agency Head has not issued a re20 port to the appropriate congressional committees of 

21 a gross deviation for that project under this section 

22 since the project was last required to be re-baselined 

23 under this section, the Agency Head shall submit a 

24 report to the appropriate congressional committees 


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1 and to the Government Accountability Office that in2 cludes— 

3 ‘‘(A) written notification of such deter4 mination, which states— 

5 ‘‘(i) the date on which such deter6 mination was made; and 

7 ‘‘(ii) an indication of whether or not 

8 the project has been previously reported as 

9 a significant or gross deviation by the 

10 Chief Information Officer, and the date of 

11 any such report; 

12 ‘‘(B) incorporations by reference of all 

13 prior reports to Congress on the project re14 quired under this section; 

15 ‘‘(C) updated accounts of the items de16 scribed in subparagraphs (C) through (H) of 

17 subsection (d)(2); 

18 ‘‘(D) the original estimate at completion 

19 for the project manager, any contractor, and 

20 any independent analysis; 

21 ‘‘(E) a graphical depiction of actual cost 

22 variance since the commencement of the con23 tract; 

24 ‘‘(F) the amount, if any, of incentive 

25 award fees any contractor has received since the 


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1 commencement of the contract and the reasons 

2 for receiving such award fees; 

3 ‘‘(G) the project manager’s estimated cost 

4 at completion and estimated completion date for 

5 the project if current requirements are not 

6 modified; 

7 ‘‘(H) the project manager’s estimated cost 

8 at completion and estimated completion date for 

9 the project based on reasonable modification of 

10 such requirements; 

11 ‘‘(I) an explanation of the most significant 

12 occurrence contributing to the variance identi13 fied, including cost, schedule, and performance 

14 variances, and the effect such occurrence will 

15 have on future project costs and program 

16 schedule; 

17 ‘‘(J) a statement regarding previous or an18 ticipated re-baselining or re-planning of the 

19 project and the names of the individuals respon20 sible for approval; 

21 ‘‘(K) the original life cycle cost of the in22 vestment and the expected life cycle cost of the 

23 investment expressed in constant base year dol24 lars and in current dollars; and 


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1 ‘‘(L) a comprehensive plan of action to 

2 remedy the gross deviation, and milestones es3 tablished to control future cost, schedule, and 

4 performance deviations in the future. 

5 ‘‘(3) REMEDIAL ACTION.—If the Chief Informa6 tion Officer determines under paragraph (1) that an 

7 IT investment project has grossly deviated, the 

8 Agency Head, in consultation with the Chief Infor9 mation Officer, shall ensure that— 

10 ‘‘(A) a report is submitted to the appro11 priate congressional committees that— 

12 ‘‘(i) describes the primary business 

13 case and key functional requirements for 

14 the project; 

15 ‘‘(ii) describes any portions of the 

16 project that have technical requirements of 

17 sufficient clarity that such portions may be 

18 feasibly procured under firm, fixed-price 

19 contract; 

20 ‘‘(iii) includes a certification by the 

21 Agency Head, after consultation with the 

22 Chief Information Officer, that all tech23 nical requirements have been reviewed and 

24 validated to ensure alignment with the re25 ported business case; 


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1 ‘‘(iv) describes any changes to the pri2 mary business case or key functional re3 quirements which have occurred since 

4 project inception; and 

5 ‘‘(v) includes an independent cost esti6 mate for the project conducted by an enti7 ty approved by the Director; 

8 ‘‘(B) an analysis is submitted to the appro9 priate congressional committees that— 

10 ‘‘(i) describes agency business goals 

11 that the project was originally designed to 

12 address; 

13 ‘‘(ii) includes a gap analysis of what 

14 project deliverables remain in order for the 

15 agency to accomplish the business goals re16 ferred to in clause (i); 

17 ‘‘(iii) identifies the 3 most cost-effec18 tive alternative approaches to the project 

19 which would achieve the business goals re20 ferred to in clause (i); and 

21 ‘‘(iv) includes a cost-benefit analysis, 

22 which compares— 

23 ‘‘(I) the completion of the project 

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1 ture costs associated with the termi2 nation of the project; and 

3 ‘‘(II) the termination of the 

4 project without pursuit of alternatives, 

5 after factoring in foregone benefits; 

6 and 

7 ‘‘(C) a new baseline of the project is estab8 lished that is consistent with the independent 

9 cost estimate required under subparagraph 

10 (A)(v); and 

11 ‘‘(D) the project is designated as a core IT 

12 investment project and subjected to the require13 ments under subsection (f). 

