DIVISION E--INFORMATION TECHNOLOGY MANAGEMENT REFORM

SEC. 5001. SHORT TITLE.
  This division may be cited as the `Information Technology
Management Reform Act of 1995'.
SEC. 5002. DEFINITIONS.
  In this division:
      (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 Code.

      (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 TECHNOLOGY

SUBTITLE A--GENERAL AUTHORITY

SEC. 5101. REPEAL OF CENTRAL AUTHORITY OF THE ADMINISTRATOR OF

GENERAL SERVICES.

  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 BUDGET

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 agencies.

  (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 information technology.

  (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 agencies.

  (i) TRAINING- The Director shall monitor the development and
implementation of training in information resources management for
executive agency personnel.

  (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 Procurement Policy.

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 information technology.

      (2) DIRECTION FOR EXECUTIVE AGENCY ACTION- The Director shall
    issue clear and concise direction to the head of each executive agency--

          (A) to establish for the executive agency and each of its
        major components effective and efficient capital planning
        processes for selecting, managing, and evaluating the
        results of all of its major investments in information systems;

          (B) to  determine, before  making an investment in a new
        information system--

              (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; or

              (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 personnel;

          (C) to  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 missions; and

          (D) to 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
    executive agencies.

      (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 agency.

      (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 resources;

              (iii) using other authorized administrative controls
            over appropriations to restrict the availability of
            funds for information resources; and

              (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 technology.

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 projects;

      (4) provide for identifying  information systems investments
    that would result in shared benefits or costs for other 
    Federal agencies or State or local governments;

      (5) provide for identifying for a proposed investment
    quantifiable measurements for determining the net benefits and
    risks of the investment; and

      (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 authorities:

    (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 Director.

    (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 the items.

  (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--

    (1) in subsection (a)--

        (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 Officer'; and

    (2) in subsection (c)(1), by striking out `official' in the
  matter preceding subparagraph (A) and inserting in lieu thereof
  `Chief Information Officer'.

  (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 executive agency;

    (2) developing, maintaining, and facilitating the
  implementation of a sound and integrated information technology
  architecture for the executive  agency; and

    (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  primary duty;

    (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;
  and

    (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 Code--

        (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 requirements;

        (C) in order to rectify any deficiency in meeting those

      requirements, develop strategies and specific plans for
      hiring, training, and professional development; and

        (D) report to the head of the agency  on the progress 
      made in improving information resources management
      capability.

  (d) INFORMATION TECHNOLOGY ARCHITECTURE DEFINED- In this section,
the term `information technology architecture', with respect to an
executive agency, means an integrated framework for evolving or
maintaining existing information technology and acquiring new
information technology to achieve the agency's strategic goals and
information resources management goals.

  (e) EXECUTIVE LEVEL IV- Section 5315 of title 5, United States
Code, is amended by adding at the end the following:

      `Chief Information Officer, Department of Agriculture.

      `Chief Information Officer, Department of Commerce.

      `Chief Information Officer, Department of Defense (unless the
    official designated as the Chief Information Officer of the
    Department of Defense is an official listed under section 5312,
    5313, or 5314 of this title).

      `Chief Information Officer, Department of Education.

      `Chief Information Officer, Department of Energy.

      `Chief Information Officer, Department of Health & Human Services.

      `Chief Information Officer, Department of Housing and Urban Development.

      `Chief Information Officer, Department of Interior.

      `Chief Information Officer, Department of Justice.

      `Chief Information Officer, Department of Labor.

      `Chief Information Officer, Department of State.

      `Chief Information Officer, Department of Transportation.

      `Chief Information Officer, Department of Treasury.

      `Chief Information Officer, Department of Veterans Affairs.

      `Chief Information Officer, Environmental Protection Agency.

      `Chief Information Officer, National Aeronautics and Space Administration.

      `Chief Information Officer, Agency for International Development.

      `Chief Information Officer, Federal Emergency Management Agency.

      `Chief Information Officer, General Services Administration.

      `Chief Information Officer, National Science Foundation.

      `Chief Information Officer, Nuclear Regulatory Agency.

      `Chief Information Officer, Office of Personnel Management.

      `Chief Information Officer, Small Business Administration.'.

SEC. 5126. ACCOUNTABILITY.

  The head of each executive agency, in consultation with the Chief
Information Officer and the Chief Financial Officer of that
executive agency (or, in the case of an executive agency without a
Chief Financial Officer, any comparable official), shall establish
policies and procedures that--

      (1) ensure that the accounting, financial, and asset
    management systems and other information systems of the
    executive agency are designed, developed, maintained, and used
    effectively to provide financial or program performance data 
    for financial statements of the executive agency;

      (2) ensure that financial and related program performance 
    data are provided on a reliable, consistent, and timely basis 
    to executive agency financial management systems; and

      (3) ensure that financial statements support--

          (A) assessments and revisions of mission-related 
        processes and administrative processes of the executive
        agency; and

          (B) performance measurement of the performance  in the
        case of  investments made by the agency in information
        systems.

SEC. 5127. SIGNIFICANT DEVIATIONS.

  The head of an executive agency shall identify in the strategic
information resources management plan required under section
3506(b)(2) of title 44, United States Code, any major information
technology acquisition program, or any phase or increment of such a
program, that has significantly deviated from the cost, 
performance, or schedule goals established for the program.

SEC. 5128. INTERAGENCY SUPPORT.

  Funds available for  an executive agency for oversight,
acquisition, and procurement of information technology may be used
by the head of the executive agency to support jointly with other
executive agencies the activities of interagency groups that are
established to advise the Director in carrying out the Director's
responsibilities under this title. The use of such funds for that
purpose shall be subject to such requirements and limitations on
uses and amounts as the Director may prescribe. The Director shall
prescribe any such requirements and limitations during the
Director's review of the executive agency's proposed budget
submitted to the Director by the head of the executive agency for
purposes of section 1105 of title 31, United States Code.

