II Calendar No. 577 113th CONGRESS 2d Session H. R. 1232 [Report No. 113–262] IN THE SENATE OF THE UNITED STATES February 26, 2014 Received; read twice and referred to the Committee on Homeland Security and Governmental Affairs September 18, 2014 Reported by Mr. Carper , with an amendment and an amendment to the title Strike out all after the enacting clause and insert the part printed in italic AN ACT To amend titles 40, 41, and 44, United States Code, to eliminate duplication and waste in information technology acquisition and management.

1. Short title This Act may be cited as the Federal Information Technology Acquisition Reform Act . 2. Table of contents The table of contents for this Act is as follows: Sec. 1. Short title. Sec. 2. Table of contents. Sec. 3. Definitions. Title I—MANAGEMENT OF INFORMATION TECHNOLOGY WITHIN FEDERAL GOVERNMENT Sec. 101. Increased authority of agency Chief Information Officers over information technology. Sec. 102. Lead coordination role of Chief Information Officers Council. Sec. 103. Reports by Government Accountability Office. Title II—DATA CENTER OPTIMIZATION Sec. 201. Purpose. Sec. 202. Definitions. Sec. 203. Federal data center optimization initiative. Sec. 204. Performance requirements related to data center consolidation. Sec. 205. Cost savings related to data center optimization. Sec. 206. Reporting requirements to Congress and the Federal Chief Information Officer. Title III—ELIMINATION OF DUPLICATION AND WASTE IN INFORMATION TECHNOLOGY ACQUISITION Sec. 301. Inventory of information technology software assets. Sec. 302. Website consolidation and transparency. Sec. 303. Transition to the cloud. Sec. 304. Elimination of unnecessary duplication of contracts by requiring business case analysis. Title IV—STRENGTHENING AND STREAMLINING INFORMATION TECHNOLOGY ACQUISITION MANAGEMENT PRACTICES Subtitle A—Strengthening and Streamlining IT Program Management Practices Sec. 401. Pilot program on interagency collaboration. Sec. 402. Designation of assisted acquisition centers of excellence. Subtitle B—Strengthening IT Acquisition Workforce Sec. 411. Expansion of training and use of information technology acquisition cadres. Sec. 412. Plan on strengthening program and project management performance. Sec. 413. Personnel awards for excellence in the acquisition of information systems and information technology. Title V—ADDITIONAL REFORMS Sec. 501. Maximizing the benefit of the Federal strategic sourcing initiative. Sec. 502. Governmentwide software purchasing program. Sec. 503. Promoting transparency of blanket purchase agreements. Sec. 504. Additional source selection technique in solicitations. Sec. 505. Enhanced transparency in information technology investments. Sec. 506. Enhanced communication between government and industry. Sec. 507. Clarification of current law with respect to technology neutrality in acquisition of software. Sec. 508. No additional funds authorized. 3. Definitions In this Act: (1) Chief acquisition officers council The term Chief Acquisition Officers Council means the Chief Acquisition Officers Council established by section 1311(a) of title 41, United States Code. (2) Chief information officer The term Chief Information Officer means a Chief Information Officer (as designated under section 3506(a)(2) of title 44, United States Code) of an agency listed in section 901(b) of title 31, United States Code. (3) Chief information officers council The term Chief Information Officers Council or CIO Council means the Chief Information Officers Council established by section 3603(a) of title 44, United States Code. (4) Director The term Director means the Director of the Office of Management and Budget. (5) Federal agency The term Federal agency means each agency listed in section 901(b) of title 31, United States Code. (6) Federal chief information officer The term Federal Chief Information Officer means the Administrator of the Office of Electronic Government established under section 3602 of title 44, United States Code. (7) Information technology or it The term information technology or IT has the meaning provided in section 11101(6) of title 40, United States Code. (8) Relevant congressional committees The term relevant congressional committees means each of the following: (A) The Committee on Oversight and Government Reform and the Committee on Armed Services of the House of Representatives. (B) The Committee on Homeland Security and Governmental Affairs and the Committee on Armed Services of the Senate. I MANAGEMENT OF INFORMATION TECHNOLOGY WITHIN FEDERAL GOVERNMENT 101. Increased authority of agency Chief Information Officers over information technology (a) Presidential appointment of CIOs of certain agencies (1) In general Section 11315 of title 40, United States Code, is amended— (A) by redesignating subsection (a) as subsection (e) and moving such subsection to the end of the section; and (B) by inserting before subsection (b) the following new subsection (a): (a) Presidential appointment or designation of certain chief information officers (1) In general There shall be within each agency listed in section 901(b)(1) of title 31 an agency Chief Information Officer. Each agency Chief Information Officer shall— (A) (i) be appointed by the President; or (ii) be designated by the President, in consultation with the head of the agency; and (B) be appointed or designated, as applicable, from among individuals who possess demonstrated ability in general management of, and knowledge of and extensive practical experience in, information technology management practices in large governmental or business entities. (2) Responsibilities An agency Chief Information Officer appointed or designated under this section shall report directly to the head of the agency and carry out, on a full-time basis, responsibilities as set forth in this section and in section 3506(a) of title 44 for Chief Information Officers designated under paragraph (2) of such section. . (2) Conforming amendments Section 3506(a)(2) of title 44, United States Code, is amended— (A) by striking (A) Except as provided under subparagraph (B), the head of each agency and inserting The head of each agency, other than an agency with a Presidentially appointed or designated Chief Information Officer as provided in section 11315(a)(1) of title 40, ; and (B) by striking subparagraph (B). (b) Authority relating to budget and personnel Section 11315 of title 40, United States Code, is further amended by inserting after subsection (c) the following new subsection: (d) Additional authorities for certain CIOs (1) Budget-related authority (A) Planning Notwithstanding any other provision of law, the head of each agency listed in section 901(b)(1) or 901(b)(2) of title 31 and in section 102 of title 5 shall ensure that the Chief Information Officer of the agency has the authority to participate in decisions regarding the budget planning process related to information technology or programs that include significant information technology components. (B) Allocation Notwithstanding any other provision of law, amounts appropriated for any agency listed in section 901(b)(1) or 901(b)(2) of title 31 and in section 102 of title 5 for any fiscal year that are available for information technology shall be allocated within the agency, consistent with the provisions of appropriations Acts and budget guidelines and recommendations from the Director of the Office of Management and Budget, in such manner as specified by, or approved by, the Chief Information Officer of the agency in consultation with the Chief Financial Officer of the agency and budget officials. (2) Personnel-related authority Notwithstanding any other provision of law, the head of each agency listed in section 901(b)(1) or 901(b)(2) of title 31 shall ensure that the Chief Information Officer of the agency has the authority necessary to approve the hiring of personnel who will have information technology responsibilities within the agency and to require that such personnel have the obligation to report to the Chief Information Officer in a manner considered sufficient by the Chief Information Officer. . (c) Single chief information officer in each agency (1) Requirement Section 3506(a)(3) of title 44, United States Code, is amended— (A) by inserting (A) after (3) ; and (B) by adding at the end the following new subparagraph: (B) Each agency shall have only one individual with the title and designation of Chief Information Officer . Any bureau, office, or subordinate organization within the agency may designate one individual with the title Deputy Chief Information Officer , Associate Chief Information Officer , or Assistant Chief Information Officer . . (2) Effective date Section 3506(a)(3)(B) of title 44, United States Code, as added by paragraph (1), shall take effect as of October 1, 2014. Any individual serving in a position affected by such section before such date may continue in that position if the requirements of such section are fulfilled with respect to that individual. 102. Lead coordination role of Chief Information Officers Council (a) Lead coordination role Subsection (d) of section 3603 of title 44, United States Code, is amended to read as follows: (d) Lead interagency forum (1) In general The Council is designated the lead interagency forum for improving agency coordination of practices related to the design, development, modernization, use, operation, sharing, performance, and review of Federal Government information resources investment. As the lead interagency forum, the Council shall develop cross-agency portfolio management practices to allow and encourage the development of cross-agency shared services and shared platforms. The Council shall also issue guidelines and practices for infrastructure and common information technology applications, including expansion of the Federal Enterprise Architecture process if appropriate. The guidelines and practices may address broader transparency, common inputs, common outputs, and outcomes achieved. The guidelines and practices shall be used as a basis for comparing performance across diverse missions and operations in various agencies. (2) Report Not later than December 1 in each of the 6 years following the date of the enactment of this paragraph, the Council shall submit to the relevant congressional committees a report (to be known as the CIO Council Report ) summarizing the Council’s activities in the preceding fiscal year and containing such recommendations for further congressional action to fulfill its mission as the Council considers appropriate. (3) Relevant congressional committees For purposes of the report required by paragraph (2), the relevant congressional committees are each of the following: (A) The Committee on Oversight and Government Reform and the Committee on Armed Services of the House of Representatives. (B) The Committee on Homeland Security and Governmental Affairs and the Committee on Armed Services of the Senate. . (b) Additional function Subsection (f) of section 3603 of such title is amended by adding at the end the following new paragraph: (8) Assist the Administrator in developing and providing guidance for effective operations of the Federal Infrastructure and Common Application Collaboration Center authorized under section 11501 of title 40. . (c) References to administrator of E-Government as federal chief information officer (1) References Section 3602(b) of title 44, United States Code, is amended by adding at the end the following: The Administrator may also be referred to as the Federal Chief Information Officer. . (2) Definition Section 3601(1) of such title is amended by inserting or Federal Chief Information Officer before means . 