Department of Veterans Affairs Information Technology Reform Act of 2021
Bill: S.731 | Sponsor: Sen. Tester, Jon (D-MT)
Policy area: Armed Forces and National Security

Summary:
Department of Veterans Affairs Information Technology Reform Act of 2021
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. 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 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
Finally, the VA must assess all of its information technology investments to determine the suitability for migration to a cloud computing service.

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 2021''.

SEC. 2. MANAGEMENT OF MAJOR INFORMATION TECHNOLOGY PROJECTS.

    (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 
                Subcommittee on Military Construction, Veterans Affairs 
                and Related Agencies of the Committee on Appropriations 
                of the Senate; and
                    ``(B) the Committee on Veterans' Affairs and the 
                Subcommittee on Military Construction, Veterans Affairs 
                and Related Agencies of 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) 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 an information technology 
        system.
            ``(4) The term `life cycle costs' means all direct and 
        indirect costs to acquire, implement, operate, and maintain an 
        information technology system.
            ``(5) The term `major information technology project' means 
        an information technology project if--
                    ``(A) the project is designated--
                            ``(i) by the Secretary or the Chief 
                        Information Officer of the Department as a 
                        major information technology project; or
                            ``(ii) by the Director of the Office of 
                        Management and Budget as a major information 
                        technology investment, as defined in section 
                        11302 of title 40;
                    ``(B) the dollar value of the project or program is 
                estimated by the Secretary to exceed--
                            ``(i) $50,000,000 (as adjusted for 
                        inflation pursuant to section 1908 of title 41) 
                        for all project costs in a single fiscal year;
                            ``(ii) $200,000,000 (as adjusted for 
                        inflation pursuant to section 1908 of title 41) 
                        for all project acquisition or implementation 
                        costs for the duration of the project; or
                            ``(iii) $500,000,000 (as adjusted for 
                        inflation pursuant to section 1908 of title 41) 
                        for the total life cycle costs of the project; 
                        or
                    ``(C) any increment of the project separately meets 
                the requirements of subparagraphs (A) or (B).
``Sec. 8172. Management of major information technology projects
    ``(a) Cost, Schedule, and Performance Information.--(1) The 
Secretary may not obligate or expend funds for any major information 
technology project that begins after the date of the enactment of the 
Department of Veterans Affairs Information Technology Reform Act of 
2021 unless the Secretary, acting through the Chief Information Officer 
of the Department, submits to the appropriate congressional committees 
a report containing information on the cost, schedule, and performance 
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, implementation, 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 an increment therein, a 
        change or variance that is 10 percent or greater compared to 
        the baseline;
            ``(B) with respect to the schedule for achieving a 
        significant milestone, initial operating capability, or 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 is--
                    ``(A) certified in project management at level 
                three by the Department or the Department of Defense 
                pursuant to section 1701a of title 10, or who holds an 
                equivalent certification by a private sector project 
                management certification organization, as determined 
                appropriate by the Secretary; and
                    ``(B) 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 
                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.--(1) 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.
    ``(2) Each list included under paragraph (1) shall include, for 
each information technology project included in the list, the 
following:
            ``(A) The expenditures to date.
            ``(B) Planned expenditures for the upcoming fiscal year.
            ``(C) The scheduled completion date.
            ``(D) Any known deviation from the schedule, such as 
        whether the information technology project is behind schedule.
            ``(E) The planned or actual functionality delivered.
    ``(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 a 
prioritized list, in rank order, of every proposed project of the 
Department 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 
        projects that reflects the needs of all components of the 
        Department;
            ``(B) produce one unified list for the entire Department 
        that shows how the various proposed projects of each of the 
        components of the Department rank in priority with the projects 
        of the other components of the Department; and
            ``(C) ensure that the list--
                    ``(i) does not disaggregate and rank projects based 
                on component of the Department; and
                    ``(ii) does identify the component 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) Tangible benefits to veterans created or produced by 
        the information technology project.
            ``(ii) Operational or efficiency benefits to employees of 
        the Department created or produced by the information 
        technology project.
            ``(iii) The 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) 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, five-year, and 10-year funding 
needs of the Department for information technology, disaggregated by 
major business line of the Department that requires the funding.
    ``(2) In addition to the projections under paragraph (1), the 
Secretary shall include a description of the following, with respect to 
each of the periods set forth in such paragraph, disaggregated by major 
business line of the Department:
            ``(A) The information technology infrastructure and 
        equipment requirements.
            ``(B) The funding required for development.
            ``(C) The funding required for operations and maintenance.
            ``(D) The funding required by cybersecurity.
            ``(E) Such other categories of the information technology 
        needs of the Department as the Secretary considers relevant and 
        important.
    ``(d) Decommissioning of Information Technology Systems.--(1) In 
addition to the matters included under subsections (a), (b), and (c), 
the Secretary shall ensure that the budget justification materials 
described in subsection (a) also include information about the 
decommissioning of information technology systems and applications of 
the Department.
    ``(2) Information included under paragraph (1) shall include the 
following:
            ``(A) A list of information systems and applications of the 
        Department that have been scheduled for decommissioning or the 
        Secretary proposes decommissioning.
            ``(B) For each information technology system and 
        application listed under subparagraph (A), the following:
                    ``(i) The cost of maintaining the information 
                technology system or application.
                    ``(ii) A projection of the cost avoided if the 
                information technology system or application were to be 
                decommissioned.
                    ``(iii) A schedule for decommissioning the 
                information technology system or application.
                    ``(iv) Whether a transition plan for the 
                functionality of the information technology system or 
                application to be provided, when appropriate, by other 
                information technology systems or applications of the 
                Department has been developed.
                    ``(v) Performance data regarding whether the 
                Department has decommissioned the information 
                technology system or application that was set forth 
                under clause (iii) in the budget justification 
                materials for the previous fiscal year.''.
    (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; Report.--
            (1) Current and new 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) 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.
    (e) Effective Date of Decommissioning Performance Element of Budget 
Justification Materials.--Clause (v) of section 8175(d)(2)(B) 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.