SUBTITLE D--OTHER RESPONSIBILITIES

SEC. 5131. RESPONSIBILITIES REGARDING EFFICIENCY, SECURITY, AND

PRIVACY OF FEDERAL COMPUTER SYSTEMS.

  (a) STANDARDS AND GUIDELINES- 

      (1) AUTHORITY- The Secretary of Commerce shall, on the basis
    of standards and guidelines developed by the National Institute
    of Standards and Technology pursuant to paragraphs (2) and (3)
    of section 20(a) of the National Institute of Standards and
    Technology Act (15 U.S.C. 278g-3(a)), promulgate standards and
    guidelines pertaining to Federal computer systems. The 
    Secretary shall make  such standards compulsory and binding to
    the extent to which the Secretary determines necessary to
    improve the efficiency of operation or security and privacy of
    Federal computer systems. The President may disapprove or 
    modify such standards and guidelines if the President 
    determines such action to be in the public interest. The
    President's authority to disapprove or modify such standards 
    and guidelines may not be delegated. Notice of such disapproval
    or modification shall be published promptly in the Federal
    Register. Upon receiving notice of such disapproval or
    modification, the Secretary of Commerce shall immediately
    rescind or modify such standards or guidelines as directed by
    the President.

      (2) EXERCISE OF AUTHORITY- The authority conferred upon the
    Secretary of Commerce by this section shall be exercised 
    subject to direction by the President and in coordination with
    the Director  to ensure fiscal and policy consistency.

  (b) APPLICATION OF MORE STRINGENT STANDARDS- The head of a 
Federal agency may employ standards for the cost-effective security
and privacy of sensitive information in a Federal computer system
within or under the supervision of that agency that are more
stringent than the standards promulgated by the Secretary of
Commerce under this section, if such standards contain, at a
minimum, the provisions of those applicable standards made
compulsory and binding by the Secretary of Commerce.

  (c) WAIVER OF STANDARDS- The standards determined under 
subsection (a) to be compulsory and binding may be waived by the
Secretary of Commerce in writing upon a determination that
compliance would adversely affect the accomplishment of the mission
of an operator of a Federal computer system, or cause a major
adverse financial impact on the operator which is not offset by
Government-wide savings. The Secretary may delegate to the head of
one or more Federal agencies authority to waive such standards to
the extent to which the Secretary determines such action to be
necessary and desirable to allow for timely and effective
implementation of Federal computer system standards. The head of
such agency may redelegate such authority only to a Chief
Information Officer designated pursuant to section 3506 of title 
44, United States Code. Notice of each such waiver and delegation
shall be transmitted promptly to Congress and shall be published
promptly in the Federal Register.

  (d) DEFINITIONS- In this section, the terms `Federal computer
system' and `operator of a Federal computer system' have the
meanings given such terms in section 20(d) of the National 
Institute of Standards and Technology Act (15 U.S.C. 278g-3(d)).

  (e) TECHNICAL AMENDMENTS- Chapter 35 of title 44, United States
Code, is amended--

      (1) in section 3504(g)--

          (A) in paragraph (2), by striking out `the Computer
        Security Act of 1987 (40 U.S.C. 759 note)' and inserting in
        lieu thereof `sections 20 and 21 of the National Institute
        of Standards and Technology Act (15 U.S.C. 278g-3 and
        278g-4), section 5131 of the Information Technology
        Management Reform Act of 1995, and sections 5 and 6 of the
        Computer Security Act of 1987 (40 U.S.C. 759 note)'; and

          (B) in paragraph (3), by striking out `the Computer
        Security Act of 1987 (40 U.S.C. 759 note)' and inserting in
        lieu thereof `the standards and guidelines promulgated 
        under section 5131 of the Information Technology Management
        Reform Act of 1995 and sections 5 and 6 of the Computer
        Security Act of 1987 (40 U.S.C. 759 note)'; and

      (2) in section 3518(d), by striking out `Public Law 89-306 on
    the Administrator of the General Services Administration, the
    Secretary of Commerce, or' and inserting in lieu thereof
    `section 5131 of the Information Technology Management Reform
    Act of 1995 and the Computer Security Act of 1987 (40 U.S.C. 
    759 note) on the Secretary of Commerce or'.

SEC. 5132. SENSE OF CONGRESS.

  It is the sense of Congress that, during the next five-year 
period beginning with 1996, executive agencies should achieve each
year at least a 5 percent decrease in the cost (in constant fiscal
year 1996 dollars) that is incurred by the agency for operating and
maintaining information technology, and each year a 5 percent
increase in the efficiency of the agency operations, by reason of
improvements in information resources management by the agency.

SUBTITLE E--NATIONAL SECURITY SYSTEMS

SEC. 5141. APPLICABILITY TO NATIONAL SECURITY SYSTEMS.

  (a) IN GENERAL- Except as provided in subsection (b), this title
does not apply to national security systems.

  (b) EXCEPTIONS- 

      (1) IN GENERAL- Sections  5123, 5125, and 5126 apply to
    national security systems.

      (2) CAPITAL PLANNING AND INVESTMENT CONTROL- The heads of
    executive agencies shall apply sections 5112  and 5122 to
    national security systems to the extent practicable.

      (3) PERFORMANCE AND RESULTS OF INFORMATION TECHNOLOGY
    INVESTMENTS- (A) Subject to subparagraph (B), the heads of
    executive agencies shall apply section 5113 to national 
    security systems to the extent practicable.

      (B) National security systems shall be subject to section
    5113(b)(5) except for subparagraph (B)(iv) of that section.

SEC. 5142. NATIONAL SECURITY SYSTEM DEFINED.

  (a) DEFINITION- In this subtitle, the term `national security
system' means any telecommunications or information system operated
by the United States Government, the function, operation, or use of
which--

      (1) involves intelligence activities;

      (2) involves cryptologic activities related to national security;

      (3) involves command and control of military forces;

      (4) involves equipment that is an integral part of a weapon 
    or weapons system; or

      (5) subject to subsection (b), is critical to the direct
    fulfillment of military or intelligence missions.

