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114th Congress   }                                        {   Report
                        HOUSE OF REPRESENTATIVES
 2d Session      }                                        {    114-637

======================================================================



 
           PROGRAM MANAGEMENT IMPROVEMENT ACCOUNTABILITY ACT

                                _______
                                

 June 21, 2016.--Committed to the Committee of the Whole House on the 
              State of the Union and ordered to be printed

                                _______
                                

 Mr. Chaffetz, from the Committee on Oversight and Government Reform, 
                        submitted the following

                              R E P O R T

                         [To accompany S. 1550]

      [Including cost estimate of the Congressional Budget Office]

    The Committee on Oversight and Government Reform, to whom 
was referred the bill (S. 1550) to amend title 31, United 
States Code, to establish entities tasked with improving 
program and project management in certain Federal agencies, and 
for other purposes, having considered the same, report 
favorably thereon with amendments and recommend that the bill 
as amended do pass.

                                CONTENTS

                                                                   Page
Committee Statement and Views....................................     2
Section-by-Section...............................................     4
Explanation of Amendments........................................     5
Committee Consideration..........................................     5
Roll Call Votes..................................................     5
Application of Law to the Legislative Branch.....................     5
Statement of Oversight Findings and Recommendations of the 
  Committee......................................................     5
Statement of General Performance Goals and Objectives............     5
Duplication of Federal Programs..................................     6
Disclosure of Directed Rule Makings..............................     6
Federal Advisory Committee Act...................................     6
Unfunded Mandate Statement.......................................     6
Earmark Identification...........................................     6
Committee Estimate...............................................     6
Budget Authority and Congressional Budget Office Cost Estimate...     6
Changes in Existing Law Made by the Bill, as Reported............     9

    The amendments (stated in terms of the page and line 
numbers of the introduced bill) are as follows:
  Page 9, strike lines 4 through 5 and insert the following new 
clause:

                          ``(iii) Any other full-time or 
                        permanent part-time officer or employee 
                        of the Federal Government or member of 
                        the Armed Forces designated by the 
                        Chairperson.''.

  Page 10, strike lines 4 through 6.
  Page 10, insert after line 14 the following new subsection:

  (c) Technical and Conforming Amendment.--The table of 
sections for chapter 11 of title 31, United States Code, is 
amended by inserting after the item relating to section 1125 
the following new item:

        ``1126. Program Management Improvement Officers and Program 
                        Management Policy Council.''.

                     Committee Statement and Views


                          PURPOSE AND SUMMARY

    S. 1550, the Program Management Improvement Accountability 
Act, would improve government-wide program and project 
management. The bill requires the Office of Management and 
Budget (OMB) to establish government-wide standards and 
policies for program management, creates the position of 
Program Management Improvement Officer, and establishes an 
interagency Program Management Policy Council.

