Federal Information Technology Acquisition Reform Act

Federal Information Technology Acquisition Reform Act - Modifies the current framework governing the management of information technology (IT) within the federal government to: (1) require presidential appointment or designation of the Chief Information Officer (CIO) in 16 specified federal agencies (thereby providing consistency with the presidential appointment or designation of Chief Financial Officers for such agencies, but specifically excludes the Department of Defense [DOD] and provides for the heads of other agencies to continue to designate an agency CIO), (2) designate the Chief Information Officers Council as the lead interagency forum for improving agency coordination information resources investment, and (3) require the Comptroller General (GAO) to examine the effectiveness of the Council.

Directs such CIOs to report directly to the head of the agency. Sets forth authorities relating to budget planning and the hiring of IT personnel.

Requires each agency to have only one CIO but permits offices within an agency to designate a deputy, associate, or assistant CIO.

Requires the Federal Chief Information Officer (FCIO) (defined as the Administrator of the Office of Electronic Government in the Office of Management and Budget [OMB]) to 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. Sets forth permitted methods for agencies to consolidate data centers and achieve maximum server utilization and energy efficiency. Requires agencies to track costs resulting from implementation of the Initiative within the agency and submit an annual report on such costs to the FCIO.

Requires the OMB Director to: (1) develop a plan for conducting a government-wide inventory of IT assets, and (2) assess all publicly available websites of federal agencies and require agencies to eliminate or consolidate any duplicate or overlapping websites.

Expresses the sense of Congress that transition to cloud computing offers significant potential benefits for the the implementation of federal IT projects. Permits CIOs to establish cloud service working capital funds.

Prohibits an executive agency from issuing a solicitation for certain covered contract vehicles unless the agency performs a business case analysis and obtains approval from the Administrator for Federal Procurement Policy (FPP).

Directs the OMB Director to: (1) establish a Federal Infrastructure and Common Application Collaboration Center to serve as a focal point for coordinated program management practices and to develop and maintain requirements for the acquisition of IT infrastructure and applications commonly used by federal agencies, and (2) designate Assisted Acquisition Centers of Excellence (AACEs) to develop areas of specialized acquisition expertise within various executive agencies. Sets forth authority for AACEs to implement best practices, assist agencies in expedient and low-cost interagency acquistions by engaging in repeated and frequent acquisition of similar IT requirements, and assist with recruitment and training.

Requires the OMB Director to submit to Congress: (1) a five-year strategic plan to develop, strengthen, and solidify IT acquisition cadres; and (2) a plan for improving management of IT programs and projects.

Directs the FPP Administrator to prescribe regulations requiring a comparative value analysis to be included in the contract file when the federal government purchases services and supplies offered under the Federal Strategic Sourcing Initiative from sources outside such Initiative.

Permits executive agencies to state in solicitations that awards 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.

Requires additional information concerning blanket purchase agreements and IT investments to be made available to the public.

Establishes guidance with respect to the validity of open source software as a procurement option required to receive full consideration alongside other options (in merit-based requirements development and evaluation processes promoting choices based on performance and value) in a manner free of preconceived preferences based on how technology is developed, licensed, or distributed within the federal government. Prohibits such guidance from modifying the federal policy of following technology-neutral principles when selecting and acquiring information technology.

Requires federal computer standards to include guidelines necessary to enable effective adoption of open source software. Directs the OMB Director to issue guidance for the use and collaborative development of open source software within the federal government.

Federal Information Technology Acquisition Reform Act - Title I: Management of Information Technology Within Federal Government - (Sec. 101) Modifies the current framework governing the management of information technology (IT) within the federal government to require presidential appointment or designation of the Chief Information Officer (CIO) in the following federal agencies:

• Department of Agriculture (USDA),
• Department of Commerce,
• Department of Defense (DOD),
• Department of Education,
• Department of Energy (DOE),
• Department of Health and Human Services (HHS),
• Department of Homeland Security (DHS),
• Department of Housing and Urban Development (HUD),
• Department of the Interior,
• Department of Justice (DOJ),
• Department of Labor,
• Department of State,
• Department of Transportation (DOT),
• Department of the Treasury,
• Department of Veterans Affairs (VA),
• Environmental Protection Agency (EPA), and
• National Aeronautics and Space Administration (NASA).

Requires such CIOs to report directly to the head of their respective agencies.

