H. R. 1530—509
(3) promoting the effective and efficient design and oper-
ation of all major information resources management processes
for the executive agency, including improvements to work proc-
esses of the executive agency.
(c) DUTIES AND QUALIFICATIONS.—The Chief Information Officer
of an agency that is listed in section 901(b) of title 31, United
States Code, shall—
(1) have information resources management duties as that
official’s primary duty;
(2) monitor the performance of information technology pro-
grams of the agency, evaluate the performance of those
programs on the basis of the applicable performance measure-
ments, and advise the head of the agency regarding whether
to continue, modify, or terminate a program or project; and
(3) annually, as part of the strategic planning and perform-
ance evaluation process required (subject to section 1117 of
title 31, United States Code) under section 306 of title 5,
United States Code, and sections 1105(a)(29), 1115, 1116, 1117,
and 9703 of title 31, United States Code—
(A) assess the requirements established for agency
personnel regarding knowledge and skill in information
resources management and the adequacy of such require-
ments for facilitating the achievement of the performance
goals established for information resources management;
(B) assess the extent to which the positions and person-
nel at the executive level of the agency and the positions
and personnel at management level of the agency below
the executive level meet those requirements;
(C) in order to rectify any deficiency in meeting those
requirements, develop strategies and specific plans for hir-
ing, training, and professional development; and
(D) report to the head of the agency on the progress
made in improving information resources management
capability.
(d) INFORMATION TECHNOLOGY ARCHITECTURE DEFINED.—In
this section, the term ‘‘information technology architecture’’, with
respect to an executive agency, means an integrated framework
for evolving or maintaining existing information technology and
acquiring new information technology to achieve the agency’s strate-
gic goals and information resources management goals.
(e) EXECUTIVE LEVEL IV.—Section 5315 of title 5, United States
Code, is amended by adding at the end the following:
‘‘Chief Information Officer, Department of Agriculture.
‘‘Chief Information Officer, Department of Commerce.
‘‘Chief Information Officer, Department of Defense (unless
the official designated as the Chief Information Officer of the
Department of Defense is an official listed under section 5312,
5313, or 5314 of this title).
‘‘Chief Information Officer, Department of Education.
‘‘Chief Information Officer, Department of Energy.
‘‘Chief Information Officer, Department of Health and
Human Services.
‘‘Chief Information Officer, Department of Housing and
Urban Development.
‘‘Chief Information Officer, Department of Interior.
‘‘Chief Information Officer, Department of Justice.
‘‘Chief Information Officer, Department of Labor.
H. R. 1530—510
‘‘Chief Information Officer, Department of State.
‘‘Chief Information Officer, Department of Transportation.
‘‘Chief Information Officer, Department of Treasury.
‘‘Chief Information Officer, Department of Veterans Affairs.
‘‘Chief Information Officer, Environmental Protection
Agency.
‘‘Chief Information Officer, National Aeronautics and Space
Administration.
‘‘Chief Information Officer, Agency for International Devel-
opment.
‘‘Chief Information Officer, Federal Emergency Manage-
ment Agency.
‘‘Chief Information Officer, General Services Administra-
tion.
‘‘Chief Information Officer, National Science Foundation.
‘‘Chief Information Officer, Nuclear Regulatory Agency.
‘‘Chief Information Officer, Office of Personnel Manage-
ment.
‘‘Chief Information Officer, Small Business Administra-
tion.’’.
SEC. 5126. ACCOUNTABILITY.
The head of each executive agency, in consultation with the
Chief Information Officer and the Chief Financial Officer of that
executive agency (or, in the case of an executive agency without
a Chief Financial Officer, any comparable official), shall establish
policies and procedures that—
(1) ensure that the accounting, financial, and asset manage-
ment systems and other information systems of the executive
agency are designed, developed, maintained, and used effec-
tively to provide financial or program performance data for
financial statements of the executive agency;
(2) ensure that financial and related program performance
data are provided on a reliable, consistent, and timely basis
to executive agency financial management systems; and
(3) ensure that financial statements support—
(A) assessments and revisions of mission-related proc-
esses and administrative processes of the executive agency;
and
(B) performance measurement of the performance in
the case of investments made by the agency in information
systems.
