Overview
Title
To amend section 1078 of the National Defense Authorization Act for Fiscal Year 2018 to increase the effectiveness of the Technology Modernization Fund, and for other purposes.
ELI5 AI
The bill wants to change some rules to help the government update old computer systems and make them safer from bad people online. It plans to give less money for this but adds new ways to make sure the money is spent wisely to keep everything working well into the future.
Summary AI
The bill H. R. 5527 seeks to amend a section of the National Defense Authorization Act for 2018 to improve the Technology Modernization Fund's efficiency. It focuses on updating how funds can be used, emphasizing the modernization of outdated information technology systems in federal agencies and enhancing cybersecurity measures. The bill also introduces requirements for federal agencies to identify and report on high-risk legacy IT systems and requires the creation of a prioritization list of these systems to address risks to government operations. Additionally, it involves various changes to ensure the fund's sustainability and proper operation until its planned sunset in 2030.
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AnalysisAI
General Summary of the Bill
The proposed legislation, titled the "Modernizing Government Technology Reform Act," seeks to amend section 1078 of the National Defense Authorization Act for Fiscal Year 2018. Its primary goal is to enhance the effectiveness of the Technology Modernization Fund. The amendments focus on realigning fund usage with congressional intent, modernizing legacy information technology systems, improving cybersecurity, and ensuring efficient fund utilization. The bill outlines various amendments to how funds are transferred and used by federal agencies and sets guidelines for identifying and managing high-risk legacy IT systems. Additionally, it extends the life of the Technology Modernization Fund until December 31, 2030.
Summary of Significant Issues
Several key issues have been identified within the bill:
Reduction in Funding: The bill proposes reducing the available funds from $250 million to $50 million. This significant reduction could adversely impact the capacity of agencies to upgrade or replace outdated IT systems, limiting the potential scope of improvements.
Repayment Requirements: The bill requires agencies to repay funds transferred for IT modernization, possibly imposing financial burdens on agencies already managing tight budgets.
Lack of Clarity on Project Statements: The bill does not clearly define what constitutes "fraudulent or misleading statements" about project proposals. This ambiguity could lead to potential disputes and challenges in enforcement.
Complexity in Fund Allocation: The bill requires funds to be allocated incrementally based on achieving specific development milestones. While this approach promotes accountability, it could complicate project management and delay fund utilization.
Administrative Burdens: The bill mandates the creation and updating of a Legacy Federal IT Inventory to track high-risk IT systems. The associated administrative tasks might outweigh the benefits, making it a potentially inefficient allocation of resources.
Transparency Issues: The use of a "classified annex" in reports to Congress lacks transparency, as it does not specify criteria for what information should be classified.
Impact on the Public
For the general public, the bill's focus on enhancing IT systems could translate into more efficient government operations and improved service delivery. By upgrading legacy systems, the government may bolster its cybersecurity posture, thereby protecting citizens' personal data from cyber threats. However, the reduced funding could limit the speed and extent of these improvements, potentially prolonging citizens' exposure to vulnerabilities associated with outdated systems.
Impact on Specific Stakeholders
Federal Agencies: Agencies might face financial pressures due to the requirement to repay modernization funds. While the incremental funding model ensures accountability, it might also lead to bureaucratic delays that hinder project progress.
Congress: The flexibility introduced by this bill might complicate oversight, especially concerning the lack of clarity in project proposal disclosures and the potential issues arising from non-transparent decision-making processes due to classified annexes in public reports.
IT Vendors and Contractors: Opportunities for IT vendors may diminish with the reduced funding, impacting their potential to contribute to and benefit from significant federal modernization projects.
Overall, this bill aims to push federal agencies toward modernizing their IT systems in a manner that aligns with strategic goals, although it introduces complexities that could challenge their execution. Balancing the desire for improved government technology infrastructure with practical funding and management constraints will be crucial to its success.