  (b) LIMITATION- Subsection (a)(5) does not include a system that
is to be used for routine administrative and business applications
(including payroll, finance, logistics, and personnel management
applications).

TITLE LII--PROCESS FOR ACQUISITIONS OF INFORMATION TECHNOLOGY

SEC. 5201. PROCUREMENT PROCEDURES.

  The Federal Acquisition Regulatory Council shall ensure that, to the maximum extent
practicable, the process for acquisition of information technology is a simplified,
clear, and understandable process that specifically addresses the management of risk,
incremental acquisitions, and the need to incorporate commercial information
technology in a timely manner.

SEC. 5202. INCREMENTAL ACQUISITION OF INFORMATION TECHNOLOGY.

  (a) POLICY- The Office of Federal Procurement Policy Act (41 U.S.C. 401 et seq.) is
amended by adding at the end the following new section:

`SEC. 35. MODULAR CONTRACTING FOR INFORMATION TECHNOLOGY.

  (a) IN GENERAL- The head of an executive agency should, to the maximum extent
practicable, use modular contracting for an acquisition of a major system of
information technology.

  (b) MODULAR CONTRACTING DESCRIBED- Under modular contracting, an executive agency's
need for a system is  satisfied in successive acquisitions of interoperable
increments. Each increment complies with common or commercially accepted standards
applicable to information technology so that the increments are compatible with other
increments of information technology comprising the system.

  (c) IMPLEMENTATION- The Federal Acquisition Regulation shall provide that--

      (1) under the modular contracting process, an acquisition of a major system of
      information technology may be divided into several smaller acquisition
      increments that--

           (A) are easier to manage individually than would be one
               comprehensive acquisition;

           (B) address complex information technology objectives incrementally in
           order to enhance the likelihood of achieving workable solutions for
           attainment of those objectives;

           (C) provide for delivery, implementation, and testing of workable systems
           or solutions in discrete increments each of which comprises a system or
           solution that is not dependent on any subsequent increment in order to
           perform its principal functions; and

           (D) provide an opportunity for subsequent increments of the acquisition to
           take advantage of any evolution in technology or needs that occur during
           conduct of the earlier increments;

	(2) a contract for an increment of an information technology acquisition should,
	to the maximum extent practicable, be awarded within 180 days after the date on
	which the solicitation is issued and, if the contract for that increment cannot
	be awarded within such period, the increment should be considered for
	cancellation; and

	(3) the information technology provided for in a contract for acquisition of
	information technology should be delivered within 18 months after the date on
	which the solicitation resulting in award of the contract was issued.'.

	  (b) CLERICAL AMENDMENT- The table of contents in section 1(b) of
	such Act is amended by inserting after the item relating to section
	34 the following new item:

	`Sec. 35. Modular contracting for information technology.'.

TITLE LIII--INFORMATION TECHNOLOGY ACQUISITION PILOT PROGRAMS

SUBTITLE A--CONDUCT OF PILOT PROGRAMS

SEC. 5301. AUTHORITY TO CONDUCT PILOT PROGRAMS.

  (a) In General- 

      (1) PURPOSE- The Administrator for Federal Procurement Policy
    (hereinafter referred to as the `Administrator'), in
    consultation with the Administrator for the Office of
    Information and Regulatory Affairs, may conduct pilot programs
    in order to test alternative approaches for acquisition of
    information technology by executive agencies.

      (2) MULTIAGENCY, MULTI-ACTIVITY CONDUCT OF EACH PROGRAM-
    Except as otherwise provided in this title, each pilot program conducted
    under this title shall be carried out in not more than two procuring
    activities in each of the executive agencies that are designated by the
    Administrator in accordance with this title to carry out the pilot program.
    The head of each designated executive agency shall, with the approval of
    the Administrator, select the procuring activities of the executive agency
    that are to participate in the test and shall designate a procurement
    testing official who shall be responsible for the conduct and evaluation of
    the pilot program within the executive agency.

  (b) Limitations- 

      (1) NUMBER- Not more than two pilot programs may be conducted
    under the authority of this title, including one pilot program
    each pursuant to the requirements of sections 5311 and 5312.

      (2) AMOUNT- The total amount obligated for contracts entered
    into under the pilot programs conducted under the authority of
    this title may not exceed $750,000,000. The Administrator shall
    monitor such contracts and ensure that contracts are not 
    entered into in violation of the limitation in the preceding
    sentence.

  (c) Period of Programs- 

      (1) IN GENERAL- Subject to paragraph (2), any pilot program
    may be carried out under this title for the period, not in
    excess of five years, that is determined by the Administrator 
    as being sufficient to establish reliable results.

      (2) CONTINUING VALIDITY OF CONTRACTS- A contract entered into
    under the pilot program before the expiration of that program
    shall remain in effect according to the terms of the contract
    after the expiration of the program.

SEC. 5302. EVALUATION CRITERIA AND PLANS.

  (a) MEASURABLE TEST CRITERIA- The head of each executive agency
conducting a pilot program under section 5301 shall establish, to
the maximum extent practicable, measurable criteria for evaluating
the effects of the procedures or techniques to be tested under the program.

  (b) TEST PLAN- Before a pilot program may be conducted under
section 5301, the Administrator shall submit to Congress a detailed
test plan for the program, including a detailed description of the
procedures to be used and a list of any regulations that are to be waived.

SEC. 5303. REPORT.

  (a) REQUIREMENT- Not later than 180 days after the completion of 
a pilot program under this title, the Administrator shall--

      (1) submit to the Director a report on the results and
    findings under the program; and

      (2) provide a copy of the report to Congress.

  (b) CONTENT- The report shall include the following:

      (1) A detailed description of the results of the program, as
    measured by the criteria established for the program.

      (2) A discussion of any legislation that the Administrator
    recommends, or changes in regulations that the Administrator
    considers necessary, in order to improve overall information
    resources management within the Federal Government.

SEC. 5304. RECOMMENDED LEGISLATION.