14 ‘‘(4) DEADLINE AND FUNDING CONTIN15 GENCY.— 

16 ‘‘(A) NOTIFICATION AND REMEDIAL AC17 TION BASED ON QUARTERLY REPORT.— 

18 ‘‘(i) IN GENERAL.—If the determina19 tion of gross deviation is based on a report 

20 submitted under subsection (c)(1), the 

21 Agency Head shall— 

22 ‘‘(I) not later than 45 days after 

23 the end of the quarter upon which 

24 such report is based, notify the approVerDate Aug 31 2005 01:07 Aug 05, 2008 Jkt 069200 PO 00000 Frm 00017 Fmt 6652 Sfmt 6201 E:\BILLS\S3384.IS S3384

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1 priate congressional committees in ac2 cordance with paragraph (2); and 

3 ‘‘(II) not later than 180 days 

4 after the end of the quarter upon 

5 which such report is based, ensure the 

6 completion of remedial action under 

7 paragraph (3). 

8 ‘‘(ii) FAILURE TO MEET DEAD9 LINES.—If the Agency Head fails to meet 

10 the deadlines described in clause (i)(II), 

11 additional funds may not be obligated to 

12 support expenditures associated with the 

13 project until the requirements of this sub14 section have been fulfilled. 

15 ‘‘(B) NOTIFICATION AND REMEDIAL AC16 TION BASED ON INTERIM REPORT.— 

17 ‘‘(i) IN GENERAL.—If the determina18 tion of gross deviation is based on a report 

19 submitted under subsection (c)(2), the Sec20 retary shall— 

21 ‘‘(I) not later than 45 days after 

22 the submission of such report, notify 

23 the appropriate congressional commit24 tees in accordance with paragraph (2); 

25 and 


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1 ‘‘(II) not later than 180 days 

2 after the submission of such report, 

3 ensure the completion of remedial ac4 tion in accordance with paragraph (3). 

5 ‘‘(ii) FAILURE TO MEET DEAD6 LINES.—If the Agency Head fails to meet 

7 the deadlines described in clause (i)(II), 

8 additional funds may not be obligated to 

9 support expenditures associated with the 

10 project until the requirements of this sub11 section have been fulfilled. 

12 ‘‘(f) ADDITIONAL REQUIREMENTS FOR CORE IT IN13 VESTMENT PROJECT REPORTS.— 

14 ‘‘(1) INITIAL REPORT.—If a report described in 

15 subsection (e)(3)(A) has not been submitted for a 

16 core IT investment project, the Agency Head, in co17 ordination with the Chief Information Officer and 

18 responsible program managers, shall prepare an ini19 tial report for inclusion in the first budget submitted 

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

21 United States Code, after the designation of a 

22 project as a core IT investment project, which in23 cludes— 


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

2 case and key functional requirements for the 

3 project; 

4 ‘‘(B) an identification and description of 

5 any portions of the project that have technical 

6 requirements of sufficient clarity that such por7 tions may be feasibly procured under firm, 

8 fixed-price contracts; 

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

10 project; 

11 ‘‘(D) certification by the Chief Information 

12 Officer that all technical requirements have 

13 been reviewed and validated to ensure align14 ment with the reported business case; and 

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

16 case or key functional requirements which have 

17 occurred since project inception. 

18 ‘‘(2) QUARTERLY REVIEW OF BUSINESS

19 CASE.—The Agency Head, in coordination with the 

20 Chief Information Officer and responsible program 

21 managers, shall— 

22 ‘‘(A) monitor the primary business case 

23 and core functionality requirements reported to 

24 Congress for designated core IT investment 

25 projects; and 


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1 ‘‘(B) if changes to the primary business 

2 case or key functional requirements for a core 

3 IT investment project occur in any fiscal quar4 ter, submit a report to Congress not later than 

5 7 days after the end of such quarter that de6 tails the changes and describes the impact the 

7 changes will have on the cost and ultimate ef8 fectiveness of the project. 

