To amend title 5, United States Code, to establish an exchange program between the Federal Government and the private sector to develop expertise in information technology management, and for other purposes.

SECTION 1. SHORT TITLE; FINDINGS.

    (a) Short Title.--This Act may be cited as the ``Digital Tech Corps 
Act of 2001''.
    (b) Findings.--Congress finds that--
            (1) unless action is taken soon, there will be a crisis in 
        government's ability to deliver essential services to the 
        American people;
            (2) by 2006, over 50 percent of the Federal Government's 
        information technology workforce will be eligible to retire, 
        creating a huge demand in government for high-skill workers;
            (3) despite a 44 percent decrease in the demand for 
        information technology workers in the private sector, the 
        Information Technology Association of America reports that 
        employers will need to fill over 900,000 new information 
        technology jobs and will be unable to find qualified workers 
        for 425,000 of those jobs;
            (4) to highlight the urgency of this situation, in January 
        2001, the General Accounting Office added the Federal 
        Government's human capital management to its list of high-risk 
        problems for which an effective solution must be found;
            (5) despite efforts to increase flexibility in Federal 
        agencies' employment practices, compensation issues continue to 
        severely restrain recruitment for Government agencies;
            (6) failures in the Federal Government employment process 
        are accelerating efforts by agencies to implement outsourcing 
        as a short-term solution to skill gaps, further unbalancing 
        efforts to reach the proper government versus contractor mix of 
        management and skills; and
            (7) an effective, efficient, and economical response to 
        this crisis would be to create a vibrant, ongoing exchange 
        effort designed to share talent, expertise, and advances in 
        management between leading-edge businesses and government 
        agencies engaged in best practices.

SEC. 2. INFORMATION TECHNOLOGY EXCHANGE PROGRAM.

    (a) In General.--Subpart B of part III of title 5, United States 
Code, is amended by adding at the end the following:

