590 1 whole or in part by the Government of the Russian 2 Federation 3 c RULE OF CONSTRUCTION --Nothing in this section 4 may be construed as applying to the editorial use by a local 5 commercial television station qualified noncommercial edu6 cational television station or television broadcast station 7 of programming that is owned controlled or financed in 8 whole or in part by the Government of the Russian Federa9 tion 10 11 12 13 Subtitle H--Modernizing Government Technology SEC 1091 SHORT TITLE This subtitle may be cited as the ''Modernizing Gov- 14 ernment Technology Act of 2017'' or the ''MGT Act'' 15 SEC 1092 DEFINITIONS 16 In this subtitle 17 1 ADMINISTRATOR --The term ''Adminis- 18 trator'' means the Administrator of General Services 19 2 BOARD --The term ''Board'' means the Tech- 20 nology Modernization Board established under section 21 1094 c 1 22 3 CLOUD COMPUTING --The term ''cloud com- 23 puting'' has the meaning given the term by the Na- 24 tional Institute of Standards and Technology in HR 2810 PAP 591 1 NIST Special Publication 800-145 and any amend- 2 atory or superseding document thereto 3 4 4 DIRECTOR --The term ''Director'' means the Director of the Office of Management and Budget 5 5 FUND --The term ''Fund'' means the Tech- 6 nology Modernization Fund established under section 7 1094 b 1 8 9 10 11 6 INFORMATION TECHNOLOGY --The term ''in- formation technology'' has the meaning given the term in section 3502 of title 44 United States Code 7 IT WORKING CAPITAL FUND --The term ''IT 12 working capital fund'' means an information tech- 13 nology system modernization and working capital 14 fund established under section 1093 b 1 15 8 LEGACY INFORMATION TECHNOLOGY SYS- 16 TEM --The 17 tem'' means an outdated or obsolete system of infor- 18 mation technology 19 term ''legacy information technology sys- SEC 1093 ESTABLISHMENT OF AGENCY INFORMATION 20 TECHNOLOGY 21 AND WORKING CAPITAL FUNDS 22 SYSTEMS MODERNIZATION a DEFINITION --In this section the term ''covered 23 agency'' means each agency listed in section 901 b of title 24 31 United States Code HR 2810 PAP 592 1 2 b INFORMATION TECHNOLOGY SYSTEM MODERNIZATION AND WORKING CAPITAL FUNDS -- 3 1 ESTABLISHMENT --The head of a covered 4 agency may establish within the covered agency an 5 information technology system modernization and 6 working capital fund for necessary expenses described 7 in paragraph 3 8 9 2 SOURCE OF FUNDS --The following amounts may be deposited into an IT working capital fund 10 A Reprogramming and transfer of funds 11 made available in appropriations Acts enacted 12 after the date of enactment of this Act including 13 the transfer of any funds for the operation and 14 maintenance of legacy information technology 15 systems in compliance with any applicable re- 16 programming law or guidelines of the Commit- 17 tees on Appropriations of the Senate and the 18 House of Representatives or transfer authority 19 specifically provided in appropriations law 20 B Amounts made available to the IT 21 working capital fund through discretionary ap- 22 propriations made available after the date of en- 23 actment of this Act HR 2810 PAP 593 1 3 USE OF FUNDS --An IT working capital 2 fund established under paragraph 1 may only be 3 used-- 4 A to improve retire or replace existing 5 information technology systems in the covered 6 agency to enhance cybersecurity and to improve 7 efficiency and effectiveness across the life of a 8 given workload procured using full and open 9 competition among all commercial items to the 10 greatest extent practicable 11 B to transition legacy information tech- 12 nology systems at the covered agency to commer- 13 cial cloud computing and other innovative com- 14 mercial platforms and technologies including 15 those serving more than 1 covered agency with 16 common requirements 17 C to assist and support covered agency ef- 18 forts to provide adequate risk-based and cost-ef- 19 fective information technology capabilities that 20 address evolving threats to information security 21 D to reimburse funds transferred to the 22 covered agency from the Fund with the approval 23 of the Chief Information Officer in consultation 24 with the Chief Financial Officer of the covered 25 agency and HR 2810 PAP 594 1 E for a program project or activity or to 2 increase funds for any program project or ac- 3 tivity that has not been denied or restricted by 4 Congress 5 4 EXISTING FUNDS --An IT working capital 6 fund may not be used to supplant funds provided for 