National Defense Authorization Act for Fiscal Year 1996 (Enrolled
Bill (Sent to President))
DIVISION E--INFORMATION TECHNOLOGY MANAGEMENT REFORM
SEC. 5001. SHORT TITLE.
This division may be cited as the `Information Technology Management
Reform Act of 1996'.
SEC. 5002. DEFINITIONS.
(1) DIRECTOR- The term `Director' means the Director of the Office of
Management and Budget.
(2) EXECUTIVE AGENCY- The term `executive agency' has the meaning given
that term in section 4(1) of the Office of Federal Procurement Policy Act
(41 U.S.C. 403(1)).
(3) INFORMATION TECHNOLOGY- (A) The term `information technology', with
respect to an executive agency means any equipment or interconnected system
or subsystem of equipment, that is used in the automatic acquisition,
storage, manipulation, management, movement, control, display, switching,
interchange, transmission, or reception of data or information by the
executive agency. For purposes of the preceding sentence, equipment is used
by an executive agency if the equipment is used by the executive agency
directly or is used by a contractor under a contract with the executive
agency which (i) requires the use of such equipment, or (ii) requires the
use, to a significant extent, of such equipment in the performance of a
service or the furnishing of a product.
(B) The term `information technology' includes computers, ancillary
equipment, software, firmware and similar procedures, services (including
support services), and related resources.
(C) Notwithstanding subparagraphs (A) and (B), the term `information
technology' does not include any equipment that is acquired by a Federal
contractor incidental to a Federal contract.
(4) INFORMATION RESOURCES- The term `information resources' has the
meaning given such term in section 3502(6) of title 44, United States
(5) INFORMATION RESOURCES MANAGEMENT- The term `information resources
management' has the meaning given such term in section 3502(7) of title 44,
United States Code.
(6) INFORMATION SYSTEM- The term `information system' has the meaning
given such term in section 3502(8) of title 44, United States Code.
(7) COMMERCIAL ITEM- The term `commercial item' has the meaning given
that term in section 4(12) of the Office of Federal Procurement Policy Act
(41 U.S.C. 403(12)).
TITLE LI--RESPONSIBILITY FOR ACQUISITIONS OF INFORMATION
Subtitle A--General Authority
SEC. 5101. REPEAL OF CENTRAL AUTHORITY OF THE ADMINISTRATOR OF GENERAL
Section 111 of the Federal Property and Administrative Services Act of
1949 (40 U.S.C. 759) is repealed.
Subtitle B--Director of the Office of Management and
SEC. 5111. RESPONSIBILITY OF DIRECTOR.
In fulfilling the responsibility to administer the functions assigned
under chapter 35 of title 44, United States Code, the Director shall comply
with this title with respect to the specific matters covered by this title.
SEC. 5112. CAPITAL PLANNING AND INVESTMENT CONTROL.
(a) FEDERAL INFORMATION TECHNOLOGY- The Director shall perform the
responsibilities set forth in this section in fulfilling the responsibilities
under section 3504(h) of title 44, United States Code.
(b) USE OF INFORMATION TECHNOLOGY IN FEDERAL PROGRAMS- The Director shall
promote and be responsible for improving the acquisition, use, and disposal of
information technology by the Federal Government to improve the productivity,
efficiency, and effectiveness of Federal programs, including through
dissemination of public information and the reduction of information
collection burdens on the public.
(c) USE OF BUDGET PROCESS- The Director shall develop, as part of the
budget process, a process for analyzing, tracking, and evaluating the risks
and results of all major capital investments made by an executive agency for
information systems. The process shall cover the life of each system and shall
include explicit criteria for analyzing the projected and actual costs,
benefits, and risks associated with the investments. At the same time that the
President submits the budget for a fiscal year to Congress under section
1105(a) of title 31, United States Code, the Director shall submit to Congress
a report on the net program performance benefits achieved as a result of major
capital investments made by executive agencies in information systems and how
the benefits relate to the accomplishment of the goals of the executive
(d) INFORMATION TECHNOLOGY STANDARDS- The Director shall oversee the
development and implementation of standards and guidelines pertaining to
Federal computer systems by the Secretary of Commerce through the National
Institute of Standards and Technology under section 5131 and section 20 of the
National Institute of Standards and Technology Act (15 U.S.C. 278g-3).
(e) DESIGNATION OF EXECUTIVE AGENTS FOR ACQUISITIONS- The Director shall
designate (as the Director considers appropriate) one or more heads of
executive agencies as executive agent for Government-wide acquisitions of
(f) USE OF BEST PRACTICES IN ACQUISITIONS- The Director shall encourage
the heads of the executive agencies to develop and use the best practices in
the acquisition of information technology.
(g) ASSESSMENT OF OTHER MODELS FOR MANAGING INFORMATION TECHNOLOGY- The
Director shall assess, on a continuing basis, the experiences of executive
agencies, State and local governments, international organizations, and the
private sector in managing information technology.