103. Reports by Government Accountability Office (a) Requirement to examine effectiveness The Comptroller General of the United States shall examine the effectiveness of the Chief Information Officers Council in meeting its responsibilities under section 3603(d) of title 44, United States Code, as added by section 102, with particular focus on— (1) whether agencies are actively participating in the Council and heeding the Council’s advice and guidance; and (2) whether the Council is actively using and developing the capabilities of the Federal Infrastructure and Common Application Collaboration Center authorized under section 11501 of title 40, United States Code, as added by section 401. (b) Reports Not later than 1 year, 3 years, and 5 years after the date of the enactment of this Act, the Comptroller General shall submit to the relevant congressional committees a report containing the findings and recommendations of the Comptroller General from the examination required by subsection (a). II DATA CENTER OPTIMIZATION 201. Purpose The purpose of this title is to optimize Federal data center usage and efficiency. 202. Definitions In this title: (1) Federal data center optimization initiative The term Federal Data Center Optimization Initiative or the Initiative means the initiative developed and implemented by the Director, through the Federal Chief Information Officer, as required under section 203. (2) Covered agency The term covered agency means any agency included in the Federal Data Center Optimization Initiative. (3) Data center The term data center means a closet, room, floor, or building for the storage, management, and dissemination of data and information, as defined by the Federal Chief Information Officer under guidance issued pursuant to this section. (4) Federal data center The term Federal data center means any data center of a covered agency used or operated by a covered agency, by a contractor of a covered agency, or by another organization on behalf of a covered agency. (5) Server utilization The term server utilization refers to the activity level of a server relative to its maximum activity level, expressed as a percentage. (6) Power usage effectiveness The term power usage effectiveness means the ratio obtained by dividing the total amount of electricity and other power consumed in running a data center by the power consumed by the information and communications technology in the data center. 203. Federal data center optimization initiative (a) Requirement for initiative The Federal Chief Information Officer, in consultation with the chief information officers of covered agencies, shall develop and implement an initiative, to be known as the Federal Data Center Optimization Initiative, to optimize the usage and efficiency of Federal data centers by meeting the requirements of this Act and taking additional measures, as appropriate. (b) Requirement for plan Within 6 months after the date of the enactment of this Act, the Federal Chief Information Officer, in consultation with the chief information officers of covered agencies, shall develop and submit to Congress a plan for implementation of the Initiative required by subsection (a) by each covered agency. In developing the plan, the Federal Chief Information Officer shall take into account the findings and recommendations of the Comptroller General review required by section 205(e). (c) Matters covered The plan shall include— (1) descriptions of how covered agencies will use reductions in floor space, energy use, infrastructure, equipment, applications, personnel, increases in multiorganizational use, server virtualization, cloud computing, and other appropriate methods to meet the requirements of the initiative; and (2) appropriate consideration of shifting Federally owned data center workload to commercially owned data centers. 204. Performance requirements related to data center consolidation (a) Server utilization Each covered agency may use the following methods to achieve the maximum server utilization possible as determined by the Federal Chief Information Officer: (1) The closing of existing data centers that lack adequate server utilization, as determined by the Federal Chief Information Officer. If the agency fails to close such data centers, the agency shall provide a detailed explanation as to why this data center should remain in use as part of the submitted plan. The Federal Chief Information Officer shall include an assessment of the agency explanation in the annual report to Congress. (2) The consolidation of services within existing data centers to increase server utilization rates. (3) Any other method that the Federal Chief Information Officer, in consultation with the chief information officers of covered agencies, determines necessary to optimize server utilization. (b) Power usage effectiveness Each covered agency may use the following methods to achieve the maximum energy efficiency possible as determined by the Federal Chief Information Officer: (1) The use of the measurement of power usage effectiveness to calculate data center energy efficiency. (2) The use of power meters in facilities dedicated to data center operations to frequently measure power consumption over time. (3) The establishment of power usage effectiveness goals for each data center. (4) The adoption of best practices for managing— (A) temperature and airflow in facilities dedicated to data center operations; and (B) power supply efficiency. (5) The implementation of any other method that the Federal Chief Information Officer, in consultation with the Chief Information Officers of covered agencies, determines necessary to optimize data center energy efficiency. 205. Cost savings related to data center optimization (a) Requirement To track costs (1) In general Each covered agency shall track costs resulting from implementation of the Federal Data Center Optimization Initiative within the agency and submit a report on those costs annually to the Federal Chief Information Officer. Covered agencies shall determine the net costs from data consolidation on an annual basis. (2) Factors In calculating net costs each year under paragraph (1), a covered agency shall use the following factors: (A) Energy costs. (B) Personnel costs. (C) Real estate costs. (D) Capital expense costs. (E) Maintenance and support costs such as operating subsystem, database, hardware, and software license expense costs. (F) Other appropriate costs, as determined by the agency in consultation with the Federal Chief Information Officer. (b) Requirement To track savings (1) In general Each covered agency shall track realized and projected savings resulting from implementation of the Federal Data Center Optimization Initiative within the agency and submit a report on those savings annually to the Federal Chief Information Officer. Covered agencies shall determine the net savings from data consolidation on an annual basis. (2) Factors In calculating net savings each year under paragraph (1), a covered agency shall use the following factors: (A) Energy savings. (B) Personnel savings. (C) Real estate savings. (D) Capital expense savings. (E) Maintenance and support savings such as operating subsystem, database, hardware, and software license expense savings. (F) Other appropriate savings, as determined by the agency in consultation with the Federal Chief Information Officer. (3) Public availability The Federal Chief Information Officer shall make publicly available a summary of realized and projected savings for each covered agency. The Federal Chief Information Officer shall identify any covered agency that failed to provide the annual report required under paragraph (1). (c) Requirement To use cost-Effective measures Covered agencies shall use the most cost-effective measures to implement the Federal Data Center Optimization Initiative, such as using estimation to measure or track costs and savings using a methodology approved by the Federal Chief Information Officer. (d) Government accountability office review Not later than 6 months after the date of the enactment of this Act, the Comptroller General of the United States shall examine methods for calculating savings from the Initiative and using them for the purposes identified in subsection (d), including establishment and use of a special revolving fund that supports data centers and server optimization, and shall submit to the Federal Chief Information Officer and Congress a report on the Comptroller General’s findings and recommendations. 206. Reporting requirements to Congress and the Federal Chief Information Officer (a) Agency requirement To report to CIO (1) In general Except as provided in paragraph (2), each covered agency each year shall submit to the Federal Chief Information Officer a report on the implementation of the Federal Data Center Optimization Initiative, including savings resulting from such implementation. The report shall include an update of the agency’s plan for implementing the Initiative. (2) Department of Defense The Secretary of Defense shall comply with paragraph (1) each year by submitting to the Federal Chief Information Officer a report with relevant information collected under section 2867 of Public Law 112–81 ( 10 U.S.C. 2223a note) or a copy of the report required under section 2867(d) of such law. (b) Federal chief information officer requirement To report to congress Each year, the Federal Chief Information Officer shall submit to the relevant congressional committees a report that assesses agency progress in carrying out the Federal Data Center Optimization Initiative and updates the plan under section 203. The report may be included as part of the annual report required under section 3606 of title 44, United States Code. III ELIMINATION OF DUPLICATION AND WASTE IN INFORMATION TECHNOLOGY ACQUISITION 301. Inventory of information technology software assets (a) Plan The Director shall develop a plan for conducting a Governmentwide inventory of information technology software assets. (b) Matters covered The plan required by subsection (a) shall cover the following: (1) The manner in which Federal agencies can achieve the greatest possible economies of scale and cost savings in the procurement of information technology software assets, through measures such as reducing the procurement of new software licenses until such time as agency needs exceed the number of existing and unused licenses. (2) The capability to conduct ongoing Governmentwide inventories of all existing software licenses on an application-by-application basis, including duplicative, unused, overused, and underused licenses, and to assess the need of agencies for software licenses. (3) A Governmentwide spending analysis to provide knowledge about how much is being spent for software products or services to support decisions for strategic sourcing under the Federal strategic sourcing program managed by the Office of Federal Procurement Policy. (c) Availability The inventory of information technology software assets shall be available to Chief Information Officers and such other Federal officials as the Chief Information Officers may, in consultation with the Chief Information Officers Council, designate. (d) Deadline and submission to congress Not later than 180 days after the date of the enactment of this Act, the Director shall complete and submit to Congress the plan required by subsection (a). (e) Implementation Not later than two years after the date of the enactment of this Act, the Director shall complete implementation of the plan required by subsection (a). (f) Review by comptroller general Not later than two years after the date of the enactment of this Act, the Comptroller General of the United States shall review the plan required by subsection (a) and submit to the relevant congressional committees a report on the review. 