Requires the heads of such agencies, as well as the heads of the U.S. Agency for International Development (USAID), General Services Administration (GSA), National Science Foundation (NSF), Nuclear Regulatory Commission (NRC), Office of Personnel Management (OPM), Small Business Administration (SBA), and Social Security Administration (SSA), to ensure that each agency's CIO is authorized to: (1) participate in technology-related budget planning, and (2) approve the hiring of technology personnel, and (3) require such technology personnel to report to the CIO.

Requires specified agencies to have only one CIO, but permits offices within an agency to designate a deputy, associate, or assistant CIO.

(Sec. 102) Designates the Chief Information Officers Council as the lead interagency forum for improving agency coordination of information resources investment. Requires the Council, annually over a six-year period, to report to the defense and oversight committees on its activities.

(Sec. 103) Requires the Comptroller General (CG) to examine the effectiveness of the Council, and report examination results to such committees.

Title II: Data Center Optimization - (Sec. 203) Requires the Federal Chief Information Officer (FCIO) (defined as the Administrator of the Office of Electronic Government in the Office of Management and Budget [OMB]) to develop and implement the Federal Data Center Optimization Initiative to optimize the usage and efficiency of federal data centers. Directs the FCIO to develop and submit to Congress a plan for the Initiative.

(Sec. 204) Sets forth permissible methods for agencies to consolidate data centers and achieve maximum server utilization and energy efficiency.

(Sec. 205) Requires agencies to track costs resulting from implementation of the Initiative within each agency and to submit an annual report on such costs to the FCIO. Requires such agencies to also track realized and projected savings achieved. Directs the CG to examine methods for calculating savings from the Initiative and to report findings and recommendations to the FCIO.

(Sec. 206) Requires: (1) each agency to report annually to the FCIO on Initiative implementation, and (2) the FCIO to report annually to such committees assessing agency progress in carrying out the Initiative.

Title III: Elimination of Duplication and Waste in Information Technology Acquisition - (Sec. 301) Requires the OMB Director to develop a plan for conducting a government-wide inventory of IT software assets and to submit such plan to Congress. Directs the CG to review such plan and submit review results to such committees.

(Sec. 302) Directs the OMB Director to: (1) assess all publicly available websites of federal agencies, and (2) require agencies to eliminate or consolidate any duplicate or overlapping sites.

(Sec. 303) Expresses the sense of Congress that transition to cloud computing offers significant potential benefits for the implementation of federal IT projects. Permits CIOs to establish cloud service working capital funds.

(Sec. 304) Prohibits an executive agency from issuing a solicitation for a covered government-wide contract unless the agency performs a business case analysis and obtains approval from the Administrator for Federal Procurement Policy (FPP). Requires such Administrator to report to such committees on the implementation of this section.

Defines "covered government-wide contract," subject to specified exceptions, as a contract for IT or other goods or services that allows an indefinite number of orders to be placed and is established by one executive agency for use by multiple executive agencies. Excludes from such definition contracts of less than $10 million, determined on an average annual basis.

Title IV: Strengthening and Streamlining Information Technology Acquisition Management Practices - Subtitle A: Strengthening and Streamlining IT Program Management Practices - (Sec. 401) Requires the OMB Director to: (1) conduct a three-year pilot program to test alternative approaches for the management of commonly used IT by executive agencies; and (2) establish, for purposes of such program, a Federal Infrastructure and Common Application Collaboration Center.

Provides for such Center to serve as a resource for federal agencies, on an optional-use basis, to: (1) assist and promote coordinated program management practices, and (2) develop and maintain requirements for the acquisition of IT infrastructure and applications commonly used by federal agencies.

Requires: (1) the Director to report annually to such committees on the Center's organization, staff, and activities; and (2) the Center to compile a price list and catalogue containing current pricing information by vendor for each of its IT infrastructure and common applications categories. Provides deadlines for various Center activities.

(Sec. 402) Requires the OMB Director, within one year after the enactment of this section and every three years thereafter, to designate, redesignate, or withdraw the designation of assisted acquisition centers of excellence (AACEs) to develop areas of specialized IT acquisition expertise within various executive agencies. Sets forth authority for AACEs to: (1) implement best practices; (2) assist agencies in expedient, strategic, and cost-effective interagency acquisitions by engaging in repeated and frequent acquisition of similar IT requirements; and (3) assist with IT workforce recruitment and training. Directs the CG to review and assess the use and management of fees received by the AACEs and report review results to such committees.