                  BACKGROUND AND NEED FOR LEGISLATION

    The federal government is estimated to spend more than $4 
trillion in fiscal year 2017\1\ and even minor improvements to 
efficiency can result in significant cost savings.\2\ 
Improvements in the leadership, training, and guidance of 
project and program management could assist those efforts.
---------------------------------------------------------------------------
    \1\Cong. Budget Office, The Budget and Economic Outlook 2016-2026 
(Jan. 2016), available at: https://www.cbo.gov/sites/default/files/
114th-congress-2015-2016/reports/51129-2016Outlook.pdf.
    \2\Bernard Le Masson, Brian J. Moran, & Steve Rohleder, Coup 
D'etat: Radically Rethinking Public Services, Accenture (Nov. 1, 2013), 
available at: https://www.accenture.com/us-en/insight-outlook-
radically-rethinking-public-services-government.aspx (``The United 
States alone could save as much as $995 billion by 2025 by increasing 
public-sector efficiency by just 1 percent a year.'')
---------------------------------------------------------------------------
    A 2013 survey sponsored by the Project Management Institute 
found that only 11 percent of government organizations have a 
senior-level program management-related role.\3\ Moreover, only 
37 percent of government respondents had a formal process for 
developing program management competency--17 percent lower than 
in private industry.\4\
---------------------------------------------------------------------------
    \3\Nat'l Acad. of Pub. Admin., Improving Program Management in the 
Federal Government (July 2015), available at: https://www.pmi.org/***/
media/PDF/Business-Solutions/improve-
program-management-federal-government.ashx.
    \4\Id.
---------------------------------------------------------------------------
    Even with the limited nature of program management roles 
and training, the federal government has been able to achieve 
tangible benefits in certain areas. For example, the U.S. 
Government Accountability Office publishes an annual report on 
duplication, fragmentation, overlap and other potential cost 
savings in the federal government and a biennial report on 
programs that are deemed ``high risk'' of waste, fraud, and 
abuse. The extra attention to the programs highlighted as 
duplicative or inefficient has produced significant positive 
results for the taxpayer. Attention to high risk areas has 
resulted in more than $40 billion in financial benefits and 866 
other improvements related to high-risk areas.\5\ Similar 
efforts to improve specific areas identified in the annual 
report on duplication and other cost savings will result in 
$125 billion in financial benefits.\6\
---------------------------------------------------------------------------
    \5\Gov't Accountability Office, GAO-15-290, High-Risk Series, An 
Update (Feb. 2015), available at: http://www.gao.gov/assets/670/
668415.pdf.
    \6\Gov't Accountability Office, GAO-16-375SP, 2016 Annual Report: 
Additional Opportunities to Reduce Fragmentation, Overlap, and 
Duplication and Achieve Other Financial Benefits (April 2016), 
available at: http://www.gao.gov/assets/680/676473.pdf.
---------------------------------------------------------------------------
    Turning agency best practices into government-wide policies 
for program and project managers could help to stop waste 
before it starts. S. 1550 begins this process by requiring the 
Office of Management and Budget (OMB) to establish standards 
and policies for program management. OMB would be required to 
oversee implementation of those standards and engage with the 
private sector to identify best practices. S. 1550 also 
requires OMB to establish a five-year strategic plan for 
program and project management.
    Further, S. 1550 establishes a long-term view of 
improvements to program and project management by creating a 
Program Management Improvement Council and requiring every 
agency to designate a Program Management Improvement Officer. 
The Council would be comprised of five top officials from OMB 
and the Program Management Improvement Officer from each 
agency. The Council would advise OMB in establishing standards 
and identifying best practices, review high risk programs, and 
discuss topics of importance to workforce. Agency-designated 
Project Management Improvement Officers would be tasked with 
leading the agency in implementing the standards set by OMB and 
developing a strategy for enhancing the role of project 
managers in the agency.

                          LEGISLATIVE HISTORY

    S. 1550, the Program Management Improvement Accountability 
Act, was introduced on June 10, 2015, by Senator Joni Ernst (R-
IA) and Senator Heidi Heitkamp (D-ND). The bill was referred to 
the Committee on Homeland Security and Governmental Affairs 
(HSGAC). On June 24, 2015, HSGAC considered S. 1550 at a 
business meeting. Senator Ernst offered a substitute amendment, 
and an additional modification to the substitute. Senator 
McCain offered an amendment to require the GAO to issue a 
report examining the effectiveness of the legislation on 
improving Federal program and project management in conjunction 
with the annual GAO ``High Risk'' list. All amendments were 
adopted by voice vote. HSGAC ordered the bill, as amended, 
reported favorably by voice vote. On November 19, 2015, the 
Senate passed S. 1550 by unanimous consent.
    In the House, S. 1550 was referred to the Committee on 
Oversight and Government Reform. The Committee considered S. 
1550 at a business meeting on May 17, 2016. Chairman Jason 
Chaffetz (R-UT) offered an amendment to clarify the membership 
of the council created by S. 1550, which was adopted by voice 
vote. The Committee ordered the bill favorably reported, as 
amended, by voice vote.
    Identical legislation, H.R. 2144, was introduced in the 
House on April 30, 2015 by Congressmen Todd Young (R-IN) and 
Gerald Connolly (D-VA). The bill was referred to the Committee 
on Oversight and Government Reform.