SEC. 5127. SIGNIFICANT DEVIATIONS.
The head of an executive agency shall identify in the strategic
information resources management plan required under section
3506(b)(2) of title 44, United States Code, any major information
technology acquisition program, or any phase or increment of such
a program, that has significantly deviated from the cost, perform-
ance, or schedule goals established for the program.
SEC. 5128. INTERAGENCY SUPPORT.
Funds available for an executive agency for oversight, acquisi-
tion, and procurement of information technology may be used by
the head of the executive agency to support jointly with other
executive agencies the activities of interagency groups that are
established to advise the Director in carrying out the Director’s
responsibilities under this title. The use of such funds for that
H. R. 1530—511
purpose shall be subject to such requirements and limitations on
uses and amounts as the Director may prescribe. The Director
shall prescribe any such requirements and limitations during the
Director’s review of the executive agency’s proposed budget submit-
ted to the Director by the head of the executive agency for purposes
of section 1105 of title 31, United States Code.
Subtitle D—Other Responsibilities
SEC. 5131. RESPONSIBILITIES REGARDING EFFICIENCY, SECURITY,
AND PRIVACY OF FEDERAL COMPUTER SYSTEMS.
(a) STANDARDS AND GUIDELINES.—
(1) AUTHORITY.—The Secretary of Commerce shall, on the
basis of standards and guidelines developed by the National
Institute of Standards and Technology pursuant to paragraphs
(2) and (3) of section 20(a) of the National Institute of Standards
and Technology Act (15 U.S.C. 278g–3(a)), promulgate stand-
ards and guidelines pertaining to Federal computer systems.
The Secretary shall make such standards compulsory and bind-
ing to the extent to which the Secretary determines necessary
to improve the efficiency of operation or security and privacy
of Federal computer systems. The President may disapprove
or modify such standards and guidelines if the President deter-
mines such action to be in the public interest. The President’s
authority to disapprove or modify such standards and guidelines
may not be delegated. Notice of such disapproval or modification
shall be published promptly in the Federal Register. Upon
receiving notice of such disapproval or modification, the Sec-
retary of Commerce shall immediately rescind or modify such
standards or guidelines as directed by the President.
(2) EXERCISE OF AUTHORITY.—The authority conferred upon
the Secretary of Commerce by this section shall be exercised
subject to direction by the President and in coordination with
the Director to ensure fiscal and policy consistency.
(b) APPLICATION OF MORE STRINGENT STANDARDS.—The head
of a Federal agency may employ standards for the cost-effective
security and privacy of sensitive information in a Federal computer
system within or under the supervision of that agency that are
more stringent than the standards promulgated by the Secretary
of Commerce under this section, if such standards contain, at a
minimum, the provisions of those applicable standards made
compulsory and binding by the Secretary of Commerce.
(c) WAIVER OF STANDARDS.—The standards determined under
subsection (a) to be compulsory and binding may be waived by
the Secretary of Commerce in writing upon a determination that
compliance would adversely affect the accomplishment of the mis-
sion of an operator of a Federal computer system, or cause a
major adverse financial impact on the operator which is not offset
by Government-wide savings. The Secretary may delegate to the
head of one or more Federal agencies authority to waive such
standards to the extent to which the Secretary determines such
action to be necessary and desirable to allow for timely and effective
implementation of Federal computer system standards. The head
of such agency may redelegate such authority only to a Chief
Information Officer designated pursuant to section 3506 of title
44, United States Code. Notice of each such waiver and delegation
H. R. 1530—512
shall be transmitted promptly to Congress and shall be published
promptly in the Federal Register.
(d) DEFINITIONS.—In this section, the terms ‘‘Federal computer
system’’ and ‘‘operator of a Federal computer system’’ have the
meanings given such terms in section 20(d) of the National Institute
of Standards and Technology Act (15 U.S.C. 278g–3(d)).