  If the Director determines that the results and findings under a
pilot program under this title indicate that legislation is
necessary or desirable in order to improve the process for
acquisition of information technology, the Director shall transmit
the Director's recommendations for such legislation to Congress.

SEC. 5305. RULE OF CONSTRUCTION.

  Nothing in this title shall be construed as authorizing the
appropriation or obligation of funds for the pilot programs
authorized under this title.

SUBTITLE B--SPECIFIC PILOT PROGRAMS

SEC. 5311. SHARE-IN-SAVINGS PILOT PROGRAM.

  (a) REQUIREMENT- The Administrator may authorize the heads of two
executive agencies to carry out a pilot program to test the
feasibility of--

      (1) contracting on a competitive basis with a private sector
    source to provide the Federal Government with an information
    technology solution for improving mission-related or
    administrative processes of the Federal Government; and

      (2) paying the private sector source an amount equal to a
    portion of the savings derived by the Federal Government from
    any improvements in mission-related processes and 
    administrative processes that result from implementation of the solution.

  (b) LIMITATIONS- The head of an executive agency authorized to
carry out the pilot program may, under the pilot program, carry out
one project and enter into not more than  five contracts for the project.

  (c) SELECTION OF PROJECTS- The projects shall be selected by the
Administrator, in consultation with the Administrator for the 
Office of Information and Regulatory Affairs.

SEC. 5312. SOLUTIONS-BASED CONTRACTING PILOT PROGRAM.

  (a) IN GENERAL- The Administrator may authorize the heads of any
of the executive agencies, in accordance with subsection (d)(2), to
carry out a pilot program to test the feasibility of using
solutions-based contracting for acquisition of information technology.

  (b) SOLUTIONS-BASED CONTRACTING DESCRIBED- For purposes of this
section, solutions-based contracting is an acquisition method under
which the acquisition objectives are defined by the Federal
Government user of the technology to be acquired, a streamlined
contractor selection process is used, and industry sources are
allowed to provide solutions that attain the objectives effectively.

  (c) PROCESS REQUIREMENTS- The Administrator shall require use of 
a process with the following aspects for acquisitions under the
pilot program:

      (1) ACQUISITION PLAN EMPHASIZING DESIRED RESULT- Preparation of an
    acquisition plan that defines the functional requirements of the intended
    users of the information technology to be acquired, identifies the
    operational improvements to be achieved, and defines the performance
    measurements to be applied in determining whether the information
    technology acquired satisfies the defined requirements and attains the
    identified results.

      (2) RESULTS-ORIENTED STATEMENT OF WORK- Use of a statement of
    work that is limited to an expression of the end results or
    performance capabilities desired under the acquisition plan.

      (3) SMALL ACQUISITION ORGANIZATION- Assembly of a small
    acquisition organization consisting of the following:

          (A) An acquisition management team, the members of which
        are to be evaluated and rewarded under the pilot program 
        for contributions toward attainment of the desired results
        identified in the acquisition plan.

          (B) A small source selection team composed of
        representatives of the specific mission or administrative
        area to be supported by the information technology to be
        acquired, together with a contracting officer and persons
        with relevant expertise.

      (4) USE OF SOURCE SELECTION FACTORS EMPHASIZING SOURCE
    QUALIFICATIONS AND COSTS- Use of source selection factors that emphasize--

          (A) the qualifications of the offeror, including such
        factors as personnel skills, previous experience in
        providing other private or public sector organizations with
        solutions for attaining objectives similar to the 
        objectives of the acquisition, past contract performance,
        qualifications of the proposed program manager, and the
        proposed management plan; and

          (B) the costs likely to be associated with the conceptual
        approach proposed by the offeror.

      (5) OPEN COMMUNICATIONS WITH CONTRACTOR COMMUNITY- Open
    availability of the following information to potential offerors:

          (A) The agency mission to be served by the acquisition.

          (B) The functional process to be performed by use of
        information technology.

          (C) The process improvements to be attained.

      (6) SIMPLE SOLICITATION- Use of a simple solicitation that
    sets forth only the functional work description, the source
    selection factors to be used in accordance with paragraph (4),
    the required terms and conditions, instructions regarding
    submission of offers, and the estimate of the Federal
    Government's budget for the desired work.

      (7) SIMPLE PROPOSALS- Submission of oral presentations and
    written proposals that are limited in size and scope and 
    contain information on--

          (A) the offeror's qualifications to perform the desired
        work;

          (B) past contract performance;

          (C) the proposed conceptual approach; and

          (D) the costs likely to be associated with the proposed
        conceptual approach.

      (8) SIMPLE EVALUATION- Use of a simplified evaluation 
    process, to be completed within 45 days after receipt of
    proposals, which consists of the following:

          (A) Identification of the most qualified offerors that 
        are within the competitive range.

          (B) Issuance of invitations for at least three and not
        more than five of the identified offerors to make oral
        presentations to, and engage in discussions with, the
        evaluating personnel regarding, for each offeror--

              (i) the qualifications of the offeror, including how
            the qualifications of the offeror relate to the 
            approach proposed to be taken by the offeror in the
            acquisition; and

              (ii) the costs likely to be associated with the approach.

          (C) Evaluation of the qualifications of the identified
        offerors and the costs likely to be associated with the
        offerors' proposals on the basis of submissions required
        under the process and any oral presentations made by, and
        any discussions with, the offerors.

      (9) SELECTION OF MOST QUALIFIED OFFEROR- A selection process
    consisting of the following:

          (A) Identification of the most qualified source, and
        ranking of alternative sources, primarily on the basis of
        the oral proposals, presentations, and discussions, and
        written proposals submitted in accordance with paragraph (7).

          (B) Conduct for 30 to 60 days of a program definition
        phase (funded, in the case of the source ultimately awarded
        the contract, by the Federal Government)--

              (i) during which the selected source, in consultation
            with one or more intended users, develops a conceptual
            system design and technical approach, defines logical
            phases for the project, and estimates the total cost 
            and the cost for each phase; and

              (ii) after which a contract for performance of the
            work may be awarded to that source on the basis of 
            cost, the responsiveness, reasonableness, and quality 
            of the proposed performance, and a sharing of risk and
            benefits between the source and the Government.

