House Report 117-492 - DEPARTMENT OF VETERANS AFFAIRS INFORMATION TECHNOLOGY REFORM ACT OF 2021

[House Report 117-492]
[From the U.S. Government Publishing Office]

117th Congress } { Report
HOUSE OF REPRESENTATIVES
2d Session } { 117-492

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

DEPARTMENT OF VETERANS AFFAIRS INFORMATION TECHNOLOGY REFORM ACT OF
2021

_______

September 26, 2022.--Committed to the Committee of the Whole House on
the State of the Union and ordered to be printed

_______

Mr. Takano, from the Committee on Veterans' Affairs, submitted the
following

R E P O R T

[To accompany H.R. 2250]

[Including cost estimate of the Congressional Budget Office]

The Committee on Veterans' Affairs, to whom was referred
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, having considered the same, reports favorably
thereon with an amendment and recommends that the bill as
amended do pass.

CONTENTS

Page
Purpose and Summary.............................................. 5
Background and Need for Legislation.............................. 6
Hearings......................................................... 7
Subcommittee Consideration....................................... 7
Committee Consideration.......................................... 7
Committee Votes.................................................. 7
Committee Oversight Findings..................................... 8
Statement of General Performance Goals and Objectives............ 8
New Budget Authority, Entitlement Authority, and Tax Expenditures 8
Earmarks and Tax and Tariff Benefits............................. 8
Committee Cost Estimate.......................................... 8
Congressional Budget Office Estimate............................. 8
Federal Mandates Statement....................................... 10
Advisory Committee Statement..................................... 10
Constitutional Authority Statement............................... 10
Applicability to Legislative Branch.............................. 10
Statement on Duplication of Federal Programs..................... 10
Disclosure of Directed Rulemaking................................ 11
Section-by-Section Analysis of the Legislation................... 11
Changes in Existing Law Made by the Bill as Reported............. 17

The amendment is as follows:
Strike all after the enacting clause and insert the
following:

SECTION 1. SHORT TITLE.

This Act may be cited as the ``Department of Veterans Affairs
Information Technology Reform Act of 2021''.

SEC. 2. MANAGEMENT OF MAJOR INFORMATION TECHNOLOGY PROJECTS.

(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
Subcommittee on Military Construction, Veterans Affairs
and Related Agencies of the Committee on Appropriations
of the Senate; and
``(B) the Committee on Veterans' Affairs and the
Subcommittee on Military Construction, Veterans Affairs
and Related Agencies of 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) 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. 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, such term 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 $500,000,000 (as adjusted for
inflation pursuant to section 1908 of title 41) for the
total life cycle costs of the project.
``(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
may not obligate or expend funds for any major information technology
project that begins after the date of the enactment of the Department
of Veterans Affairs Information Technology Reform Act of 2021 unless
the Secretary, acting through the Chief Information Officer of the
Department, submits to the appropriate congressional committees a
report containing information on the cost, schedule, and performance of
such project, as generated by the business owner of the 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 is--
``(A) certified in project management at level three
by the Department, the Federal Acquisition Institute
pursuant to section 1201 of title 41, or the Department
of Defense pursuant to section 1701a of title 10, or
who holds an equivalent certification by a private
sector project management certification organization,
as determined appropriate by the Secretary; and
``(B) 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).
``(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
portfolio and product line of the Department that requires the funding.
``(2) In addition to the projections under paragraph (1), the
Secretary shall include a description of the following, with respect to
each of the periods set forth in such paragraph, disaggregated by major
business line of the Department:
``(A) The information technology infrastructure and equipment
requirements.
``(B) The funding required for development.
``(C) The funding required for operations and maintenance.
``(D) The funding required by cybersecurity.
``(E) Such other categories of the information technology
needs of the Department as the Secretary considers relevant and
important.''.
(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

``8171. Definitions.
``8172. Management of major information technology projects.
``8173. Information technology activities of the Financial Services
Center.
``8174. Submission of annual reviews of information technology.
``8175. Information technology matters to be included in budget
justification materials for the Department.''.

(c) Application; Report.--
(1) Current and new 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) 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.

