H. R. 2810—307 
(B) a summary by fiscal year of obligations, expendi-
tures, and unused balances. 
(2) PUBLIC
AVAILABILITY.—The Director shall make the 
information submitted under paragraph (1) publicly available 
on a website. 
SEC. 1078. ESTABLISHMENT OF TECHNOLOGY MODERNIZATION FUND 
AND BOARD. 
(a) DEFINITION.—In this section, the term ‘‘agency’’ has the 
meaning given the term in section 551 of title 5, United States 
Code. 
(b) TECHNOLOGY MODERNIZATION FUND.— 
(1) ESTABLISHMENT.—There is established in the Treasury 
a Technology Modernization Fund for technology-related activi-
ties, to improve information technology, to enhance cybersecu-
rity across the Federal Government, and to be administered 
in accordance with guidance issued by the Director. 
(2) ADMINISTRATION OF FUND.—The Administrator, in con-
sultation with the Chief Information Officers Council and with 
the approval of the Director, shall administer the Fund in 
accordance with this subsection. 
(3) USE OF FUNDS.—The Administrator shall, in accordance 
with recommendations from the Board, use amounts in the 
Fund— 
(A) to transfer such amounts, to remain available until 
expended, to the head of an agency for the acquisition 
of products and services, or the development of such prod-
ucts and services when more efficient and cost effective, 
to improve, retire, or replace existing Federal information 
technology systems to enhance cybersecurity and privacy 
and improve long-term efficiency and effectiveness; 
(B) to transfer such amounts, to remain available until 
expended, to the head of an agency for the operation and 
procurement of information technology products and serv-
ices, or the development of such products and services 
when more efficient and cost effective, and acquisition 
vehicles for use by agencies to improve Governmentwide 
efficiency and cybersecurity in accordance with the require-
ments of the agencies; 
(C) to provide services or work performed in support 
of— 
(i) the activities described in subparagraph (A) 
or (B); and 
(ii) the Board and the Director in carrying out 
the responsibilities described in subsection (c)(2); and 
(D) to fund only programs, projects, or activities or 
to fund increases for any programs, projects, or activities 
that have not been denied or restricted by Congress. 
(4) AUTHORIZATION
OF
APPROPRIATIONS; CREDITS; AVAIL-
ABILITY OF FUNDS.— 
(A) AUTHORIZATION
OF
APPROPRIATIONS.—There is 
authorized to be appropriated to the Fund $250,000,000 
for each of fiscal years 2018 and 2019. 
(B) CREDITS.—In addition to any funds otherwise 
appropriated, the Fund shall be credited with all 
reimbursements, advances, or refunds or recoveries relating
H. R. 2810—308 
to information technology or services provided for the pur-
poses described in paragraph (3). 
(C) AVAILABILITY OF FUNDS.—Amounts deposited, cred-
ited, or otherwise made available to the Fund shall be 
available until expended for the purposes described in para-
graph (3). 
(5) REIMBURSEMENT.— 
(A) REIMBURSEMENT BY AGENCY.— 
(i) IN
GENERAL.—The head of an agency shall 
reimburse the Fund for any transfer made under 
subparagraph (A) or (B) of paragraph (3), including 
any services or work performed in support of the 
transfer under paragraph (3)(C), in accordance with 
the terms established in a written agreement described 
in paragraph (6). 
(ii) REIMBURSEMENT FROM SUBSEQUENT APPROPRIA-
TIONS.—Notwithstanding any other provision of law, 
an agency may make a reimbursement required under 
clause (i) from any appropriation made available after 
the date of enactment of this Act for information tech-
nology activities, consistent with any applicable re-
programming law or guidelines of the Committees on 
Appropriations of the Senate and the House of Rep-
resentatives. 
(iii) RECORDING OF OBLIGATION.—Notwithstanding 
section 1501 of title 31, United States Code, an obliga-
tion to make a payment under a written agreement 
described in paragraph (6) in a fiscal year after the 
date of enactment of this Act shall be recorded in 
the fiscal year in which the payment is due. 
(B) PRICES FIXED BY ADMINISTRATOR.— 
(i) IN GENERAL.—The Administrator, in consulta-
tion with the Director, shall establish amounts to be 
paid by an agency under this paragraph and the terms 
of repayment for activities funded under paragraph 
(3), including any services or work performed in sup-
port of that development under paragraph (3)(C), at 
levels sufficient to ensure the solvency of the Fund, 
including operating expenses. 
(ii) REVIEW AND APPROVAL.—Before making any 
changes to the established amounts and terms of repay-
ment, the Administrator shall conduct a review and 
obtain approval from the Director. 
(C) FAILURE TO MAKE TIMELY REIMBURSEMENT.—The 
Administrator may obtain reimbursement from an agency 
under this paragraph by the issuance of transfer and 
counterwarrants, or other lawful transfer documents, sup-
ported by itemized bills, if payment is not made by the 
agency during the 90-day period beginning after the expira-
tion of a repayment period described in a written agreement 
described in paragraph (6). 