         ``CHAPTER 37--INFORMATION TECHNOLOGY EXCHANGE PROGRAM

``Sec.
``3701. Definitions.
``3702. General provisions.
``3703. Assignment of employees to private sector organizations.
``3704. Assignment of employees from private sector organizations.
``3705. Authority of the Office of Personnel Management.
``Sec. 3701. Definitions
    ``For purposes of this chapter--
            ``(1) the term `agency' means an Executive agency, but does 
        not include the General Accounting Office;
            ``(2) the term `detail' means--
                    ``(A) the assignment or loan of an employee to a 
                private sector organization without a change of 
                position from the agency by which the individual is 
                employed; and
                    ``(B) the assignment or loan of an employee of a 
                private sector organization to an agency without a 
                change of position from the private sector organization 
                that employs the individual; and
            ``(3) the term `transfer' means the change of position by 
        an employee from an agency to a private sector organization or 
        from a private sector organization to an agency.
``Sec. 3702. General provisions
    ``(a) On request from or with the agreement of a private sector 
organization, and with the consent of the employee concerned, the head 
of an agency may arrange for the assignment of an eligible employee of 
the agency to a private sector organization or an eligible employee of 
a private sector organization to the agency. An eligible employee is an 
individual employed at the GS-12 level or above (or equivalent) who--
            ``(1) works in the field of information technology 
        management
            ``(2) is considered an exceptional performer by the 
        individual's current employer; and
            ``(3) is expected to assume increased information 
        technology management responsibilities in the future.
An employee of an agency shall be eligible to participate in this 
program only if the employee is serving under a career or career-
conditional appointment or an appointment of equivalent tenure in the 
excepted service.
    ``(b) Each agency that exercises its authority under this chapter 
shall establish a plan for implementing this authority. The plan shall 
provide for a written agreement between the agency and the employee 
concerned regarding the terms and conditions of the employee's 
assignment. In the case of an employee of the agency, the agreement 
shall--
            ``(1) require the employee to serve in the civil service, 
        upon completion of the assignment, for a period equal to the 
        length of the assignment; and
            ``(2) provide that, in the event the employee fails to 
        carry out the agreement (except for good and sufficient reason, 
as determined by the head of the agency from which assigned) the 
employee shall be liable to the United States for payment of all 
expenses (excluding salary) of the assignment. The amount shall be 
treated as a debt due the United States.
    ``(c) Assignments may be terminated by the agency or private sector 
organization concerned for any reason at any time.
    ``(d) Assignments under this chapter shall be for 1 year and may be 
extended for an additional period not to exceed 1 year.
    ``(e) The Chief Information Officers Council, by agreement with the 
Office of Personnel Management, may assist in the administration of 
this chapter, including by maintaining lists of potential candidates 
for assignment under this chapter, establishing mentoring relationships 
for the benefit of individuals who are given assignments under this 
chapter, and publicizing the program.
``Sec. 3703. Assignment of employees to private sector organizations
    ``(a) An employee of an agency may be assigned to a private sector 
organization under this chapter either--
            ``(1) as a detail to a regular work assignment; or
            ``(2) as a transfer to the private sector organization.
    ``(b) Notwithstanding any other provision of law, an employee 
assigned under subsection (a) is entitled--
            ``(1) to receive supplemental pay from the agency in the 
        amount equal to the difference between the rate paid by the 
        organization to which detailed or transferred and the rate of 
        basic pay (including locality pay, where applicable, subject to 
        regulations of the Office of Personnel Management) payable for 
        the employee's Federal position, if the latter is greater;
            ``(2) in the case of an employee who is detailed under 
        subsection (a)(1), to credit for the period of assignment under 
        this chapter toward periodic step increases, retention, and 
        leave accrual;
            ``(3) to retain coverage, rights, and benefits under 
        chapters 87 and 89, if necessary employee deductions and agency 
        contributions for the period of the assignment are currently 
        deposited in the Employees' Life Insurance Fund and the 
        Employees Health Benefits Fund, respectively, and the period of 
        the assignment is deemed service as an employee under chapters 
        87 and 89;
            ``(4) to retain coverage, rights, and benefits under any 
        system established by law for the retirement of employees, if 
        necessary employee deductions and agency contributions in 
        payment for the coverage, rights, and benefits for the period 
        of assignment are currently deposited in the system's fund; and 
        the period of the assignment is deemed creditable under the 
        system, except that such service shall not be considered 
        creditable service for the purpose of any retirement system for 
        Federal employees if such service forms the basis, in whole or 
        in part, for an annuity or pension under the retirement system 
        of the private sector organization; and
            ``(5) to retain coverage, rights, and benefits under 
        subchapter I of chapter 81, and employment during the 
        assignment is deemed employment by the United States, but if 
        the employee or the employee's dependents receive from the 
        private sector organization any payment under an insurance 
        policy for which the premium is wholly paid by the private 
        sector organization, or other benefit of any kind on account of 
        the same injury or death, the amount of such payment or benefit 
        shall be credited against any compensation otherwise payable 
        under subchapter I of chapter 81.
During the employee's assignment to the private sector organization, 
the agency from which the employee is detailed or transferred shall 
make contributions for retirement and insurance purposes from the 
appropriations or funds of that agency so long as contributions are 
made by the employee.
    ``(c) The detail of an employee of an agency under subsection 
(a)(1) may be made with or without reimbursement by the private sector 
organization for the travel and transportation expenses to or from the 
place of assignment, subject to the same terms and conditions that 
apply with respect to an employee of a Federal agency or a State or 
local government under section 3375, and for the pay, or supplemental 
pay, or any part thereof of the employee during assignment. Any 
reimbursements shall be credited to the appropriation of the agency 
used for paying the travel and transportation expenses or pay.
    ``(d) An employee assigned on detail under subsection (a)(1) 
remains an employee of the agency from which detailed. The Federal Tort 
Claims Act and any other Federal tort liability statute apply to the 
employee. The supervision of the duties of an employee on detail may be 
governed by an agreement between the agency and the organization to 
which detailed.
    ``(e)(1) Notwithstanding any other provision of law, an employee 
detailed under subsection (a)(1) is entitled to accrue annual and sick 
leave to the same extent as if the employee had continued working in 
the position from which detailed.
    ``(2) An employee who transfers to a private sector organization 
under subsection (a)(2) may elect to retain credit for all accumulated 
and currently accrued annual leave to which entitled at the time of 
transfer which otherwise would be liquidated by a lump-sum payment. At 
the employee's request at any time before returning to the agency, the 
employee shall be paid for the annual leave retained. Upon completion 
of the assignment under this chapter, the agency shall restore the 
employee's sick leave account to its status at the time of transfer.
``Sec. 3704. Assignment of employees from private sector organizations
    ``(a) Notwithstanding any other provision of law, an employee of a 
private sector organization who is assigned to an agency under section 
3702(a) may be--
            ``(1) transferred to the agency and appointed without 
        regard to the provisions of this title governing appointment in 
        the competitive service for the period of assignment; or
            ``(2) detailed to the agency.
    ``(b) An individual appointed under subsection (a)(1) is entitled 
to pay in accordance with chapter 51 and subchapter III of chapter 53 
or other applicable law, and is deemed an employee of the agency for 
all purposes except--
            ``(1) subchapter III of chapter 83, chapter 84, or other 
        applicable retirement system;
            ``(2) chapter 87; and
            ``(3) chapter 89 or other applicable health benefits system 
        unless the appointment results in the employee's loss of 
        coverage in a group health benefits plan the premium of which 
        has been paid in whole or in part by the private sector 
        organization.
The exceptions set forth in paragraphs (1) through (3) shall not apply 
to non-Federal employees who are covered by chapters 83, 84, 87, and 89 
by virtue of their non-Federal employment immediately before 
appointment under subsection (a)(1).
    ``(c) An employee of a private sector organization who is detailed 
to an agency under subsection (a)(2)--
            ``(1) is not entitled to pay from the agency, except to the 
        extent that the pay for the position to which detailed 
        (including locality pay, where applicable) exceeds the pay the 
        individual was receiving from the private sector organization 
        immediately before the detail;
            ``(2) may continue to receive pay and benefits from the 
        private sector organization from which he is detailed;
            ``(3) is deemed an employee of the agency for the purposes 
        of--
                    ``(A) chapter 73, except for section 7353(a)(1);
                    ``(B) sections 203, 205, 207, 208, 603, 606, 607, 
                643, 654, 1905, and 1913 of title 18;
                    ``(C) sections 1343, 1344, and 1349(b) of title 31;
                    ``(D) the Federal Tort Claims Act and any other 
                Federal tort liability statute;
                    ``(E) the Ethics in Government Act of 1978 (5 
                U.S.C. App.);
                    ``(F) section 1043 of the Internal Revenue Code of 
                1986, as amended (26 U.S.C. 1043); and
                    ``(G) section 27(p)(8) of the Office of Federal 
                Procurement Policy Act (41 U.S.C. 423(p)(8)); and
            ``(4) is subject to such regulations as the President may 
        prescribe.
The supervision of an employee who is detailed under subsection (a)(2) 
may be governed by agreement between the agency and the private sector 
organization concerned. A detail under subsection (a)(2) may be made 
with or without reimbursement by the agency for the pay, or a part 
thereof, of the employee during the period of assignment, or for any 
contribution of the private sector organization to employee benefit 
systems.
    ``(d) If a private sector organization fails to continue the 
employer's contribution to private sector retirement, life insurance, 
and health benefit plans for an individual who is appointed in an 
agency under this section, the employer's contributions covering the 
period of the assignment may be made from the appropriations of the 
agency concerned.
    ``(e) A private sector employee who is given an assignment in an 
agency under subsection (a) and who suffers disability or dies as a 
result of personal injury sustained while performing duties during the 
assignment shall be treated, for the purpose of subchapter I of chapter 
81, as an employee as defined by section 8101 who had sustained the 
injury in the performance of duty, except that if the employee or the 
employee's dependents receive from the private sector organization any 
payment under an insurance policy for which the premium is wholly paid 
by the private sector organization, or other benefit of any kind on 
account of the same injury or death, the amount of such payment or 
benefit shall be credited against any compensation otherwise payable 
under subchapter I of chapter 81.
``Sec. 3705. Authority of the Office of Personnel Management
    ``The Director of the Office of Personnel Management shall 
prescribe regulations for the administration of this chapter.''.
    (b) Clerical Amendment.--The analysis for part III of title 5, 
United States Code, is amended by inserting after the item relating to 
chapter 35 the following:

``37. Information Technology Exchange Program.''.

SEC. 3. ALLOWABILITY OF COSTS.

    Within 120 days after the enactment of this Act, the Federal 
Acquisition Regulations Council shall amend the Federal Acquisition 
Regulation to recognize the costs associated with an employee's 
participation in the program authorized by section 2 as allowable 
training and education costs. Such costs--
            (1) include the employee's salary and fringe benefits for a 
        period not to exceed the period of the employee's assignment 
        under the program authorized by section 2, as well as moving 
        and travel expenses; and
            (2) may be treated, for accounting purposes--
                    (A) as an indirect cost and accounted for in--
                            (i) an established overhead account; or
                            (ii) an overhead account established 
                        specifically for the program authorized by 
                        section 2 and allocated exclusively to the 
                        contractor's Federal Government contracts; or
                    (B) as a direct cost chargeable to fixed price or 
                time and material contracts.

SEC. 4. CONFORMING AMENDMENTS.

    (a) Title 5, United States Code, is amended--
            (1) in section 3111 by adding at the end the following:
    ``(d) Notwithstanding section 1342 of title 31, the head of an 
agency may accept voluntary service for the United States under chapter 
37 of this title and regulations of the Office of Personnel 
Management.''; and
            (2) in section 4108 by striking subsection (d).
    (b) Section 125(c)(1) of Public Law 100-238 (5 U.S.C. 8432 note) is 
amended--
            (1) in subparagraph (B) by striking ``or'' at the end;
            (2) in subparagraph (C) by striking ``and'' at the end and 
        inserting ``or''; and
            (3) by adding at the end the following:
                    ``(D) an individual assigned from a Federal agency 
                to a private sector organization under chapter 37 of 
                title 5, United States Code; and''.

Summary: Digital Tech Corps Act of 2001 - Establishes an information technology exchange program between the Government and the private sector. Provides for one-year assignments of executive agency information technology management employees to private sector organizations, and of private sector information technology management employees to executive agencies.Sets forth administrative provisions governing such assignments, including provisions concerning pay, creditable service, life and health insurance coverage, reimbursement, liability, and Federal employee status.