SEC. 3. REPORT ON INFORMATION TECHNOLOGY DASHBOARD INFORMATION.

(a) Report.--Not later than 90 days after the date of the enactment
of this Act, the Secretary of Veterans Affairs, acting through the
Chief Information Officer of the Department of Veterans Affairs, shall
submit to the appropriate congressional committees a report
containing--
(1) an explanation of the ratings, rankings, and risk
categorizations used by the Chief Information Officer pursuant
to subparagraph (C) of section 11302(c)(3) of title 40, United
States Code, with respect to the information technology
dashboard of the Office of Management and Budget developed
under such section; and
(2) copies of supporting or explanatory information provided
by the Chief Information Officer to the Office of Management
and Budget with respect to submissions by the Chief Information
Officer to the information technology dashboard for the fiscal
year in which the report is submitted (other than information
not otherwise made public pursuant to such section).
(b) Appropriate Congressional Committees Defined.--In section, the
term ``appropriate congressional committees'' has the meaning given
such term in section 8171 of title 38, United States Code, as added by
section 2.

Purpose and Summary

H.R. 2250 was introduced by Representative Matthew M.
Rosendale, Sr. of Montana on March 26, 2021. H.R. 2250, as
amended, establishes a new reporting regime for the Department
of Veterans Affairs' (VA) major projects concerning or
involving information technology (IT), places the IT activities
of the Financial Services Center of the Department under the
supervision of the Office of Information and Technology of the
Department, requires reporting to Congress of certain
information provided by VA to the Office of Management and
Budget (OMB) under the Federal Information Technology
Acquisition Reform Act, and sets new requirements for
explanatory information in VA's budget justification materials.

Background and Need for Legislation

The Department of Veterans Affairs' management of major
acquisitions and projects concerning, or involving, IT and its
budget justification materials pertaining to IT are
consistently inadequate.
The VA Office of Information and Technology (OIT) was
created in 2006, along with a centralized IT appropriation, to
consolidate the IT activities of the Veterans Health
Administration, Veterans Benefits Administration, National
Cemetery Administration, and VA staff offices as well as the
enterprise technology infrastructure shared among them. While
this reform increased the visibility of VA's technology needs
and improved coordination in some respects, dissatisfaction has
persisted within the Department as well as externally with
OIT's ability to prioritize and execute the various VA
organizational elements' escalating, and at times competing,
needs. While the IT appropriation has increased since its
creation from about $1.2 billion to more than $4.8 billion,
along with the Department's size and complexity, its budget
justification materials have not sufficiently represented the
activities of individual projects or the extent of the
Department's projected, long-term IT needs.
In recent years, VA has undertaken an increasing number of
major acquisitions and projects seeking to modernize its
business operations and systems. Only one has been completed,
several have failed or been abandoned, and most continue to
struggle. None has been authorized by Congress. This is
motivated by a confluence of factors, including VA's rapid
growth over the past decade, the prevailing attitude in the
Department that the management of such major acquisitions is
not a core mission, and a historical precedence in VA's
authorizing committees of not authorizing or becoming actively
involved in such projects. However, even if the authorizing
committees sought to authorize such projects, they presently
lack, and the Department does not provide, the information
necessary to do so. Indeed, VA provides extensive cost,
schedule, and performance information on its major
acquisitions, projects, and other technology investments,
albeit not in any standard format or regular cadence, but this
is always done ex post facto, after funds have been obligated
and work has commenced.
VA's budget justification materials regarding IT are
lengthy but incomplete and unrepresentative as to the
activities of individual projects, the Department's performance
with respect to its technology goals, or VA's projected, long-
term, and unmet needs. As a foundational matter, not all budget
justification materials relevant to IT are found in the
Information Technology section of the Medical Programs and
Information Technology volume. The project information which is
included concerns only so-called ``Congressional Projects,''
which are a subset of all projects selected by OMB. Information
as to goals and actual performance is descriptive but rarely
quantitative and is inconsistent from year to year. The budget
justification materials contain scant information about
projected or long-term financial needs; they discuss technical
debt and the magnitude of outdated or otherwise inadequate
hardware and software but typically fail to connect this to
dollars. Finally, the budget request and its justification
materials seem to operate based on the premise, which flies in
the face of actual experience and the public statements of
successive VA leaders, that the IT request and resulting
appropriation are necessarily equal to the need and, by
extension, that meritorious but unfunded IT projects or
investments do not exist.
The Subcommittee on Technology Modernization held hearings
on OIT's organization and operations on April 2, 2019; VA
cybersecurity practices on November 14, 2019 and May 20, 2020;
VA IT budget justification materials on July 1, 2021; and OIT's
strategic priorities on September 30, 2021. The above
observations and inferences were gathered from testimony during
these hearings as well as Subcommittee staff's numerous private
meetings and written inquiries to VA.