7 the operation and maintenance of any system within 8 an appropriation for the covered agency at the time 9 of establishment of the IT working capital fund 10 11 5 PRIORITIZATION OF FUNDS --The head of each covered agency-- 12 A shall prioritize funds within the IT 13 working capital fund of the covered agency to be 14 used initially for cost savings activities approved 15 by the Chief Information Officer of the covered 16 agency and 17 B may reprogram and transfer any 18 amounts saved as a direct result of the cost sav- 19 ings activities approved under clause i for de- 20 posit into the IT working capital fund of the cov- 21 ered agency consistent with paragraph 2 A 22 6 AVAILABILITY 23 A IN OF FUNDS -- GENERAL --Any funds deposited into 24 an IT working capital fund shall be available for 25 obligation for the 3-year period beginning on the HR 2810 PAP 595 1 last day of the fiscal year in which the funds 2 were deposited 3 B TRANSFER OF UNOBLIGATED 4 AMOUNTS --Any 5 ital fund that are unobligated at the end of the 6 3-year period described in subparagraph A 7 shall be transferred to the general fund of the 8 Treasury 9 7 AGENCY amounts in an IT working cap- CIO RESPONSIBILITIES --In evalu- 10 ating projects to be funded by the IT working capital 11 fund of a covered agency the Chief Information Offi- 12 cer of the covered agency shall consider to the extent 13 applicable guidance issued under section 1094 b 1 14 to evaluate applications for funding from the Fund 15 that include factors including a strong business case 16 technical design consideration of commercial off-the- 17 shelf products and services procurement strategy in- 18 cluding adequate use of rapid iterative software de- 19 velopment practices and program management 20 c REPORTING REQUIREMENT -- 21 1 IN GENERAL --Not later than 1 year after 22 the date of enactment of this Act and every 6 months 23 thereafter the head of each covered agency shall sub- 24 mit to the Director with respect to the IT working 25 capital fund of the covered agency-- HR 2810 PAP 596 1 A a list of each information technology in- 2 vestment funded including the estimated cost 3 and completion date for each investment and 4 B a summary by fiscal year of obliga- 5 tions expenditures and unused balances 6 2 PUBLIC AVAILABILITY --The Director shall 7 make the information submitted under paragraph 1 8 publicly available on a website 9 SEC 1094 ESTABLISHMENT OF TECHNOLOGY MODERNIZA- 10 11 TION FUND AND BOARD a DEFINITION --In this section the term ''agency'' 12 has the meaning given the term in section 551 of title 5 13 United States Code 14 b TECHNOLOGY MODERNIZATION FUND -- 15 1 ESTABLISHMENT --There is established in 16 the Treasury a Technology Modernization Fund for 17 technology-related activities to improve information 18 technology to enhance cybersecurity across the Fed- 19 eral Government and to be administered in accord- 20 ance with guidance issued by the Director 21 2 ADMINISTRATION OF FUND --The Adminis- 22 trator in consultation with the Chief Information Of- 23 ficers Council and with the approval of the Director 24 shall administer the Fund in accordance with this 25 subsection HR 2810 PAP 597 1 3 USE OF FUNDS --The Administrator shall 2 in accordance with recommendations from the Board 3 use amounts in the Fund-- 4 A to transfer such amounts to remain 5 available until expended to the head of an agen- 6 cy for the acquisition of products and services or 7 the development of such products and services 8 when more efficient and cost effective to im- 9 prove retire or replace existing Federal infor- 10 mation technology systems to enhance cybersecu- 11 rity and privacy and improve long-term effi- 12 ciency and effectiveness 13 B to transfer such amounts to remain 14 available until expended to the head of an agen- 15 cy for the operation and procurement of infor- 16 mation technology products and services or the 17 development of such products and services when 18 more efficient and cost effective and acquisition 19 vehicles for use by agencies to improve Govern- 20 mentwide efficiency and cybersecurity in accord- 21 ance with the requirements of the agencies 22 23 C to provide services or work performed in support of-- 24 i the activities described in subpara- 25 graph A or B and HR 2810 PAP 598 1 ii the Board and the Director in car- 2 rying out the responsibilities described in 3 subsection c 2 and 4 D to fund only programs projects or ac- 5 tivities or to fund increases for any programs 6 projects