          (C) Conduct of as many successive program definition phases with
        alternative sources (in the order ranked) as is necessary in order to award
        a contract in accordance with subparagraph (B).

      (10) SYSTEM IMPLEMENTATION PHASING- System implementation to
    be executed in phases that are tailored to the solution, with
    various contract arrangements being used, as appropriate, for
    various phases and activities.

      (11) MUTUAL AUTHORITY TO TERMINATE- Authority for the Federal
    Government or the contractor to terminate the contract without
    penalty at the end of any phase defined for the project.

      (12) TIME MANAGEMENT DISCIPLINE- Application of a standard 
    for awarding a contract within 105 to 120 days after issuance 
    of the solicitation.

  (d) Pilot Program Design- 

      (1) JOINT PUBLIC-PRIVATE WORKING GROUP- The Administrator, in
    consultation with the Administrator for the Office of
    Information and Regulatory Affairs, shall establish a joint
    working group of Federal Government personnel and
    representatives of the information technology industry to 
    design a plan for conduct of any pilot program carried out 
    under this section.

      (2) CONTENT OF PLAN- The plan shall provide for use of
    solutions-based contracting in the Department of Defense and 
    not more than two other executive agencies for a total of--

          (A) not more than 10 projects, each of which has an
        estimated cost of between $25,000,000 and $100,000,000; and

          (B) not more than 10 projects, each of which has an
        estimated cost of between $1,000,000 and $5,000,000, to be
        set aside for small business concerns.

      (3) COMPLEXITY OF PROJECTS- (A) Subject to subparagraph (C),
    each acquisition project under the pilot program shall be
    sufficiently complex to provide for meaningful evaluation of 
    the use of solutions-based contracting for acquisition of
    information technology for executive agencies.

          (B) In order for an acquisition project to satisfy the
        requirement in subparagraph (A), the solution for attainment of
        the executive agency's objectives under the project should not 
        be obvious, but rather shall involve a need for some innovative
        development and systems integration.

          (C) An acquisition project should not be so extensive or
        lengthy as to result in undue delay in the evaluation of the 
        use of solutions-based contracting.

  (e) MONITORING BY GAO- The Comptroller General of the United
States shall--

      (1) monitor the conduct, and review the results, of
    acquisitions under the pilot program; and

      (2) submit to Congress periodic reports containing the views
    of the Comptroller General on the activities, results, and
    findings under the pilot program.

TITLE LIV--ADDITIONAL INFORMATION RESOURCES MANAGEMENT MATTERS

SEC. 5401. ON-LINE MULTIPLE AWARD SCHEDULE CONTRACTING.

  (a) AUTOMATION OF MULTIPLE AWARD SCHEDULE CONTRACTING- In order 
to provide for the economic and efficient procurement of 
information technology and other commercial items, the 
Administrator of General Services shall provide through the Federal
Acquisition Computer Network (in this section referred to as
`FACNET'), not later than January 1, 1998, Government-wide on-line
computer access to information on products and services that are
available for ordering under the multiple award schedules. If the
Administrator determines it is not practicable to provide such
access through FACNET, the Administrator shall provide such access
through another automated system that has the capability to perform
the functions listed in subsection (b)(1) and meets the requirement
of subsection (b)(2).

  (b) ADDITIONAL FACNET FUNCTIONS- (1) In addition to the functions
specified in section 30(b) of the Office of Federal Procurement
Policy Act (41 U.S.C. 426(b)), the FACNET architecture shall have
the capability to perform the following functions:

      (A) Provide basic information on prices, features, and
    performance of all products and services available for ordering
    through the multiple award schedules.

      (B) Provide for updating that information to reflect changes
    in prices, features, and performance as soon as information on
    the changes becomes available.

      (C) Enable users to make on-line computer comparisons of the
    prices, features, and performance of similar products and
    services offered by various vendors.

  (2) The FACNET architecture shall be used to place orders under
the multiple award schedules in a fiscal year for an amount equal 
to at least 60 percent of the total amount spent for all orders
under the multiple award schedules in that fiscal year.

  (c) STREAMLINED PROCEDURES- 

      (1) PILOT PROGRAM- Upon certification by the Administrator of
    General  Services that the FACNET architecture meets the
    requirements of subsection (b)(1) and was used as required by
    subsection (b)(2) in the fiscal year preceding the fiscal year
    in which the certification is made, the Administrator for
    Federal Procurement Policy may establish a pilot program to 
    test streamlined procedures for the procurement of information
    technology products and services available for ordering through
    the multiple award schedules.

      (2) APPLICABILITY TO MULTIPLE AWARD SCHEDULE CONTRACTS- 

    Except  as provided in paragraph (4), the pilot program shall 
    be applicable to all multiple award schedule contracts for the
    purchase of information technology and shall test the following
    procedures:

          (A) A procedure under which negotiation of the terms and
        conditions for a covered multiple award schedule contract 
        is limited to terms and conditions other than price.

          (B) A procedure under which the vendor establishes the
        prices under a covered multiple award schedule contract and
        may adjust those prices at any time in the discretion of 
        the vendor.

          (C) A procedure under which a covered multiple award
        schedule contract is awarded to any responsible offeror
        that--

              (i) has a suitable record of past performance, which
            may include past performance on multiple award schedule
            contracts;

              (ii) agrees to terms and conditions that the Administrator
            determines as being required by law or as being appropriate for
            the purchase of commercial items; and

              (iii) agrees to establish and update prices, 
            features, and performance and to accept orders
            electronically through the automated system established
            pursuant to subsection (a).

      (3) COMPTROLLER GENERAL REVIEW AND REPORT- (A) Not later than
    three years after the date on which the pilot program is
    established, the Comptroller General of the United States shall
    review the pilot program and report to the Congress on the
    results of the pilot program.