(6) WRITTEN AGREEMENT.— 
(A) IN GENERAL.—Before the transfer of funds to an 
agency under subparagraphs (A) and (B) of paragraph (3), 
the Administrator, in consultation with the Director, and 
the head of the agency shall enter into a written agree-
ment—
H. R. 2810—309 
(i) documenting the purpose for which the funds 
will be used and the terms of repayment, which may 
not exceed 5 years unless approved by the Director; 
and 
(ii) which shall be recorded as an obligation as 
provided in paragraph (5)(A). 
(B) REQUIREMENT FOR USE OF INCREMENTAL FUNDING, 
COMMERCIAL
PRODUCTS
AND
SERVICES, 
AND
RAPID, 
ITERATIVE
DEVELOPMENT
PRACTICES.—The Administrator 
shall ensure— 
(i) for any funds transferred to an agency under 
paragraph (3)(A), in the absence of compelling cir-
cumstances documented by the Administrator at the 
time of transfer, that such funds shall be transferred 
only on an incremental basis, tied to metric-based 
development milestones achieved by the agency 
through the use of rapid, iterative, development proc-
esses; and 
(ii) that the use of commercial products and serv-
ices are incorporated to the greatest extent practicable 
in activities funded under subparagraphs (A) and (B) 
of paragraph (3), and that the written agreement 
required under paragraph (6) documents this pref-
erence. 
(7) REPORTING REQUIREMENTS.— 
(A) LIST OF PROJECTS.— 
(i) IN GENERAL.—Not later than 6 months after 
the date of enactment of this Act, the Director shall 
maintain a list of each project funded by the Fund, 
to be updated not less than quarterly, that includes 
a description of the project, project status (including 
any schedule delay and cost overruns), financial 
expenditure data related to the project, and the extent 
to which the project is using commercial products and 
services, including if applicable, a justification of why 
commercial products and services were not used and 
the associated development and integration costs of 
custom development. 
(ii) PUBLIC AVAILABILITY.—The list required under 
clause (i) shall be published on a public website in 
a manner that is, to the greatest extent possible, con-
sistent with applicable law on the protection of classi-
fied information, sources, and methods. 
(B) COMPTROLLER GENERAL REPORTS.—Not later than 
2 years after the date of enactment of this Act, and every 
2 years thereafter, the Comptroller General of the United 
States shall submit to Congress and make publically avail-
able a report assessing— 
(i) the costs associated with establishing the Fund 
and maintaining the oversight structure associated 
with the Fund compared with the cost savings associ-
ated with the projects funded both annually and over 
the life of the acquired products and services by the 
Fund; 
(ii) the reliability of the cost savings estimated 
by agencies associated with projects funded by the 
Fund;
H. R. 2810—310 
(iii) whether agencies receiving transfers of funds 
from the Fund used full and open competition to 
acquire the custom development of information tech-
nology products or services; and 
(iv) the number of IT procurement, development, 
and modernization programs, offices, and entities in 
the Federal Government, including 18F and the United 
States Digital Services, the roles, responsibilities, and 
goals of those programs and entities, and the extent 
to which they duplicate work. 
(c) TECHNOLOGY MODERNIZATION BOARD.— 
(1) ESTABLISHMENT.—There is established a Technology 
Modernization Board to evaluate proposals submitted by agen-
cies for funding authorized under the Fund. 
(2) RESPONSIBILITIES.—The responsibilities of the Board 
are— 
(A) to provide input to the Director for the development 
of processes for agencies to submit modernization proposals 
to the Board and to establish the criteria by which those 
proposals are evaluated, which shall include— 
(i) addressing the greatest security, privacy, and 
operational risks; 
(ii) having the greatest Governmentwide impact; 
and 
(iii) having a high probability of success based 
on factors including a strong business case, technical 
design, consideration of commercial off-the-shelf prod-
ucts and services, procurement strategy (including ade-
quate use of rapid, agile iterative software development 
practices), and program management; 
(B) to make recommendations to the Administrator 
to assist agencies in the further development and refine-
ment of select submitted modernization proposals, based 
on an initial evaluation performed with the assistance of 
the Administrator; 
(C) to review and prioritize, with the assistance of 
the Administrator and the Director, modernization pro-
posals based on criteria established pursuant to subpara-
graph (A); 
(D) to identify, with the assistance of the Adminis-
trator, opportunities to improve or replace multiple 
information technology systems with a smaller number 
of information technology services common to multiple 
agencies; 
(E) to recommend the funding of modernization 
projects, in accordance with the uses described in sub-
section (b)(3), to the Administrator; 
(F) to monitor, in consultation with the Administrator, 
progress and performance in executing approved projects 
and, if necessary, recommend the suspension or termi-
nation of funding for projects based on factors including 
the failure to meet the terms of a written agreement 
described in subsection (b)(6); and 
(G) to monitor the operating costs of the Fund. 
(3) MEMBERSHIP.—The Board shall consist of 7 voting mem-
bers.