SEC. 3. ASSESSMENT OF SUITABILITY OF CLOUD MIGRATION INVESTMENTS.

    (a) Assessment.--Not later than one year after the date of the 
enactment of this Act, the Secretary of Veterans Affairs, acting 
through the Chief Information Officer of the Department of Veterans 
Affairs, shall conduct an assessment, in accordance with guidance from 
the Office of Management and Budget, of all information technology 
investments of the Department of Veterans Affairs to determine the 
suitability of the investments for migration to a cloud computing 
service.
    (b) Consistent Mechanism.--The Secretary, acting through the Chief 
Information Officer, shall establish a consistent and repeatable 
mechanism to track savings and cost avoidances from--
            (1) the migration of information technology investments to 
        cloud computing services; and
            (2) the deployment of cloud computing services.

SEC. 4. REPORT ON INFORMATION TECHNOLOGY DASHBOARD INFORMATION.

    (a) Report.--Not later than 90 days after the date of the enactment 
of this Act, the Secretary of Veterans Affairs, acting through the 
Chief Information Officer of the Department of Veterans Affairs, shall 
submit to the appropriate congressional committees a report 
containing--
            (1) an explanation of the ratings, rankings, and risk 
        categorizations used by the Chief Information Officer pursuant 
        to subparagraph (C) of section 11302(c)(3) of title 40, United 
        States Code, with respect to the information technology 
        dashboard of the Office of Management and Budget developed 
        under such section; and
            (2) copies of supporting or explanatory information 
        provided by the Chief Information Officer to the Office of 
        Management and Budget with respect to submissions by the Chief 
        Information Officer to the information technology dashboard for 
        the fiscal year in which the report is submitted (other than 
        information not otherwise made public pursuant to such 
        section).
    (b) Appropriate Congressional Committees Defined.--In this section, 
the term ``appropriate congressional committees'' has the meaning given 
such term in section 8171 of title 38, United States Code, as added by 
section 2.
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