[Pages H8467-H8469]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]

DEPARTMENT OF VETERANS AFFAIRS INFORMATION TECHNOLOGY REFORM ACT OF
2022

Mr. TAKANO. Mr. Speaker, I move to suspend the rules and pass the
bill (H.R. 2250) to amend title 38, United States Code, to improve the
management of information technology projects and investments of the
Department of Veterans Affairs, and for other purposes, as amended.
The Clerk read the title of the bill.
The text of the bill is as follows:

H.R. 2250

Be it enacted by the Senate and House of Representatives of
the United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

This Act may be cited as the ``Department of Veterans
Affairs Information Technology Reform Act of 2022''.

SEC. 2. INFORMATION TECHNOLOGY PROJECTS AND ACTIVITIES.

(a) In General.--Chapter 81 of title 38, United States
Code, is amended by adding at the end the following new
subchapter:

``SUBCHAPTER VI--INFORMATION TECHNOLOGY PROJECTS AND ACTIVITIES

``Sec. 8171. Definitions

``In this subchapter:
``(1) The term `appropriate congressional committees'
means--
``(A) the Committee on Veterans' Affairs and the Committee
on Appropriations of the Senate; and
``(B) the Committee on Veterans' Affairs and the Committee
on Appropriations of the House of Representatives.
``(2) The term `information technology' has the meaning
given that term in section 11101 of title 40.
``(3)(A) The term `information technology project' means a
project or program of the Department (including a project or
program of any element of the Department) for, or including,
the acquisition or implementation of information technology.
``(B) In cases where the Secretary transmits to the
Director of the Office of Management and Budget information
regarding information technology investments, which may
consist of individual or multiple projects, the term
`information technology project' refers to an individual
project or program or a grouping of multiple projects or
programs resulting in the acquisition or implementation of
discrete information technology.
``(4) The term `life cycle costs' means all direct and
indirect costs to acquire, implement, operate, and maintain
information technology, including with respect to costs of
any element of the Department.
``(5) The term `major information technology project' means
an information technology project if--
``(A) the project is designated by the Secretary, the Chief
Information Officer of the Department, or the Director of the
Office of Management and Budget as a major information
technology investment, as defined in section 11302 of title
40; or
``(B) the dollar value of the project is estimated by the
Secretary to exceed--
``(i) $1,000,000,000 (as adjusted for inflation pursuant to
section 1908 of title 41) for the total life cycle costs of
the project; or
``(ii) $200,000,000 (as adjusted for inflation pursuant to
section 1908 of title 41) annually.
``(6) The term `business owner' means, with respect to an
information technology project, the program manager, project
manager, or other supervisory official of the Department
responsible for the project.

``Sec. 8172. Management of major information technology
projects

``(a) Cost, Schedule, and Performance Information.--(1) The
Secretary, acting through the Chief Information Officer of
the Department, shall submit to the appropriate congressional
committees a report containing information on the cost,
schedule, and performance of each major information
technology project that begins after the date of the
enactment of the Department of Veterans Affairs Information
Technology Reform Act of 2022, as generated by the business
owner of the project, prior to the commencement of such
project.
``(2) Each report submitted under paragraph (1) for a
project shall include, with respect to such project, the
following:
``(A) An estimate of acquisition costs, implementation
costs, and life cycle costs.
``(B) An intended implementation schedule indicating
significant milestones, initial operating capability, and
full operating capability or completion.
``(C) Key business, functional, and performance objectives.
``(b) Baseline.--(1) The Secretary shall use the
information on the cost, schedule, and performance of a major
information technology project included in the report under
subsection (a) as the baseline against which changes or
variances are measured during the life cycle of such project.
``(2) The Secretary shall--
``(A) annually update the baseline of a major information
technology project pursuant to subsection (c); and
``(B) include such updated baseline in the documents
providing detailed information on the budget for the
Department that the Secretary submits to Congress in
conjunction with the President's budget submission pursuant
to section 1105 of title 31.
``(c) Changes and Variances.--(1) Not later than 60 days
after the date on which the Secretary identifies a change or
variance described in paragraph (2) in the cost, schedule, or
performance of a major information technology project, the
Secretary, acting through the Chief Information Officer,
shall submit to the appropriate congressional committees a
notification of such change or variance, including a
description and explanation for such change or variance.
``(2) A change or variance in the cost, schedule, or
performance of a major information technology project
described in this paragraph is--
``(A) with respect to the acquisition, implementation, or
life cycle cost of the project, or development increment
therein, a change or variance that is 10 percent or greater
compared to the baseline;
``(B) with respect to the schedule for a development
increment or for achieving a significant milestone, initial
operating capability, or full operating capability, or for
the final completion of the project, a change or variance
that is 180 days or greater compared to the baseline; or
``(C) with respect to the performance, an instance where a
key business, functional, or performance objective is not
attained, or is not anticipated to be attained, in whole or
in part.
``(d) Management.--The Secretary shall ensure that each
major information technology project is managed by an
interdisciplinary team consisting of the following:
``(1) A project manager who--
``(A)(i) is certified in project management at level three
by--
``(I) the Department;
``(II) the Federal Acquisition Institute pursuant to
section 1201 of title 41; or
``(III) the Department of Defense pursuant to section 1701a
of title 10; or
``(ii) holds an equivalent certification by a private
sector project management certification organization, as
determined appropriate by the Secretary; and
``(B) is an employee of the Office of Information and
Technology of the Department or an employee of an element of
the Department at which the project originates.
``(2) A functional lead who is an employee of the element
of the Department at which the project originates.
``(3) A technical lead who is an employee of the Office of
Information and Technology of the Department.
``(4) A contracting officer.
``(5) Sufficient other project management, functional,
technical, and procurement personnel as the Secretary
determines appropriate.