or activities that have not been denied 7 or restricted by Congress 8 4 AUTHORIZATION 9 OF APPROPRIATIONS CRED- ITS AVAILABILITY OF FUNDS -- 10 A AUTHORIZATION OF APPROPRIA- 11 TIONS --There 12 to the Fund $250 000 000 for each of fiscal years 13 2018 and 2019 is authorized to be appropriated 14 B CREDITS --In addition to any funds 15 otherwise appropriated the Fund shall be cred- 16 ited with all reimbursements advances or re- 17 funds or recoveries relating to information tech- 18 nology or services provided for the purposes de- 19 scribed in paragraph 3 20 C AVAILABILITY OF FUNDS --Amounts de- 21 posited credited or otherwise made available to 22 the Fund shall be available until expended for 23 the purposes described in paragraph 3 24 5 REIMBURSEMENT -- 25 A REIMBURSEMENT HR 2810 PAP BY AGENCY -- 599 1 i IN GENERAL --The head of an 2 agency shall reimburse the Fund for any 3 transfer made under subparagraph A or 4 B of paragraph 3 including any serv- 5 ices or work performed in support of the 6 transfer under paragraph 3 C in accord- 7 ance with the terms established in a written 8 agreement described in paragraph 6 9 ii REIMBURSEMENT FROM SUBSE- 10 QUENT APPROPRIATIONS --Notwithstanding 11 any other provision of law an agency may 12 make a reimbursement required under 13 clause i from any appropriation made 14 available after the date of enactment of this 15 Act for information technology activities 16 consistent with any applicable reprogram- 17 ming law or guidelines of the Committees 18 on Appropriations of the Senate and the 19 House of Representatives 20 iii RECORDING OF OBLIGATION -- 21 Notwithstanding section 1501 of title 31 22 United States Code an obligation to make 23 a payment under a written agreement de- 24 scribed in paragraph 6 in a fiscal year 25 after the date of enactment of this Act shall HR 2810 PAP 600 1 be recorded in the fiscal year in which the 2 payment is due 3 B PRICES 4 i IN FIXED BY ADMINISTRATOR -- GENERAL --The Administrator 5 in consultation with the Director shall es- 6 tablish amounts to be paid by an agency 7 under this paragraph and the terms of re- 8 payment for activities funded under para- 9 graph 3 including any services or work 10 performed in support of that development 11 under paragraph 3 C at levels sufficient 12 to ensure the solvency of the Fund includ- 13 ing operating expenses 14 ii REVIEW AND APPROVAL --Before 15 making any changes to the established 16 amounts and terms of repayment the Ad- 17 ministrator shall conduct a review and ob- 18 tain approval from the Director 19 C FAILURE TO MAKE TIMELY REIMBURSE- 20 MENT --The 21 bursement from an agency under this paragraph 22 by the issuance of transfer and counterwarrants 23 or other lawful transfer documents supported by 24 itemized bills if payment is not made by the 25 agency during the 90-day period beginning after HR 2810 PAP Administrator may obtain reim- 601 1 the expiration of a repayment period described 2 in a written agreement described in paragraph 3 6 4 6 WRITTEN 5 A IN AGREEMENT -- GENERAL --Before the transfer of 6 funds to an agency under subparagraphs A 7 and B of paragraph 3 the Administrator in 8 consultation with the Director and the head of 9 the agency shall enter into a written agree- 10 ment-- 11 i documenting the purpose for which 12 the funds will be used and the terms of re- 13 payment which may not exceed 5 years un- 14 less approved by the Director and 15 ii which shall be recorded as an obli- 16 gation as provided in paragraph 5 A 17 B REQUIREMENT FOR USE OF INCRE- 18 MENTAL FUNDING COMMERCIAL PRODUCTS AND 19 SERVICES AND RAPID ITERATIVE DEVELOPMENT 20 PRACTICES --The Administrator shall ensure-- 21 i for any funds transferred to an 22 agency under paragraph 3 A in the ab- 23 sence of compelling circumstances docu- 24 mented by the Administrator at the time of 25 transfer that such funds shall be transferred HR 2810 PAP 602 1 only on an incremental basis tied to met- 2 ric-based development milestones achieved 3 by the agency through the use of rapid 4 iterative development processes and 5 ii that the use of commercial prod- 6 ucts and services are incorporated to the 7 greatest extent practicable in activities 8 funded under subparagraphs A and B of 9 paragraph 3 and that the written agree- 10 ment required under paragraph 6 docu- 11 ments this preference 12 7 REPORTING 13 A LIST 14 REQUIREMENTS -- OF PROJECTS -- i IN GENERAL --Not later than 6 15 months after the date of enactment of this 16 Act the Director