302. Website consolidation and transparency (a) Website consolidation The Director shall— (1) in consultation with Federal agencies, and after reviewing the directory of public Federal Government websites of each agency (as required to be established and updated under section 207(f)(3) of the E-Government Act of 2002 ( Public Law 107–347 ; 44 U.S.C. 3501 note)), assess all the publicly available websites of Federal agencies to determine whether there are duplicative or overlapping websites; and (2) require Federal agencies to eliminate or consolidate those websites that are duplicative or overlapping. (b) Website transparency The Director shall issue guidance to Federal agencies to ensure that the data on publicly available websites of the agencies are open and accessible to the public. (c) Matters covered In preparing the guidance required by subsection (b), the Director shall— (1) develop guidelines, standards, and best practices for interoperability and transparency; (2) identify interfaces that provide for shared, open solutions on the publicly available websites of the agencies; and (3) ensure that Federal agency Internet home pages, web-based forms, and web-based applications are accessible to individuals with disabilities in conformance with section 508 of the Rehabilitation Act of 1973 ( 29 U.S.C. 794d ). (d) Deadline for guidance The guidance required by subsection (b) shall be issued not later than 180 days after the date of the enactment of this Act. 303. Transition to the cloud (a) Sense of congress It is the sense of Congress that transition to cloud computing offers significant potential benefits for the implementation of Federal information technology projects in terms of flexibility, cost, and operational benefits. (b) Governmentwide application In assessing cloud computing opportunities, the Chief Information Officers Council shall define policies and guidelines for the adoption of Governmentwide programs providing for a standardized approach to security assessment and operational authorization for cloud products and services. (c) Additional budget authorities for transition In transitioning to the cloud, a Chief Information Officer of an agency listed in section 901(b) of title 31, United States Code, may establish such cloud service Working Capital Funds, in consultation with the Chief Financial Officer of the agency, as may be necessary to transition to cloud-based solutions. Any establishment of a new Working Capital Fund under this subsection shall be reported to the Committees on Appropriations of the House of Representatives and the Senate and relevant Congressional committees. 304. Elimination of unnecessary duplication of contracts by requiring business case analysis (a) Purpose The purpose of this section is to leverage the Government’s buying power and achieve administrative efficiencies and cost savings by eliminating unnecessary duplication of contracts. (b) Requirement for business case approval (1) In general Chapter 33 of title 41, United States Code, is amended by adding at the end the following new section: 3312. Requirement for business case approval for new Governmentwide contracts (a) In general An executive agency may not issue a solicitation for a covered Governmentwide contract unless the agency performs a business case analysis for the contract and obtains an approval of the business case analysis from the Administrator for Federal Procurement Policy. (b) Review of business case analysis (1) In general With respect to any covered Governmentwide contract, the Administrator for Federal Procurement Policy shall review the business case analysis submitted for the contract and provide an approval or disapproval within 60 days after the date of submission. Any business case analysis not disapproved within such 60-day period is deemed to be approved. (2) Basis for approval of business case The Administrator for Federal Procurement Policy shall approve or disapprove a business case analysis based on the adequacy of the analysis submitted. The Administrator shall give primary consideration to whether an agency has demonstrated a compelling need that cannot be satisfied by existing Governmentwide contract in a timely and cost-effective manner. (c) Content of business case analysis The Administrator for Federal Procurement Policy shall issue guidance specifying the content for a business case analysis submitted pursuant to this section. At a minimum, the business case analysis shall include details on the administrative resources needed for such contract, including an analysis of all direct and indirect costs to the Federal Government of awarding and administering such contract and the impact such contract will have on the ability of the Federal Government to leverage its purchasing power. (b) Definitions In this section: (1) Covered Governmentwide contract The term covered Governmentwide contract means any contract, blanket purchase agreement, or other contractual instrument for acquisition of information technology or other goods or services that allows for an indefinite number of orders to be placed under the contract, agreement, or instrument, and that is established by one executive agency for use by multiple executive agencies to obtain goods or services. The term does not include— (A) a multiple award schedule contract awarded by the General Services Administration; (B) a Governmentwide acquisition contract for information technology awarded pursuant to sections 11302(e) and 11314(a)(2) of title 40; (C) orders under Governmentwide contracts in existence before the effective date of this section; or (D) any contract in an amount less than $10,000,000, determined on an average annual basis. (2) Executive agency The term executive agency has the meaning provided that term by section 105 of title 5. . (2) Clerical amendment The table of sections for chapter 33 of title 41, United States Code, is amended by adding after the item relating to section 3311 the following new item: 3312. Requirement for business case approval for new Governmentwide contracts. . (c) Report Not later than June 1 in each of the next 6 years following the date of the enactment of this Act, the Administrator for Federal Procurement Policy shall submit to the relevant congressional committees a report on the implementation of section 3312 of title 41, United States Code, as added by subsection (b), including a summary of the submissions, reviews, approvals, and disapprovals of business case analyses pursuant to such section. (d) Guidance The Administrator for Federal Procurement Policy shall issue guidance for implementing section 3312 of such title. (e) Revision of FAR Not later than 180 days after the date of the enactment of this Act, the Federal Acquisition Regulation shall be amended to implement section 3312 of such title. (g) Effective date Section 3312 of such title is effective on and after 180 days after the date of the enactment of this Act. IV STRENGTHENING AND STREAMLINING INFORMATION TECHNOLOGY ACQUISITION MANAGEMENT PRACTICES A Strengthening and Streamlining IT Program Management Practices 401. Pilot program on interagency collaboration (a) Pilot program (1) In general Chapter 115 of title 40, United States Code, is amended to read as follows: 115 Information Technology Acquisition Management Practices Sec. 11501. Pilot program on interagency collaboration. 11501. Pilot program on interagency collaboration (a) Requirement to conduct pilot program The Director of the Office of Management and Budget shall conduct a three-year pilot program in accordance with the requirements of this section to test alternative approaches for the management of commonly used information technology by executive agencies. (b) Establishment and purposes For purposes of the pilot program, the Director of the Office of Management and Budget shall establish a Federal Infrastructure and Common Application Collaboration Center (hereafter in this section referred to as the Collaboration Center ) within the Office of Electronic Government established under section 3602 of title 44. The purpose of the Collaboration Center is to serve as a resource for Federal agencies, available on an optional-use basis, to assist and promote coordinated program management practices and to develop and maintain requirements for the acquisition of IT infrastructure and common applications commonly used by various Federal agencies. (c) Organization of center (1) Membership The Center shall consist of the following members: (A) An appropriate number, as determined by the CIO Council, but not less than 12, full-time program managers or cost specialists, all of whom have appropriate experience in the private or Government sector in managing or overseeing acquisitions of IT infrastructure and common applications. (B) At least 1 full-time detailee from each of the Federal agencies listed in section 901(b) of title 31, nominated by the respective agency chief information officer for a detail period of not less than 1 year. (2) Working groups The Collaboration Center shall have working groups that specialize in IT infrastructure and common applications identified by the CIO Council. Each working group shall be headed by a separate dedicated program manager appointed by the Federal Chief Information Officer. (d) Capabilities and functions of the collaboration center For each of the IT infrastructure and common application areas identified by the CIO Council, the Collaboration Center shall perform the following roles, and any other functions as directed by the Federal Chief Information Officer: (1) Develop, maintain, and disseminate requirements suitable to establish contracts that will meet the common and general needs of various Federal agencies as determined by the Center. In doing so, the Center shall give maximum consideration to the adoption of commercial standards and industry acquisition best practices, including opportunities for shared services, consideration of total cost of ownership, preference for industry-neutral functional specifications leveraging open industry standards and competition, and use of