II 117th CONGRESS 2d Session H. R. 2250 IN THE SENATE OF THE UNITED STATES November 17, 2022 Received AN ACT 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.

1. Short title This Act may be cited as the Department of Veterans Affairs Information Technology Reform Act of 2022 . 2. Information technology projects and activities (a) In general Chapter 81 of title 38, United States Code, is amended by adding at the end the following new subchapter: VI Information technology projects and activities 8171. Definitions In this subchapter: (1) The term appropriate congressional committees means— (A) the Committee on Veterans' Affairs and the Committee on Appropriations of the Senate; and (B) the Committee on Veterans’ Affairs and the Committee on Appropriations of the House of Representatives. (2) The term information technology has the meaning given that term in section 11101 of title 40. (3) (A) The term information technology project means a project or program of the Department (including a project or program of any element of the Department) for, or including, the acquisition or implementation of information technology. (B) In cases where the Secretary transmits to the Director of the Office of Management and Budget information regarding information technology investments, which may consist of individual or multiple projects, the term information technology project refers to an individual project or program or a grouping of multiple projects or programs resulting in the acquisition or implementation of discrete information technology. (4) The term life cycle costs means all direct and indirect costs to acquire, implement, operate, and maintain information technology, including with respect to costs of any element of the Department. (5) The term major information technology project means an information technology project if— (A) the project is designated by the Secretary, the Chief Information Officer of the Department, or the Director of the Office of Management and Budget as a major information technology investment, as defined in section 11302 of title 40; or (B) the dollar value of the project is estimated by the Secretary to exceed— (i) $1,000,000,000 (as adjusted for inflation pursuant to section 1908 of title 41) for the total life cycle costs of the project; or (ii) $200,000,000 (as adjusted for inflation pursuant to section 1908 of title 41) annually. (6) The term business owner means, with respect to an information technology project, the program manager, project manager, or other supervisory official of the Department responsible for the project. 8172. Management of major information technology projects (a) Cost, schedule, and performance information (1) The Secretary, acting through the Chief Information Officer of the Department, shall submit to the appropriate congressional committees a report containing information on the cost, schedule, and performance of each major information technology project that begins after the date of the enactment of the Department of Veterans Affairs Information Technology Reform Act of 2022, as generated by the business owner of the project, prior to the commencement of such project. (2) Each report submitted under paragraph (1) for a project shall include, with respect to such project, the following: (A) An estimate of acquisition costs, implementation costs, and life cycle costs. (B) An intended implementation schedule indicating significant milestones, initial operating capability, and full operating capability or completion. (C) Key business, functional, and performance objectives. (b) Baseline (1) The Secretary shall use the information on the cost, schedule, and performance of a major information technology project included in the report under subsection (a) as the baseline against which changes or variances are measured during the life cycle of such project. (2) The Secretary shall— (A) annually update the baseline of a major information technology project pursuant to subsection (c); and (B) include such updated baseline in the documents providing detailed information on the budget for the Department that the Secretary submits to Congress in conjunction with the President's budget submission pursuant to section 1105 of title 31. (c) Changes and variances (1) Not later than 60 days after the date on which the Secretary identifies a change or variance described in paragraph (2) in the cost, schedule, or performance of a major information technology project, the Secretary, acting through the Chief Information Officer, shall submit to the appropriate congressional committees a notification of such change or variance, including a description and explanation for such change or variance. (2) A change or variance in the cost, schedule, or performance of a major information technology project described in this paragraph is— (A) with respect to the acquisition, implementation, or life cycle cost of the project, or development increment therein, a change or variance that is 10 percent or greater compared to the baseline; (B) with respect to the schedule for a development increment or for achieving a significant milestone, initial operating capability, or full operating capability, or for the final completion of the project, a change or variance that is 180 days or greater compared to the baseline; or (C) with respect to the performance, an instance where a key business, functional, or performance objective is not attained, or is not anticipated to be attained, in whole or in part. (d) Management The Secretary shall ensure that each major information technology project is managed by an interdisciplinary team consisting of the following: (1) A project manager who— (A) (i) is certified in project management at level three by— (I) the Department; (II) the Federal Acquisition Institute pursuant to section 1201 of title 41; or (III) the Department of Defense pursuant to section 1701a of title 10; or (ii) holds an equivalent certification by a private sector project management certification organization, as determined appropriate by the Secretary; and (B) is an employee of the Office of Information and Technology of the Department or an employee of an element of the Department at which the project originates. (2) A functional lead who is an employee of the element of the Department at which the project originates. (3) A technical lead who is an employee of the Office of Information and Technology of the Department. (4) A contracting officer. (5) Sufficient other project management, functional, technical, and procurement personnel as the Secretary determines appropriate. 8173. Information technology activities of the Financial Services Center (a) Management Consistent with sections 11302 and 11319 of title 40— (1) the Chief Information Officer of the Department shall— (A) exercise authority over the management, governance, and oversight processes relating to existing or proposed information technology of the Financial Services Center of the Department, or such successor office; and (B) supervise the information technology employees and contractors of the Financial Services Center; and (2) the Director of the Financial Services Center of the Department, or the head of such successor office, may not enter into a contract or other agreement for information technology or information technology services unless the contract or other agreement has been reviewed and approved by the Chief Information Officer. (b) Oversight The Chief Information Officer shall have oversight and operational authority over all information security practices of the Financial Services Center of the Department. 