Modernizing Government Technology Act of 2016 or the MGT Act
(Sec. 3) This bill establishes in each covered agency (specified agencies for which there are Chief Financial Officers) an information technology system modernization and working capital fund which may be used for necessary expenses for the agency to:
Deposits into such fund may include reprogrammed or transferred amounts available for the operation and maintenance of legacy information technology systems. Each agency shall prioritize amounts within such fund to be used initially for cost savings activities approved by the agency's Chief Information Officer. Amounts deposited into an IT working capital fund shall be available for obligation for three years after the date of such deposit.
Each agency, by one year after this Act's enactment and every six months thereafter, shall submit to the OMB a list of each information technology investment funded by, and a summary of the obligations, expenditures, and unused balances of, the agency's IT working capital fund. The OMB shall make such information publicly available on a website.
(Sec. 4) The bill establishes the ITMF for technology related activities, to improve information technology, and to enhance cybersecurity across the federal government. The ITMF shall be administered by the General Services Administration (GSA) in accordance with guidance established by, and with the concurrence of, the Office of Management and Budget (OMB).
The GSA shall:
An agency shall: (1) reimburse the ITMF for any such transfer, and (2) pay prices to be fixed by the GSA for such products or services the agency uses at levels sufficient to ensure the solvency of the ITMF. The GSA may obtain reimbursement by the issuance of transfer and counterwarrants if timely payment is not made by an agency.
The OMB shall publish on a public website and and update quarterly a list of each project funded by the ITMF.
The bill establishes an Information Technology Modernization Board, which shall:
The GSA shall support board activities and provide technical support to, and oversight of, agencies that receive transfers from the ITMF.
[Congressional Bills 114th Congress]
[From the U.S. Government Publishing Office]
[H.R. 6004 Introduced in House (IH)]
<DOC>
114th CONGRESS
2d Session
H. R. 6004
To modernize Government information technology, and for other purposes.
_______________________________________________________________________
IN THE HOUSE OF REPRESENTATIVES
September 13, 2016
Mr. Hurd of Texas (for himself, Mr. Connolly, Mr. Chaffetz, Mr.
Cummings, Ms. Kelly of Illinois, and Mr. Ted Lieu of California)
introduced the following bill; which was referred to the Committee on
Oversight and Government Reform, and in addition to the Committee on
Appropriations, for a period to be subsequently determined by the
Speaker, in each case for consideration of such provisions as fall
within the jurisdiction of the committee concerned
_______________________________________________________________________
A BILL
To modernize Government information technology, and for other purposes.
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the ``Modernizing Government Technology
Act of 2016'' or the ``MGT Act''.
SEC. 2. FINDINGS; PURPOSES.
(a) Findings.--The Congress finds the following:
(1) The Federal Government spends nearly 75 percent of its
annual information technology funding on operating and
maintaining existing, legacy information technology systems.
These systems can pose operational risks, including rising
costs and inability to meet mission requirements. These systems
also pose security risks, including the inability to use
current security best practices, such as data encryption and
multi-factor authentication, making these systems particularly
vulnerable to malicious cyber activity.
(2) In 2015, the Government Accountability Office (GAO)
designated Improving the Management of IT Acquisitions and
Operations to its biannual High Risk List and identified as a
particular concern the increasing level of information
technology spending on Operations and Maintenance making less
funding available for development or modernization. The GAO
also found the Government has spent billions on failed and
poorly performing IT investments due to a lack of effective
oversight.
(3) The Federal Government must modernize Federal IT
systems to mitigate existing operational and security risks.
(4) The efficiencies, cost savings, and greater computing
power, offered by modernized solutions, such as cloud
computing, have the potential to--
(A) eliminate inappropriate duplication and reduce
costs;
(B) address the critical need for cyber security by
design; and
(C) move the Federal Government into a broad,
digital services delivery model that will transform the
Federal Government's ability to meet mission
requirements and deliver services to the American
people.
(b) Purposes.--The purposes of this Act are the following:
(1) Assist the Federal Government in modernized Federal
information technology to mitigate current operational and
security risks.
(2) Incentivize cost savings in Federal information
technology through modernization.
(3) Accelerate the acquisition and deployment of modernized
information technology solutions, such as cloud computing, by
addressing impediments in the areas of funding, development,
and acquisition practices.
SEC. 3. ESTABLISHMENT OF AGENCY INFORMATION TECHNOLOGY SYSTEMS
MODERNIZATION AND WORKING CAPITAL FUNDS.
(a) Information Technology System Modernization and Working Capital
Funds.--
(1) Establishment.--There is established in each covered
agency an information technology system modernization and
working capital fund (in this section referred to as the ``IT
working capital fund'') for necessary expenses for the agency
described in paragraph (3).