9 ‘‘(3) ALTERNATIVE SIGNIFICANT DEVIATION

10 DETERMINATION.—If the Chief Information Officer 

11 determines, subsequent to a change in the primary 

12 business case or key functional requirements, that 

13 without such change the project would have signifi14 cantly deviated— 

15 ‘‘(A) the Chief Information Officer shall 

16 notify the Agency Head of the significant devi17 ation; and 

18 ‘‘(B) the Agency Head shall fulfill the re19 quirements under subsection (d)(2) in accord20 ance with the deadlines under subsection (d)(3). 

21 ‘‘(4) ALTERNATIVE GROSS DEVIATION DETER22 MINATION.—If the Chief Information Officer deter23 mines, subsequent to a change in the primary busi24 ness case or key functional requirements, that withVerDate Aug 31 2005 01:07 Aug 05, 2008 Jkt 069200 PO 00000 Frm 00021 Fmt 6652 Sfmt 6201 E:\BILLS\S3384.IS S3384

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1 out such change the project would have grossly devi2 ated— 

3 ‘‘(A) the Chief Information Officer shall 

4 notify the Agency Head of the gross deviation; 

5 and 

6 ‘‘(B) the Agency Head shall fulfill the re7 quirements under subsections (e)(2) and (e)(3) 

8 in accordance with subsection (e)(4).’’. 

9 (b) INCLUSION IN THE BUDGET SUBMITTED TO CON10 GRESS.—Section 1105(a) of title 31, United States Code, 

11 is amended— 

12 (1) in the matter preceding paragraph (1), by 

13 striking ‘‘include in each budget the following:’’ and 

14 inserting ‘‘include in each budget—’’; 

15 (2) by redesignating the second paragraph (33) 

16 (as added by section 889(a) of Public Law 107–296) 

17 as paragraph (35); 

18 (3) in each of paragraphs (1) through (34), by 

19 striking the period at the end and inserting a semi20 colon; 

21 (4) in paragraph (35) (as redesignated by para22 graph (2)), by striking the period at the end and in23 serting ‘‘; and’’; and 

24 (5) by adding at the end the following: 


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1 ‘‘(36) the reports prepared under section 

2 11317(f) of title 40, United States Code, relating to 

3 the core IT investment projects of the agency.’’. 

4 (c) IMPROVEMENT OF INFORMATION TECHNOLOGY

5 ACQUISITION AND DEVELOPMENT.—Subchapter II of 

6 chapter 113 of title 40, United States Code, is amended 

7 by adding at the end the following: 

8 ‘‘SEC. 11319. ACQUISITION AND DEVELOPMENT. 

9 ‘‘(a) ESTABLISHMENT OF PROGRAMS.—Not later 

10 than 120 days after the date of the enactment of this sec11 tion, each Agency Head (as defined in section 11317(a) 

12 of title 49, United States Code) shall establish a program 

13 to improve the information technology (referred to in this 

14 section as ‘IT’) processes of the agency overseen by the 

15 Agency Head. 

16 ‘‘(b) PROGRAM REQUIREMENTS.—Each program es17 tablished pursuant to this section shall include— 

18 ‘‘(1) a documented process for information 

19 technology acquisition planning, requirements devel20 opment and management, project management and 

21 oversight, earned-value management, and risk man22 agement; 

23 ‘‘(2) the development of appropriate metrics for 

24 performance measurement of— 


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1 ‘‘(A) processes and development status; 

2 and 

3 ‘‘(B) continuous process improvement; 

4 ‘‘(3) a process to ensure that key program per5 sonnel have an appropriate level of experience or 

6 training in the planning, acquisition, execution, man7 agement, and oversight of information technology; 

8 and 

9 ‘‘(4) a process to ensure that the applicable de10 partment and subcomponents implement and adhere 

11 to established processes and requirements relating to 

12 the planning, acquisition, execution, management, 

13 and oversight of information technology programs 

14 and developments. 

15 ‘‘(c) OMB GUIDANCE.—The Director of the Office 

16 of Management and Budget shall— 

17 ‘‘(1) prescribe uniformly applicable guidance to 

18 the administration of all the programs established 

19 under subsection (a); and 

20 ‘‘(2) take any actions that are necessary to en21 sure that Federal agencies comply with the guid22 ance. 