                           Section-by-Section


Section 1. Short title

    Designates the short title of the bill as the ``Program 
Management Improvement Accountability Act.''

Section 2. New responsibilities for the Deputy Director for Management

    Requires the Deputy Director for Management at the U.S. 
Office of Management and Budget (OMB), subject to the direction 
and approval of the OMB Director, to adopt and oversee 
implementation of government-wide standards, policies, and 
guidelines for program and project management; chair the 
Program Management Policy Council; establish standards and 
policies for program and project management planning and 
delivery; engage with the private sector to identify best 
practices; conduct portfolio reviews to address programs 
identified as ``High Risk'' by the Government Accountability 
Office (GAO); and establish a five-year strategic plan for 
program and project management. Exempts the Department of 
Defense (DOD), to the extent that the provisions of this 
paragraph are substantially similar to or duplicative of the 
provisions of Chapter 87 of Title 10.
    Requires OMB to issue standards, policies, and guidelines 
within a year of enactment, and within 90 days later, requires 
OMB to issue regulations as necessary to implement this 
section.

Section 3. Program Management Improvement Officers; Program Management 
        Council

    Requires each Chief Financial Officer (CFO) Act agency to 
designate a senior executive as the ``Program Management 
Improvement Officer'' (PMIO) to implement program management 
policies and develop a strategy for enhancing the role of 
program managers.
    Exempts DOD from these requirements, to the extent that 
they are substantially similar to or duplicative of the 
provisions of Chapter 87 of Title 10.
    Establishes the ``Program Management Policy Council'' to 
review programs identified as high risk by GAO and make 
recommendations for actions to be taken; advise on the 
development of standards for program management transparency; 
and review information on performance.gov.
    The Council shall be composed of the PMIO from each CFO Act 
agency, and the following five members from OMB: the Deputy 
Director for Management (Chair); the Administrator of the 
Office of Electronic Government; the Administrator of Federal 
Procurement Policy; the Controller of the Office of Federal 
Financial Management; and the Director of the Office of 
Performance and Personnel Management. The Council shall meet at 
least twice per year.
    Requires each agency with a PMIO serving on the Council to 
provide administrative support.

Section 4. Program and project management personnel standards

    Requires OMB to issue regulations within 180 days after the 
date on which the standards, policies, and guidelines that are 
required under Section 2 of the Act are issued that identify 
key skills and competencies needed for a program and project 
manager in an agency; establish a new job series, or update and 
improve an existing job series, for program and project 
management; and establish a new career path for program and 
project managers.

Section 5. GAO report

    Requires, no later than three years after the date of 
enactment, GAO to issue, in conjunction with the High Risk 
list, a report examining the effectiveness of provisions of the 
Act that seek to improve federal program and project 
management.

                       Explanation of Amendments

    During Full Committee consideration of the bill, Chairman 
Jason Chaffetz (R-UT) offered an amendment to clarify that 
membership on the Program Management Policy Council is limited 
to federal employees and to remove a provision exempting the 
council from a provision in the Federal Advisory Committee Act 
(FACA) that requires a FACA committee to terminate after two 
years. The amendment was agreed to by voice vote.

                        Committee Consideration

    On May 17, 2016, the Committee met in open session and 
ordered reported favorably the bill, S. 1550, by voice vote, a 
quorum being present.

                            Roll Call Votes

    No roll call votes were requested or conducted during Full 
Committee consideration of S. 1550.