(e) TECHNICAL AMENDMENTS.—Chapter 35 of title 44, United
States Code, is amended—
(1) in section 3504(g)—
(A) in paragraph (2), by striking out ‘‘the Computer
Security Act of 1987 (40 U.S.C. 759 note)’’ and inserting
in lieu thereof ‘‘sections 20 and 21 of the National Institute
of Standards and Technology Act (15 U.S.C. 278g–3 and
278g–4), section 5131 of the Information Technology
Management Reform Act of 1995, and sections 5 and 6
of the Computer Security Act of 1987 (40 U.S.C. 759 note)’’;
and
(B) in paragraph (3), by striking out ‘‘the Computer
Security Act of 1987 (40 U.S.C. 759 note)’’ and inserting
in lieu thereof ‘‘the standards and guidelines promulgated
under section 5131 of the Information Technology Manage-
ment Reform Act of 1995 and sections 5 and 6 of the
Computer Security Act of 1987 (40 U.S.C. 759 note)’’; and
(2) in section 3518(d), by striking out ‘‘Public Law 89–
306 on the Administrator of the General Services Administra-
tion, the Secretary of Commerce, or’’ and inserting in lieu
thereof ‘‘section 5131 of the Information Technology Manage-
ment Reform Act of 1995 and the Computer Security Act of
1987 (40 U.S.C. 759 note) on the Secretary of Commerce or’’.
SEC. 5132. SENSE OF CONGRESS.
It is the sense of Congress that, during the next five-year
period beginning with 1996, executive agencies should achieve each
year at least a 5 percent decrease in the cost (in constant fiscal
year 1996 dollars) that is incurred by the agency for operating
and maintaining information technology, and each year a 5 percent
increase in the efficiency of the agency operations, by reason of
improvements in information resources management by the agency.
Subtitle E—National Security Systems
SEC. 5141. APPLICABILITY TO NATIONAL SECURITY SYSTEMS.
(a) IN GENERAL.—Except as provided in subsection (b), this
title does not apply to national security systems.
(b) EXCEPTIONS.—
(1) IN GENERAL.—Sections 5123, 5125, and 5126 apply to
national security systems.
(2) CAPITAL
PLANNING
AND
INVESTMENT
CONTROL.—The
heads of executive agencies shall apply sections 5112 and 5122
to national security systems to the extent practicable.
(3) PERFORMANCE
AND
RESULTS
OF
INFORMATION
TECH-
NOLOGY INVESTMENTS.—(A) Subject to subparagraph (B), the
heads of executive agencies shall apply section 5113 to national
security systems to the extent practicable.
(B) National security systems shall be subject to section
5113(b)(5) except for subparagraph (B)(iv) of that section.
H. R. 1530—513
SEC. 5142. NATIONAL SECURITY SYSTEM DEFINED.
(a) DEFINITION.—In this subtitle, the term ‘‘national security
system’’ means any telecommunications or information system oper-
ated by the United States Government, the function, operation,
or use of which—
(1) involves intelligence activities;
(2) involves cryptologic activities related to national
security;
(3) involves command and control of military forces;
(4) involves equipment that is an integral part of a weapon
or weapons system; or
(5) subject to subsection (b), is critical to the direct fulfill-
ment of military or intelligence missions.
(b) LIMITATION.—Subsection (a)(5) does not include a system
that is to be used for routine administrative and business applica-
tions (including payroll, finance, logistics, and personnel manage-
ment applications).
TITLE 
LII—PROCESS 
FOR 
ACQUISI-
TIONS 
OF 
INFORMATION 
TECH-
NOLOGY
SEC. 5201. PROCUREMENT PROCEDURES.
The Federal Acquisition Regulatory Council shall ensure that,
to the maximum extent practicable, the process for acquisition
of information technology is a simplified, clear, and understandable
process that specifically addresses the management of risk,
incremental acquisitions, and the need to incorporate commercial
information technology in a timely manner.
SEC. 5202. INCREMENTAL ACQUISITION OF INFORMATION TECH-
NOLOGY.