          (B) The report shall include the following:

              (i) An evaluation of the extent to which there is
            competition for the orders placed under the pilot program.

              (ii) The effect that the streamlined procedures under the
            pilot program have on prices charged under multiple award
            schedule contracts.

              (iii) The effect that such procedures have on paperwork
            requirements for multiple award schedule contracts and orders.

              (iv) The impact of the pilot program on small businesses
            and socially and economically disadvantaged small businesses.

      (4) WITHDRAWAL OF SCHEDULE OR PORTION OF SCHEDULE FROM PILOT
    PROGRAM- The Administrator may withdraw a multiple award
    schedule or portion of a schedule from the pilot program if the
    Administrator determines that (A) price competition is not
    available under such schedule or portion thereof, or (B) the
    cost to the Government for that schedule or portion thereof for
    the previous year was higher than it would have been if the
    contracts for such schedule or portion thereof had been awarded
    using procedures that would apply if the pilot program were not
    in effect. The Administrator shall notify Congress at least 30
    days before the date on which the Administrator withdraws a
    schedule or portion thereof under this paragraph. The authority
    under this paragraph may not be delegated.

      (5) TERMINATION OF PILOT PROGRAM- Unless reauthorized by law,
    the authority of the Administrator to award contracts under the
    pilot program shall expire four years after the date on which
    the pilot program is established. Contracts entered into before
    the authority expires shall remain in effect in accordance with
    their terms notwithstanding the expiration of the authority to
    award new contracts under the pilot program.

  (d) DEFINITION- In this section, the term `FACNET' means the
Federal Acquisition Computer Network established under section 30 
of the Office of Federal Procurement Policy Act (41 U.S.C. 426).

SEC. 5402. IDENTIFICATION OF EXCESS AND SURPLUS COMPUTER EQUIPMENT.

  Not later than six months after the date of the enactment of this
Act, the head of an executive agency shall inventory all computer
equipment under the control of that official. After completion of
the inventory, the head of the executive agency shall maintain, in
accordance with title II of the Federal Property and Administrative
Services Act of 1949 (40 U.S.C. 481 et seq.), an inventory of any
such equipment that is excess or surplus property.

SEC. 5403. ACCESS OF CERTAIN INFORMATION IN INFORMATION SYSTEMS TO

THE DIRECTORY ESTABLISHED UNDER SECTION 4101 OF TITLE 44, UNITED STATES CODE.

  Notwithstanding any other provision of this division,  if in
designing an information technology system pursuant to this
division, the head of an executive agency determines that a purpose
of the system is to disseminate information to the public, then the
head of such executive agency shall reasonably ensure that an index
of information disseminated by such system is included in the
directory created pursuant to section 4101 of title 44, United
States Code. Nothing in this section authorizes the dissemination 
of information to the public unless otherwise authorized.

TITLE LV--PROCUREMENT PROTEST AUTHORITY OF THE COMPTROLLER GENERAL

SEC. 5501. PERIOD FOR PROCESSING PROTESTS.

  Title 31, United States Code, is amended as follows:

      (1) Section 3553(b)(2)(A) is amended by striking out `35' and
    inserting in lieu thereof `30'.

      (2) Section 3554 is amended--

          (A) in subsection (a)(1), by striking out `125' and
        inserting in lieu thereof `100'; and

          (B) in subsection (e)--

              (i) in paragraph (1), by striking out `Government
            Operations' and inserting in lieu thereof `Government
            Reform and Oversight'; and

              (ii) in paragraph (2), by striking out `125' and
            inserting in lieu thereof `100'.

SEC. 5502. AVAILABILITY OF FUNDS FOLLOWING GAO RESOLUTION OF

CHALLENGE TO CONTRACTING ACTION.

  (a) IN GENERAL- Section 1558 of title 31, United States Code, is
amended--

      (1) in the first sentence of subsection (a)--

          (A) by inserting `or other action referred to in
        subsection (b)' after `protest' the first place it appears;

          (B) by striking out `90 working days' and inserting in
        lieu thereof `100 days'; and

          (C) by inserting `or other action' after `protest' the
        second place it appears; and

      (2) by striking out subsection (b) and inserting in lieu
    thereof the following:

  `(b) Subsection (a) applies with respect to--

      `(1) any protest filed under subchapter V of chapter 35 of
    this title; or

      `(2) an action commenced under administrative procedures or
    for a judicial remedy if--

          `(A) the action involves a challenge to--

              `(i) a solicitation for a contract;

              `(ii) a proposed award of a contract;

              `(iii) an award of a contract; or

              `(iv) the eligibility of an offeror or potential
            offeror for a contract or of the contractor awarded the
            contract; and

          `(B) commencement of the action delays or prevents an
        executive agency from making an award of a contract or
        proceeding with a procurement.'.

  (b) CONFORMING AMENDMENT- The heading of such section is amended
to read as follows:

-`Sec. 1558. Availability of funds following resolution of a formal
protest or other challenge'.

  (c) CLERICAL AMENDMENT- The item relating to such section in the
table of sections at the beginning of chapter 15 of title 31, 
United States Code, is amended to read as follows:

`1558. Availability of funds following resolution of a formal
  protest or other challenge.'.

TITLE LVI--CONFORMING AND CLERICAL AMENDMENTS

SEC. 5601. AMENDMENTS TO TITLE 10, UNITED STATES CODE.

  (a) PROTEST FILE- Section 2305(e) is amended by striking out
paragraph (3).

  (b) MULTIYEAR CONTRACTS- Section 2306b of such title is amended--

      (1) by striking out subsection (k); and

      (2) by redesignating subsection (l) as subsection (k).

  (c) LAW INAPPLICABLE TO PROCUREMENT OF INFORMATION TECHNOLOGY-

Section 2315 of title 10, United States Code, is amended by 
striking out `Section 111' and all that follows through `use of
equipment or services if,' and inserting in lieu thereof the
following: `For the purposes of the Information Technology
Management Reform Act of 1995, the term `national security systems'
means those telecommunications and information systems operated by
the Department of Defense, the functions, operation or use of which'.
SEC. 5602. AMENDMENTS TO TITLE 28, UNITED STATES CODE.

