for obligation for 3 years after the date of such de-
posit. 
(7) AGENCY CIO RESPONSIBILITIES.—In evalu-
ating projects to be funded from the IT working 
capital fund, the covered agency Chief Information 
Officer shall consider, to the extent applicable, guid-
ance established pursuant to section 4(a)(1) to 
evaluate applications for funding from the Informa-
tion Technology Modernization Fund that include 
factors such as a strong business case, technical de-
sign, procurement strategy (including adequate use 
of incremental software development practices), and 
program management. 
(b) REPORTING REQUIREMENT.— 
(1) IN GENERAL.—Not later than 1 year after 
the date of the enactment of this Act, and every 6 
months thereafter, the head of each covered agency 
shall submit to the Director the following, with re-
spect to the IT working capital fund for that covered 
agency: 
(A) A list of each information technology 
investment funded with estimated cost and 
completion date for each such investment. 
(B) A summary by fiscal year of the obli-
gations, expenditures, and unused balances.
(2) PUBLIC AVAILABILITY.—The Director shall 
make the information required pursuant to para-
graph (1) publicly available on a website. 
(c) COVERED AGENCY DEFINED.—In this section, 
the term ‘‘covered agency’’ means each agency listed in 
section 901(b) of title 31, United States Code. 
SEC. 4. ESTABLISHMENT OF INFORMATION TECHNOLOGY 
MODERNIZATION FUND AND BOARD. 
(a) INFORMATION TECHNOLOGY MODERNIZATION 
FUND.— 
(1) ESTABLISHMENT.—There is established in 
the Treasury an Information Technology Moderniza-
tion Fund (in this section referred to as the 
‘‘Fund’’) for technology related activities, to improve 
information technology, to enhance cybersecurity 
across the Federal Government, and to be adminis-
tered in accordance with guidance established by the 
Director of the Office of Management of Budget. 
(2) ADMINISTRATION OF FUND.—The Adminis-
trator of General Services, in consultation with the 
Chief Information Officers Council and with the con-
currence of the Director, shall administer the Fund 
in accordance with this subsection. 
(3) USE
OF
FUNDS.—The Administrator of 
General Services shall, in accordance with the rec-
ommendations of the Information Technology Mod-
ernization Board established under subsection (b), 
use amounts in the Fund for the following purposes: 
(A) To transfer such amounts, to remain 
available until expended, to the head of an 
agency to improve, retire, or replace existing in-
formation technology systems to enhance cyber-
security and improve efficiency and effective-
ness. 
(B) For the development, operation, and 
procurement of information technology prod-
ucts, services, and acquisition vehicles for use 
by agencies to improve Governmentwide effi-
ciency and cybersecurity in accordance with the 
requirements of the agencies. 
(C) To provide services or work performed 
in support of the activities described under sub-
paragraph (A) or (B). 
(4) CREDITS; AVAILABILITY OF FUNDS.— 
(A) CREDITS.—In addition to any funds 
otherwise appropriated, the Fund shall be cred-
ited with all reimbursements, advances, or re-
funds or recoveries relating to information tech-
nology or services provided through the Fund.
(B) AVAILABILITY
OF
FUNDS.—Amounts 
deposited, credited, or otherwise made available 
to the Fund shall be available, as provided in 
appropriations Acts, until expended for the pur-
poses described in paragraph (3). 
(5) REIMBURSEMENT.— 
(A) PAYMENT BY AGENCY.—For a product 
or service developed under paragraph (3), the 
head of an agency that uses such product or 
service shall pay an amount fixed by the Ad-
ministrator of General Services in accordance 
with this subsection. 
(B) REIMBURSEMENT
BY
AGENCY.—The 
head of an agency shall reimburse the Fund for 
any transfer made under paragraph (3)(A) in 
accordance with the terms established in the 
written agreement described in paragraph (6). 
Notwithstanding any other provision of law, an 
agency may make a reimbursement required by 
this subparagraph from any appropriation avail-
able for information technology activities. An 
obligation to make a payment under an agree-
ment described in paragraph (6) in a future fis-
cal year shall be recorded pursuant to section
1501 of title 31, United States Code, in the fis-
cal year in which the payment is due. 