(a) POLICY.—The Office of Federal Procurement Policy Act (41
U.S.C. 401 et seq.) is amended by adding at the end the following
new section:
‘‘SEC. 35. MODULAR CONTRACTING FOR INFORMATION TECHNOLOGY.
‘‘(a) IN GENERAL.—The head of an executive agency should,
to the maximum extent practicable, use modular contracting for
an acquisition of a major system of information technology.
‘‘(b) MODULAR
CONTRACTING
DESCRIBED.—Under modular
contracting, an executive agency’s need for a system is satisfied
in successive acquisitions of interoperable increments. Each incre-
ment complies with common or commercially accepted standards
applicable to information technology so that the increments are
compatible with other increments of information technology
comprising the system.
‘‘(c) IMPLEMENTATION.—The Federal Acquisition Regulation
shall provide that—
‘‘(1) under the modular contracting process, an acquisition
of a major system of information technology may be divided
into several smaller acquisition increments that—
‘‘(A) are easier to manage individually than would be
one comprehensive acquisition;
H. R. 1530—514
‘‘(B) address complex information technology objectives
incrementally in order to enhance the likelihood of achiev-
ing workable solutions for attainment of those objectives;
‘‘(C) 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 subsequent increment in order to perform
its principal functions; and
‘‘(D) provide an opportunity for subsequent increments
of the acquisition to take advantage of any evolution in
technology or needs that occur during conduct of the earlier
increments;
‘‘(2) a contract for an increment of an information tech-
nology acquisition should, to the maximum extent practicable,
be awarded within 180 days after the date on which the solicita-
tion is issued and, if the contract for that increment cannot
be awarded within such period, the increment should be consid-
ered for cancellation; and
‘‘(3) the information technology provided for in a contract
for acquisition of information technology should be delivered
within 18 months after the date on which the solicitation result-
ing in award of the contract was issued.’’.
(b) CLERICAL AMENDMENT.—The table of contents in section
1(b) of such Act is amended by inserting after the item relating
to section 34 the following new item:
‘‘Sec. 35. Modular contracting for information technology.’’.
TITLE 
LIII—INFORMATION 
TECH-
NOLOGY ACQUISITION PILOT PRO-
GRAMS
Subtitle A—Conduct of Pilot Programs
SEC. 5301. AUTHORITY TO CONDUCT PILOT PROGRAMS.
(a) IN GENERAL.—
(1) PURPOSE.—The Administrator for Federal Procurement
Policy (hereinafter referred to as the ‘‘Administrator’’), in con-
sultation with the Administrator for the Office of Information
and Regulatory Affairs, may conduct pilot programs in order
to test alternative approaches for acquisition of information
technology by executive agencies.
(2) MULTIAGENCY, MULTI-ACTIVITY CONDUCT OF EACH PRO-
GRAM.—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 the executive
agencies that are designated by the Administrator in accordance
with this title to carry out the pilot program. The head of
each designated executive agency shall, with the approval of
the Administrator, select the procuring activities of the execu-
tive agency that are to participate in the test and shall des-
ignate a procurement testing official who shall be responsible
for the conduct and evaluation of the pilot program within
the executive agency.
(b) LIMITATIONS.—
H. R. 1530—515
(1) NUMBER.—Not more than two pilot programs may be
conducted under the authority of this title, including one pilot
program each pursuant to the requirements of sections 5311
and 5312.
(2) AMOUNT.—The total amount obligated for contracts
entered into under the pilot programs conducted under the
authority of this title may not exceed $750,000,000. The
Administrator shall monitor such contracts and ensure that
contracts are not entered into in violation of the limitation
in the preceding sentence.
(c) PERIOD OF PROGRAMS.—
(1) IN GENERAL.—Subject to paragraph (2), any pilot pro-
gram may be carried out under this title for the period, not
in excess of five years, that is determined by the Administrator
as being 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. 5302. EVALUATION CRITERIA AND PLANS.
(a) MEASURABLE TEST CRITERIA.—The head of each executive
agency conducting a pilot program under section 5301 shall estab-
lish, 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 may be conducted under
section 5301, the Administrator shall submit to Congress 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. 5303. REPORT.