  (a) REFERENCES TO BROOKS AUTOMATIC DATA PROCESSING ACT- Section
612 of title 28, United States Code, is amended--

      (1) in subsection (f), by striking out `section 111 of the
    Federal Property and Administrative Services Act of 1949 (40
    U.S.C. 759)' and inserting in lieu thereof `the provisions of
    law, policies, and regulations applicable to executive agencies
    under the Information Technology Management Reform Act of 1995';

      (2) in subsection (g), by striking out `sections 111 and 201
    of the Federal Property and Administrative Services Act of 1949
    (40 U.S.C. 481 and 759)' and inserting in lieu thereof `section
    201 of the Federal Property and Administrative Services Act of
    1949 (40 U.S.C. 481)';

      (3) by striking out subsection (l); and

      (4) by redesignating subsection (m) as subsection (l).

  (b) REFERENCES TO AUTOMATIC DATA PROCESSING- Section 612 of title
28, United States Code, is further amended--

      (1) in the heading, by striking out the second word and
  inserting in lieu thereof ` [Bold->] Information Technology [<-Bold] ';

      (2) in subsection (a), by striking out `Judiciary Automation
  Fund' and inserting in lieu thereof `Judiciary Information
  Technology Fund'; and

      (3) by striking out `automatic data processing'  and 
  inserting in lieu thereof `information technology' each place 
  it appears in subsections (a), (b), (c)(2), (e), (f), and (h)(1).

SEC. 5603. AMENDMENT TO TITLE 31, UNITED STATES CODE.

  Section 3552 of title 31, United States Code, is amended by
striking out the second sentence.

SEC. 5604. AMENDMENTS TO TITLE 38, UNITED STATES CODE.

  Section 310 of title 38, United States Code, is amended to read as follows:

`Sec. 310. Chief Information Officer

  `(a) The Chief Information Officer for the Department is
designated pursuant to section 3506(a)(2) of title 44.

  `(b) The Chief Information Officer performs the duties provided
for chief information officers of executive agencies under chapter
35 of title 44 and the Information Technology Management Reform Act
of 1995.'.

SEC. 5605. PROVISIONS OF TITLE 44, UNITED STATES CODE, RELATING TO

PAPERWORK REDUCTION.

  (a) DEFINITION- Section 3502 of title 44, United States Code, is
amended by striking out paragraph (9) and inserting in lieu thereof
the following:

      `(9) the term `information technology' has the meaning given
    that term in section 5002 of the Information Technology
    Management Reform Act of 1995 but does not include national
    security systems as defined in section 5142 of that Act;'.

  (b) DEVELOPMENT OF STANDARDS AND GUIDELINES BY NATIONAL INSTITUTE
OF STANDARDS AND TECHNOLOGY- Section 3504(h)(1)(B) of such title is
amended by striking out `section 111(d) of the Federal Property and
Administrative Services Act of 1949 (40 U.S.C. 759(d))' and
inserting in lieu thereof `section 5131 of the Information
Technology Management Reform Act of 1995'.

  (c) COMPLIANCE WITH DIRECTIVES- Section 3504(h)(2) of such title
is amended by striking out `sections 110 and 111 of the Federal
Property and Administrative Services Act of 1949 (40 U.S.C. 757 and
759)' and inserting in lieu thereof `the Information Technology
Management Reform Act of 1995 and directives issued under section
110 of the Federal Property and Administrative Services Act of 1949
(40 U.S.C. 757)'.

  (d) COLLECTION OF INFORMATION- Section 3507(j)(2) of such title 
is amended by striking out `90 days' in the second sentence and
inserting  in lieu thereof `180 days'.

SEC. 5606. AMENDMENT TO TITLE 49, UNITED STATES CODE.

  Section 40112(a) of title 49, United States Code, is amended by
striking out `or a contract to purchase property to which section
111 of the Federal Property and Administrative Services Act of 1949
(40 U.S.C. 759) applies'.

SEC. 5607. OTHER LAWS.

  (a) NATIONAL INSTITUTE OF STANDARDS AND TECHNOLOGY ACT- Section 
20 of the National Institute of Standards and Technology Act (15
U.S.C. 278g-3) is amended--

      (1) in subsection (a)--

          (A) by striking out `section 3502(2) of title 44' each
        place it appears in paragraphs (2) and (3)(A) and inserting
        in lieu thereof `section 3502(9) of title 44'; and

          (B) in paragraph (4), by striking out `section 111(d) of
        the Federal Property and Administrative Services Act of
        1949' and inserting in lieu thereof `section 5131 of the
        Information Technology Management Reform Act of 1995';

      (2) in subsection (b)--

          (A) by striking out paragraph (2);

          (B) in paragraph (3), by striking out `section 111(d) of
        the Federal Property and Administrative Services Act of
        1949' and inserting in lieu thereof `section 5131 of the
        Information Technology Management Reform Act of 1995'; and

          (C) by redesignating paragraphs (3), (4), (5), and (6) as
        paragraphs (2), (3), (4), and (5); and (3) in subsection (d)--

          (A) in paragraph (1)(B)(v), by striking out `as defined'
        and all that follows and inserting in lieu thereof a
        semicolon; and

          (B) in paragraph (2)--

              (i) by striking out `system'--' and all that follows
            through `means' in subparagraph (A) and inserting in
            lieu thereof `system' means'; and

              (ii) by striking out `; and' at the end of
            subparagraph (A) and all that follows through the end 
            of subparagraph (B) and inserting in lieu thereof a semicolon.

(b) COMPUTER SECURITY ACT OF 1987- 

    (1) PURPOSES- Section 2(b)(2) of the Computer Security Act of
  1987 (Public Law 100-235; 101 Stat. 1724) is amended by 
  striking out `by amending section 111(d) of the Federal 
  Property and Administrative Services Act of 1949 (40 U.S.C. 759(d))'.