``Sec. 8173. Information technology activities of the
Financial Services Center

``(a) Management.--Consistent with sections 11302 and 11319
of title 40--
``(1) the Chief Information Officer of the Department
shall--
``(A) exercise authority over the management, governance,
and oversight processes relating to existing or proposed
information technology of the Financial Services Center of
the Department, or such successor office; and
``(B) supervise the information technology employees and
contractors of the Financial Services Center; and
``(2) the Director of the Financial Services Center of the
Department, or the head of such successor office, may not
enter into a contract or other agreement for information
technology or information technology services unless the
contract or other agreement has been reviewed and approved by
the Chief Information Officer.
``(b) Oversight.--The Chief Information Officer shall have
oversight and operational authority over all information
security practices of the Financial Services Center of the
Department.

``Sec. 8174. Submission of annual reviews of information
technology

``(a) In General.--The Secretary, acting through the Chief
Information Officer of the Department, shall submit to the
appropriate congressional committees each annual review of
the information technology portfolio of the Department
conducted pursuant to section 11319(d)(3) of title 40.
``(b) First Submission.--The first annual review submitted
under subsection (a) shall include a copy of each previous
annual review conducted under section 11319(d)(3) of title
40.

``Sec. 8175. Information technology matters to be included in
budget justification materials for the Department

``(a) List of Information Technology Projects in Effect.--
The Secretary shall ensure that whenever the budget
justification materials are submitted to Congress in support
of the Department budget for a fiscal year (as submitted with
the budget of the President for such fiscal year under
section 1105(a) of title 31), such budget justification
materials include a list of every information technology
project currently in effect at the Department (including not
only congressional projects and subprojects as determined by
the Director of the Office of Management and Budget or the
Secretary).

[[Page H8468]]