(2) Source of funds.--Amounts may be deposited into an IT
working capital fund as follows:
(A) Reprogramming of funds, including reprogramming
of any funds available on the date of the enactment of
this Act for the operation and maintenance of legacy
information technology systems, in compliance with any
applicable reprogramming law or guidelines of the
Committees on Appropriations of the House of
Representatives and the Senate.
(B) Transfer of funds, including transfer of any
funds available on the date of the enactment of this
Act for the operation and maintenance of legacy
information technology systems, but only if transfer
authority is specifically provided for by law.
(C) Amounts made available through discretionary
appropriations.
(3) Use of funds.--An IT working capital fund established
under paragraph (1) may be used only for the following:
(A) To improve, retire, or replace existing
information technology systems to improve efficiency
and effectiveness.
(B) To transition to cloud computing or to
transition to information technology systems shared by
multiple agencies.
(C) To assist and support covered agency efforts to
provide adequate, risk-based, and cost-effective
information technology capabilities that address
evolving threats to information security.
(D) Reimbursement of funds transferred from the
Information Technology Modernization Fund established
under section 4.
(4) Existing funds.--An IT working capital fund may not be
used to supplant funds provided for the operation and
maintenance of any system already within an appropriation for
the covered agency at the time of establishment of the IT
working capital fund.
(5) Reprogramming and transfer of funds.--The head of each
covered agency shall prioritize funds within the IT working
capital fund to be used initially for cost savings activities
approved by the covered agency Chief Information Officer, in
consultation with the Administrator of the Office of Electronic
Government. The head of each covered agency may--
(A) reprogram any amounts saved as a direct result
of such activities for deposit into the applicable IT
working capital fund, consistent with paragraph (2)(A);
and
(B) transfer any amounts saved as a direct result
of such activities for deposit into the applicable IT
working capital fund, consistent with paragraph (2)(B).
(6) Return of funds.--Any funds deposited into an IT
working capital fund must be obligated not later than 3 years
after the date of such deposit. Any funds that are unobligated
3 years after such date shall be rescinded and reported to the
Committees on Appropriations of the House of Representatives
and the Senate.
(7) Agency cio responsibilities.--In evaluating projects to
be funded from the IT working capital fund, the covered agency
Chief Information Officer shall consider, to the extent
applicable, guidance established pursuant to section 4(a)(1) to
evaluate applications for funding from the Information
Technology Modernization Fund that include factors such as a
strong business case, technical design, procurement strategy
(including adequate use of incremental software development
practices), and program management.
(b) Reporting Requirement.--
(1) In general.--Not later than one year after the date of
the enactment of this Act, and every 6 months thereafter, the
head of each covered agency shall submit to the Director the
following, with respect to the IT working capital fund for that
covered agency:
(A) A list of each information technology
investment funded with estimated cost and completion
date for each such investment.
(B) A summary by fiscal year of the obligations,
expenditures, and unused balances.
(2) Public availability.--The Director shall make the
information required pursuant to paragraph (1) publicly
available on a website.
(c) Covered Agency Defined.--In this section, the term ``covered
agency'' means each agency listed in section 901(b) of title 31, United
States Code.
SEC. 4. ESTABLISHMENT OF INFORMATION TECHNOLOGY MODERNIZATION FUND AND
BOARD.
(a) Information Technology Modernization Fund.--
(1) Establishment.--There is established in the Treasury an
Information Technology Modernization Fund (in this section
referred to as the ``Fund'') for technology related activities,
to improve information technology, to enhance cybersecurity
across the Federal Government, and to be administered in
accordance with guidance established by the Director of the
Office of Management of Budget.
(2) Administration of fund.--The Administrator of General
Services, in consultation with the Chief Information Officers
Council and with the concurrence of the Director, shall
administer the Fund in accordance with this subsection.
(3) Use of funds.--The Administrator of General Services
shall, in accordance with the recommendations of the
Information Technology Modernization Board established under
subsection (b), use amounts in the Fund for the following
purposes:
(A) To transfer such amounts, to remain available
until expended, to the head of an agency to improve,
retire, or replace existing information technology
systems to enhance cybersecurity and improve efficiency
and effectiveness.
(B) For the development, operation, and procurement
of information technology products, services, and
acquisition vehicles for use by agencies to improve
Governmentwide efficiency and cybersecurity in
accordance with the requirements of the agencies.
(C) To provide services or work performed in
support of the activities described under subparagraph
(A) or (B).