Financial Assessment
The bill H. R. 5527 proposes significant changes to the budgetary allocations and financial operations related to the Technology Modernization Fund (TMF), impacting how funds are managed and utilized.
Overview of Financial Allocations
A substantial modification in the bill is the reduction in authorized funding. Originally set at $250,000,000, the proposed amendment slashes this figure to $50,000,000, spanning fiscal years 2024 through 2030. This substantial decrease in financial resources allocated to agencies for modernizing information technology systems could impact their ability to undertake significant technology overhauls or cybersecurity enhancements.
This reduction potentially challenges various federal agencies by limiting their budgets to modernize, retire, or replace outdated information systems effectively. Such budget constraints could impede the completion of planned projects, potentially leaving critical systems vulnerable and unable to meet modern cybersecurity or operational standards.
Repayment Obligations
The bill introduces a mechanism where agencies are expected to reimburse the Technology Modernization Fund for funds received. This is designed to ensure that the total fund amount remains robust enough to support continuous operational needs until the fund's planned sunset in 2030. However, this requirement could impose a financial strain on agencies, particularly if the repayment terms are stringent and the agencies lack clear guidelines or support systems to manage these financial obligations. Without flexibility or financial management assistance, agencies might find themselves in difficult positions, adversely impacting their financial health.
Termination and Suspension of Funds
Another critical financial provision is the ability of the Administrator, based on the Board's recommendations, to suspend or terminate funding for projects with fraudulent or misleading proposals. While this is aimed at ensuring accountability and integrity, it could present legal and operational challenges. The lack of clarity regarding what constitutes "fraudulent or misleading statements" might lead to varying interpretations and enforcement complexities, potentially affecting the fund's effective governance and distribution.
Incremental Funding and Milestone-based Transfers
The bill specifies that funds should be released to agencies incrementally and tied to specific, metric-based milestones. This approach aims to promote efficiency and accountability; however, it might introduce logistical challenges. The necessity to adhere to strict milestone achievements can create administrative overheads and potentially delay fund utilization, thereby affecting the timely execution of IT modernization projects.
Operational and Administrative Considerations
Finally, the responsibilities tied to compiling and regularly updating a Legacy Federal IT Inventory involve financial allocations for executing and maintaining this process. Such administrative burdens could impact resource allocation efficiency, as agencies may need to divert funds from other projects to fulfill these new reporting requirements.
In summary, the proposed financial references and budgetary adjustments present challenges that could impact the TMF's effectiveness and the broader objective of IT modernization across federal agencies. These financial constraints require careful consideration to ensure that they do not undermine the intended improvements in agency operations and national cybersecurity posture.
Issues
The amendment reduces the funding from $250,000,000 to $50,000,000 (Section 2, paragraph 4(A)), potentially impacting the ability of agencies to modernize, retire, or replace legacy IT systems, which could affect project achievements and put additional financial pressure on agencies.
The requirement for agency heads to ensure repayment of transferred funds (Section 2, paragraph 6(A)(ii)) might place a financial strain on certain agencies without clear guidelines or support mechanisms to manage this expectation, raising concerns about the financial health of these agencies.
The text lacks clarity on what constitutes 'fraudulent or misleading statements' in project proposals (Section 2, paragraph (B)), leading to potential legal ambiguities and issues with enforcement.
The provision for funds to be transferred incrementally based on metric-based milestones (Section 2, paragraph 6(B)(i)) might be complex to manage, leading to delays or inefficiency in fund utilization, affecting timely project completion.
The responsibilities and procedural timelines for compiling and updating the Legacy Federal IT Inventory (Section 2, new subsection (e)) introduce administrative burdens that may not clearly outweigh the potential benefits, causing inefficiencies in resource allocation.
Referring to a 'classified annex' in reports to Congress (Section 2, new subsection (e)(3)(B)) lacks transparency, as it does not clearly define the criteria for classification, which could be problematic for public and Congressional oversight.