long-term contracts, as appropriate. (2) Develop, maintain, and disseminate reliable cost estimates. (3) Lead the review of significant or troubled IT investments or acquisitions as identified by the CIO Council. (4) Provide expert aid to troubled IT investments or acquisitions. (e) Guidance The Director, in consultation with the Chief Information Officers Council, shall issue guidance addressing the scope and operation of the Collaboration Center. The guidance shall require that the collaboration Center report to the Federal Chief Information Officer. (f) Report to congress (1) In general The Director shall annually submit to the relevant congressional committees a report detailing the organization, staff, and activities of the Collaboration Center, including— (A) a list of IT infrastructure and common applications the Center assisted; (B) an assessment of the Center’s achievement in promoting efficiency, shared services, and elimination of unnecessary Government requirements that are contrary to commercial best practices; and (C) the use and expenditure of amounts in the Fund established under subsection (i). (2) Inclusion in other report The report may be included as part of the annual E-Government status report required under section 3606 of title 44. (g) Guidelines for acquisition of IT infrastructure and common applications (1) Guidelines The Collaboration Center shall establish guidelines that, to the maximum extent possible, eliminate inconsistent practices among executive agencies and ensure uniformity and consistency in acquisition processes for IT infrastructure and common applications across the Federal Government. (2) Central website In preparing the guidelines, the Collaboration Center, in consultation with the Chief Acquisition Officers Council, shall offer executive agencies the option of accessing a central website for best practices, templates, and other relevant information. (h) Pricing transparency The Collaboration Center, in collaboration with the Office of Federal Procurement Policy, the Chief Acquisition Officers Council, the General Services Administration, and the Assisted Acquisition Centers of Excellence, shall compile a price list and catalogue containing current pricing information by vendor for each of its IT infrastructure and common applications categories. The price catalogue shall contain any price provided by a vendor in a contract awarded for the same or similar good or service to any executive agency. The catalogue shall be developed in a fashion ensuring that it may be used for pricing comparisons and pricing analysis using standard data formats. The price catalogue shall not be made public, but shall be accessible to executive agencies. (i) Authorization to use fund In any fiscal year, notwithstanding section 321(c) of title 40, up to five percent of the fees collected during the prior fiscal year under the multiple award schedule contracts entered into by the Administrator of General Services and credited to the Acquisition Services Fund under section 321 of title 40, may be used to fund the activities of the Collaboration Center. Each fiscal year, the Director, in consultation with the Federal Chief Information Officer, shall determine an appropriate amount needed to operate the Collaboration Center and the Administrator of General Services shall transfer amounts only to the extent and in such amounts as are provided in advance in appropriation acts from the Fund to the Director for the Center. (j) Definitions In this section: (1) Executive agency The term executive agency has the meaning provided that term by section 105 of title 5. (2) Federal chief information officer The term Federal Chief Information Officer means the Administrator of the Office of Electronic Government established under section 3602 of title 44. (3) Relevant congressional committees The term relevant congressional committees means each of the following: (A) The Committee on Oversight and Government Reform and the Committee on Armed Services of the House of Representatives. (B) The Committee on Homeland Security and Governmental Affairs and the Committee on Armed Services of the Senate. . (2) Clerical amendment The item relating to chapter 115 in the table of chapters at the beginning of subtitle III of title 40, United States Code, is amended to read as follows: 115. Information Technology Acquisition Management Practices 11501 . (b) Deadlines (1) Guidance Not later than 180 days after the date of the enactment of this Act, the Director shall issue guidance under section 11501(e) of title 40, United States Code, as added by subsection (a). (2) Center Not later than 1 year after the date of the enactment of this Act, the Director shall establish the Federal Infrastructure and Common Application Collaboration Center, in accordance with section 11501(b) of such title, as so added. (3) Guidelines Not later than 2 years after the date of the enactment of this Act, the Federal Infrastructure and Common Application Collaboration Center shall establish guidelines in accordance with section 11501(g) of such title, as so added. (c) Conforming amendment Section 3602(c) of title 44, United States Code, is amended— (1) by striking and at the end of paragraph (2); (2) by redesignating paragraph (3) as paragraph (4); and (3) by inserting after paragraph (2) the following new paragraph (3): (3) all of the functions of the Federal Infrastructure and Common Application Collaboration Center, as required under section 11501 of title 40; and . 402. Designation of assisted acquisition centers of excellence (a) Designation Chapter 115 of title 40, United States Code, as amended by section 401, is further amended by adding at the end the following new section: 11502. Assisted acquisition centers of excellence (a) Purpose The purpose of this section is to develop specialized assisted acquisition centers of excellence within the Federal Government to serve as a resource for Federal agencies, available on an optional-use basis, to assist and promote— (1) the effective use of best acquisition practices; (2) the development of specialized expertise in the acquisition of information technology; and (3) Governmentwide sharing of acquisition capability to augment any shortage in the information technology acquisition workforce. (b) Designation of AACEs Not later than 1 year after the date of the enactment of this section, and every 3 years thereafter, the Director of the Office of Management and Budget, in consultation with the Chief Acquisition Officers Council and the Chief Information Officers Council, shall designate, redesignate, or withdraw the designation of acquisition centers of excellence within various executive agencies to carry out the functions set forth in subsection (d) in an area of specialized acquisition expertise as determined by the Director. Each such center of excellence shall be known as an Assisted Acquisition Center of Excellence or an AACE . (c) Use of existing authority This section provides no new authority to establish a franchise fund or revolving fund. (d) Functions The functions of each AACE are as follows: (1) Best practices To promote, develop, and implement the use of best acquisition practices in the area of specialized acquisition expertise that the AACE is designated to carry out by the Director under subsection (b). (2) Assisted acquisitions To assist all Government agencies in the expedient, strategic, and cost-effective acquisition of the information technology goods or services covered by such area of specialized acquisition expertise by engaging in repeated and frequent acquisition of similar information technology requirements. (3) Development and training of IT acquisition workforce To assist in recruiting and training IT acquisition cadres (referred to in section 1704(j) of title 41). (e) Criteria In designating, redesignating, or withdrawing the designation of an AACE, the Director shall consider, at a minimum, the following matters: (1) The subject matter expertise of the host agency in a specific area of information technology acquisition. (2) For acquisitions of IT infrastructure and common applications covered by the Federal Infrastructure and Common Application Collaboration Center authorized under section 11501 of this title, the ability and willingness to collaborate with the Collaboration Center and adhere to the requirements standards established by the Collaboration Center. (3) The ability of an AACE to develop customized requirements documents that meet the needs of executive agencies as well as the current industry standards and commercial best practices. (4) The ability of an AACE to consistently award and manage various contracts, task or delivery orders, and other acquisition arrangements in a timely, cost-effective, and compliant manner. (5) The ability of an AACE to aggregate demands from multiple executive agencies for similar information technology goods or services and fulfill those demands in one acquisition. (6) The ability of an AACE to acquire innovative or emerging commercial and noncommercial technologies using various contracting methods, including ways to lower the entry barriers for small businesses with limited Government contracting experiences. (7) The ability of an AACE to maximize commercial item acquisition, effectively manage high-risk contract types, increase competition, promote small business participation, and maximize use of available Governmentwide contracts. (8) The existence of an in-house cost estimating group with expertise to consistently develop reliable cost estimates that are accurate, comprehensive, well-documented, and credible. (9) The ability of an AACE to employ best practices and educate requesting agencies, to the maximum extent practicable, regarding critical factors underlying successful major IT acquisitions, including the following factors: (A) Active engagement by program officials with stakeholders. (B) Possession by program staff of the necessary knowledge and skills. (C) Support of the programs by senior department and agency executives. (D) Involvement by end users and stakeholders in the development of requirements. (E) Participation by end users in testing of system functionality prior to formal end user acceptance testing. (F) Stability and consistency of Government and contractor staff. (G) Prioritization of requirements by program staff. (H) Maintenance of regular communication with the prime contractor by program officials. (I) Receipt of sufficient funding by programs. (10) The ability of an AACE to run an effective acquisition intern program in collaboration with the Federal Acquisition Institute or the Defense Acquisition University. (11) The ability of an AACE to effectively and properly manage fees received for assisted acquisitions pursuant to this section. (f) Funds received by AACEs (1) Availability Notwithstanding any other provision of law or regulation, funds obligated and transferred from an executive agency in a fiscal year to an AACE for the acquisition of goods or services covered by an area of specialized acquisition expertise of an AACE, regardless of whether the requirements are severable or non-severable, shall remain available for awards of contracts by the AACE for the same