Department of Veterans Affairs Information Technology Reform Act of 2021
Bill: H.R.2250 | Sponsor: Rep. Rosendale Sr., Matthew M. (R-MT)
Policy area: Armed Forces and National Security

Summary:
Department of Veterans Affairs Information Technology Reform Act of 2022
This bill addresses the management and implementation of information technology projects and investments of the Department of Veterans Affairs (VA).
Specifically, the bill prohibits the VA from obligating or expending funds for any major information technology project that begins after the date of enactment of this bill unless a report is submitted that includes information on the cost, schedule, and performance of the project, as generated by the business owner of the project prior to the commencement of the project. The information in the report must be used as a baseline against which changes or variances are measured and reported on during the life cycle of the project. Projects must be managed by an interdisciplinary team that includes a certified project manager, a functional lead, a technical lead, a contracting officer, and other appropriate personnel.
The VA's Chief Information Officer must (1) exercise authority over the management, governance, and oversight processes relating to existing or proposed information technology of the VA's Financial Services Center; and (2) supervise the information technology employees and contractors of the center.
The VA must ensure its annual budget justification materials include

To amend title 38, United States Code, to improve the management of 
 information technology projects and investments of the Department of 
               Veterans Affairs, and for other purposes.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Department of Veterans Affairs 
Information Technology Reform Act of 2022''.

SEC. 2. INFORMATION TECHNOLOGY PROJECTS AND ACTIVITIES.

    (a) In General.--Chapter 81 of title 38, United States Code, is 
amended by adding at the end the following new subchapter:

    ``SUBCHAPTER VI--INFORMATION TECHNOLOGY PROJECTS AND ACTIVITIES

``Sec. 8171. Definitions
    ``In this subchapter:
            ``(1) The term `appropriate congressional committees' 
        means--
                    ``(A) the Committee on Veterans' Affairs and the 
                Committee on Appropriations of the Senate; and
                    ``(B) the Committee on Veterans' Affairs and the 
                Committee on Appropriations of the House of 
                Representatives.
            ``(2) The term `information technology' has the meaning 
        given that term in section 11101 of title 40.
            ``(3)(A) The term `information technology project' means a 
        project or program of the Department (including a project or 
        program of any element of the Department) for, or including, 
        the acquisition or implementation of information technology.
            ``(B) In cases where the Secretary transmits to the 
        Director of the Office of Management and Budget information 
        regarding information technology investments, which may consist 
        of individual or multiple projects, the term `information 
        technology project' refers to an individual project or program 
        or a grouping of multiple projects or programs resulting in the 
        acquisition or implementation of discrete information 
        technology.
            ``(4) The term `life cycle costs' means all direct and 
        indirect costs to acquire, implement, operate, and maintain 
        information technology, including with respect to costs of any 
        element of the Department.
            ``(5) The term `major information technology project' means 
        an information technology project if--
                    ``(A) the project is designated by the Secretary, 
                the Chief Information Officer of the Department, or the 
                Director of the Office of Management and Budget as a 
                major information technology investment, as defined in 
                section 11302 of title 40; or
                    ``(B) the dollar value of the project is estimated 
                by the Secretary to exceed--
                            ``(i) $1,000,000,000 (as adjusted for 
                        inflation pursuant to section 1908 of title 41) 
                        for the total life cycle costs of the project; 
                        or
                            ``(ii) $200,000,000 (as adjusted for 
                        inflation pursuant to section 1908 of title 41) 
                        annually.
            ``(6) The term `business owner' means, with respect to an 
        information technology project, the program manager, project 
        manager, or other supervisory official of the Department 
        responsible for the project.
``Sec. 8172. Management of major information technology projects
    ``(a) Cost, Schedule, and Performance Information.--(1) The 
Secretary, acting through the Chief Information Officer of the 
Department, shall submit to the appropriate congressional committees a 
report containing information on the cost, schedule, and performance of 
each major information technology project that begins after the date of 
the enactment of the Department of Veterans Affairs Information 
Technology Reform Act of 2022, as generated by the business owner of 
the project, prior to the commencement of such project.
    ``(2) Each report submitted under paragraph (1) for a project shall 
include, with respect to such project, the following:
            ``(A) An estimate of acquisition costs, implementation 
        costs, and life cycle costs.
            ``(B) An intended implementation schedule indicating 
        significant milestones, initial operating capability, and full 
        operating capability or completion.
            ``(C) Key business, functional, and performance objectives.
    ``(b) Baseline.--(1) The Secretary shall use the information on the 
cost, schedule, and performance of a major information technology 
project included in the report 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 subsection (c); and
            ``(B) include such updated baseline in the documents 
        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 congressional 
committees a notification of such change or 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 described in this paragraph is--
            ``(A) with respect to the acquisition, implementation, or 
        life cycle cost of the project, or development increment 
        therein, a change or variance that is 10 percent or greater 
        compared to the baseline;
            ``(B) with respect to the schedule for a development 
        increment or for achieving a significant milestone, initial 
        operating capability, or full operating capability, or for the 
        final completion of the project, a change or variance that is 
        180 days or greater compared to the baseline; or
            ``(C) with respect to the performance, an instance where a 
        key business, functional, or performance 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 managed by an interdisciplinary team 
consisting of the following:
            ``(1) A project manager who--
                    ``(A)(i) is certified in project management at 
                level three by--
                            ``(I) the Department;
                            ``(II) the Federal Acquisition Institute 
                        pursuant to section 1201 of title 41; or
                            ``(III) the Department of Defense pursuant 
                        to section 1701a of title 10; or
                    ``(ii) holds an equivalent certification by a 
                private sector project management certification 
                organization, as determined appropriate by the 
                Secretary; and
                    ``(B) is an employee of the Office of Information 
                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 Department.
            ``(4) A contracting officer.
            ``(5) Sufficient other project management, functional, 
        technical, and procurement personnel as the Secretary 
        determines appropriate.
``Sec. 8173. Information technology activities of the Financial 
              Services Center
    ``(a) Management.--Consistent with sections 11302 and 11319 of 
title 40--
            ``(1) the Chief Information Officer of the Department 
        shall--
                    ``(A) exercise authority over the management, 
                governance, and oversight processes relating to 
                existing or proposed information technology of the 
                Financial Services Center of the Department, or such 
                successor office; and
                    ``(B) supervise the information technology 
                employees and contractors of the Financial Services 
                Center; and
            ``(2) the Director of the Financial Services Center of the 
        Department, or the head of such successor office, may not enter 
        into a contract or other agreement for information technology 
        or information technology services unless the contract or other 
        agreement has been reviewed and approved by the Chief 
        Information Officer.
    ``(b) Oversight.--The Chief Information Officer shall have 
oversight and operational authority over all information security 
practices of the Financial Services Center of the Department.
``Sec. 8174. Submission of annual reviews of information technology
    ``(a) In General.--The Secretary, acting through the Chief 
Information Officer of the Department, shall submit to the appropriate 
congressional committees each annual review of the information 
technology portfolio of the Department conducted pursuant to section 
11319(d)(3) of title 40.
    ``(b) First Submission.--The first annual review submitted under 
subsection (a) shall include a copy of each previous annual review 
conducted under section 11319(d)(3) of title 40.
``Sec. 8175. Information technology matters to be included in budget 
              justification materials for the Department
    ``(a) List of Information Technology Projects in Effect.--The 
Secretary shall ensure that whenever the budget justification materials 
are submitted to Congress in support of the Department budget for a 
fiscal year (as submitted with the budget of the President for such 
fiscal year under section 1105(a) of title 31), such budget 
justification materials include a list of every information technology 
project currently in effect at the Department (including not only 
congressional projects and subprojects as determined by the Director of 
the Office of Management and Budget or the Secretary).
    ``(b) Prioritized List of Unfunded Projects.--(1) In addition to 
the list included in the budget justification materials required by 
subsection (a), the Secretary shall ensure that the budget 
justification materials described in such subsection also include 
summary descriptions and a prioritized list, in rank order, of every 
information technology project of the Department, proposed or intended 
to be proposed for the following one, two, or three fiscal years, that 
is unfunded as of the time of the inclusion of the list under this 
paragraph.
    ``(2) In producing the list required by paragraph (1), the 
Secretary shall--
            ``(A) ensure such list represents a ranking of all proposed 
        information technology projects that reflects the needs of all 
        elements of the Department;
            ``(B) produce one unified list for the entire Department 
        demonstrating how the various proposed information technology 
        projects of each of the elements of the Department rank in 
        priority with the information technology projects of the other 
        elements of the Department; and
            ``(C) ensure that the list--
                    ``(i) does not disaggregate and rank information 
                technology projects based on element of the Department; 
                and
                    ``(ii) does identify the element of the Department 
                requesting the information technology project.
    ``(3)(A) In producing each list under paragraph (1), the Secretary 
shall prioritize and rank each information technology project based on 
an assessment of each of the following factors:
            ``(i) Degree of collaboration between business owners and 
        the Chief Information Officer with respect to joint functional-
        technical planning, requirements, and management.
            ``(ii) Operational or efficiency benefits to employees of 
        the Department created or produced by the information 
        technology project.
            ``(iii) The life cycle cost of the information technology 
        project.
            ``(iv) The cost savings or cost avoidance yielded by the 
        information technology project.
            ``(v) Time to completion of the information technology 
        project.
            ``(vi) The difficulty of the information technology 
        project, the likelihood the information technology project will 
        be completed, or the risks associated with undertaking the 
        information technology project.
            ``(vii) Tangible benefits to veterans created or produced 
        by the information technology project.
            ``(viii) Such other factors as the Secretary considers 
        appropriate.
    ``(B) The Secretary shall ensure that each list produced under 
paragraph (1) includes, for each information technology project 
included in the list, a brief description of the findings of the 
Secretary with respect to each assessment carried out by the Secretary 
for each factor for the information technology project under 
subparagraph (A).
    ``(c) Projected Funding Needs.--(1) In addition to the matters 
included under subsections (a) and (b), the Secretary shall ensure that 
the budget justification materials described in subsection (a) also 
include a projection of the one-year, two-year, and three-year funding 
needs of the Department for information technology, disaggregated by--
            ``(A) portfolio; and
            ``(B) the product line of the Department that requires the 
        funding.
    ``(2) In addition to the projections under paragraph (1), with 
respect to each of the periods set forth in such paragraph, the 
Secretary shall include a description of the funding required for each 
technology business management category used by the Office of 
Information Technology of the Department (commonly referred to as `cost 
pools' and `towers').''.
    (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