Operational mandates and guidance under subsection (e)(4) lack detailed criteria for determining 'high-risk legacy IT systems,' which risks inconsistent implementation across agencies, potentially leading to gaps in national cybersecurity strategy.
Sections
Sections are presented as they are annotated in the original legislative text. Any missing headers, numbers, or non-consecutive order is due to the original text.
1. Short title Read Opens in new tab
Summary AI
The first section of the Act is called the "Modernizing Government Technology Reform Act."
2. Realigning use of funds with original congressional intent Read Opens in new tab
Summary AI
The section amends the rules for using funds under the National Defense Authorization Act for Fiscal Year 2018, primarily aiming to modernize, retire, or replace outdated information technology systems, improve cybersecurity, and ensure that funds are used efficiently. It sets guidelines for fund transfers to agencies, outlines responsibilities for tracking high-risk legacy IT systems, and extends the life of the fund to ensure it remains operational until December 31, 2030.
Money References
- “(B) TERMINATION OR SUSPENSION OF FUNDS.—The Administrator shall, in accordance with recommendations from the Board, suspend or terminate funding for any project with respect to which the head of an agency provided fraudulent or misleading statements about such project (including fraudulent statements about technical design, the business case, or program management with respect to the project) in the application or proposal for amounts from the Fund for such project.”; (B) in paragraph (4)(A), by striking “$250,000,000” and inserting “$50,000,000” and by striking “fiscal years 2018 and 2019” and inserting “fiscal years 2024 through 2030”; (C) in paragraph (5)— (i) in subparagraph (A)— (I) in clause (i)— (aa) by striking “or (B)”; and (bb) by striking “(3)(C)” and inserting “(3)(A)(ii)”; and (II) in clause (ii), by striking “, consistent with any applicable reprogramming law or guidelines of the Committees on Appropriations of the Senate and the House of Representatives”; and (ii) in subparagraph (B)(i)— (I) by striking “paragraph (3)(C)” and inserting “paragraph (3)(A)(ii)”; and (II) by striking “the solvency of the Fund, including operating expenses” and inserting the following: “total amounts in the Fund are no less than the amounts needed to keep the Fund operational until the Fund sunsets pursuant to subsection (g)(1)”; (D) in paragraph (6)— (i) in subparagraph (A)— (I) in the matter before clause (i), by striking “subparagraphs (A) and (B) of paragraph (3)” and inserting the following: “paragraph (3)(A)(i) and before any services or work are provided under paragraph (3)(A)(ii)(I)”; (II) in clause (i)— (aa) by striking “unless approved by the Director”; and (bb) by striking “; and” and inserting a semicolon; (III) by redesignating clause (ii) as clause (iv); and (IV) by inserting after clause (i) the following new clauses: “(ii) which shall include terms of repayment that require the head of the agency to reimburse the Fund for funds transferred under paragraph (3)(A)(i) at a level that ensures total amounts in the Fund are no less than the amounts needed to keep the Fund operational until the Fund sunsets pursuant to subsection (g)(1); “(iii) which shall include terms of repayment that require the head of the agency to fully reimburse the Fund for any services or work provided under paragraph (3)(A)(ii) in direct support of the project; and”; and (ii) in subparagraph (B)— (I) by striking clause (i) and inserting the following: “(i) for any funds transferred to an agency under paragraph (3)(A)(i), in the absence of compelling circumstances documented by the Administrator at the time of transfer, that such funds shall be transferred only— “(I) on an incremental basis, tied to metric-based development milestones achieved by the agency through the use of rapid, iterative, development processes; and “(II) after the head of the agency has provided the Director any information the Director is required to report pursuant to paragraph (7)(A)(i); and”; and (II) in clause (ii)— (aa) by striking “subparagraphs (A) and (B) of paragraph (3)” and inserting “paragraph (3)(A)(i)”; and (bb) by striking “paragraph (6)” and inserting “this paragraph”; (E) in paragraph (7)— (i) in subparagraph (A)(i)— (I) by inserting “the written agreement entered