(a) REQUIREMENT.—Not later than 180 days after the comple-
tion of a pilot program under this title, the Administrator shall—
(1) submit to the Director a report on the results and
findings under the program; and
(2) provide a copy of the report to Congress.
(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 Administrator
recommends, or changes in regulations that the Administrator
considers necessary, in order to improve overall information
resources management within the Federal Government.
SEC. 5304. RECOMMENDED LEGISLATION.
If the Director 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 Congress.
SEC. 5305. RULE OF CONSTRUCTION.
Nothing in this title shall be construed as authorizing the
appropriation or obligation of funds for the pilot programs author-
ized under this title.
H. R. 1530—516
Subtitle B—Specific Pilot Programs
SEC. 5311. SHARE-IN-SAVINGS PILOT PROGRAM.
(a) REQUIREMENT.—The Administrator may authorize the heads
of two executive agencies to 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 adminis-
trative 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.
(b) LIMITATIONS.—The head of an executive agency authorized
to carry out the pilot program may, under the pilot program, carry
out one project and enter into not more than five contracts for
the project.
(c) SELECTION OF PROJECTS.—The projects shall be selected
by the Administrator, in consultation with the Administrator for
the Office of Information and Regulatory Affairs.
SEC. 5312. SOLUTIONS-BASED CONTRACTING PILOT PROGRAM.
(a) IN GENERAL.—The Administrator may authorize the heads
of any of the executive agencies, in accordance with subsection
(d)(2), to carry out a pilot program to test the feasibility of using
solutions-based contracting for acquisition of information tech-
nology.
(b) SOLUTIONS-BASED CONTRACTING DESCRIBED.—For purposes
of this section, solutions-based contracting is an acquisition method
under which the acquisition objectives are defined by the Federal
Government user of the technology to be acquired, a streamlined
contractor selection process is used, and industry sources are
allowed to provide solutions that attain the objectives effectively.
(c) PROCESS REQUIREMENTS.—The Administrator shall require
use of a process with the following aspects 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 tech-
nology to be acquired, identifies the operational improvements
to be achieved, and defines the performance measurements
to be applied in determining whether the information tech-
nology 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 acquisi-
tion plan.
(3) SMALL
ACQUISITION
ORGANIZATION.—Assembly of a
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.
H. R. 1530—517
(B) A small source selection team composed of rep-
resentatives of the specific mission or administrative area
to be supported by the information technology to be
acquired, together with a contracting officer and persons
with relevant expertise.
(4) USE
OF
SOURCE
SELECTION
FACTORS
EMPHASIZING
SOURCE QUALIFICATIONS AND COSTS.—Use of source selection
factors that emphasize—
(A) 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 of the
acquisition, past contract performance, qualifications of the
proposed program manager, and the proposed management
plan; and
(B) the costs likely to be associated with the conceptual
approach proposed by the offeror.
(5) OPEN
COMMUNICATIONS
WITH
CONTRACTOR
COMMU-
NITY.—Open availability of the following information to poten-
tial 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, the source selec-
tion factors to be used in accordance with paragraph (4), the
required terms and conditions, instructions regarding submis-
sion of offers, and the estimate of the Federal Government’s
budget for the desired work.
(7) SIMPLE PROPOSALS.—Submission of oral presentations
and written proposals that are limited in size and scope and
contain information on—
(A) the offeror’s qualifications to perform the desired
work;
(B) past contract performance;
(C) the proposed conceptual approach; and
(D) the costs likely to be associated with the proposed
conceptual approach.
(8) SIMPLE EVALUATION.—Use of a simplified evaluation
process, to be completed within 45 days after receipt of propos-
als, which consists of the following:
(A) Identification of the most qualified offerors that
are within the competitive range.
(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, for each offeror—
(i) the qualifications of the offeror, including how
the qualifications of the offeror relate to the approach
proposed to be taken by the offeror in the acquisition;
and
(ii) the costs likely to be associated with the
approach.
(C) Evaluation of the qualifications of the identified
offerors and the costs likely to be associated with the
offerors’ proposals on the basis of submissions required