general requirements for the next 5 fiscal years following the fiscal year in which the funds were transferred. (2) Transition to new AACE If the AACE to which the funds are provided under paragraph (1) becomes unable to fulfill the requirements of the executive agency from which the funds were provided, the funds may be provided to a different AACE to fulfill such requirements. The funds so provided shall be used for the same purpose and remain available for the same period of time as applied when provided to the original AACE. (3) Relationship to existing authorities This subsection does not limit any existing authorities an AACE may have under its revolving or working capital funds authorities. (g) Government accountability office review of AACE (1) Review The Comptroller General of the United States shall review and assess— (A) the use and management of fees received by the AACEs pursuant to this section to ensure that an appropriate fee structure is established and enforced to cover activities addressed in this section and that no excess fees are charged or retained; and (B) the effectiveness of the AACEs in achieving the purpose described in subsection (a), including review of contracts. (2) Reports Not later than 1 year after the designation or redesignation of AACES under subsection (b), the Comptroller General shall submit to the relevant congressional committees a report containing the findings and assessment under paragraph (1). (h) Definitions In this section: (1) Assisted acquisition The term assisted acquisition means a type of interagency acquisition in which the parties enter into an interagency agreement pursuant to which— (A) the servicing agency performs acquisition activities on the requesting agency’s behalf, such as awarding, administering, or closing out a contract, task order, delivery order, or blanket purchase agreement; and (B) funding is provided through a franchise fund, the Acquisition Services Fund in section 321 of this title, sections 1535 and 1536 of title 31, or other available methods. (2) Executive agency The term executive agency has the meaning provided that term by section 133 of title 41. (3) Relevant congressional committees The term relevant congressional committees has the meaning provided that term by section 11501 of this title. (i) Revision of FAR The Federal Acquisition Regulation shall be amended to implement this section. . (b) Clerical amendment The table of sections at the beginning of chapter 115 of title 40, United States Code, as amended by section 401, is further amended by adding at the end the following new item: 11502. Assisted Acquisition Centers of Excellence. . B Strengthening IT Acquisition Workforce 411. Expansion of training and use of information technology acquisition cadres (a) Purpose The purpose of this section is to ensure timely progress by Federal agencies toward developing, strengthening, and deploying personnel with highly specialized skills in information technology acquisition, including program and project managers, to be known as information technology acquisition cadres. (b) Report to congress Section 1704 of title 41, United States Code, is amended by adding at the end the following new subsection: (j) Strategic plan on information technology acquisition cadres (1) Five-year strategic plan to congress Not later than June 1 following the date of the enactment of this subsection, the Director shall submit to the relevant congressional committees a 5-year strategic plan (to be known as the IT Acquisition Cadres Strategic Plan ) to develop, strengthen, and solidify information technology acquisition cadres. The plan shall include a timeline for implementation of the plan and identification of individuals responsible for specific elements of the plan during the 5-year period covered by the plan. (2) Matters covered The plan shall address, at a minimum, the following matters: (A) Current information technology acquisition staffing challenges in Federal agencies, by previous year’s information technology acquisition value, and by the Federal Government as a whole. (B) The variety and complexity of information technology acquisitions conducted by each Federal agency covered by the plan, and the specialized information technology acquisition workforce needed to effectively carry out such acquisitions. (C) The development of a sustainable funding model to support efforts to hire, retain, and train an information technology acquisition cadre of appropriate size and skill to effectively carry out the acquisition programs of the Federal agencies covered by the plan, including an examination of interagency funding methods and a discussion of how the model of the Defense Acquisition Workforce Development Fund could be applied to civilian agencies. (D) Any strategic human capital planning necessary to hire, retain, and train an information acquisition cadre of appropriate size and skill at each Federal agency covered by the plan. (E) Governmentwide training standards and certification requirements necessary to enhance the mobility and career opportunities of the Federal information technology acquisition cadre within the Federal agencies covered by the plan. (F) New and innovative approaches to workforce development and training, including cross-functional training, rotational development, and assignments both within and outside the Government. (G) Appropriate consideration and alignment with the needs and priorities of the Infrastructure and Common Application Collaboration Center, Assisted Acquisition Centers of Excellence, and acquisition intern programs. (H) Assessment of the current workforce competency and usage trends in evaluation technique to obtain best value, including proper handling of tradeoffs between price and nonprice factors. (I) Assessment of the current workforce competency in designing and aligning performance goals, life cycle costs, and contract incentives. (J) Assessment of the current workforce competency in avoiding brand-name preference and using industry-neutral functional specifications to leverage open industry standards and competition. (K) Use of integrated program teams, including fully dedicated program managers, for each complex information technology investment. (L) Proper assignment of recognition or accountability to the members of an integrated program team for both individual functional goals and overall program success or failure. (M) The development of a technology fellows program that includes provisions for recruiting, for rotation of assignments, and for partnering directly with universities with well-recognized information technology programs. (N) The capability to properly manage other transaction authority (where such authority is granted), including ensuring that the use of the authority is warranted due to unique technical challenges, rapid adoption of innovative or emerging commercial or noncommercial technologies, or other circumstances that cannot readily be satisfied using a contract, grant, or cooperative agreement in accordance with applicable law and the Federal Acquisition Regulation. (O) The use of student internship and scholarship programs as a talent pool for permanent hires and the use and impact of special hiring authorities and flexibilities to recruit diverse candidates. (P) The assessment of hiring manager satisfaction with the hiring process and hiring outcomes, including satisfaction with the quality of applicants interviewed and hires made. (Q) The assessment of applicant satisfaction with the hiring process, including the clarity of the hiring announcement, the user-friendliness of the application process, communication from the hiring manager or agency regarding application status, and timeliness of the hiring decision. (R) The assessment of new hire satisfaction with the onboarding process, including the orientation process, and investment in training and development for employees during their first year of employment. (S) Any other matters the Director considers appropriate. (3) Annual report Not later than June 1 in each of the 5 years following the year of submission of the plan required by paragraph (1), the Director shall submit to the relevant congressional committees an annual report outlining the progress made pursuant to the plan. (4) Government accountability office review of the plan and annual report (A) Not later than 1 year after the submission of the plan required by paragraph (1), the Comptroller General of the United States shall review the plan and submit to the relevant congressional committees a report on the review. (B) Not later than 6 months after the submission of the first, third, and fifth annual report required under paragraph (3), the Comptroller General shall independently assess the findings of the annual report and brief the relevant congressional committees on the Comptroller General’s findings and recommendations to ensure the objectives of the plan are accomplished. (5) Definitions In this subsection: (A) The term Federal agency means each agency listed in section 901(b) of title 31. (B) The term relevant congressional committees means each of the following: (i) The Committee on Oversight and Government Reform and the Committee on Armed Services of the House of Representatives. (ii) The Committee on Homeland Security and Governmental Affairs and the Committee on Armed Services of the Senate. . 412. Plan on strengthening program and project management performance (a) Plan on strengthening program and project management performance Not later than June 1 following the date of the enactment of this Act, the Director, in consultation with the Director of the Office of Personnel Management, shall submit to the relevant congressional committees a plan for improving management of IT programs and projects. (b) Matters covered The plan required by subsection (a) shall include, at a minimum, the following: (1) Creation of a specialized career path for program management. (2) The development of a competency model for program management consistent with the IT project manager model. (3) A career advancement model that requires appropriate expertise and experience for advancement. (4) A career advancement model that is more competitive with the private sector and that recognizes both Government and private sector experience. (5) Appropriate consideration and alignment with the needs and priorities of the Infrastructure and Common Application Collaboration Center, the Assisted Acquisition Centers of Excellence, and acquisition intern programs. (c) Combination with other cadres plan The Director may combine the plan required by subsection (a) with the IT Acquisition Cadres Strategic Plan required under section 1704(j) of title 41, United States Code, as added by section 411. 