(h) COMPARISON OF AGENCY USES OF INFORMATION TECHNOLOGY- The Director
shall compare the performances of the executive agencies in using information
technology and shall disseminate the comparisons to the heads of the executive
(i) TRAINING- The Director shall monitor the development and
implementation of training in information resources management for executive
(j) INFORMING CONGRESS- The Director shall keep Congress fully informed on
the extent to which the executive agencies are improving the performance of
agency programs and the accomplishment of agency missions through the use of
the best practices in information resources management.
(k) PROCUREMENT POLICY AND ACQUISITIONS OF INFORMATION TECHNOLOGY- The
Director shall coordinate the development and review by the Administrator of
the Office of Information and Regulatory Affairs of policy associated with
Federal acquisition of information technology with the Office of Federal
SEC. 5113. PERFORMANCE-BASED AND RESULTS-BASED MANAGEMENT.
(a) IN GENERAL- The Director shall encourage the use of performance-based
and results-based management in fulfilling the responsibilities assigned under
section 3504(h), of title 44, United States Code.
(b) Evaluation of Agency Programs and Investments-
(1) REQUIREMENT- The Director shall evaluate the information resources
management practices of the executive agencies with respect to the
performance and results of the investments made by the executive agencies in
(2) DIRECTION FOR EXECUTIVE AGENCY ACTION- The Director shall issue to
the head of each executive agency clear and concise direction that the head
of such agency shall--
(A) establish effective and efficient capital planning processes for
selecting, managing, and evaluating the results of all of its major
investments in information systems;
(B) determine, before making an investment in a new information
(i) whether the function to be supported by the system should be
performed by the private sector and, if so, whether any component of the
executive agency performing that function should be converted from a
governmental organization to a private sector organization;
(ii) whether the function should be performed by the executive
agency and, if so, whether the function should be performed by a private
sector source under contract or by executive agency
(C) analyze the missions of the executive agency and, based on the
analysis, revise the executive agency's mission-related processes and
administrative processes, as appropriate, before making significant
investments in information technology to be used in support of those
(D) ensure that the information security policies, procedures, and
practices are adequate.
(3) GUIDANCE FOR MULTIAGENCY INVESTMENTS- The direction issued under
paragraph (2) shall include guidance for undertaking efficiently and
effectively interagency and Government-wide investments in information
technology to improve the accomplishment of missions that are common to the
(4) PERIODIC REVIEWS- The Director shall implement through the budget
process periodic reviews of selected information resources management
activities of the executive agencies in order to ascertain the efficiency
and effectiveness of information technology in improving the performance of
the executive agency and the accomplishment of the missions of the executive
(5) Enforcement of accountability-
(A) IN GENERAL- The Director may take any authorized action that the
Director considers appropriate, including an action involving the
budgetary process or appropriations management process, to enforce
accountability of the head of an executive agency for information
resources management and for the investments made by the executive agency
in information technology.
(B) SPECIFIC ACTIONS- Actions taken by the Director in the case of an
executive agency may include--
(i) recommending a reduction or an increase in any amount for
information resources that the head of the executive agency proposes for
the budget submitted to Congress under section 1105(a) of title 31,
United States Code;
(ii) reducing or otherwise adjusting apportionments and
reapportionments of appropriations for information
(iii) using other authorized administrative controls over
appropriations to restrict the availability of funds for information
(iv) designating for the executive agency an executive agent to
contract with private sector sources for the performance of information
resources management or the acquisition of information
Subtitle C--Executive Agencies
SEC. 5121. RESPONSIBILITIES.
In fulfilling the responsibilities assigned under chapter 35 of title 44,
United States Code, the head of each executive
agency shall comply with this subtitle with respect to the specific matters
covered by this subtitle.
SEC. 5122. CAPITAL PLANNING AND INVESTMENT CONTROL.
(a) DESIGN OF PROCESS- In fulfilling the responsibilities assigned under
section 3506(h) of title 44, United States Code, the head of each executive
agency shall design and implement in the executive agency a process for
maximizing the value and assessing and managing the risks of the information
technology acquisitions of the executive agency.
(b) CONTENT OF PROCESS- The process of an executive agency shall--
(1) provide for the selection of information technology investments to
be made by the executive agency, the management of such investments, and the
evaluation of the results of such investments;
(2) be integrated with the processes for making budget, financial, and
program management decisions within the executive agency;
(3) include minimum criteria to be applied in considering whether to
undertake a particular investment in information systems, including criteria
related to the quantitatively expressed projected net, risk-adjusted return
on investment and specific quantitative and qualitative criteria for
comparing and prioritizing alternative information systems investment
(4) provide for identifying information systems investments that would
result in shared benefits or costs for other Federal agencies or State or
(5) provide for identifying for a proposed investment quantifiable
measurements for determining the net benefits and risks of the investment;
(6) provide the means for senior management personnel of the executive
agency to obtain timely information regarding the progress of an investment
in an information system, including a system of milestones for measuring
progress, on an independently verifiable basis, in terms of cost, capability
of the system to meet specified requirements, timeliness, and quality.