Subtitle B: Strengthening IT Acquisition Workforce - (Sec. 411) Requires the Director to submit to such committees a five-year strategic plan to develop, strengthen, and solidify IT acquisition cadres. Requires: (1) the Director to report annually for five years after such plan's submission on progress made under the plan, (2) the CG to review such plan and report review results, and (3) the CG to independently assess the findings of the annual report and brief such committees thereafter. (According to H.Rept. 113-359, "Director" is the OMB Director.)

(Sec. 412) Requires the OMB Director to submit to such committees a plan for improving management of IT programs and projects.

(Sec. 413) Directs OPM to develop policies for agencies to develop a program to recognize excellent performance by federal employees and teams in the acquisition of information systems and IT. Requires such policies to include guidance regarding the award of cash bonuses and other incentives.

Title V: Additional Reforms - (Sec. 501) Directs the FPP Administrator to prescribe regulations requiring a comparative value analysis to be included in the contract file when the federal government purchases services and supplies offered under the Federal Strategic Sourcing Initiative from sources outside such Initiative.

(Sec. 502) Requires GSA to identify and develop a strategic sourcing initiative to enhance government-wide acquisition, shared use, and dissemination of software, as well as compliance with end user license agreements.

(Sec. 503) Requires the final negotiated price offered by an awardee of a blanket purchase agreement to be treated as public information. Requires additional information concerning blanket purchase agreements and IT investments to be made available to the public.

(Sec. 504) Permits executive agencies to state in solicitations that awards will be made using a fixed price technical competition under which all offerors compete solely on non-price factors and the fixed award price is pre-announced in the solicitation.

(Sec. 505) Requires the OMB Director to make publicly available the cost, schedule, and performance data for: (1) at least 80% of all IT investments government-wide, (2) at least 60% of all IT investments made by specified federal agencies, and (3) every IT investment in such agencies that OMB defines as a major IT investment. Allows for the waiver of such requirement in the interest of national security.

(Sec. 506) Requires the Federal Acquisition Regulatory Council to prescribe a regulation making it clear that agency acquisition personnel are permitted and encouraged to engage in responsible and constructive exchanges with industry, so long as such exchanges are consistent with existing law and regulation and do not promote an unfair competitive advantage to particular firms.

(Sec. 507) Establishes guidance for developing and evaluating software acquisition processes that promote procurement choices based on performance and value in a manner free of preconceived preferences based on how technology is developed, licensed, or distributed. Requires the OMB Director to issue guidance concerning the technology-neutral procurement and use of software within the federal government. Prohibits such guidance from modifying the federal policy of following technology-neutral principles when selecting and acquiring IT. Directs the CG to report to such committees on an assessment of the effectiveness of the guidance issued, an identification of barriers to widespread federal government use of specific software technologies, and appropriate recommendations.

Federal Information Technology Acquisition Reform Act - Title I: Management of Information Technology within Federal Government - (Sec. 101) Requires the heads of the following agencies to ensure that their respective chief information officers (CIOs) have a significant role in information technology (IT) decisions, including annual and multi-year planning, programming, budgeting, execution, reporting, management, governance, and oversight functions:

• Department of Agriculture (USDA),
• Department of Commerce,
• Department of Defense (DOD),
• Department of Education,
• Department of Energy (DOE),
• Department of Health and Human Services (HHS),
• Department of Homeland Security (DHS),
• Department of Housing and Urban Development (HUD),
• Department of the Interior,
• Department of Justice (DOJ),
• Department of Labor,
• Department of State,
• Department of Transportation (DOT),
• Department of the Treasury,
• Department of Veterans Affairs (VA),
• Environmental Protection Agency (EPA),
• National Aeronautics and Space Administration (NASA),
• U.S. Agency for International Development (USAID),
• General Services Administration (GSA),
• National Science Foundation (NSF),
• Nuclear Regulatory Commission (NRC),
• Office of Personnel Management (OPM),
• Small Business Administration (SBA),
• Social Security Administration, and
• military departments (Departments of the Army, the Navy, and the Air Force).