              Application of Law to the Legislative Branch

    Section 102(b)(3) of Public Law 104-1 requires a 
description of the application of this bill to the legislative 
branch where the bill relates to the terms and conditions of 
employment or access to public services and accommodations. 
This bill enhances the role of federal program and project 
managers by establishing policies, leadership, and an 
interagency council. This bill does not relate to employment or 
access to public services and accommodations.

  Statement of Oversight Findings and Recommendations of the Committee

    In compliance with clause 3(c)(1) of rule XIII and clause 
(2)(b)(1) of rule X of the Rules of the House of 
Representatives, the Committee's oversight findings and 
recommendations are reflected in the descriptive portions of 
this report.

         Statement of General Performance Goals and Objectives

    In accordance with clause 3(c)(4) of rule XIII of the Rules 
of the House of Representatives, the Committee's performance 
goals and objectives of the bill is to amend title 31, United 
States Code, to establish entities tasked with improving 
program and project management in certain Federal agencies.

                    Duplication of Federal Programs

    No provision of this bill establishes or reauthorizes a 
program of the Federal Government known to be duplicative of 
another Federal program, a program that was included in any 
report from the Government Accountability Office to Congress 
pursuant to section 21 of Public Law 111-139, or a program 
related to a program identified in the most recent Catalog of 
Federal Domestic Assistance.

                  Disclosure of Directed Rule Makings

    The Committee estimates that enacting this bill does not 
direct the completion of any specific rule makings within the 
meaning of 5 U.S.C. 551.

                     Federal Advisory Committee Act

    The Committee finds that the legislation does establish or 
authorize the establishment of an advisory committee within the 
definition of 5 U.S.C. App., Section 5(b).

                       Unfunded Mandate Statement

    Section 423 of the Congressional Budget and Impoundment 
Control Act (as amended by Section 101(a)(2) of the Unfunded 
Mandate Reform Act, P.L. 104-4) requires a statement as to 
whether the provisions of the reported include unfunded 
mandates. In compliance with this requirement the Committee has 
received a letter from the Congressional Budget Office included 
herein.

                         Earmark Identification

    This bill does not include any congressional earmarks, 
limited tax benefits, or limited tariff benefits as defined in 
clause 9 of rule XXI.

                           Committee Estimate

    Clause 3(d)(1) of rule XIII of the Rules of the House of 
Representatives requires an estimate and a comparison by the 
Committee of the costs that would be incurred in carrying out 
this bill. However, clause 3(d)(2)(B) of that rule provides 
that this requirement does not apply when the Committee has 
included in its report a timely submitted cost estimate of the 
bill prepared by the Director of the Congressional Budget 
Office under section 402 of the Congressional Budget Act of 
1974.

     Budget Authority and Congressional Budget Office Cost Estimate

    With respect to the requirements of clause 3(c)(2) of rule 
XIII of the Rules of the House of Representatives and section 
308(a) of the Congressional Budget Act of 1974 and with respect 
to requirements of clause (3)(c)(3) of rule XIII of the Rules 
of the House of Representatives and section 402 of the 
Congressional Budget Act of 1974, the Committee has received 
the following cost estimate for this bill from the Director of 
Congressional Budget Office:

                                     U.S. Congress,
                               Congressional Budget Office,
                                     Washington, DC, June 13, 2016.
Hon. Jason Chaffetz,
Chairman, Committee on Oversight and Government Reform, House of 
        Representatives, Washington, DC.
    Dear Mr. Chairman: The Congressional Budget Office has 
prepared the enclosed cost estimate for S. 1550, the Program 
Management Improvement Accountability Act.
    If you wish further details on this estimate, we will be 
pleased to provide them. The CBO staff contact is Matthew 
Pickford.
            Sincerely,
                                                        Keith Hall.
    Enclosure.