    (2) SECURITY PLAN- Section 6(b) of such Act (101 Stat. 1729;
  40 U.S.C. 759 note) is amended--

        (A) by striking out `Within one year after the date of
      enactment of this Act, each such agency shall, consistent
      with the standards, guidelines, policies, and regulations
      prescribed pursuant to section 111(d) of the Federal
      Property and Administrative Services Act of 1949,' and
      inserting in lieu thereof `Each such agency shall,
      consistent with the standards, guidelines, policies, and
      regulations prescribed pursuant to section 5131 of the
      Information Technology Management Reform Act of 1995,'; and

        (B) by striking out `Copies' and all that follows through `Code.'.

  (c) FEDERAL PROPERTY AND ADMINISTRATIVE SERVICES ACT OF 1949-
Section 303B(h) of the Federal Property and Administrative Services
Act of 1949 (41 U.S.C. 253b(h)) is amended by striking out 
paragraph (3).

  (d) OFFICE OF FEDERAL PROCUREMENT POLICY ACT- Section 6(h)(1) of
the Office of Federal Procurement Policy Act (41 U.S.C. 405(h)(1))
is amended by striking out `of automatic data processing and
telecommunications equipment and services or'.

  (e) NATIONAL ENERGY CONSERVATION POLICY ACT- Section 801(b)(3) of
the National Energy Conservation Policy Act (42 U.S.C. 8287(b)(3))
is amended by striking out the second sentence.

  (f) CENTRAL INTELLIGENCE AGENCY ACT OF 1949- Section 3 of the
Central Intelligence Agency Act of 1949 (50 U.S.C. 403c) is amended
by striking out subsection (e).

SEC. 5608. CLERICAL AMENDMENTS.

  (a) FEDERAL PROPERTY AND ADMINISTRATIVE SERVICES ACT OF 1949- The
table of contents in section 1(b) of the Federal Property and
Administrative Services Act of 1949 is amended by striking out the
item relating to section 111.

  (b) TITLE 38, UNITED STATES CODE- The table of sections at the
beginning of chapter 3 of title 38, United States Code, is amended
by striking out the item relating to section 310 and inserting in
lieu thereof the following:

`310. Chief Information Officer.'.

TITLE LVII--EFFECTIVE DATE, SAVINGS PROVISIONS, AND RULES OF CONSTRUCTION

SEC. 5701. EFFECTIVE DATE.

  This division and the amendments made by this division shall take
effect 180 days after the date of the enactment of this Act.

SEC. 5702. SAVINGS PROVISIONS.

  (a) REGULATIONS, INSTRUMENTS, RIGHTS, AND PRIVILEGES- All rules,
regulations, contracts, orders, determinations, permits,
certificates, licenses, grants, and privileges--

      (1) which have been issued, made, granted, or allowed to
    become effective by the Administrator of General Services or 
    the General Services Board of Contract Appeals, or by a court 
    of competent jurisdiction, in connection with an acquisition
    activity carried out under the section 111 of the Federal
    Property and Administrative Services Act of 1949 (40 U.S.C.
    759), and

      (2) which are in effect on the effective date of this division,
  shall continue in effect according to their terms until modified,
  terminated, superseded, set aside, or revoked in accordance with 
  law by the Director or any other authorized official, by a court of
  competent jurisdiction, or by operation of law.

  (b) Proceedings- 

      (1) PROCEEDINGS GENERALLY- This division and the amendments
    made by this division shall not affect any proceeding, 
    including any proceeding involving a claim, application, or
    protest in connection with an acquisition activity carried out
    under section 111 of the Federal Property and Administrative
    Services Act of 1949 (40 U.S.C. 759) that is pending before the
    Administrator of General Services or the General Services Board
    of Contract Appeals on the effective date of this division.

      (2) ORDERS- Orders may be issued in any such proceeding,
    appeals may be taken therefrom, and payments may be made
    pursuant to such orders, as if this division had not been
    enacted. An order issued in any such proceeding shall continue
    in effect until modified, terminated, superseded, or revoked in
    accordance with law by the Director or any other authorized
    official, by a court of competent jurisdiction, or by operation
    of law.

      (3) DISCONTINUANCE OR MODIFICATION OF PROCEEDINGS NOT
    PROHIBITED- Nothing in this subsection prohibits the
    discontinuance or modification of any such proceeding under the
    same terms and conditions and to the same extent that such
    proceeding could have been discontinued or modified if this Act
    had not been enacted.

      (4) OTHER AUTHORITY AND PROHIBITION- Section 1558(a) of title 
    31, United States Code, and the second sentence of section 3552
    of such title shall continue to apply with respect to a protest
    process in accordance with this subsection.

      (5) REGULATIONS FOR TRANSFER OF PROCEEDINGS- The Director may
    prescribe regulations providing for the orderly transfer of
    proceedings continued under paragraph (1).

  (c) STANDARDS AND GUIDELINES FOR FEDERAL COMPUTER SYSTEMS-
Standards and guidelines that are in effect for Federal computer
systems under section 111(d) of the Federal Property and
Administrative Services Act of 1949 (40 U.S.C. 759(d)) on the day
before the effective date of this division shall remain in effect
until modified, terminated, superseded, revoked, or disapproved
under the authority of section 5131 of this Act.

SEC. 5703. RULES OF CONSTRUCTION.

  (a) RELATIONSHIP TO TITLE 44, UNITED STATES CODE- Nothing in this
division shall be construed to amend, modify, or supersede any
provision of title 44, United States Code, other than chapter 35 of
such title.

  (b) RELATIONSHIP TO COMPUTER SECURITY ACT OF 1987- Nothing in 
this division shall affect the limitations on authority that is
provided for in the administration of the Computer Security Act of
1987 (Public Law 100-235) and the amendments made by such Act.

Speaker of the House of Representatives.

Vice President of the United States and President of the Senate.


Home | Search | Index | Map | Comments | Disclaimers | Privacy

Page last updated: 05/09/2000