23 ‘‘(d) ANNUAL REPORT TO CONGRESS.—Not later 

24 than the last day of February of each year, the Agency 

25 Head shall submit a report to Congress that includes— 


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1 ‘‘(1) a detailed summary of the accomplish2 ments of the program established by the Agency 

3 Head pursuant to this section; 

4 ‘‘(2) the status of completeness of implementa5 tion of each of the program requirements, and the 

6 date each such requirement was deemed to be com7 pleted; 

8 ‘‘(3) the percentage of Federal IT projects cov9 ered under the program compared to all of the IT 

10 projects of the agency, listed by number of programs 

11 and by annual dollars expended; 

12 ‘‘(4) the identification, listed by name and posi13 tion, of— 

14 ‘‘(A) the person assigned responsibility for 

15 implementation and management of the pro16 gram and the percent of such person’s time 

17 used to carry out such responsibility; and 

18 ‘‘(B) the person to whom the person de19 scribed in subparagraph (A) reports; 

20 ‘‘(5) a detailed breakdown of the sources and 

21 uses of the amounts spent by the agency during the 

22 previous fiscal year to support the activities of the 

23 program; 


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1 ‘‘(6) a copy of any guidance issued under the 

2 program and a statement regarding whether each 

3 such guidance is mandatory; 

4 ‘‘(7) the identification of the metrics developed 

5 in accordance with subsection (b)(2); 

6 ‘‘(8) a description of how paragraphs (3) and 

7 (4) of subsection (b) have been implemented and any 

8 related agency guidance; and 

9 ‘‘(9) a description of how continuous process 

10 improvement has been implemented and the objec11 tives of such guidance.’’. 

12 (d) CLERICAL AMENDMENTS.—The table of sections 

13 for chapter 113 of title 40, United States Code, is amend14 ed— 

15 (1) by striking the item relating to section 

16 11317 and inserting the following: 

‘‘11317. Significant and gross deviations.’’; and 

17 (2) by inserting after the item relating to sec18 tion 11318 the following: 

‘‘11319. Acquisition and development.’’. 

19 SEC. 3. IT STRIKE FORCE. 

20 (a) PURPOSE.—The Director of the Office of Man21 agement of Budget (referred to in this section as the ‘‘Di22 rector’’), in consultation with the Administrator of the Of23 fice of Electronic Government and Information and Tech24 nology at the Office of Management and Budget (referred 


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1 to in this section as the ‘‘E-Gov Administrator’’), shall as2 sist agencies in avoiding significant and gross deviations 

3 in the cost, schedule, and performance of IT investment 

4 projects (as such terms are defined in section 11317(a) 

5 of title 40, United States Code). 

6 (b) IT STRIKE FORCE.— 

7 (1) ESTABLISHMENT.—Not later than 180 days 

8 after the date of the enactment of this Act, the E9 Gov Administrator shall establish a small group of 

10 individuals (referred to in this section as the ‘‘IT 

11 Strike Force’’) to carry out the purpose described in 

12 subsection (a). 

13 (2) QUALIFICATIONS.—Individuals selected for 

14 the IT Strike Force— 

15 (A) shall be certified at the Senior/Expert 

16 level according to the Federal Acquisition Cer17 tification for Program and Project Managers 

18 (FAC–P/PM); or 

19 (B) shall have comparable education, cer20 tification, training, and experience to success21 fully manage high-risk IT investment projects. 

22 (3) NUMBER.—The Director, in consultation 

23 with the E-Gov Administrator, shall determine the 

24 number of individuals who will be selected for the IT 

25 Strike Force. 


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1 (c) OUTSIDE CONSULTANTS.— 

2 (1) IDENTIFICATION.—The E-Gov Adminis3 trator shall identify consultants in the private sector 

4 who have expert knowledge in IT program manage5 ment and program management review teams. Not 

6 more than 20 percent of such consultants may be 

7 formally associated with any 1 of the following types 

8 of entities: 

9 (A) Commercial firms. 

10 (B) Nonprofit entities. 

11 (C) Research and development corpora12 tions receiving Federal financial assistance. 

13 (2) USE OF CONSULTANTS.— 

14 (A) IN GENERAL.—Consultants identified 

15 under paragraph (1) may be used to assist the 

16 IT Strike Force in assessing and improving IT 

17 investment projects. 

18 (B) LIMITATION.—Consultants with a for19 mally established relationship with an organiza20 tion may not participate in any assessment in21 volving an IT investment project for which such 

22 organization is under contract to provide tech23 nical support. 

24 (C) EXCEPTION.—The limitation described 

25 in subparagraph (B) may not be construed as 


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1 precluding access to anyone having relevant in2 formation helpful to the conduct of the assess3 ment. 