S. 1550--Program Management Improvement Accountability Act

    Summary: S. 1550 would amend federal law with the aim to 
improve program and project management in the federal 
government. The legislation would establish a council to be the 
primary interagency forum for program and project management. 
The legislation also would add additional responsibilities to 
the Office of Management and Budget (OMB), and require agencies 
to designate a senior executive as the Program Management 
Improvement Officer. Finally, S. 1550 would establish standards 
for program and project management personnel.
    CBO estimates that implementing S. 1550 would increase the 
administrative costs of federal agencies by a total of $20 
million over the 2017-2021 period; such spending would be 
subject to the availability of appropriated funds. Enacting S. 
1550 could affect direct spending by agencies not funded by 
annual appropriations; therefore, pay-as-you-go procedures 
apply. CBO estimates, however, that any net changes in direct 
spending by those agencies would be negligible. Enacting the 
legislation would not affect revenues.
    CBO estimates that enacting S. 1550 would not increase net 
direct spending or on-budget deficits in any of the four 
consecutive 10-year periods beginning in 2027.
    S. 1550 contains no intergovernmental or private-sector 
mandates as defined in the Unfunded Mandates Reform Act (UMRA) 
and would not affect the budgets of state, local, or tribal 
governments.
    Estimated Cost to the Federal Government: The estimated 
budgetary effect of S. 1550 is shown in the following table. 
The costs of this legislation fall primarily within budget 
function 800 (general government).

 
------------------------------------------------------------------------
                               By fiscal year, in millions of dollars--
                             -------------------------------------------
                                                                  2017-
                               2017   2018   2019   2020   2021    2021
------------------------------------------------------------------------
              CHANGES IN SPENDING SUBJECT TO APPROPRIATION
 
Estimated Authorization           2      3      5      5      5       20
 Level......................
Estimated Outlays...........      2      3      5      5      5       20
------------------------------------------------------------------------

    Basis of estimate: For this estimate, CBO assumes that S. 
1550 will be enacted late in 2016 and that spending will follow 
historical patterns for similar activities.
    Some provisions of the legislation would codify and expand 
current efforts for project management such as the General 
Services Administration's Performance Improvement Council where 
federal agencies and OMB collaborate to improve the performance 
of federal programs. However, based on information from OMB and 
the cost of similar councils, CBO anticipates that the workload 
of the 20 largest federal agencies would increase by as much as 
$500,000 per year to meet requirements in the act to fund the 
council's activities, prepare new reports, and conduct 
additional management training. CBO estimates that implementing 
S. 1550 would cost about $5 million annually after a phase-in 
period. Over the 2017-2021 period, CBO estimates that 
implementing the legislation would cost $20 million for 
additional personnel and training expenses; such spending would 
be subject to the availability of appropriated funds.
    Pay-As-You-Go Considerations: The Statutory Pay-As-You-Go 
Act of 2010 establishes budget-reporting and enforcement 
procedures for legislation affecting direct spending or 
revenues. Enacting S. 1550 could affect direct spending by some 
agencies (such as the Tennessee Valley Authority) because they 
are authorized to use receipts from the sale of goods, fees, 
and other collections to cover their operating costs. 
Therefore, pay-as-you-go procedures apply. Because most of 
those agencies can adjust the amounts collected as operating 
costs change, CBO estimates that any net changes in direct 
spending by those agencies would be negligible. Enacting the 
legislation would not affect revenues.
    Increase in long-term net direct spending and deficits: CBO 
estimates that enacting S. 1550 would not increase net direct 
spending or on-budget deficits in any of the four consecutive 
10-year periods beginning in 2027.
    Intergovernmental and private-sector impact: S. 1550 
contains no intergovernmental or private-sector mandates as 
defined in UMRA and would not affect the budgets of state, 
local, or tribal governments.
    Previous CBO estimates: On September 14, 2015, CBO 
transmitted a cost estimate for S. 1550 as ordered reported by 
the Senate Committee on Homeland Security and Governmental 
Affairs on June 24, 2015. The two versions of S. 1550 are 
similar and CBO's estimates of the costs are the same.
    Estimate prepared by: Federal Costs: Matthew Pickford; 
Impact on State, Local, and Tribal Governments: Zachary Byrum; 
Impact on the Private Sector: Paige Piper/Bach.
    Estimate approved by: H. Samuel Papenfuss, Deputy Assistant 
Director for Budget Analysis.

