SEC. 2. MANAGEMENT OF MAJOR INFORMATION TECH-
NOLOGY PROJECTS. 
(a) IN GENERAL.—Chapter 81 of title 38, United 
States Code, is amended by adding at the end the fol-
lowing new subchapter: 
‘‘SUBCHAPTER VI—INFORMATION 
TECHNOLOGY PROJECTS AND ACTIVITIES 
‘‘§ 8171. Definitions 
‘‘In this subchapter: 
‘‘(1) The term ‘appropriate congressional com-
mittees’ means— 
‘‘(A) the Committees on Veterans’ Affairs 
of the House of Representatives and the Sen-
ate; and 
‘‘(B) the Subcommittees on Military Con-
struction, Veterans Affairs and Related Agen-
cies of the House of Representatives and the 
Senate. 
‘‘(2) The term ‘information technology’ has the 
meaning given that term in section 11101 of title 
40. 
‘‘(3) The term ‘life cycle costs’ means all direct 
and indirect costs to acquire, implement, operate, 
and maintain an information technology system. 
‘‘(4) The term ‘major information technology 
project’ means a project or program of the Depart-
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ment of Veterans Affairs (including a project or pro-
gram of any element of the Department) for, or in-
cluding, the acquisition or implementation of an in-
formation technology system if— 
‘‘(A) the project or program is des-
ignated— 
‘‘(i) by the Secretary of Veterans Af-
fairs or the Chief Information Officer of 
the Department as a major information 
technology project; or 
‘‘(ii) by the Director of the Office of 
Management and Budget as a major infor-
mation technology investment, as defined 
in section 11302 of title 40; 
‘‘(B) the dollar value of the project or pro-
gram is estimated by the Secretary to exceed— 
‘‘(i) $50,000,000 (as adjusted for in-
flation pursuant to section 1908 of title 
41) for all project or program costs in a 
single fiscal year; 
‘‘(ii) $200,000,000 (as adjusted for 
inflation pursuant to section 1908 of title 
41) for all project acquisition or implemen-
tation costs for the duration of the project 
or program; or 
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‘‘(iii) $500,000,000 (as adjusted for 
inflation pursuant to section 1908 of title 
41) for the total life cycle costs of the 
project or program; or 
‘‘(C) any increment of the project or pro-
gram separately meets the requirements of sub-
paragraphs (A) or (B). 
‘‘§ 8172. Management of major information tech-
nology projects 
‘‘(a) COST, SCHEDULE, AND PERFORMANCE INFOR-
MATION.—The Secretary of Veterans Affairs may not obli-
gate or expend funds for any major information tech-
nology project that begins after the date of the enactment 
of this section unless the Secretary, acting through the 
Chief Information Officer, submits to the appropriate con-
gressional committees a report containing information on 
the cost, schedule, and performance of such project. Each 
such report shall include, with respect to such project, the 
following: 
‘‘(1) An estimate of acquisition, implementa-
tion, and life cycle costs. 
‘‘(2) An intended implementation schedule indi-
cating significant milestones, initial operating capa-
bility, and full operating capability or completion. 
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‘‘(3) Key business, functional, or performance 
objectives. 
‘‘(b) BASELINE.—(1) The Secretary shall use the in-
formation on the cost, schedule, and performance of a 
major information technology project included in the re-
port under subsection (a) as the baseline against which 
changes or variances are measured during the life cycle 
of such project. 
‘‘(2) The Secretary shall— 
‘‘(A) annually update the baseline of a major 
information technology project pursuant to sub-
section (c); and 
‘‘(B) include such updated baseline in the docu-
ments providing detailed information on the budget 
for the Department that the Secretary submits to 
Congress in conjunction with the President’s budget 
submission pursuant to section 1105 of title 31. 
‘‘(c) CHANGES AND VARIANCES.—(1) Not later than 
60 days after the date on which the Secretary identifies 
a change or variance described in paragraph (2) in the 
cost, schedule, or performance of a major information 
technology project, the Secretary, acting through the Chief 
Information Officer, shall submit to the appropriate con-
gressional committees a notification of such change or 
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variance, including a description and explanation for such 
change or variance. 
‘‘(2) A change or variance in the cost, schedule, or 
performance of a major information technology project de-
scribed in this paragraph is— 
‘‘(A) with respect to the acquisition, implemen-
tation, or life cycle cost of the project, or an incre-
ment therein, a change or variance that is 10 per-
cent or greater compared to the baseline; 
‘‘(B) with respect to the schedule for achieving 
a significant milestone, initial operating capability, 
or final completion of the project, a change or vari-
ance that is 180 days or greater compared to the 
baseline; or 
‘‘(C) with respect to the performance, an in-
stance where a key business, functional, or perform-
ance objective is not attained, or is not anticipated 
to be attained, in whole or in part. 
‘‘(d) MANAGEMENT.—The Secretary shall ensure 
that each major information technology project is man-
aged by an interdisciplinary team including the following: 
‘‘(1) A project manager who is— 
‘‘(A) certified in project management at 
level three by the Department or the Depart-
ment of Defense pursuant to section 1701a of 
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title 10, or who holds an equivalent certification 
by a private sector project management certifi-
cation organization, as determined appropriate 
by the Secretary; and 
‘‘(B) an employee of the Office of Informa-
tion and Technology of the Department or an 
employee of an element of the Department at 
which the project originates. 