413. Personnel awards for excellence in the acquisition of information systems and information technology (a) In general Not later than 180 days after the date of the enactment of this Act, the Director of the Office of Personnel Management shall develop policy and guidance for agencies to develop a program to recognize excellent performance by Federal Government employees and teams of such employees in the acquisition of information systems and information technology for the agency. (b) Elements The program referred to in subsection (a) shall, to the extent practicable— (1) obtain objective outcome measures; and (2) include procedures for— (A) the nomination of Federal Government employees and teams of such employees for eligibility for recognition under the program; and (B) the evaluation of nominations for recognition under the program by 1 or more agency panels of individuals from Government, academia, and the private sector who have such expertise, and are appointed in such a manner, as the Director of the Office of Personal Management shall establish for purposes of the program. (c) Award of cash bonuses and other incentives In carrying out the program referred to in subsection (a), the Director of the Office of Personnel Management, in consultation with the Director of the Office of Management and Budget, shall establish policies and guidance for agencies to reward any Federal Government employee or teams of such employees recognized pursuant to the program— (1) with a cash bonus, to the extent that the performance of such individual or team warrants the award of such bonus and is authorized by any provision of law; (2) through promotions and other nonmonetary awards; (3) by publicizing— (A) acquisition accomplishments by individual employees; and (B) the tangible end benefits that resulted from such accomplishments, as appropriate; and (4) through other awards, incentives, or bonuses that the head of the agency considers appropriate. V ADDITIONAL REFORMS 501. Maximizing the benefit of the Federal strategic sourcing initiative Not later than 180 days after the date of the enactment of this Act, the Administrator for Federal Procurement Policy shall prescribe regulations providing that when the Federal Government makes a purchase of services and supplies offered under the Federal Strategic Sourcing Initiative (managed by the Office of Federal Procurement Policy) but such Initiative is not used, the contract file for the purchase shall include a brief analysis of the comparative value, including price and nonprice factors, between the services and supplies offered under such Initiative and services and supplies offered under the source or sources used for the purchase. 502. Governmentwide software purchasing program (a) In general The Administrator of General Services, in collaboration with the Department of Defense, shall identify and develop a strategic sourcing initiative to enhance Governmentwide acquisition, shared use, and dissemination of software, as well as compliance with end user license agreements. (b) Examination of methods In developing the initiative under subsection (a), the Administrator shall examine the use of realistic and effective demand aggregation models supported by actual agency commitment to use the models, and supplier relationship management practices, to more effectively govern the Government’s acquisition of information technology. (c) Governmentwide user license agreement The Administrator, in developing the initiative under subsection (a), shall allow for the purchase of a license agreement that is available for use by all executive agencies as one user to the maximum extent practicable and as appropriate. 503. Promoting transparency of blanket purchase agreements (a) Price information To be treated as public information The final negotiated price offered by an awardee of a blanket purchase agreement shall be treated as public information. (b) Publication of blanket purchase agreement information Not later than 180 days after the date of the enactment of this Act, the Administrator of General Services shall make available to the public a list of all blanket purchase agreements entered into by Federal agencies under its Federal Supply Schedules contracts and the prices associated with those blanket purchase agreements. The list and price information shall be updated at least once every 6 months. 504. Additional source selection technique in solicitations Section 3306(d) of title 41, United States Code, is amended— (1) by striking or at the end of paragraph (1); (2) by striking the period and inserting ; or at the end of paragraph (2); and (3) by adding at the end the following new paragraph: (3) stating in the solicitation that the award will be made using a fixed price technical competition, under which all offerors compete solely on nonprice factors and the fixed award price is pre-announced in the solicitation. . 505. Enhanced transparency in information technology investments (a) Public availability of information about IT investments Section 11302(c) of title 40, United States Code, is amended— (1) by redesignating paragraph (2) as paragraph (3); and (2) by inserting after paragraph (1) the following new paragraph: (2) Public availability (A) In general The Director shall make available to the public the cost, schedule, and performance data for all of the IT investments listed in subparagraph (B), notwithstanding whether the investments are for new IT acquisitions or for operations and maintenance of existing IT. (B) Investments listed The investments listed in this subparagraph are the following: (i) At least 80 percent (by dollar value) of all information technology investments Governmentwide. (ii) At least 60 percent (by dollar value) of all information technology investments in each Federal agency listed in section 901(b) of title 31. (iii) Every major information technology investment (as defined by the Office of Management and Budget) in each Federal agency listed in section 901(b) of title 31. (C) Quarterly review and certification For each investment listed in subparagraph (B), the agency Chief Information Officer and the program manager of the investment within the agency shall certify, at least once every quarter, that the information is current, accurate, and reflects the risks associated with each listed investment. The Director shall conduct quarterly reviews and publicly identify agencies with an incomplete certification or with significant data quality issues. (D) Continuous availability The information required under subparagraph (A), in its most updated form, shall be publicly available at all times. (E) Waiver or limitation authority The applicability of subparagraph (A) may be waived or the extent of the information may be limited— (i) by the Director, with respect to IT investments Governmentwide; and (ii) by the Chief Information Officer of a Federal agency, with respect to IT investments in that agency; if the Director or the Chief Information Officer, as the case may be, determines that such a waiver or limitation is in the national security interests of the United States. . (b) Additional report requirements Paragraph (3) of section 11302(c) of such title, as redesignated by subsection (a), is amended by adding at the end the following: The report shall include an analysis of agency trends reflected in the performance risk information required in paragraph (2). . 506. Enhanced communication between government and industry Not later than 180 days after the date of the enactment of this Act, the Federal Acquisition Regulatory Council shall prescribe a regulation making clear that agency acquisition personnel are permitted and encouraged to engage in responsible and constructive exchanges with industry, so long as those exchanges are consistent with existing law and regulation and do not promote an unfair competitive advantage to particular firms. 507. Clarification of current law with respect to technology neutrality in acquisition of software (a) Purpose The purpose of this section is to establish guidance and processes to clarify that software acquisitions by the Federal Government are to be made using merit-based requirements development and evaluation processes that promote procurement choices— (1) based on performance and value, including the long-term value proposition to the Federal Government; (2) free of preconceived preferences based on how technology is developed, licensed, or distributed; and (3) generally including the consideration of proprietary, open source, and mixed source software technologies. (b) Technology neutrality Nothing in this section shall be construed to modify the Federal Government’s long-standing policy of following technology-neutral principles and practices when selecting and acquiring information technology that best fits the needs of the Federal Government. (c) Guidance Not later than 180 days after the date of the enactment of this Act, the Director, in consultation with the Chief Information Officers Council, shall issue guidance concerning the technology-neutral procurement and use of software within the Federal Government. (d) Matters covered In issuing guidance under subsection (c), the Director shall include, at a minimum, the following: (1) Guidance to clarify that the preference for commercial items in section 3307 of title 41, United States Code, includes proprietary, open source, and mixed source software that meets the definition of the term commercial item in section 103 of title 41, United States Code, including all such software that is used for non-Government purposes and is licensed to the public. (2) Guidance regarding the conduct of market research to ensure the inclusion of proprietary, open source, and mixed source software options. (3) Guidance to define Governmentwide standards for security, redistribution, indemnity, and copyright in the acquisition, use, release, and collaborative development of proprietary, open source, and mixed source software. (4) Guidance for the adoption of available commercial practices to acquire proprietary, open source, and mixed source software for widespread Government use, including issues such as security and redistribution rights. (5) Guidance to establish standard service level agreements for maintenance and support for proprietary, open source, and mixed source software products widely adopted by the Government, as well as the development of Governmentwide agreements that contain standard and widely applicable contract provisions for ongoing maintenance and development of software. (6) Guidance on the role and use of the Federal Infrastructure and Common Application Collaboration Center, authorized under section 11501 of title 40, United States Code (as added by section 401), for acquisition of proprietary, open source, and mixed source software. (e) Report to congress Not later than 2 years after the issuance of the guidance required by subsection (b), the Comptroller General of the United States shall submit to the relevant congressional committees a report containing— (1) an assessment of the effectiveness of the guidance; (2) an identification of barriers to widespread use by the Federal Government of specific software technologies; and (3) such legislative recommendations as the Comptroller General considers appropriate to further the purposes of this section. 508. No additional funds authorized Except as provided in section 11501(i) of title 40, United States Code, as added by section 401, no additional funds are authorized to carry out the requirements of this Act and the amendments made by this Act. Such requirements shall be carried out using amounts otherwise authorized or appropriated.