         Changes in Existing Law Made by the Bill, as Reported

  In compliance with clause 3(e) of rule XIII of the Rules of 
the House of Representatives, changes in existing law made by 
the bill, as reported, are shown as follows (new matter is 
printed in italics and existing law in which no change is 
proposed is shown in roman):

                      TITLE 31, UNITED STATES CODE




           *       *       *       *       *       *       *
SUBTITLE I--GENERAL

           *       *       *       *       *       *       *


CHAPTER 5--OFFICE OF MANAGEMENT AND BUDGET

           *       *       *       *       *       *       *



SUBCHAPTER I--ORGANIZATION

           *       *       *       *       *       *       *



Sec. 503. Functions of Deputy Director for Management

  (a) Subject to the direction and approval of the Director, 
the Deputy Director for Management shall establish 
governmentwide financial management policies for executive 
agencies and shall perform the following financial management 
functions:
          (1) Perform all functions of the Director, including 
        all functions delegated by the President to the 
        Director, relating to financial management.
          (2) Provide overall direction and leadership to the 
        executive branch on financial management matters by 
        establishing financial management policies and 
        requirements, and by monitoring the establishment and 
        operation of Federal Government financial management 
        systems.
          (3) Review agency budget requests for financial 
        management systems and operations, and advise the 
        Director on the resources required to develop and 
        effectively operate and maintain Federal Government 
        financial management systems and to correct major 
        deficiencies in such systems.
          (4) Review and, where appropriate, recommend to the 
        Director changes to the budget and legislative 
        proposals of agencies to ensure that they are in 
        accordance with financial management plans of the 
        Office of Management and Budget.
          (5) Monitor the financial execution of the budget in 
        relation to actual expenditures, including timely 
        performance reports.
          (6) Oversee, periodically review, and make 
        recommendations to heads of agencies on the 
        administrative structure of agencies with respect to 
        their financial management activities.
          (7) Develop and maintain qualification standards for 
        agency Chief Financial Officers and for agency Deputy 
        Chief Financial Officers appointed under sections 901 
        and 903, respectively (excluding any officer designated 
        or appointed under section 901(c)).
          (8) Provide advice to agency heads with respect to 
        the selection of agency Chief Financial Officers and 
        Deputy Chief Financial Officers (excluding any officer 
        designated or appointed under section 901(c)).
          (9) Provide advice to agencies regarding the 
        qualifications, recruitment, performance, and retention 
        of other financial management personnel.
          (10) Assess the overall adequacy of the professional 
        qualifications and capabilities of financial management 
        staffs throughout the Government and make 
        recommendations on ways to correct problems which 
        impair the capacity of those staffs.
          (11) Settle differences that arise among agencies 
        regarding the implementation of financial management 
        policies.
          (12) Chair the Chief Financial Officers Council 
        established by section 302 of the Chief Financial 
        Officers Act of 1990.
          (13) Communicate with the financial officers of State 
        and local governments, and foster the exchange with 
        those officers of information concerning financial 
        management standards, techniques, and processes.
          (14) Issue such other policies and directives as may 
        be necessary to carry out this section, and perform any 
        other function prescribed by the Director.
  (b) Subject to the direction and approval of the Director, 
the Deputy Director for Management shall establish general 
management policies for executive agencies and perform the 
following general management functions:
          (1) Coordinate and supervise the general management 
        functions of the Office of Management and Budget.
          (2) Perform all functions of the Director, including 
        all functions delegated by the President to the 
        Director, relating to--
                  (A) managerial systems, including the 
                systematic measurement of performance;
