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S 801

112th CONGRESS
1st Session

S. 801

To amend chapter 113 of title 40, United States Code, to require executive agency participation in real-time transparency of investment projects, to require performance and governance reviews of all cost overruns on Federal information technology investment projects, and for other purposes.

IN THE SENATE OF THE UNITED STATES

April 12, 2011

Mr. CARPER (for himself, Ms. COLLINS, Mr. LIEBERMAN, and Mr. BROWN of Massachusetts) introduced the following bill; which was read twice and referred to the Committee on Homeland Security and Governmental Affairs


A BILL

To amend chapter 113 of title 40, United States Code, to require executive agency participation in real-time transparency of investment projects, to require performance and governance reviews of all cost overruns on Federal information technology investment projects, 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 `Information Technology Investment Management Act of 2011'.

SEC. 2. IT MANAGEMENT AND DEVELOPMENT PROGRAM.

    Section 11311 of title 40, United States Code is amended to read as follows:

`Sec. 11311. Responsibilities

    `In fulfilling the responsibilities set forth in section 3506 of title 44, the head of each executive agency shall--

      `(1) comply with the requirements under this subchapter;

      `(2) develop an information technology management and development program in accordance with guidance disseminated by the Director of the Office of Management and Budget; and

      `(3) enter into the website established under section 11302, not less frequently than monthly--

        `(A) cost, schedule, and performance information regarding the agency's major IT investment projects, using earned value management or another objective, performance-based standard that has been approved by the E-Government Administrator; and

        `(B) the planning information regarding core IT investment projects described in section 11317(d)(2).'.

SEC. 3. REAL-TIME TRANSPARENCY OF IT INVESTMENT PROJECTS.

    Section 11302 of title 40, United States Code, is amended by adding at the end the following:

    `(l) Real-Time Transparency of IT Investment Projects- The Director shall--

      `(1) ensure the effective operation of a website;

      `(2) ensure that agency Chief Information Officers update the website on a monthly basis, at a minimum;

      `(3) include on the website, not later than 90 days after the date of enactment of the Information Technology Investment Management Act of 2011--

        `(A) the available, accurate, current and historical cost, schedule, and performance information of all major information technology investments, which shall be reported in a manner consistent with policy established by the Office of Management and Budget on the use of earned-value management data, or another objective performance-based management system approved by the E-Government Administrator, based on the current ANSI-EIA-748 standard.

        `(B) a graphical depiction of trend information, to the extent practicable, since the commencement of the major IT investment;

        `(C) a clear delineation of major IT investments that have experienced a cost, schedule, or performance variance greater than 10 percent over the life cycle of the investment, including the extent of such variation;

        `(D) an explanation of the reasons the investment deviated from the benchmark established at the commencement of the project;

        `(E) the dates on which investments were rebaselined; and

        `(F) any reports developed as a result of a comprehensive agency review or a comprehensive Office of Management and Budget review; and

      `(4) ensure that the agency Chief Information Officers prevent inconsistencies in cost, schedule, and performance data.'.

SEC. 4. REVIEW OF MAJOR IT INVESTMENT PROJECTS.

    (a) Significant and Gross Deviations- Section 11317 of title 40, United States Code, is amended to read as follows:

`SEC. 11317. SIGNIFICANT AND GROSS DEVIATIONS.

    `(a) Definitions- In this subchapter:

      `(1) AGENCY HEAD- The term `Agency Head' means the head of the Federal agency that is primarily responsible for the major IT investment project under review.

      `(2) AGENCY PERFORMANCE AND GOVERNANCE REVIEW- The term `agency performance and governance review' means a systematic review of investments experiencing performance problems that--

        `(A) is conducted by relevant agency leadership and the Chief Information Officer; and

        `(B) includes an analysis and discussion of--

          `(i) the project's overall intent and purpose and measurable goals and objectives;

          `(ii) rationale for the project's variance from the original goals and performance measures;

          `(iii) any additional scope that may have been added to the project, including cost, schedule, and performance impact;

          `(iv) any previous corrective action plans and outcomes and forward thinking plans to prevent subsequent variances;

          `(v) a presentation of significant risks with mitigation strategies and assignment of risk owners; and

          `(vi) the Chief Information Officer's concerns with the investment and assessment of whether the project is viable.

      `(3) ANSI EIA-748 STANDARD- The term `ANSI EIA-748 Standard' means the measurement tool jointly developed by the American National Standards Institute and the Electronic Industries Alliance to analyze Earned Value Management systems.

      `(4) APPROPRIATE CONGRESSIONAL COMMITTEES- The term `appropriate congressional committees' means--

        `(A) the Committee on Homeland Security and Governmental Affairs of the Senate;

        `(B) the Committee on Oversight and Government Reform of the House of Representatives;

        `(C) the Committee on Appropriations of the Senate;

        `(D) the Committee on Appropriations of the House of Representatives; and

        `(E) any other relevant congressional committee with jurisdiction over an agency required to take action under this section.