``Sec. 8171. Definitions.
``Sec. 8172. Management of major information technology projects.
``Sec. 8173. Information technology activities of the Financial 
                            Services Center.
``Sec. 8174. Submission of annual reviews of information technology.
``Sec. 8175. Information technology matters to be included in budget 
                            justification materials for the 
                            Department.''.
    (c) Application and Report Regarding Management of Major 
Information Technology Projects.--
            (1) Current and new major 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 
        technology projects that begin before, on, or after the date of 
        the enactment of this Act.
            (2) Report on current projects.--
                    (A) In general.--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 committees a report on each major 
                information technology project that the Secretary is 
                carrying out as of the date of the report.
                    (B) Contents.--The report submitted under 
                subparagraph (A) shall contain, with respect to each 
                project described in such subparagraph, information on 
                the cost, schedule, and performance of the project as 
                described in subsection (a) of section 8172 of such 
                title, as so added.
            (3) 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.
    (d) Information Technology Activities of the Financial Services 
Center.--
            (1) Effective date.--Section 8173 of such title, as added 
        by subsection (a), shall take effect on the date of the 
        enactment of this Act.
            (2) Applicability.--Subsection (a)(2) of such section shall 
        apply with respect to contracts and agreements entered into on 
        or after the date of the enactment of this Act.
    (e) Effective Date of Requirement for Projects in Budget 
Justification Materials.--Subsection (c) of section 8175 of such title, 
as added by subsection (a) of this section, shall take effect on the 
first Monday in the second January beginning after the date of the 
enactment of this Act.

            Passed the House of Representatives November 17, 2022.

            Attest:

                                                                 Clerk.
117th CONGRESS

  2d Session

                               H. R. 2250

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