(4) Credits; availability of funds.--
(A) Credits.--In addition to any funds otherwise
appropriated, the Fund shall be credited with all
reimbursements, advances, or refunds or recoveries
relating to information technology or services provided
through the Fund.
(B) Availability of funds.--Amounts deposited,
credited, or otherwise made available to the Fund shall
be available until expended and without further
appropriation for the purposes described in paragraph
(3).
(5) Reimbursement.--
(A) Payment by agency.--For a product or service
developed under paragraph (3), the head of an agency
that uses such product or service shall pay an amount
fixed by the Administrator of General Services in
accordance with this subsection.
(B) Reimbursement by agency.--The head of an agency
shall reimburse the Fund for any transfer made under
paragraph (3)(A) in accordance with the terms
established in the written agreement described in
paragraph (6). Notwithstanding any other provision of
law, an agency may make a reimbursement required by
this subparagraph from any appropriation available for
information technology activities. An obligation to
make a payment under an agreement described in
paragraph (6) in a future fiscal year shall be recorded
pursuant to section 1501 of title 31, United States
Code, in the fiscal year in which the payment is due.
(C) Prices fixed by administrator of general
services.--The Administrator of General Services, in
consultation with the Director, shall establish amounts
to be paid by an agency and terms of repayment for use
of a product or service developed under paragraph (3)
at levels sufficient to ensure the solvency of the
Fund, including operating expenses. Before making any
changes to the established amounts and terms of
repayment, the Administrator of General Services shall
conduct a review and obtain approval from the Director.
(D) Failure to make timely reimbursement.--The
Administrator of General Services may obtain
reimbursement by the issuance of transfer and
counterwarrants, or other lawful transfer documents,
supported by itemized bills, if payment is not made by
an agency--
(i) within 90 days after the expiration of
a repayment period described in the written
agreement described in paragraph (6)(A); or
(ii) within 45 days after the expiration of
the time period to make a payment under a
payment schedule for a product or service
developed under paragraph (3).
(6) Written agreement.--
(A) In general.--Before the transfer of funds to an
agency under paragraph (3)(A), the Administrator of
General Services (in consultation with the Director)
and the head of the requisitioning agency shall enter
into a written agreement documenting the purpose for
which the funds will be used and the terms of
repayment. An agreement made pursuant to this
subparagraph shall be recorded as an obligation as
provided in paragraph (5)(B).
(B) Requirement for use of incremental development
practices.--For any funds transferred to an agency
under paragraph (3)(A), in the absence of compelling
circumstances documented by the Administrator of
General Services at the time of transfer, such funds
shall be transferred only on an incremental basis, tied
to metric-based development milestones achieved by the
agency, to be described in the written agreement
required pursuant to subparagraph (A).
(7) Reporting requirement.--Not later than 6 months after
the date of the enactment of this Act, the Director shall
publish and maintain a list of each project funded by the Fund
on a public website to be updated not less than quarterly, that
includes a description of the project, project status
(including any schedule delay and cost overruns), and financial
expenditure data related to the project.
(b) Information Technology Modernization Board.--
(1) Establishment.--There is established an Information
Technology Modernization Board (in this section referred to as
the ``Board'') which shall evaluate all proposals submitted by
agencies for modernization of information technology used in
the Federal Government.
(2) Responsibilities.--The responsibilities of the Board
are the following:
(A) Provide input to the Director for the
development of processes for agencies to submit
modernization proposals to the Board and to establish
the criteria by which such proposals are evaluated,
which shall include addressing the greatest security
and operational risks, having the greatest
Governmentwide impact, and having a high probability of
success based on factors such as a strong business
case, technical design, procurement strategy (including
adequate use of incremental software development
practices), and program management.
(B) Make recommendations to the Administrator of
General Services to assist agencies in the further
development and refinement of select submitted
modernization proposals, based on an initial evaluation
performed with the assistance of the Administrator of
General Services.
(C) Review and prioritize, with the assistance of
the Administrator of General Services and the Director,
modernization proposals based on criteria established
pursuant to subparagraph (A).
(D) Identify, with the assistance of the
Administrator of General Services, opportunities to
improve or replace multiple information technology
systems with a smaller number of information technology
systems common to multiple agencies.
(E) Recommend the funding of modernization
projects, in accordance with the uses described in
subsection (a)(3), to the Administrator of General
Services.
(F) Monitor, in consultation with the Administrator
of General Services, progress and performance in
executing approved projects and, if necessary,
recommend the suspension or termination of funding for
projects based on factors such as failure to meet the
terms of the written agreement described in subsection
(a)(6).
(3) Membership.--The Board shall consist of 8 voting
members.