1. Short title This Act may be cited as the Federal Information Technology Acquisition Reform Act . 2. Table of contents The table of contents for this Act is as follows: Sec. 1. Short title. Sec. 2. Table of contents. TITLE I—Management of information technology within Federal Government Sec. 101. CIO authority enhancements. Sec. 102. Enhanced transparency and improved risk management in information technology investments. Sec. 103. Governmentwide software purchasing program. TITLE II—Portfolio review and Federal data center consolidation initiative Sec. 201. Portfolio review. Sec. 202. Federal data center consolidation initiative. I Management of information technology within Federal Government 101. CIO authority enhancements (a) In general Subchapter II of chapter 113 of title 40, United States Code, is amended by adding at the end the following: 11319. Resources, planning, and portfolio management (a) Definitions In this section— (1) the term covered agency means each agency listed in section 901(b)(1) or 901(b)(2) of title 31; and (2) the term information technology has the meaning given that term under capital planning guidance issued by the Office of Management and Budget. (b) Additional authorities for CIOs (1) Planning, programming, budgeting, and execution authorities for CIOs (A) In general The head of each covered agency and each agency listed in section 102 of title 5 shall ensure that the Chief Information Officer of the agency has a significant role in— (i) the decision processes for all annual and multi-year planning, programming, budgeting, and execution decisions, related reporting requirements, and reports related to information technology; and (ii) the management, governance and oversight processes related to information technology. (B) Budget formulation (i) In general The Director of the Office of Management and Budget shall require in the annual information technology capital planning guidance of the Office of Management and Budget that the Chief Information Officer of each covered agency— (I) approve the information technology budget request of the covered agency; (II) as part of an approval under subclause (I), certify that information technology investments are adequately implementing incremental development, as defined in capital planning guidance issued by the Office of Management and Budget; and (III) acting in conjunction with the Chief Human Capital Officer of the covered agency, review all positions with information technology responsibilities requested in the budget request of the covered agency to ensure the positions meet the ongoing requirements of the covered agency. (C) Review (i) In general A covered agency and an agency listed in section 102 of title 5— (I) 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 of the agency; (II) may not request the reprogramming of any funds made available for information technology programs, unless the request has been reviewed and approved by the Chief Information Officer of the agency; and (III) may use the governance processes of the agency to approve such a contract or other agreement if the Chief Information Officer of the agency is included as a full participant in the governance processes. (ii) Delegation (I) In general Except as provided in subclause (II), the duties of a Chief Information Officer under clause (i) are not delegable. (II) Non-Major information technology investments For a contract or agreement for a non-major information technology investment, as defined in the annual information technology capital planning guidance of the Office of Management and Budget, the Chief Information Officer of a covered agency or an agency listed in section 102 of title 5 may delegate the approval of the contract or agreement under clause (i) to an individual who reports directly to the Chief Information Officer. (2) Personnel-related authority Notwithstanding any other provision of law, for each covered agency, the Chief Information Officer of the covered agency shall approve the appointment of any other employee with the title of Chief Information Officer, or who functions in the capacity of a Chief Information Officer, for any component organization within the covered agency. . (b) Technical and conforming amendment The table of sections for chapter 113 of title 40, United States Code, is amended by inserting after the item relating to section 11318 the following: 11319. Resources, planning, and portfolio management. . 102. Enhanced transparency and improved risk management in information technology investments (a) Public availability of information about information technology investments Section 11302(c) of title 40, United States Code, is amended— (1) by redesignating paragraphs (1) and (2) as paragraphs (2) and (5), respectively; (2) by inserting before paragraph (2), as so redesignated, the following: (1) Definitions In this subsection— (A) the term covered agency means an agency listed in section 901(b)(1) or 901(b)(2) of title 31; and (B) the term major information technology investment means an investment within a covered agency information technology investment portfolio that is designated by the covered agency as major, in accordance with capital planning guidance issued by the Director. ; and (3) by inserting after paragraph (2), as so redesignated, the following: (3) Public availability (A) In general The Director shall make available to the public the cost, schedule, and performance data for each major information technology investment, without regard to whether the investments are for new information technology acquisitions or for operations and maintenance of existing information technology. (B) Quarterly review and certification (i) In general For each major information technology investment listed under subparagraph (A), the Chief Information Officer of the covered agency and the program manager of the investment within the covered agency shall, at least once every quarter— (I) certify that the information is current, accurate, and reflects the risks associated with each listed investment; and (II) identify significant data quality issues that affect the quality of data made available under subparagraph (A). (ii) Incomplete certifications The Director shall publicly identify covered agencies with an incomplete certification under clause (i)(I). (C) Investment evaluation by agency CIO For each major information technology investment listed under subparagraph (A), the Chief Information Officer of the covered agency shall— (i) categorize the investment according to level of risk; (ii) categorize the level of risk of the investment at a risk rating that is not lower than the higher of the cost rating and schedule risk rating of the investment, as determined in accordance with guidance issued by the Director; and (iii) categorize the level of risk as not lower than medium risk for any investment determined by the Chief Information Officer and program manager to not employ incremental development, as determined in accordance with capital planning guidance issued by the Director. (D) Continuous availability The information required under subparagraph (A), in its most updated form, shall be publicly available at all times. (E) Waiver or limitation authority The applicability of subparagraph (A) may be waived or the extent of the information may be limited by the Director, if the Director determines that such a waiver or limitation is in the national security interests of the United States. (4) Risk management For each major information technology investment listed under paragraph (3)(A) that receives a high risk rating, as described in paragraph (3)(C), for 4 consecutive quarters— (A) the Administrator of the Office of Electronic Government, in conjunction with the Chief Information Officer of the covered agency and the program manager of the investment within the covered agency, shall conduct a review of the investment that shall identify— (i) the root causes of the high level of risk of the investment; (ii) the extent to which these causes can be addressed; and (iii) the probability of future success; (B) the Administrator of the Office of Electronic Government shall communicate the results of the review under subparagraph (A) to— (i) the Committee on Homeland Security and Governmental Affairs and the Committee on Appropriations of the Senate; (ii) the Committee on Oversight and Government Reform and the Committee on Appropriations of the House of Representatives; and (iii) upon a request by any committee of Congress, to that committee; and (C) if, on the date that is 1 year after the date of completion of the review required under subparagraph (A), the investment is rated as high risk under paragraph (3)(C), the Director shall deny any request for additional development, modernization, or enhancement funding for the investment until the date on which the Chief Information Officer of the covered agency certifies that— (i) the root causes of the high level of risk of the investment have been addressed; and (ii) there is sufficient capability to deliver the remaining planned increments within the planned cost and schedule. . (b) Additional report requirements Paragraph (5) of section 11302(c) of such title, as redesignated by subsection (a), is amended by adding at the end the following: The report shall include an analysis of covered agency trends reflected in the performance risk information required in paragraph (3). . (c) Sunset Effective on the date that is 5 years after the date of enactment of this Act, section 11302(c) of title 40, United States Code, is amended— (1) by striking paragraphs (1), (3), and (4); (2) by redesignating paragraphs (2) and (5) as paragraphs (1) and (2), respectively; and (3) in paragraph (2), as so redesignated, by striking the last sentence. 103. Governmentwide software purchasing program (a) In general The Administrator of General Services, in collaboration with the Secretary of Defense, shall identify and develop a strategic sourcing initiative to enhance Governmentwide acquisition, shared use, and dissemination of software, as well as compliance with end user license agreements. (b) Governmentwide user license agreement The Administrator, in developing the initiative under subsection (a), shall allow for the purchase of a license agreement that is available for use by all Executive agencies (as defined in section 105 of title 5, United States Code) as one user to the maximum extent practicable and as appropriate. II Portfolio review and Federal data center consolidation initiative 201. Portfolio review (a) In general Section 11319 of title 40, United States Code, as added by section 101, is amended by adding at the end the following: (c) Information technology portfolio, program, and resource reviews (1) Process The Director of the Office of Management and Budget shall implement a process to assist covered agencies in reviewing their portfolio of information technology investments to identify or develop— (A) ways to increase the efficiency and effectiveness of the information technology investments of the covered agency; (B) opportunities to consolidate the acquisition and management of information technology services, and increase the use of shared-service delivery models; (C) potential duplication and waste, including unnecessary or duplicative software licenses; (D) potential cost savings, including cost savings and cost avoidance opportunities related to software licenses of the covered agency; (E) plans for actions to optimize the information technology portfolio, programs, and resources of the covered agency; (F) ways to better align the information technology portfolio, programs, and financial resources of the covered agency to the