                  (B) procurement policy;
                  (C) grant, cooperative agreement, and 
                assistance management;
                  (D) information and statistical policy;
                  (E) property management;
                  (F) human resources management;
                  (G) regulatory affairs; and
                  (H) other management functions, including 
                organizational studies, long-range planning, 
                program evaluation, productivity improvement, 
                and experimentation and demonstration programs.
          (3) Provide complete, reliable, and timely 
        information to the President, the Congress, and the 
        public regarding the management activities of the 
        executive branch.
          (4) Facilitate actions by the Congress and the 
        executive branch to improve the management of Federal 
        Government operations and to remove impediments to 
        effective administration.
          (5) Chair the Chief Information Officers Council 
        established under section 3603 of title 44.
          (6) Provide leadership in management innovation, 
        through--
                  (A) experimentation, testing, and 
                demonstration programs; and
                  (B) the adoption of modern management 
                concepts and technologies.
          (7) Work with State and local governments to improve 
        and strengthen intergovernmental relations, and provide 
        assistance to such governments with respect to 
        intergovernmental programs and cooperative 
        arrangements.
          (8) Review and, where appropriate, recommend to the 
        Director changes to the budget and legislative 
        proposals of agencies to ensure that they respond to 
        program evaluations by, and are in accordance with 
        general management plans of, the Office of Management 
        and Budget.
          (9) Provide advice to agencies on the qualification, 
        recruitment, performance, and retention of managerial 
        personnel.
          (10) Perform any other functions prescribed by the 
        Director.
  (c) Program and Project Management.--
          (1) Requirement.--Subject to the direction and 
        approval of the Director, the Deputy Director for 
        Management or a designee shall--
                  (A) adopt governmentwide standards, policies, 
                and guidelines for program and project 
                management for executive agencies;
                  (B) oversee implementation of program and 
                project management for the standards, policies, 
                and guidelines established under subparagraph 
                (A);
                  (C) chair the Program Management Policy 
                Council established under section 1126(b);
                  (D) establish standards and policies for 
                executive agencies, consistent with widely 
                accepted standards for program and project 
                management planning and delivery;
                  (E) engage with the private sector to 
                identify best practices in program and project 
                management that would improve Federal program 
                and project management;
                  (F) conduct portfolio reviews to address 
                programs identified as high risk by the 
                Government Accountability Office;
                  (G) not less than annually, conduct portfolio 
                reviews of agency programs in coordination with 
                Project Management Improvement Officers 
                designated under section 1126(a)(1) to assess 
                the quality and effectiveness of program 
                management; and
                  (H) establish a 5-year strategic plan for 
                program and project management.
          (2) Application to department of defense.--Paragraph 
        (1) shall not apply to the Department of Defense to the 
        extent that the provisions of that paragraph are 
        substantially similar to or duplicative of the 
        provisions of chapter 87 of title 10.

           *       *       *       *       *       *       *


SUBTITLE II--THE BUDGET PROCESS

           *       *       *       *       *       *       *


   CHAPTER 11--THE BUDGET AND FISCAL, BUDGET, AND PROGRAM INFORMATION

Sec.
1101. Definitions.
     * * * * * * *
1126. Program Management Improvement Officers and Program Management 
          Policy Council.

           *       *       *       *       *       *       *


Sec. 1126. Program Management Improvement Officers and Program 
                    Management Policy Council