SEC. 5123. PERFORMANCE AND RESULTS-BASED MANAGEMENT.
In fulfilling the responsibilities under section 3506(h) of title 44,
United States Code, the head of an executive agency shall--
(1) establish goals for improving the efficiency and effectiveness of
agency operations and, as appropriate, the delivery of services to the
public through the effective use of information technology;
(2) prepare an annual report, to be included in the executive agency's
budget submission to Congress, on the progress in achieving the goals;
(3) ensure that performance measurements are prescribed for information
technology used by or to be acquired for, the executive agency and that the
performance measurements measure how well the information technology
supports programs of the executive agency;
(4) where comparable processes and organizations in the public or
private sectors exist, quantitatively benchmark agency process performance
against such processes in terms of cost, speed, productivity, and quality of
outputs and outcomes;
(5) analyze the missions of the executive agency and, based on the
analysis, revise the executive agency's mission-related processes and
administrative processes as appropriate before making significant
investments in information technology that is to be used in support of the
performance of those missions; and
(6) ensure that the information security policies, procedures, and
practices of the executive agency are adequate.
SEC. 5124. ACQUISITIONS OF INFORMATION TECHNOLOGY.
(a) IN GENERAL- The authority of the head of an executive agency to
conduct an acquisition of information technology includes the following
(1) To acquire information technology as authorized by law.
(2) To enter into a contract that provides for multiagency acquisitions
of information technology in accordance with guidance issued by the
(3) If the Director finds that it would be advantageous for the Federal
Government to do so, to enter into a multiagency contract for procurement of
commercial items of information technology that requires each executive
agency covered by the contract, when procuring such items, either to procure
the items under that contract or to justify an alternative procurement of
(b) FTS 2000 PROGRAM- Notwithstanding any other provision of this or any
other law, the Administrator of General Services shall continue to manage the
FTS 2000 program, and to coordinate the follow-on to that program, on behalf
of and with the advice of the heads of executive agencies.
SEC. 5125. AGENCY CHIEF INFORMATION OFFICER.
(a) DESIGNATION OF CHIEF INFORMATION OFFICERS- Section 3506 of title 44,
United States Code, is amended--
(A) in paragraph (2)(A), by striking out `senior official' and
inserting in lieu thereof `Chief Information Officer';
(B) in paragraph (2)(B)--
(i) by striking out `senior officials' in the first sentence and
inserting in lieu thereof `Chief Information Officers';
(ii) by striking out `official' in the second sentence and inserting
in lieu thereof `Chief Information Officer'; and
(iii) by striking out `officials' in the second sentence and
inserting in lieu thereof `Chief Information Officers'; and
(C) in paragraphs (3) and (4), by striking out `senior official' each
place it appears and inserting in lieu thereof `Chief Information
(2) in subsection (c)(1), by striking out `official' in the matter
preceding subparagraph (A) and inserting in lieu thereof `Chief Information
(b) GENERAL RESPONSIBILITIES- The Chief Information Officer of an
executive agency shall be responsible for--
(1) providing advice and other assistance to the head of the executive
agency and other senior management personnel of the executive agency to
ensure that information technology is acquired and information resources are
managed for the executive agency in a manner that implements the policies
and procedures of this division, consistent with chapter 35 of title 44,
United States Code, and the priorities established by the head of the
(2) developing, maintaining, and facilitating the implementation of a
sound and integrated information technology architecture for the executive
(3) promoting the effective and efficient design and operation of all
major information resources management processes for the executive agency,
including improvements to work processes of the executive agency.
(c) DUTIES AND QUALIFICATIONS- The Chief Information Officer of an agency
that is listed in section 901(b) of title 31, United States Code, shall--
(1) have information resources management duties as that official's
(2) monitor the performance of information technology programs of the
agency, evaluate the performance of those programs on the basis of the
applicable performance measurements, and advise the head of the agency
regarding whether to continue, modify, or terminate a program or project;
(3) annually, as part of the strategic planning and performance
evaluation process required (subject to section 1117 of title 31, United
States Code) under section 306 of title 5, United States Code, and sections
1105(a)(29), 1115, 1116, 1117, and 9703 of title 31, United States
(A) assess the requirements established for agency personnel regarding
knowledge and skill in information resources management and the adequacy
of such requirements for facilitating the achievement of the performance
goals established for information resources management;
(B) assess the extent to which the positions and personnel at the
executive level of the agency and the positions and personnel at
management level of the agency below the executive level meet those