(4) Chair.--The Chair of the Board shall be the
Administrator of the Office of Electronic Government.
(5) Permanent members.--The permanent members of the Board
shall be the following:
(A) The Administrator of the Office of Electronic
Government.
(B) A senior official from the General Services
Administration, who shall be appointed by the
Administrator of General Services.
(6) Additional members of the board.--
(A) Appointment.--The other members of the Board
shall be appointed as follows:
(i) One employee of the National Institute
of Standards and Technology of the Department
of Commerce, appointed by the Secretary of
Commerce.
(ii) One employee of the National
Protection and Programs Directorate of the
Department of Homeland Security, appointed by
the Secretary of Homeland Security.
(iii) One employee of the Department of
Defense, appointed by the Secretary of Defense.
(iv) Three Federal employees primarily
having technical expertise in information
technology development, financial management,
cybersecurity and privacy, and acquisition,
appointed by the Director.
(B) Term.--Each member of the Board described in
paragraph (A) shall serve a term of one year, which
shall be renewable up to three times, at the discretion
of the appointing Secretary or Director, as applicable.
(7) Prohibition on compensation.--Members of the Board may
not receive additional pay, allowances, or benefits by reason
of their service on the Board.
(8) Staff.--Upon request of the Chair of the Board, the
Director and the Administrator of General Services may detail,
on a nonreimbursable basis, any of the personnel of the Office
of Management and Budget or the General Services Administration
(as the case may be) to the Board to assist it in carrying out
its functions under this Act.
(c) Responsibilities of the Administrator of General Services.--
(1) In general.--In addition to the responsibilities
described in subsection (a), the Administrator of General
Services shall support the activities of the Board and provide
technical support to, and, in consultation with the Director,
oversight of, agencies that receive transfers from the Fund.
(2) Responsibilities.--The responsibilities of the
Administrator of General Services are to--
(A) provide direct technical support in the form of
personnel services or otherwise to agencies transferred
amounts under subsection (a)(3)(A) and for products,
services, and acquisition vehicles funded under
subsection (a)(3)(B);
(B) assist the Board with the evaluation,
prioritization, and development of agency modernization
proposals;
(C) perform regular project oversight and
monitoring of approved agency modernization projects,
in consultation with the Board and the Director, to
increase the likelihood of successful implementation
and reduce waste; and
(D) provide the Director with information necessary
to meet the requirements of subsection (a)(7).
(d) Agency Defined.--In this section, the term ``agency'' has the
meaning given that term in section 551 of title 5, United States Code.
SEC. 5. DEFINITIONS.
In this Act:
(1) Cloud computing.--The term ``cloud computing'' has the
meaning given that term by the National Institute of Standards
and Technology in NIST Special Publication 800-145 and any
amendatory or superseding document thereto.
(2) Director.--The term ``Director'' means the Director of
the Office of Management and Budget.
(3) Information technology.--The term ``information
technology'' has the meaning given that term in section 3502 of
title 44, United States Code.
(4) Legacy information technology system.--The term
``legacy information technology system'' means an outdated or
obsolete system of information technology.
<all>
Introduced in House
Introduced in House
Referred to the Committee on Oversight and Government Reform, and in addition to the Committee on Appropriations, for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned.
Referred to the Committee on Oversight and Government Reform, and in addition to the Committee on Appropriations, for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned.
Referred to the Committee on Oversight and Government Reform, and in addition to the Committee on Appropriations, for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned.
Committee Consideration and Mark-up Session Held.
Ordered to be Reported (Amended) by Voice Vote.
Reported (Amended) by the Committee on Oversight and Government Reform. H. Rept. 114-783, Part I.
Reported (Amended) by the Committee on Oversight and Government Reform. H. Rept. 114-783, Part I.
Committee on Appropriations discharged.
Llama 3.2 · runs locally in your browser
Ask anything about this bill. The AI reads the full text to answer.
Enter to send · Shift+Enter for new line
Committee on Appropriations discharged.
Placed on the Union Calendar, Calendar No. 611.
Mr. Hurd (TX) moved to suspend the rules and pass the bill, as amended.
Considered under suspension of the rules. (consideration: CR H5830-5833)
DEBATE - The House proceeded with forty minutes of debate on H.R. 6004.
Passed/agreed to in House: On motion to suspend the rules and pass the bill, as amended Agreed to by voice vote.(text: CR H5830-5831)
On motion to suspend the rules and pass the bill, as amended Agreed to by voice vote. (text: CR H5830-5831)
Motion to reconsider laid on the table Agreed to without objection.
Received in the Senate and Read twice and referred to the Committee on Homeland Security and Governmental Affairs.