  (a) Program Management Improvement Officers.--
          (1) Designation.--The head of each agency described 
        in section 901(b) shall designate a senior executive of 
        the agency as the Program Management Improvement 
        Officer of the agency.
          (2) Functions.--The Program Management Improvement 
        Officer of an agency designated under paragraph (1) 
        shall--
                  (A) implement program management policies 
                established by the agency under section 503(c); 
                and
                  (B) develop a strategy for enhancing the role 
                of program managers within the agency that 
                includes the following:
                          (i) Enhanced training and educational 
                        opportunities for program managers that 
                        shall include--
                                  (I) training in the relevant 
                                competencies encompassed with 
                                program and project manager 
                                within the private sector for 
                                program managers; and
                                  (II) training that emphasizes 
                                cost containment for large 
                                projects and programs.
                          (ii) Mentoring of current and future 
                        program managers by experienced senior 
                        executives and program managers within 
                        the agency.
                          (iii) Improved career paths and 
                        career opportunities for program 
                        managers.
                          (iv) A plan to encourage the 
                        recruitment and retention of highly 
                        qualified individuals to serve as 
                        program managers.
                          (v) Improved means of collecting and 
                        disseminating best practices and 
                        lessons learned to enhance program 
                        management across the agency.
                          (vi) Common templates and tools to 
                        support improved data gathering and 
                        analysis for program management and 
                        oversight purposes.
          (3) Application to department of defense.--This 
        subsection shall not apply to the Department of Defense 
        to the extent that the provisions of this subsection 
        are substantially similar to or duplicative of the 
        provisions of chapter 87 of title 10.
  (b) Program Management Policy Council.--
          (1) Establishment.--There is established in the 
        Office of Management and Budget a council to be known 
        as the ``Program Management Policy Council'' (in this 
        subsection referred to as the ``Council'').
          (2) Purpose and functions.--The Council shall act as 
        the principal interagency forum for improving agency 
        practices related to program and project management. 
        The Council shall--
                  (A) advise and assist the Deputy Director for 
                Management of the Office of Management and 
                Budget;
                  (B) review programs identified as high risk 
                by the General Accountability Office and make 
                recommendations for actions to be taken by the 
                Deputy Director for Management of the Office of 
                Management and Budget or a designee;
                  (C) discuss topics of importance to the 
                workforce, including--
                          (i) career development and workforce 
                        development needs;
                          (ii) policy to support continuous 
                        improvement in program and project 
                        management; and
                          (iii) major challenges across 
                        agencies in managing programs;
                  (D) advise on the development and 
                applicability of standards governmentwide for 
                program management transparency; and
                  (E) review the information published on the 
                website of the Office of Management and Budget 
                pursuant to section 1122.
          (3) Membership.--
                  (A) Composition.--The Council shall be 
                composed of the following members:
                          (i) Five members from the Office of 
                        Management and Budget as follows:
                                  (I) The Deputy Director for 
                                Management.
                                  (II) The Administrator of the 
                                Office of Electronic 
                                Government.
                                  (III) The Administrator of 
                                Federal Procurement Policy.
                                  (IV) The Controller of the 
                                Office of Federal Financial 
                                Management.
                                  (V) The Director of the 
                                Office of Performance and 
                                Personnel Management.
                          (ii) The Program Management 
                        Improvement Officer from each agency 
                        described in section 901(b).
                          (iii) Any other full-time or 
                        permanent part-time officer or employee 
                        of the Federal Government or member of 
                        the Armed Forces designated by the 
                        Chairperson.
                  (B) Chairperson and vice chairperson.--
                          (i) In general.--The Deputy Director 
                        for Management of the Office of 
                        Management and Budget shall be the 
                        Chairperson of the Council. A Vice 
                        Chairperson shall be elected by the 
                        members and shall serve a term of not 
                        more than 1 year.
                          (ii) Duties.--The Chairperson shall 
                        preside at the meetings of the Council, 
                        determine the agenda of the Council, 
                        direct the work of the Council, and 
                        establish and direct subgroups of the 
                        Council as appropriate.
          (4) Meetings.--The Council shall meet not less than 
        twice per fiscal year and may meet at the call of the 
        Chairperson or a majority of the members of the 
        Council.
          (5) Support.--The head of each agency with a Project 
        Management Improvement Officer serving on the Council 
        shall provide administrative support to the Council, as 
        appropriate, at the request of the Chairperson.

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