Requires the Office of Management and Budget's (OMB's) annual information technology capital planning guidance to require such CIOs (excluding the military departments) to: (1) approve their agency's IT budget requests, (2) certify that IT investments adequately implement incremental development, and (3) ensure that all requested IT positions meet ongoing requirements.

Prohibits such agencies (including the military departments) from contracting for IT and requesting the reprogramming of IT funds without their CIO's review and approval. Allows agencies to approve contracts through an agency governance process if the CIO is included as a full participant.

Permits CIOs to delegate contract approval duties for OMB-defined non-major IT investments to an individual who reports directly to the CIO.

Requires CIOs (excluding the military departments) to approve the appointment of any other employee who functions in the capacity of a CIO for any component organization within the agency.

(Sec. 102) Sets forth requirements concerning OMB's risk management program for major IT investments.

Requires the OMB Director to make publicly available the cost, schedule, and performance data for each IT investment designated as major within specified agencies. Permits the Director to waive public availability requirements in the interest of national security.

Requires CIOs and investment program managers of specified agencies to certify at least quarterly the accuracy and risks associated with such investments. Directs such CIOs to categorize the investment level of risk using specified cost and schedule risk rating factors.

Directs the OMB's Office of Electronic Government (commonly referred to as the Office of E-Government and Information Technology) to: (1) review each major IT investment that, for four consecutive quarters, receives a high risk rating; and (2) communicate to Congress the causes of the high risk level and the probability of future success.

Requires the Director, if an investment is still rated as high risk on the date that is one year after the completion of such review, to deny any request for additional development, modernization, or enhancement funding for such investment until the CIO certifies that: (1) the root causes have been addressed, and (2) there is sufficient capability to deliver the remaining planned increments within the planned cost and schedule.

Requires the OMB to expand an existing report to Congress concerning net program performance benefits resulting from major capital investments (made by executive agencies for information systems) to include an analysis of the trends reflected in performance risk data.

Terminates the provisions of this section five years after enactment of this Act.

(Sec. 103) Directs the GSA to develop a strategic sourcing initiative to enhance government-wide acquisition, shared use, and dissemination of software, as well as compliance with end user license agreements. Requires the GSA to allow the purchase of a license agreement that is available for use by all executive agencies as one user.

Title II: Portfolio Review and Federal Data Center Consolidation Initiative - (Sec. 201) Requires the OMB, for the five-year period after enactment of this Act, to implement a process for agencies to review their IT investment portfolios to reduce duplication and waste, consolidate acquisition and management functions, and increase cost savings. Directs specified CIOs to review such portfolios annually and requires the Office of Electronic Government to report to Congress quarterly regarding cost savings and reductions in duplicative investments identified by such reviews.

(Sec. 202) Directs specified agencies to submit annually to the Administrator for the Office of E-Government and Information Technology (referred to above as the Office of Electronic Government): (1) a comprehensive inventory of data centers owned, operated, or maintained by or on behalf of the agency; and (2) a multi-year strategy to consolidate and optimize inventoried data centers. Requires such strategies to include performance metrics, timelines, and year-by-year calculations of investment and cost savings to measure progress toward meeting goals of the Federal Data Center Consolidation Initiative (FDCCI) described in the OMB Memorandum on the Federal Data Center Consolidation Initiative, dated February 26, 2010.

Directs CIOs to update the Administrator quarterly regarding the progress of agencies implementing such strategies.

Requires the Administrator to: (1) establish requirements that agencies must meet to comply with such inventories and strategies, (2) make information regarding agencies' progress available to the public, (3) update annually the cumulative cost savings realized through implementation of the FDCCI, and (4) establish metrics applicable to the consolidation and optimization of data centers government-wide.

Directs the Administrator to develop, and make publicly available, a goal, broken down by year, for the amount of planned cost savings and optimization improvements achieved through the FDCCI. Requires the Administrator to submit such goal to Congress with an assessment broken down by agency.

Requires the Administrator, each year after the goal is made publicly available, to compare reported cost savings of each agency to goal projections.

Directs the Comptroller General (GAO) to publish an annual report reviewing the quality and completeness of agency asset inventories and strategies.

Permits the Director of National Intelligence (DNI) to waive the applicability to any element of the intelligence community of any provision of this section if the waiver is in the interest of national security. Requires the DNI to notify Congress of the reasons for any waiver.

Repeals this section on October 1, 2018.