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. 8175. Information technology matters to be included in budget justification materials for the Department (a) List of information technology projects in effect The Secretary shall ensure that whenever the budget justification materials are submitted to Congress in support of the Department budget for a fiscal year (as submitted with the budget of the President for such fiscal year under section 1105(a) of title 31), such budget justification materials include a list of every information technology project currently in effect at the Department (including not only congressional projects and subprojects as determined by the Director of the Office of Management and Budget or the Secretary). (b) Prioritized list of unfunded projects (1) In addition to the list included in the budget justification materials required by subsection (a), the Secretary shall ensure that the budget justification materials described in such subsection also include summary descriptions and a prioritized list, in rank order, of every information technology project of the Department, proposed or intended to be proposed for the following one, two, or three fiscal years, that is unfunded as of the time of the inclusion of the list under this paragraph. (2) In producing the list required by paragraph (1), the Secretary shall— (A) ensure such list represents a ranking of all proposed information technology projects that reflects the needs of all elements of the Department; (B) produce one unified list for the entire Department demonstrating how the various proposed information technology projects of each of the elements of the Department rank in priority with the information technology projects of the other elements of the Department; and (C) ensure that the list— (i) does not disaggregate and rank information technology projects based on element of the Department; and (ii) does identify the element of the Department requesting the information technology project. (3) (A) In producing each list under paragraph (1), the Secretary shall prioritize and rank each information technology project based on an assessment of each of the following factors: (i) Degree of collaboration between business owners and the Chief Information Officer with respect to joint functional-technical planning, requirements, and management. (ii) Operational or efficiency benefits to employees of the Department created or produced by the information technology project. (iii) The life cycle cost of the information technology project. (iv) The cost savings or cost avoidance yielded by the information technology project. (v) Time to completion of the information technology project. (vi) The difficulty of the information technology project, the likelihood the information technology project will be completed, or the risks associated with undertaking the information technology project. (vii) Tangible benefits to veterans created or produced by the information technology project. (viii) Such other factors as the Secretary considers appropriate. (B) The Secretary shall ensure that each list produced under paragraph (1) includes, for each information technology project included in the list, a brief description of the findings of the Secretary with respect to each assessment carried out by the Secretary for each factor for the information technology project under subparagraph (A). (c) Projected funding needs (1) In addition to the matters included under subsections (a) and (b), the Secretary shall ensure that the budget justification materials described in subsection (a) also include a projection of the one-year, two-year, and three-year funding needs of the Department for information technology, disaggregated by— (A) portfolio; and (B) the product line of the Department that requires the funding. (2) In addition to the projections under paragraph (1), with respect to each of the periods set forth in such paragraph, the Secretary shall include a description of the funding required for each technology business management category used by the Office of Information Technology of the Department (commonly referred to as cost pools and towers ). . (b) Clerical amendment The table of sections at the beginning of such chapter is amended by adding at the end the following: SUBCHAPTER VI—Information technology projects and activities Sec. 8171. Definitions. Sec. 8172. Management of major information technology projects. Sec. 8173. Information technology activities of the Financial Services Center. Sec. 8174. Submission of annual reviews of information technology. Sec. 8175. Information technology matters to be included in budget justification materials for the Department. . (c) Application and report regarding management of major information technology projects (1) Current and new major projects Except as specifically provided in subsection (a) of section 8172 of title 38, United States Code, as added by subsection (a) of this section, such section 8172 shall apply with respect to major information technology projects that begin before, on, or after the date of the enactment of this Act. (2) Report on current projects (A) In general Not later than 90 days after the date of the enactment of this Act, the Secretary of Veterans Affairs shall submit to the appropriate congressional committees a report on each major information technology project that the Secretary is carrying out as of the date of the report. (B) Contents The report submitted under subparagraph (A) shall contain, with respect to each project described in such subparagraph, information on the cost, schedule, and performance of the project as described in subsection (a) of section 8172 of such title, as so added. (3) Definitions In this subsection, the terms appropriate congressional committees and major information technology project have the meanings given those terms in section 8171 of title 38, United States Code, as added by subsection (a) of this section. (d) Information technology activities of the Financial Services Center (1) Effective date Section 8173 of such title, as added by subsection (a), shall take effect on the date of the enactment of this Act. (2) Applicability Subsection (a)(2) of such section shall apply with respect to contracts and agreements entered into on or after the date of the enactment of this Act. (e) Effective date of requirement for projects in budget justification materials Subsection (c) of section 8175 of such title, as added by subsection (a) of this section, shall take effect on the first Monday in the second January beginning after the date of the enactment of this Act.

Passed the House of Representatives November 17, 2022. Cheryl L. Johnson, Clerk.