``(b) Prioritized List of Unfunded Projects.--(1) In
addition to the list included in the budget justification
materials required by subsection (a), the Secretary shall
ensure that the budget justification materials described in
such subsection also include summary descriptions and a
prioritized list, in rank order, of every information
technology project of the Department, proposed or intended to
be proposed for the following one, two, or three fiscal
years, that is unfunded as of the time of the inclusion of
the list under this paragraph.
``(2) In producing the list required by paragraph (1), the
Secretary shall--
``(A) ensure such list represents a ranking of all proposed
information technology projects that reflects the needs of
all elements of the Department;
``(B) produce one unified list for the entire Department
demonstrating how the various proposed information technology
projects of each of the elements of the Department rank in
priority with the information technology projects of the
other elements of the Department; and
``(C) ensure that the list--
``(i) does not disaggregate and rank information technology
projects based on element of the Department; and
``(ii) does identify the element of the Department
requesting the information technology project.
``(3)(A) In producing each list under paragraph (1), the
Secretary shall prioritize and rank each information
technology project based on an assessment of each of the
following factors:
``(i) Degree of collaboration between business owners and
the Chief Information Officer with respect to joint
functional-technical planning, requirements, and management.
``(ii) Operational or efficiency benefits to employees of
the Department created or produced by the information
technology project.
``(iii) The life cycle cost of the information technology
project.
``(iv) The cost savings or cost avoidance yielded by the
information technology project.
``(v) Time to completion of the information technology
project.
``(vi) The difficulty of the information technology
project, the likelihood the information technology project
will be completed, or the risks associated with undertaking
the information technology project.
``(vii) Tangible benefits to veterans created or produced
by the information technology project.
``(viii) Such other factors as the Secretary considers
appropriate.
``(B) The Secretary shall ensure that each list produced
under paragraph (1) includes, for each information technology
project included in the list, a brief description of the
findings of the Secretary with respect to each assessment
carried out by the Secretary for each factor for the
information technology project under subparagraph (A).
``(c) Projected Funding Needs.--(1) In addition to the
matters included under subsections (a) and (b), the Secretary
shall ensure that the budget justification materials
described in subsection (a) also include a projection of the
one-year, two-year, and three-year funding needs of the
Department for information technology, disaggregated by--
``(A) portfolio; and
``(B) the product line of the Department that requires the
funding.
``(2) In addition to the projections under paragraph (1),
with respect to each of the periods set forth in such
paragraph, the Secretary shall include a description of the
funding required for each technology business management
category used by the Office of Information Technology of the
Department (commonly referred to as `cost pools' and
`towers').''.
(b) Clerical Amendment.--The table of sections at the
beginning of such chapter is amended by adding at the end the
following:

``subchapter vi--information technology projects and activities

``Sec. 8171. Definitions.
``Sec. 8172. Management of major information technology projects.
``Sec. 8173. Information technology activities of the Financial
Services Center.
``Sec. 8174. Submission of annual reviews of information technology.
``Sec. 8175. Information technology matters to be included in budget
justification materials for the Department.''
(c) Application and Report Regarding Management of Major
Information Technology Projects.--
(1) Current and new major projects.--Except as specifically
provided in subsection (a) of section 8172 of title 38,
United States Code, as added by subsection (a) of this
section, such section 8172 shall apply with respect to major
information technology projects that begin before, on, or
after the date of the enactment of this Act.
(2) Report on current projects.--
(A) In general.--Not later than 90 days after the date of
the enactment of this Act, the Secretary of Veterans Affairs
shall submit to the appropriate congressional committees a
report on each major information technology project that the
Secretary is carrying out as of the date of the report.
(B) Contents.--The report submitted under subparagraph (A)
shall contain, with respect to each project described in such
subparagraph, information on the cost, schedule, and
performance of the project as described in subsection (a) of
section 8172 of such title, as so added.
(3) Definitions.--In this subsection, the terms
``appropriate congressional committees'' and ``major
information technology project'' have the meanings given
those terms in section 8171 of title 38, United States Code,
as added by subsection (a) of this section.
(d) Information Technology Activities of the Financial
Services Center.--
(1) Effective date.--Section 8173 of such title, as added
by subsection (a), shall take effect on the date of the
enactment of this Act.
(2) Applicability.--Subsection (a)(2) of such section shall
apply with respect to contracts and agreements entered into
on or after the date of the enactment of this Act.
(e) Effective Date of Requirement for Projects in Budget
Justification Materials.--Subsection (c) of section 8175 of
such title, as added by subsection (a) of this section, shall
take effect on the first Monday in the second January
beginning after the date of the enactment of this Act.

The SPEAKER pro tempore. Pursuant to the rule, the gentleman from
California (Mr. Takano) and the gentleman from Texas (Mr. Ellzey) each
will control 20 minutes.
The Chair recognizes the gentleman from California.