‘‘(2) A functional lead who is an employee of 
the element of the Department at which the project 
originates. 
‘‘(3) A technical lead who is an employee of the 
Office of Information and Technology of the Depart-
ment. 
‘‘(4) A contracting officer. 
‘‘(5) Sufficient other project management, func-
tional, technical, and procurement personnel as the 
Secretary determines appropriate. 
‘‘§ 8173. Information technology activities of the Fi-
nancial Services Center 
‘‘(a) MANAGEMENT.—Consistent with sections 11302 
and 11319 of title 40— 
‘‘(1) the Chief Information Officer of the De-
partment shall— 
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‘‘(A) exercise authority over the manage-
ment, governance, and oversight processes relat-
ing to information technology of the Financial 
Services Center of the Department, or such suc-
cessor office; and 
‘‘(B) supervise the information technology 
employees and contractors of the Financial 
Services Center; and 
‘‘(2) the Director of the Financial Services Cen-
ter of the Department, or the head of such successor 
office, may not enter into a contract or other agree-
ment for information technology or information tech-
nology services unless the contract or other agree-
ment has been reviewed and approved by the Chief 
Information Officer. 
‘‘(b) OVERSIGHT.—The Chief Information Officer 
shall have oversight and operational authority over all in-
formation security practices of the Financial Services Cen-
ter of the Department. 
‘‘§ 8174. Submission of annual reviews of information 
technology 
‘‘The Secretary, acting through the Chief Informa-
tion Officer, shall submit to the appropriate congressional 
committees each annual review of the information tech-
nology portfolio of the Department conducted pursuant to 
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section 11319(d)(3) of title 40. The first such annual re-
view so submitted shall include a copy of each previous 
annual review conducted under such section.’’. 
(b) CLERICAL AMENDMENT.—The table of sections 
at the beginning of such chapter is amended by adding 
at the end the following: 
‘‘SUBCHAPTER VI—INFORMATION TECHNOLOGY PROJECTS AND ACTIVITIES 
‘‘8171. Definitions. 
‘‘8172. Management of major information technology projects. 
‘‘8173. Information technology activities of the Financial Services Center. 
‘‘8174. Submission of annual reviews of information technology.’’. 
(c) APPLICATION; REPORT.— 
(1) CURRENT AND NEW PROJECTS.—Except as 
specifically provided in subsection (a) of section 
8172 of title 38, United States Code, as added by 
subsection (a) of this section, such section 8172 
shall apply with respect to major information tech-
nology projects that begin before, on, or after the 
date of the enactment of this Act. 
(2) REPORT ON CURRENT PROJECTS.— 
(A) REQUIREMENT.—Not later than 90 
days after the date of the enactment of this 
Act, the Secretary of Veterans Affairs shall 
submit to the appropriate congressional com-
mittees a report on each major information 
technology project that the Secretary is car-
rying out as of the date of the report. The re-
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port shall contain, with respect to each such 
project, information on the cost, schedule, and 
performance of such project as described in 
subsection (a) of such section 8172. 
(B) DEFINITIONS.—In this subsection, the 
terms ‘‘appropriate congressional committees’’ 
and ‘‘major information technology project’’ 
have the meanings given those terms in section 
8171 of title 38, United States Code, as added 
by subsection (a) of this section. 
SEC. 3. ASSESSMENT OF SUITABILITY OF CLOUD MIGRA-
TION INVESTMENTS. 
(a) ASSESSMENT.—Not later than one year after the 
date of the enactment of this Act, the Secretary of Vet-
erans Affairs, acting through the Chief Information Offi-
cer of the Department of Veterans Affairs, shall conduct 
an assessment, in accordance with guidance from the Of-
fice of Management and Budget, of all information tech-
nology investments of the Department of Veterans Affairs 
to determine the suitability of the investments for migra-
tion to a cloud computing service. 
(b) CONSISTENT MECHANISM.—The Secretary, act-
ing through the Chief Information Officer, shall establish 
a consistent and repeatable mechanism to track savings 
and cost avoidances from the— 
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(1) migration of information technology invest-
ments to cloud computing services; and 
(2) deployment of cloud computing services. 
SEC. 4. REPORT ON INFORMATION TECHNOLOGY DASH-
BOARD INFORMATION. 
(a) REPORT.—Not later than 90 days after the date 
of the enactment of this Act, the Secretary, acting through 
the Chief Information Officer, shall submit to the appro-
priate congressional committees a report containing— 
(1) an explanation of the ratings, rankings, and 
risk categorizations used by the Chief Information 
Officer pursuant to subparagraph (C) of section 
11302(c)(3) of title 40, United States Code, with re-
spect to the information technology dashboard of the 
Office of Management and Budget developed under 
such section; and 
(2) copies of supporting or explanatory informa-
tion provided by the Chief Information Officer to the 
Office of Management and Budget with respect to 
submissions by the Chief Information Officer to the 
information technology dashboard for the fiscal year 
in which the report is submitted (other than infor-
mation not otherwise made public pursuant to such 
section). 
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(b) APPROPRIATE
CONGRESSIONAL
COMMITTEES 
DEFINED.—In section, the term ‘‘appropriate congres-
sional committees’’ means— 
(1) the Committees on Veterans’ Affairs of the 
House of Representatives and the Senate; and 
(2) the Subcommittees on Military Construc-
tion, Veterans Affairs and Related Agencies of the 
House of Representatives and the Senate. 
Æ 
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