(C) PRICES FIXED BY ADMINISTRATOR OF 
GENERAL
SERVICES.—The Administrator of 
General Services, in consultation with the Di-
rector, shall establish amounts to be paid by an 
agency and terms of repayment for use of a 
product or service developed under paragraph 
(3) at levels sufficient to ensure the solvency of 
the Fund, including operating expenses. Before 
making any changes to the established amounts 
and terms of repayment, the Administrator of 
General Services shall conduct a review and ob-
tain approval from the Director. 
(D) FAILURE
TO
MAKE
TIMELY
REIM-
BURSEMENT.—The Administrator of General 
Services may obtain reimbursement by the 
issuance of transfer and counterwarrants, or 
other lawful transfer documents, supported by 
itemized bills, if payment is not made by an 
agency— 
(i) within 90 days after the expiration 
of a repayment period described in the 
written agreement described in paragraph 
(6)(A); or
(ii) within 45 days after the expiration 
of the time period to make a payment 
under a payment schedule for a product or 
service developed under paragraph (3). 
(6) WRITTEN AGREEMENT.— 
(A) IN GENERAL.—Before the transfer of 
funds to an agency under paragraph (3)(A), the 
Administrator of General Services (in consulta-
tion with the Director) and the head of the req-
uisitioning agency shall enter into a written 
agreement documenting the purpose for which 
the funds will be used and the terms of repay-
ment. An agreement made pursuant to this sub-
paragraph shall be recorded as an obligation as 
provided in paragraph (5)(B). 
(B) REQUIREMENT
FOR
USE
OF
INCRE-
MENTAL DEVELOPMENT PRACTICES.—For any 
funds transferred to an agency under para-
graph (3)(A), in the absence of compelling cir-
cumstances documented by the Administrator 
of General Services at the time of transfer, such 
funds shall be transferred only on an incre-
mental basis, tied to metric-based development 
milestones achieved by the agency, to be de-
scribed in the written agreement required pur-
suant to subparagraph (A). 
(7) REPORTING REQUIREMENT.—Not later than 
6 months after the date of the enactment of this 
Act, the Director shall publish and maintain a list 
of each project funded by the Fund on a public 
website to be updated not less than quarterly, that 
includes a description of the project, project status 
(including any schedule delay and cost overruns), 
and financial expenditure data related to the project. 
(b) INFORMATION TECHNOLOGY MODERNIZATION 
BOARD.— 
(1) ESTABLISHMENT.—There is established an 
Information Technology Modernization Board (in 
this section referred to as the ‘‘Board’’) which shall 
evaluate proposals submitted by agencies for funding 
authorized under the Fund. 
(2) RESPONSIBILITIES.—The responsibilities of 
the Board are the following: 
(A) 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 such proposals 
are evaluated, which shall include addressing 
the greatest security and operational risks, hav-
ing the greatest Governmentwide impact, and 
having a high probability of success based on 
factors such as a strong business case, technical 
design, procurement strategy (including ade-
quate use of incremental software development 
practices), and program management. 
(B) Make recommendations to the Admin-
istrator of General Services to assist agencies in 
the further development and refinement of se-
lect submitted modernization proposals, based 
on an initial evaluation performed with the as-
sistance of the Administrator of General Serv-
ices. 
(C) review and prioritize, with the assist-
ance of the Administrator of General Services 
and the Director, modernization proposals 
based on criteria established pursuant to sub-
paragraph (A). 
(D) Identify, with the assistance of the Ad-
ministrator of General Services, opportunities 
to improve or replace multiple information tech-
nology systems with a smaller number of infor-
mation technology systems common to multiple 
agencies.
(E) Recommend the funding of moderniza-
tion projects, in accordance with the uses de-
scribed in subsection (a)(3), to the Adminis-
trator of General Services. 
(F) Monitor, in consultation with the Ad-
ministrator of General Services, progress and 
performance in executing approved projects 
and, if necessary, recommend the suspension or 
termination of funding for projects based on 
factors such as failure to meet the terms of the 
written agreement described in subsection 
(a)(6). 
(G) Monitor operating costs of the Fund. 