shall maintain a list of 17 each project funded by the Fund to be up- 18 dated not less than quarterly that includes 19 a description of the project project status 20 including any schedule delay and cost 21 overruns financial expenditure data re- 22 lated to the project and the extent to which 23 the project is using commercial products 24 and services including if applicable a jus- 25 tification of why commercial products and HR 2810 PAP 603 1 services were not used and the associated de- 2 velopment and integration costs of custom 3 development 4 ii PUBLIC AVAILABILITY --The list 5 required under clause i shall be published 6 on a public website in a manner that is to 7 the greatest extent possible consistent with 8 applicable law on the protection of classified 9 information sources and methods 10 B COMPTROLLER GENERAL REPORTS -- 11 Not later than 2 years after the date of enact- 12 ment of this Act and every 2 years thereafter 13 the Comptroller General of the United States 14 shall submit to Congress and make publically 15 available a report assessing-- 16 i the costs associated with estab- 17 lishing the Fund and maintaining the over- 18 sight structure associated with the Fund 19 compared with the cost savings associated 20 with the projects funded both annually and 21 over the life of the acquired products and 22 services by the Fund 23 ii the reliability of the cost savings 24 estimated 25 projects funded by the Fund HR 2810 PAP by agencies associated with 604 1 iii whether agencies receiving trans- 2 fers of funds from the Fund used full and 3 open competition to acquire the custom de- 4 velopment of information technology prod- 5 ucts or services and 6 iv the number of IT procurement de- 7 velopment and modernization programs of- 8 fices and entities in the Federal Govern- 9 ment including 18F and the United States 10 Digital Services the roles responsibilities 11 and goals of those programs and entities 12 and the extent to which they duplicate work 13 c TECHNOLOGY MODERNIZATION BOARD -- 14 1 ESTABLISHMENT --There is established a 15 Technology Modernization Board to evaluate pro- 16 posals submitted by agencies for funding authorized 17 under the Fund 18 19 2 RESPONSIBILITIES --The responsibilities of the Board are-- 20 A to provide input to the Director for the 21 development of processes for agencies to submit 22 modernization proposals to the Board and to es- 23 tablish the criteria by which those proposals are 24 evaluated which shall include-- HR 2810 PAP 605 1 i addressing the greatest security 2 privacy and operational risks 3 ii having the greatest Government- 4 wide impact and 5 iii having a high probability of suc- 6 cess based on factors including a strong 7 business case technical design consider- 8 ation of commercial off-the-shelf products 9 and services procurement strategy includ- 10 ing adequate use of rapid agile iterative 11 software development practices and pro- 12 gram management 13 B to make recommendations to the Ad- 14 ministrator to assist agencies in the further de- 15 velopment and refinement of select submitted 16 modernization proposals based on an initial 17 evaluation performed with the assistance of the 18 Administrator 19 C to review and prioritize with the assist- 20 ance of the Administrator and the Director mod- 21 ernization proposals based on criteria established 22 pursuant to subparagraph A 23 D to identify with the assistance of the 24 Administrator opportunities to improve or re- 25 place multiple information technology systems HR 2810 PAP 606 1 with a smaller number of information technology 2 services common to multiple agencies 3 E to recommend the funding of mod- 4 ernization projects in accordance with the uses 5 described in subsection b 3 to the Adminis- 6 trator 7 F to monitor in consultation with the Ad- 8 ministrator progress and performance in exe- 9 cuting approved projects and if necessary rec- 10 ommend the suspension or termination of fund- 11 ing for projects based on factors including the 12 failure to meet the terms of a written agreement 13 described in subsection b 6 and 14 G to monitor the operating costs of the 15 Fund 16 3 MEMBERSHIP --The Board shall consist of 7 17 voting members 18 4 CHAIR --The Chair of the Board shall be the 19 Administrator of the Office of Electronic Government 20 21 5 PERMANENT permanent members of the Board shall be-- 22 23 MEMBERS --The A the Administrator of the Office of Electronic Government and 24 B a senior official from the General Serv- 25 