General Leave

Mr. TAKANO. Mr. Speaker, I ask unanimous consent that all Members may
have 5 legislative days in which to revise and extend their remarks and
insert extraneous material on H.R. 2250, as amended.
The SPEAKER pro tempore. Is there objection to the request of the
gentleman from California?
There was no objection.
Mr. TAKANO. Mr. Speaker, I yield myself such time as I may consume.
Mr. Speaker, the Department of Veterans Affairs Information
Technology Reform Act requires VA to report on the cost, schedule, and
performance information for major information technology projects. A
major information technology project is a project that exceeds $500
million in total life cycle costs.
H.R. 2250, as amended, also requires VA to ensure that each major IT
project is managed by an interdisciplinary team. The bill is necessary
due to the numerous issues that the VA has had with technology
modernization and management of its major IT programs. This bill
provides Congress with key information to conduct proper oversight over
those programs.
Mr. Speaker, I wholeheartedly support this bill. I urge all my
colleagues to do the same, and I reserve the balance of my time.
Mr. ELLZEY. Mr. Speaker, I yield myself such time as I may consume.
Mr. Speaker, I rise today in support of H.R. 2250, as amended, the VA
Information Technology Reform Act of 2022. Mr. Rosendale, Mr. Mrvan,
and Mr. Banks have worked on this legislation in the Technology
Modernization Subcommittee for over 2 years.
The VA relies on information technology to deliver nearly every
service and benefit to our Nation's veterans. But it is no secret that
there have been many struggles with IT projects that fail to deliver.
Cost and schedule overruns and poor performance are routine.
This bipartisan legislation creates new accountability standards for
VA to plan, initiate, and manage large IT projects. Congress has to be
informed in advance, before any money is spent, and the VA has to
create a baseline to measure each project's performance against.
The legislation also reforms how VA budgets for IT and increases
transparency into the Department's activities and needs.
I commend Mr. Rosendale for being a watchdog on this important and
difficult issue.
Mr. Speaker, I reserve the balance of my time.
Mr. TAKANO. Mr. Speaker, I have no further speakers, and I am
prepared to close.
Mr. Speaker, I reserve the balance of my time.
Mr. ELLZEY. Mr. Speaker, I yield 2 minutes to the gentleman from
Montana (Mr. Rosendale).
Mr. ROSENDALE. Mr. Speaker, I rise today in support of my
legislation, H.R. 2250, the VA Information Technology Reform Act of
2022.
When I began serving on the Veterans' Affairs Committee, I was
horrified to discover that Congress is shoveling roughly $9 billion a
year into VA

[[Page H8469]]

information technology, with disappointing results and very little
useful information about how it is even being spent.
The VA's annual IT operations budget is nearly $5.8 billion. The
disastrous Electronic Health Record Modernization Program received $2.6
billion last year alone, and several hundred million more dollars go to
other IT programs annually.
To be sure, every year VA produces hundreds of pages of budget
documents about IT. But when I examined them, I found very little
relevance to what is actually happening and zero accountability. That
is why I introduced H.R. 2250, the VA IT Reform Act. It would require
VA to report on major IT projects, costs estimates, schedules, and
performance goals before they begin and before any money is spent on
them. If the project is approved, that information would then become
baseline that progress is measured against annually.
If we had already been getting all this information, several of the
VA big-ticket IT projects would have been canceled, and some would
never have been started at all. Instead, we are working to contain the
damage from the EHR, while still piecing together how it even began.
At the same time, VA is now on its second attempt to modernize its
supply chain and its third attempt to replace its financial systems.
My legislation would also reform how VA budgets for IT. It would
require the Department to rank each requested project in terms of
costs, risks, and benefits, and present each office's IT needs in plain
language, not the indecipherable categories that now exist.
Finally, my bill would make the VA Chief Information Officer
responsible for the Financial Services Centers IT's activities and make
troves of information from the Office of Management and Budget about
the VA IT programs available to Congress.
Once Congress has all of this information, it is our responsibility
to oversee the spending decisions VA is making. Every IT project has to
improve the services and benefits our veterans receive or it should not
receive a single dollar more of taxpayer money.
I thank Mr. Mrvan and Mr. Banks for working with me on this bill, and
I urge all of my colleagues to support it.
Mr. ELLZEY. Mr. Speaker, I encourage my colleagues to support this
bill, and I yield back the balance of my time.
Mr. TAKANO. Mr. Speaker, in view of the fact that I know this
Congress, the 117th Congress, is coming to a close and I may not see
you up on the rostrum and the dais again, I wanted to say mahalo for
your service in our military, mahalo for your service to the people of
Hawaii, mahalo for your service to the American people.
I ask all my colleagues to join me in passing H.R. 2250, as amended,
and I yield back the balance of my time.
The SPEAKER pro tempore. The question is on the motion offered by the
gentleman from California (Mr. Takano) that the House suspend the rules
and pass the bill, H.R. 2250, as amended.
The question was taken.
The SPEAKER pro tempore. In the opinion of the Chair, two-thirds
being in the affirmative, the ayes have it.
Mr. ROSENDALE. Mr. Speaker, on that I demand the yeas and nays.
The yeas and nays were ordered.
The SPEAKER pro tempore. Pursuant to clause 8 of rule XX, further
proceedings on this motion will be postponed.

____________________