(3) MEMBERSHIP.—The Board shall consist of 
8 voting members. 
(4) CHAIR.—The Chair of the Board shall be 
the Administrator of the Office of Electronic Gov-
ernment. 
(5) PERMANENT
MEMBERS.—The permanent 
members of the Board shall be the following: 
(A) The Administrator of the Office of 
Electronic Government. 
(B) A senior official from the General 
Services Administration, who shall be appointed 
by the Administrator of General Services.
(6) ADDITIONAL MEMBERS OF THE BOARD.— 
(A) APPOINTMENT.—The other members 
of the Board shall be appointed as follows: 
(i) One employee of the National In-
stitute of Standards and Technology of the 
Department of Commerce, appointed by 
the Secretary of Commerce. 
(ii) One employee of the National Pro-
tection and Programs Directorate of the 
Department of Homeland Security, ap-
pointed by the Secretary of Homeland Se-
curity. 
(iii) One employee of the Department 
of Defense, appointed by the Secretary of 
Defense. 
(iv) Three Federal employees pri-
marily having technical expertise in infor-
mation technology development, financial 
management, cybersecurity and privacy, 
and acquisition, appointed by the Director. 
(B) TERM.—Each member of the Board 
described in paragraph (A) shall serve a term 
of 1 year, which shall be renewable up to 3 
times, at the discretion of the appointing Sec-
retary or Director, as applicable.
(7) PROHIBITION
ON
COMPENSATION.—Mem-
bers of the Board may not receive additional pay, al-
lowances, or benefits by reason of their service on 
the Board. 
(8) STAFF.—Upon request of the Chair of the 
Board, the Director and the Administrator of Gen-
eral Services may detail, on a nonreimbursable basis, 
any of the personnel of the Office of Management 
and Budget or the General Services Administration 
(as the case may be) to the Board to assist it in car-
rying out its functions under this Act. 
(c) RESPONSIBILITIES OF THE ADMINISTRATOR OF 
GENERAL SERVICES.— 
(1) IN GENERAL.—In addition to the respon-
sibilities described in subsection (a), the Adminis-
trator of General Services shall support the activities 
of the Board and provide technical support to, and, 
with the concurrence of the Director, oversight of, 
agencies that receive transfers from the Fund. 
(2) RESPONSIBILITIES.—The responsibilities of 
the Administrator of General Services are to— 
(A) provide direct technical support in the 
form of personnel services or otherwise to agen-
cies transferred amounts under subsection 
(a)(3)(A) and for products, services, and acqui-
sition 
vehicles 
funded 
under 
subsection 
(a)(3)(B); 
(B) assist the Board with the evaluation, 
prioritization, and development of agency mod-
ernization proposals; 
(C) perform regular project oversight and 
monitoring of approved agency modernization 
projects, in consultation with the Board and the 
Director, to increase the likelihood of successful 
implementation and reduce waste; and 
(D) provide the Director with information 
necessary to meet the requirements of sub-
section (a)(7). 
(d) AGENCY DEFINED.—In this section, the term 
‘‘agency’’ has the meaning given that term in section 551 
of title 5, United States Code. 
SEC. 5. DEFINITIONS. 
In this Act: 
(1) CLOUD
COMPUTING.—The term ‘‘cloud 
computing’’ has the meaning given that term by the 
National Institute of Standards and Technology in 
NIST Special Publication 800–145 and any amend-
atory or superseding document thereto.
(2) DIRECTOR.—The term ‘‘Director’’ means 
the Director of the Office of Management and Budg-
et. 
(3) INFORMATION
TECHNOLOGY.—The term 
‘‘information technology’’ has the meaning given 
that term in section 3502 of title 44, United States 
Code. 
(4) LEGACY INFORMATION TECHNOLOGY SYS-
TEM.—The term ‘‘legacy information technology sys-
tem’’ means an outdated or obsolete system of infor-
mation technology. 
Passed the House of Representatives September 22, 
2016. 
Attest: 
Clerk.
114TH CONGRESS 
2D SESSION 
H. R. 6004 
AN ACT 
To modernize Government information technology, 
and for other purposes.