ices Administration having technical expertise in HR 2810 PAP 607 1 information technology development appointed 2 by the Administrator with the approval of the 3 Director 4 6 ADDITIONAL 5 6 MEMBERS OF THE BOARD -- A APPOINTMENT --The other members of the Board shall be-- 7 i 1 employee of the National Protec- 8 tion and Programs Directorate of the De- 9 partment of Homeland Security appointed 10 by the Secretary of Homeland Security and 11 ii 4 employees of the Federal Govern- 12 ment primarily having technical expertise 13 in information technology development fi- 14 nancial management cybersecurity and 15 privacy and acquisition appointed by the 16 Director 17 B TERM --Each member of the Board de- 18 scribed in paragraph A shall serve a term of 1 19 year which shall be renewable not more than 4 20 times at the discretion of the appointing Sec- 21 retary or Director as applicable 22 7 PROHIBITION ON COMPENSATION --Members 23 of the Board may not receive additional pay allow- 24 ances or benefits by reason of their service on the 25 Board HR 2810 PAP 608 1 8 STAFF --Upon request of the Chair of the 2 Board the Director and the Administrator may de- 3 tail on a reimbursable or nonreimbursable basis any 4 employee of the Federal Government to the Board to 5 assist the Board in carrying out the functions of the 6 Board 7 d RESPONSIBILITIES OF ADMINISTRATOR -- 8 1 IN GENERAL --In addition to the responsibil- 9 ities described in subsection b the Administrator 10 shall support the activities of the Board and provide 11 technical support to and with the concurrence of the 12 Director oversight of agencies that receive transfers 13 from the Fund 14 15 2 RESPONSIBILITIES --The responsibilities of the Administrator are-- 16 A to provide direct technical support in 17 the form of personnel services or otherwise to 18 agencies transferred amounts under subsection 19 b 3 A and for products services and acquisi- 20 tion vehicles funded under subsection b 3 B 21 B to assist the Board with the evaluation 22 prioritization and development of agency mod- 23 ernization proposals 24 C to perform regular project oversight and 25 monitoring of approved agency modernization HR 2810 PAP 609 1 projects in consultation with the Board and the 2 Director to increase the likelihood of successful 3 implementation and reduce waste and 4 D to provide the Director with informa- 5 tion necessary to meet the requirements of sub- 6 section b 7 7 e EFFECTIVE DATE --This section shall take effect on 8 the date that is 90 days after the date of enactment of this 9 Act 10 f SUNSET -- 11 1 IN GENERAL --On and after the date that is 12 2 years after the date on which the Comptroller Gen- 13 eral of the United States issues the third report re- 14 quired under subsection b 7 B the Administrator 15 may not award or transfer funds from the Fund for 16 any project that is not already in progress as of such 17 date 18 2 TRANSFER OF UNOBLIGATED AMOUNTS --Not 19 later than 90 days after the date on which all projects 20 that received an award from the Fund are completed 21 any amounts in the Fund shall be transferred to the 22 general fund of the Treasury and shall be used for 23 deficit reduction 24 25 3 TERMINATION TION BOARD --Not HR 2810 PAP OF TECHNOLOGY MODERNIZA- later than 90 days after the date 610 1 on which all projects that received an award from the 2 Fund are completed the Technology Modernization 3 Board and all the authorities of subsection c shall 4 terminate 8 TITLE XI--CIVILIAN PERSONNEL MATTERS Subtitle A--Department of Defense Matters 9 SEC 1101 PILOT PROGRAM ON ENHANCED PERSONNEL 10 MANAGEMENT SYSTEM FOR CYBERSECURITY 11 AND LEGAL PROFESSIONALS IN THE DEPART- 12 MENT OF DEFENSE 5 6 7 13 a PILOT PROGRAM REQUIRED --The Secretary of 14 Defense shall carry out within the Department of Defense 15 a pilot program to assess the feasability and advisability 16 of an enhanced personnel management system in accord17 ance with this section for cybersecurity and legal profes18 sionals in the Department described in subsection b who 19 enter civilian service with the Department on or after Janu20 ary 1 2020 21 22 b CYBERSECURITY AND LEGAL PROFESSIONALS -- 1 IN GENERAL --The cybersecurity and legal 23 professionals described in this subsection are the fol- 24 lowing HR 2810 PAP                     National Security Archive    Suite 701  Gelman Library  The George Washington University    2130 H Street  NW  Washington  D C  20037    Phone  202 994‐7000  Fax  202 994‐7005  nsarchiv@gwu edu