multi-year funding profiles and strategic plans, when such plans are required by Congress; (G) a multi-year strategy to identify and reduce duplication and waste within the information technology portfolio of the covered agency, including component-level investments, and projected cost savings and avoidances resulting therefrom; and (H) any other goals that the Director may establish. (2) Metrics and performance indicators The Director of the Office of Management and Budget shall develop standardized cost savings and cost avoidance metrics and performance indicators, which shall be used by agencies for the purposes of paragraph (1). (3) Annual review In accordance with the process implemented under paragraph (1), the Chief Information Officer of each covered agency, in conjunction with the Chief Operating Officer or Deputy Secretary (or equivalent) of the covered agency and Administrator of the Office of Electronic Government, shall conduct an annual review of the information technology portfolio of the covered agency. (4) Quarterly reports (A) In general The Administrator of the Office of Electronic Government shall submit a quarterly report on the cost savings and reductions in duplicative information technology investments identified through the review required by paragraph (3) to— (i) the Committee on Homeland Security and Governmental Affairs and the Committee on Appropriations of the Senate; (ii) the Committee on Oversight and Government Reform and the Committee on Appropriations of the House of Representatives; and (iii) upon a request by any committee of Congress, to that committee. (B) Inclusion in other reports The reports required under subparagraph (A) may be included as part of another report submitted to the committees of Congress described in clauses (i), (ii), and (iii) of subparagraph (A). . (b) Sunset Effective on the date that is 5 years after the date of enactment of this Act, section 11319 of title 40, United States Code, is amended by striking subsection (c). 202. Federal data center consolidation initiative (a) Definitions In this section: (1) Administrator The term Administrator means the Administrator for the Office of E-Government and Information Technology within the Office of Management and Budget. (2) Covered agency The term covered agency means the following (including all associated components of the agency): (A) Department of Agriculture; (B) Department of Commerce; (C) Department of Defense; (D) Department of Education; (E) Department of Energy; (F) Department of Health and Human Services; (G) Department of Homeland Security; (H) Department of Housing and Urban Development; (I) Department of the Interior; (J) Department of Justice; (K) Department of Labor; (L) Department of State; (M) Department of Transportation; (N) Department of Treasury; (O) Department of Veterans Affairs; (P) Environmental Protection Agency; (Q) General Services Administration; (R) National Aeronautics and Space Administration; (S) National Science Foundation; (T) Nuclear Regulatory Commission; (U) Office of Personnel Management; (V) Small Business Administration; (W) Social Security Administration; and (X) United States Agency for International Development. (3) FDCCI The term FDCCI means the Federal Data Center Consolidation Initiative described in the Office of Management and Budget Memorandum on the Federal Data Center Consolidation Initiative, dated February 26, 2010, or any successor thereto. (4) Government-wide data center consolidation and optimization metrics The term Government-wide data center consolidation and optimization metrics means the metrics established by the Administrator under subsection (b)(2)(G). (b) Federal data center consolidation inventories and strategies (1) In general (A) Annual reporting Each year, beginning in the first fiscal year after the date of enactment of this Act and each fiscal year thereafter, the head of each covered agency, assisted by the Chief Information Officer of the agency, shall submit to the Administrator— (i) a comprehensive inventory of the data centers owned, operated, or maintained by or on behalf of the agency; and (ii) a multi-year strategy to achieve the consolidation and optimization of the data centers inventoried under clause (i), that includes— (I) performance metrics— (aa) that are consistent with the Government-wide data center consolidation and optimization metrics; and (bb) by which the quantitative and qualitative progress of the agency toward the goals of the FDCCI can be measured; (II) a timeline for agency activities to be completed under the FDCCI, with an emphasis on benchmarks the agency can achieve by specific dates; (III) year-by-year calculations of investment and cost savings for the period beginning on the date of enactment of this Act and ending on the date described in subsection (e), broken down by each year, including a description of any initial costs for data center consolidation and optimization and life cycle cost savings and other improvements, with an emphasis on— (aa) meeting the Government-wide data center consolidation and optimization metrics; and (bb) demonstrating the amount of agency-specific cost savings each fiscal year achieved through the FDCCI; and (IV) any additional information required by the Administrator. (B) Use of other reporting structures The Administrator may require a covered agency to include the information required to be submitted under this subsection through reporting structures determined by the Administrator to be appropriate. (C) Statement Each year, beginning in the first fiscal year after the date of enactment of this Act and each fiscal year thereafter, the head of each covered agency, acting through the Chief Information Officer of the agency, shall— (i) (I) submit a statement to the Administrator stating whether the agency has complied with the requirements of this section; and (II) make the statement submitted under subclause (I) publically available; and (ii) if the agency has not complied with the requirements of this section, submit a statement to the Administrator explaining the reasons for not complying with such requirements. (D) Agency implementation of strategies Each covered agency, under the direction of the Chief Information Officer of the agency, shall— (i) implement the strategy required under subparagraph (A)(ii); and (ii) provide updates to the Administrator, on a quarterly basis, of — (I) the completion of activities by the agency under the FDCCI; (II) any progress of the agency towards meeting the Government-wide data center consolidation and optimization metrics; and (III) the actual cost savings and other improvements realized through the implementation of the strategy of the agency. (E) Rule of construction Nothing in this section shall be construed to limit the reporting of information by a covered agency to the Administrator, the Director of the Office of Management and Budget, or Congress. (2) Administrator responsibilities The Administrator shall— (A) establish the deadline, on an annual basis, for covered agencies to submit information under this section; (B) establish a list of requirements that the covered agencies must meet to be considered in compliance with paragraph (1); (C) ensure that information relating to agency progress towards meeting the Government-wide data center consolidation and optimization metrics is made available in a timely manner to the general public; (D) review the inventories and strategies submitted under paragraph (1) to determine whether they are comprehensive and complete; (E) monitor the implementation of the data center strategy of each covered agency that is required under paragraph (1)(A)(ii); (F) update, on an annual basis, the cumulative cost savings realized through the implementation of the FDCCI; and (G) establish metrics applicable to the consolidation and optimization of data centers Government-wide, including metrics with respect to— (i) costs; (ii) efficiencies, including at least server efficiency; and (iii) any other metrics the Administrator establishes under this subparagraph. (3) Cost saving goal and updates for Congress (A) In general Not later than 1 year after the date of enactment of this Act, the Administrator shall develop, and make publically available, a goal, broken down by year, for the amount of planned cost savings and optimization improvements achieved through the FDCCI during the period beginning on the date of enactment of this Act and ending on the date described in subsection (e). (B) Annual update (i) In general Not later than 1 year after the date on which the goal described in subparagraph (A) is made publically available, and each year thereafter, the Administrator shall aggregate the reported cost savings of each covered agency and optimization improvements achieved to date through the FDCCI and compare the savings to the projected cost savings and optimization improvements developed under subparagraph (A). (ii) Update for Congress The goal required to be developed under subparagraph (A) shall be submitted to Congress and shall be accompanied by a statement describing— (I) whether each covered agency has in fact submitted a comprehensive asset inventory, including an assessment broken down by agency, which shall include the specific numbers, utilization, and efficiency level of data centers; and (II) whether each covered agency has submitted a comprehensive consolidation strategy with the key elements described in paragraph (1)(A)(ii). (4) GAO Review (A) In general Not later than 1 year after the date of enactment of this Act, and each year thereafter, the Comptroller General of the United States shall review and verify the quality and completeness of the asset inventory and strategy of each covered agency required under paragraph (1)(A). (B) Report The Comptroller General of the United States shall, on an annual basis, publish a report on each review conducted under subparagraph (A). (c) Ensuring cybersecurity standards for data center consolidation and cloud computing (1) In general In implementing a data center consolidation and optimization strategy under this section, a covered agency shall do so in a manner that is consistent with Federal guidelines on cloud computing security, including— (A) applicable provisions found within the Federal Risk and Authorization Management Program (FedRAMP); and (B) guidance published by the National Institute of Standards and Technology. (2) Rule of construction Nothing in this section shall be construed to limit the ability of the Director of the Office of Management and Budget to update or modify the Federal guidelines on cloud computing security. (d) Waiver of disclosure requirements The Director of National Intelligence may waive the applicability to any element (or component of an element) of the intelligence community of any provision of this section if the Director of National Intelligence determines that such waiver is in the interest of national security. Not later than 30 days after making a waiver under this subsection, the Director of National Intelligence shall submit to the Committee on Homeland Security and Governmental Affairs and the Select Committee on Intelligence of the Senate and the Committee on Oversight and Government Reform and the Permanent Select Committee on Intelligence of the House of Representatives a statement describing the waiver and the reasons for the waiver. (e) Sunset This section is repealed effective on October 1, 2018.

Amend the title so as to read: An Act to amend title 40, United States Code, to eliminate duplication and waste in information technology acquisition and management. .

September 18, 2014 Reported with an amendment and an amendment to the title