      `(5) CHIEF INFORMATION OFFICER- The term `Chief Information Officer' means the Chief Information Officer designated under section 3506(a)(2) of title 44 of the Executive department (as defined in section 101 of title 5) that is primarily responsible for the major IT investment project under review.

      `(6) CORE IT INVESTMENT PROJECT- The terms `core IT investment project' and `core project' mean a mission critical major IT investment project so designated in accordance with subsection (d).

      `(7) DIRECTOR- The term `Director' means the Director of the Office of Management and Budget.

      `(8) EARNED VALUE MANAGEMENT- The term `Earned Value Management' means the cost, schedule, and performance data used to determine project status and developed in accordance with the ANSI EIA-748 Standard.

      `(9) GROSSLY DEVIATED- The term `grossly deviated' means cost, schedule, or performance variance that is at least 40 percent from the original baseline.

      `(10) LIFE CYCLE COST- The term `life cycle cost' means the total cost of a major IT investment project for planning, research and development, modernization, enhancement, operation, and maintenance.

      `(11) MAJOR IT INVESTMENT PROJECT- The term `major IT investment project' means an information technology system or information technology acquisition that--

        `(A) requires special management attention because of its importance to the mission or function of the agency, a component of the agency, or another organization;

        `(B) is for financial management and obligates more than $500,000 annually;

        `(C) has significant program or policy implications;

        `(D) has high executive visibility;

        `(E) has high development, operating, or maintenance costs;

        `(F) is funded through other than direct appropriations; or

        `(G) is defined as major by the agency's capital planning and investment control process.

      `(12) OFFICE OF MANAGEMENT AND BUDGET PERFORMANCE AND GOVERNANCE REVIEW- The term `Office of Management and Budget performance and governance review' means a systematic review of investments experiencing performance problems that--

        `(A) is conducted by relevant agency leadership, the Chief Information Officer, and the E-Government Administrator; and

        `(B) includes an analysis and discussion of--

          `(i) the project's overall intent and purpose and measurable goals and objectives;

          `(ii) rationale for the project's variance from the original goals and performance measures;

          `(iii) any additional scope that may have been added to the project, including cost, schedule, and performance impact;

          `(iv) any previous corrective action plans and outcomes and forward thinking plans to prevent subsequent variances;

          `(v) a presentation of significant risks with mitigation strategies and assignment of risk owners; and

          `(vi) the concerns of the Chief Information Officer and the E-Government Administrator with the investment and their assessment of whether the project is viable.

      `(13) ORIGINAL BASELINE-

        `(A) IN GENERAL- Except as provided under subparagraphs (B) and (C), the term `original baseline' means--

          `(i) the ANSI EIA-748 Standard-compliant Earned Value Management benchmark; or

          `(ii) an equivalent benchmark approved by the Office of Management and Budget and established at the commencement of an IT investment project.

        `(B) GROSSLY DEVIATED PROJECT- If a major IT investment project grossly deviates from its original baseline (as defined in subparagraph (A)), the term `original baseline' means--

          `(i) the ANSI EIA-748 Standard-compliant Earned Value Management benchmark; or

          `(ii) an equivalent benchmark approved by the Office of Management and Budget after the commencement of an IT investment project.

        `(C) STATUTORY OR BUDGETARY CHANGES- If a project significantly or grossly deviates solely as a result of a substantial statutory change or a substantial reduction in Federal funding for the project, and the deviation cannot be prevented through proper project management, the Agency Head may authorize the Chief Information Officer to establish a new baseline. The Agency Head shall notify Congress of any new baselines authorized under this subparagraph not later than 30 days after such authorization.

      `(14) SIGNIFICANTLY DEVIATED- The term `significantly deviated' means cost, schedule, or performance variance that has deviated at least 20 percent from the original baseline.

    `(b) Response to Significant Deviation-

      `(1) RESPONSIBILITIES OF CHIEF INFORMATION OFFICER- If a Chief Information Officer, while entering project data under section 11311(3)(A), determines that a major IT investment project of an agency has significantly deviated, the Chief Information Officer shall--

        `(A) notify the Agency Head of such deviation; and

        `(B) conduct an agency performance and governance review.

      `(2) REPORT-

        `(A) IN GENERAL- Using the results of the review conducted under paragraph (1)(B), the Agency Head shall submit a report containing the information described in subparagraph (B), not later than 30 days after the end of the month upon which such information is based, to the appropriate congressional committees, the Director, and the Comptroller General of the United States.

        `(B) CONTENTS OF REPORT- The report submitted under subparagraph (A) shall contain the results of the review conducted under paragraph (1)(B), including--

          `(i) the challenges and causes of the variance from the project baseline;

          `(ii) a summary of risks, mitigation strategies, and clear lines of responsibility and accountability for project deviations;

          `(iii) enhanced contractor performance metrics and controls for existing contracts;

          `(iv) a revised acquisition plan for contracts expected to be executed during the following fiscal year that address the issues identified in the report;

          `(v) a high-level schedule that articulates critical path items;

          `(vi) a description of how--

            `(I) the project's governance will be more rigorous because of the improvement plan laid out in the report; and

            `(II) the agency will improve the internal oversight of contract and program management to ensure better performance; and

          `(vii) a list of specific corrective actions to turn around the project.