into under paragraph (6),” after “description of the project,”; and (II) by inserting “(including documented market research into commercial products and services)” after “used”; (ii) in subparagraph (B)— (I) in clause (i)— (aa) by striking “establishing”; and (bb) by striking “the cost savings associated with the projects funded both annually and over the life of the acquired products and services by the Fund;” and inserting the following: “the amount repaid to the Fund in accordance with the terms established in the written agreements described in paragraph (6);”; (II) in clause (ii)— (aa) by striking “reliability of the cost savings” and inserting “total cost savings”; and (bb) by striking the semicolon and inserting “; and”; and (III) in clause (iii), by striking “; and” and inserting a period; and (IV) by striking clause (iv); (2) in subsection (c)(2)— (A) in subparagraph (A)— (i) in clause (ii), by striking “the greatest Governmentwide impact; and” and inserting the following: “the greatest impact on modernizing, retiring, or replacing Federal legacy information technology systems; and”; (ii) by redesignating clauses (i) through (iii) as clauses (ii) through (iv), respectively; and (iii) by inserting before clause (ii), as so redesignated, the following new clause: “(i) the ability for the head of the agency to ensure repayment of funds transferred from the Fund to the head of the agency, in accordance with subsection (b);”; (B) in subparagraph (D), by striking “to improve or replace multiple information technology systems” and inserting the following: “to modernize, retire, or replace legacy information technology systems under subsection (b)(3)(A)(i)”; and (C) in subparagraph (F), by inserting after “subsection (b)(6)” the following: “or the identification of fraudulent or misleading statements about the project (including fraudulent statements about technical design, the business case, or program management with respect to the project) in the application or proposal for amounts from the Fund for the project”; and (D) in subparagraph (G), by inserting after “operating costs of the Fund” the following: “to ensure total amounts in the Fund are no less than the amounts needed to keep the Fund operational until the Fund sunsets pursuant to subsection (g)(1)”; (3) in subsection (c)— (A) in paragraph (5)— (i) in subparagraph (B) by striking the period at the end and inserting “; and”; and (ii) by inserting after subparagraph (B) the following; “(C) a senior official from the Cybersecurity and Infrastructure Security Agency of the Department of Homeland Security, appointed by the Director of the Cybersecurity and Infrastructure Security Agency, with the approval of the Director of the Office of Management and Budget.”; (B) in paragraph (6)(A)— (i) by striking “shall be—” and inserting “shall be 4 employees of the Federal Government primarily having technical expertise in information technology development, financial management, cybersecurity and privacy, and acquisition, appointed by the Director.”; and (ii) by striking clauses (i) and (ii); and (4) in subsection (d)(2)— (A) in subparagraph (A), by striking “subsection (b)(3)(A) and for products, services, and acquisition vehicles funded under subsection (b)(3)(B)” and inserting “subsection (b)(3)”; and (B) in subparagraph (C), by inserting after “and reduce waste” the following: “and ensure total amounts in the Fund are no less than the amounts needed to keep the Fund operational until the Fund sunsets pursuant to subsection (g)(1)”; (5) by redesignating subsections (e) and (f) as subsections (f) and (g), respectively; (6) by inserting after subsection (d) the following new subsection: “(e) Responsibilities of the Federal Chief Information Officer; agency Chief Information Officers.— “(1) AGENCY INVENTORY.—An agency Chief Information Officer, in coordination with stakeholders and other agency officials, shall provide to the Federal Chief Information Officer— “(A) on or before the first September 30 that occurs after the date of the enactment of the Modernizing Government Technology Reform Act of 2023, a list of high-risk legacy information technology systems used, operated, or maintained by the agency, in accordance with the guidance issued under paragraph (4); and “(B) on or before September 30 of each year after the first year in which the list is provided under subparagraph (A), any updates to such list.