4 (3) CONTRACTS.—The E-Gov Administrator, in 

5 conjunction with the Administrator of the General 

6 Services Administration (GSA), may establish com7 petitively bid contracts with 1 or more qualified con8 sultants, independent of any GSA schedule. 

9 (d) INITIAL RESPONSE TO ANTICIPATED SIGNIFI10 CANT OR GROSS DEVIATION.—If the E-Gov Administrator 

11 determines there is reasonable cause to believe that a 

12 major IT investment project is likely to significantly or 

13 grossly deviate (as defined in section 11317(a) of title 40, 

14 United States Code), including the receipt of inconsistent 

15 or missing data, the E-Gov Administrator shall carry out 

16 the following activities: 

17 (1) Recommend the assignment of 1 or more 

18 members of the IT Strike Force to assess the project 

19 in accordance with the scope and time period de20 scribed in section 11317(c)(1) of title 40, United 

21 States Code, beginning not later than 7 days after 

22 such recommendation. No member of the Strike 

23 Force who is associated with the department or 

24 agency whose IT investment project is the subject of 

25 the assessment may be assigned to participate in 


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1 this assessment. Such limitation may not be con2 strued as precluding access to anyone having rel3 evant information helpful to the conduct of the as4 sessment. 

5 (2) If the E-Gov Administrator determines that 

6 1 or more qualified consultants are needed to sup7 port the efforts of the IT Strike Force under para8 graph (1), negotiate a contract with the consultant 

9 to provide such support during the period in which 

10 the IT Strike Force is conducting the assessment 

11 described in paragraph (1). 

12 (3) Ensure that the costs of an assessment 

13 under paragraph (1) and the support services of 1 

14 or more consultants under paragraph (2) are paid 

15 by the major IT investment project being assessed. 

16 (4) Monitor the progress made by the IT Strike 

17 Force in assessing the project. 

18 (e) REDUCTION OF SIGNIFICANT OR GROSS DEVI19 ATION.—If the E-Gov Administrator determines that the 

20 assessment conducted under subsection (d) confirms that 

21 a major IT investment project is likely to significantly or 

22 grossly deviate, the E-Gov Administrator shall recommend 

23 that the Agency Head (as defined in section 11317(a)(1) 

24 of title 40, United States Code) take steps to reduce the 

25 deviation, which may include— 


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1 (1) providing training or mentoring to improve 

2 the qualifications of the program manager; 

3 (2) replacing the program manager or other 

4 staff; 

5 (3) supplementing the program management 

6 team with Federal Government employees or inde7 pendent contractors; 

8 (4) terminating the project; or 

9 (5) hiring an independent contractor to report 

10 directly to senior management and the E-Gov Ad11 ministrator. 

12 (f) REPROGRAMMING OF FUNDS.— 

13 (1) AUTHORIZATION.—The Director may direct 

14 an Agency Head to reprogram amounts which have 

15 been appropriated for such agency to pay for an as16 sessment under subsection (d). 

17 (2) NOTIFICATION.—An Agency Head who re18 programs appropriations under paragraph (1) shall 

19 notify the Committee on Appropriations of the Sen20 ate and the Committee on Appropriations of the 

21 House of Representatives of any such reprogram22 ming. 

23 (g) REPORT TO CONGRESS.—The Director shall in24 clude in the annual Report to Congress on the Benefits 

25 of E-Government Initiatives a detailed summary of the 


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1 composition and activities of the IT Strike Force, includ2 ing— 

3 (1) the number and qualifications of individuals 

4 on the IT Strike Force; 

5 (2) a description of the IT investment projects 

6 that the IT Strike Force has worked during the pre7 vious fiscal year; 

8 (3) the major issues that necessitated the in9 volvement of the IT Strike Force to assist agencies 

10 with assessing and managing IT investment projects 

11 and whether such issues were satisfactorily resolved; 

12 (4) if the issues referred to in paragraph (3) 

13 were not satisfactorily resolved, the issues still need14 ed to be resolved and the Agency Head’s plan for re15 solving such issues; 

16 (5) a detailed breakdown of the sources and 

17 uses of the amounts spent by the Office of Manage18 ment and Budget and other Federal agencies during 

19 the previous fiscal year to support the activities of 

20 the IT Strike Force; and 

21 (6) a determination of whether the IT Strike 

22 Force has been effective in reducing the amount of 

23 IT investment projects that deviate or significantly 

24 deviate. 

Æ 


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