      `(3) EXEMPTION-

        `(A) IN GENERAL- A Chief Information Officer is exempt from conducting an agency performance and governance review of a project experiencing a significant deviation if the Agency Head certifies that--

          `(i) the deviation was solely the result of--

            `(I) a substantial change in project requirements due to a Federal law that was enacted after the commencement of the project; or

            `(II) a substantial reduction in Federal funding for the project because of congressional action; and

          `(ii) the significant deviation could not have been prevented through proper project management.

        `(B) CONGRESSIONAL NOTIFICATION- Not later than 30 days after the discovery of a significant deviation about which the Agency Head certifies that an exemption is warranted under subparagraph (A), the Agency Head shall notify Congress of such significant deviation and the reason for such exemption.

    `(c) Response to Gross Deviation-

      `(1) RESPONSIBILITIES OF CHIEF INFORMATION OFFICER- If a Chief Information Officer, while entering project data under section 11311(3)(A), determines that a major IT investment project of an agency has grossly deviated or that a core IT investment project has significantly deviated, the E-Government Administrator shall--

        `(A) conduct an Office of Management and Budget performance and governance review of the project; and

        `(B) using the results of such review, submit a report containing the information described in paragraph (2), not later than 30 days after the end of the month upon which such information is based, to the appropriate congressional committees and the Comptroller General of the United States.

      `(2) CONTENTS OF REPORT- The report submitted under paragraph (1)(B) shall contain the results of the review conducted under paragraph (1)(A), including--

        `(A) all the information required under subsection (b)(2);

        `(B) the original and expected life cycle costs of the investment, expressed in constant base year dollars and in current dollars;

        `(C) a certification by the Agency Head, after consultation with the Chief Information Officer, that all technical and business requirements have been reviewed and validated to ensure alignment with the business case;

        `(D) a recommendation from the Office of Management and Budget on whether the scope of the project should be substantively changed or terminated;

        `(E) a new baseline for the project;

        `(F) the number of times the project has been rebaselined and the former baselines; and

        `(G) a referral to the agency Inspector General to review the project.

      `(3) PROJECT DESIGNATION- After a Chief Information Officer determines that a major IT investment project has grossly deviated, the project shall be treated as a core IT investment project in accordance with subsection (d).

      `(4) EXEMPTION-

        `(A) IN GENERAL- The E-Government Administrator is exempt from conducting an Office of Management and Budget performance and governance review for a project experiencing a gross deviation if the E-Government Administrator certifies that--

          `(i) the deviation was solely the result of--

            `(I) a substantial change in project requirements due to a Federal law that was enacted after the commencement of the project; or

            `(II) a substantial reduction in Federal funding for the project because of congressional action; and

          `(ii) the gross deviation could not have been prevented through proper project management.

        `(B) CONGRESSIONAL NOTIFICATION- Not later than 30 days after the discovery of a gross deviation about which the E-Government Administrator certifies that an exemption is warranted under subparagraph (A), the E-Government Administrator shall notify Congress of such gross deviation and the reason for such exemption.

    `(d) Core IT Investment Projects-

      `(1) DESIGNATION- Each Agency Head, in consultation with the Chief Information Officer of the agency, shall designate the most costly and critical major IT investment projects within the agency as core IT investment projects after weighing the following factors:

        `(A) The project's ability to deliver a capability that is critical to the successful completion of the agency's mission or a portion of such mission.

        `(B) The relative dollar value of the project relative to the average IT investment project in the agency's portfolio.

        `(C) The incorporation of unproven or previously undeveloped technology to meet primary project technical requirements.

        `(D) The likelihood that significant cost, schedule, or performance deviations would have a considerable negative impact on the successful completion of the agency mission.

        `(E) The cruciality of management and oversight to prevent the negative impacts that would result from the project's failure.

      `(2) SUBMISSION OF ADDITIONAL PLANNING INFORMATION- While entering project data under section 11311(3)(A), the Chief Information Officer shall submit additional planning information regarding core projects to the IT Dashboard, including--

        `(A) a description of the primary business case and key functional performance capabilities for the core project;

        `(B) an identification and description of mission benefits, key milestones, and lifecycle costs for the core project;

        `(C) an independent cost estimate for the core project;

        `(D) a certification by the Chief Information Officer that all technical and business requirements have been reviewed and validated to ensure alignment with the reported business case; and

        `(E) any changes to the primary business case or key functional performance capabilities that have occurred since project inception.

    `(e) Effect of Agency Noncompliance- If an Agency Head fails to timely submit the information required under section 11311 for a major IT investment project or conduct a review required under subsection (b)(1)(A) of such project in a timely manner, the Director may prohibit additional expenditures for the project (other than expenditures needed to meet the requirements of this chapter) until such requirements have been met.'.

SEC. 5. 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.

END