Bill summaries are authored by CRS.

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Passed House amended (09/22/2016)

Modernizing Government Technology Act of 2016 or the MGT Act

(Sec. 3) This bill establishes in each covered agency (specified agencies for which there are Chief Financial Officers) an information technology system modernization and working capital fund which may be used for necessary expenses for the agency to:

  • improve, retire, or replace existing information technology systems to improve efficiency and effectiveness;
  • transition to cloud computing and innovative platforms and technologies;
  • assist and support efforts to provide adequate, risk-based, and cost-effective information technology capabilities that address evolving threats to information security; and
  • reimburse amounts transferred from the Information Technology Modernization Fund (ITMF) (established under this bill), with the approval of the agency's Chief Information Officer (CIO).

Deposits into such fund may include reprogrammed or transferred amounts available for the operation and maintenance of legacy information technology systems. Each agency shall prioritize amounts within such fund to be used initially for cost savings activities approved by the agency's Chief Information Officer. Amounts deposited into an IT working capital fund shall be available for obligation for three years after the date of such deposit.

Each agency, by one year after this Act's enactment and every six months thereafter, shall submit to the OMB a list of each information technology investment funded by, and a summary of the obligations, expenditures, and unused balances of, the agency's IT working capital fund. The OMB shall make such information publicly available on a website.

(Sec. 4) The bill establishes the ITMF for technology related activities, to improve information technology, and to enhance cybersecurity across the federal government. The ITMF shall be administered by the General Services Administration (GSA) in accordance with guidance established by, and with the concurrence of, the Office of Management and Budget (OMB).

The GSA shall:

  • transfer amounts from the ITMF to an agency to improve, retire, or replace existing information technology systems to enhance cybersecurity and improve efficiency and effectiveness;
  • use amounts in the ITMF for the development, operation, and procurement of information technology products, services, and acquisition vehicles for use by agencies to improve efficiency and cybersecurity; and
  • use amounts in the ITMF to provide services or work performed in support of such activities.

An agency shall: (1) reimburse the ITMF for any such transfer, and (2) pay prices to be fixed by the GSA for such products or services the agency uses at levels sufficient to ensure the solvency of the ITMF. The GSA may obtain reimbursement by the issuance of transfer and counterwarrants if timely payment is not made by an agency.

The OMB shall publish on a public website and and update quarterly a list of each project funded by the ITMF.

The bill establishes an Information Technology Modernization Board, which shall:

  • evaluate proposals submitted by agencies for funding authorized under the ITMF;
  • provide input to the OMB for the development of processes for agencies to submit modernization proposals to the board and to establish the criteria by which such proposals are evaluated;
  • make recommendations to the GSA to assist agencies in the further development and refinement of select proposals;
  • review and prioritize such modernization proposals;
  • identify opportunities to improve or replace multiple information technology systems with a smaller number of information technology systems common to multiple agencies;
  • recommend the funding of modernization projects;
  • monitor progress and performance in executing approved projects and, if necessary, recommend the suspension or termination of funding; and
  • monitor operating costs of the ITMF.

The GSA shall support board activities and provide technical support to, and oversight of, agencies that receive transfers from the ITMF.