Hearings

On October 7, 2021, the Subcommittee on Technology
Modernization held a legislative hearing on H.R. 2250; H.R.
2326; H.R. 4591; and a draft bill, the Department of Veterans
Affairs Demographic Collection Improvement Act of 2021. The
following witnesses testified: Mr. Paul Brubaker, Acting
Principal Deputy Assistant Secretary for Information and
Technology, U.S. Department of Veterans Affairs; Mr. Kshemendra
Paul, Chief Data Officer, U.S. Department of Veterans Affairs;
Mr. Patrick Murray, Director, National Legislative Service,
Veterans of Foreign Wars of the United States; Ms. Jennifer
Dane, Executive Director and Chief Executive Officer, Modern
Military Association of America; Lindsay Church, Executive
Director, Minority Veterans of America.

Subcommittee Consideration

There was no Subcommittee markup of H.R. 2250.

Committee Consideration

On November 4, 2021, the full Committee met in an open
markup session, a quorum being present, and ordered H.R. 2250,
as amended, favorably reported to the House of Representatives
by voice vote. During consideration of the bill, the following
amendment was considered:
An amendment in the nature of a substitute offered by
Representative Mike Bost of Illinois. The amendment revised the
new sections 8171, 8172, 8173, and 8174 added by the bill to
chapter 81 of title 38, United States Code, to reflect
technical assistance from VA as well as discussions with the
Senate Committee on Veterans' affairs to harmonize H.R. 2250
with S. 731. The amendment also added a new section 8175 to
chapter 81 of title 38, United States Code, which was contained
in S. 731, reflecting discussions with the Senate Committee on
Veterans' Affairs since both bills' introductions. Finally, the
amendment deleted section 3 of the bill, regarding the
suitability of cloud migration investments, which had been
determined unnecessary.

Committee Votes

In compliance with clause 3(b) of rule XIII of the Rules of
the House of Representatives, there were no recorded votes
taken on the amendment in the nature of a substitute or in
connection with ordering H.R. 2250, as amended, reported to the
House. The amendment in the nature of a substitute was adopted
by voice vote. A motion by Representative Mike Bost of Illinois
to report H.R. 2250, as amended, favorably to the House of
Representatives was agreed to by voice vote.

Committee Oversight Findings

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 are to improve the Department of Veterans
Affairs' ability to meet its own performance goals relevant to
technology within its Strategic Plan as well as carry out its
Digital Modernization Strategy, and improve the descriptive
information relevant to technology in the Department's budget
justification materials.

New Budget Authority, Entitlement Authority, and
Tax Expenditures

In compliance with clause 3(c)(2) of rule XIII of the Rules
of the House of Representatives, the Committee adopts as its
own the estimate of new budget authority, entitlement
authority, or tax expenditures or revenues contained in the
cost estimate prepared by the Director of the Congressional
Budget Office pursuant to section 402 of the Congressional
Budget Act of 1974.

Earmarks and Tax and Tariff Benefits

H.R. 2250, as amended, does not contain any Congressional
earmarks, limited tax benefits, or limited tariff benefits as
defined in clause 9 of rule XXI of the Rules of the House of
Representatives.

Committee Cost Estimate

Pursuant to clause 3(d)(1) of rule XIII, the Committee
adopts as its own the cost estimate on H.R. 2250, as amended,
prepared by the Director of the Congressional Budget Office
pursuant to section 402 of the Congressional Budget Act of
1974.

Congressional Budget Office Cost Estimate

Pursuant to clause 3(c)(3) of rule XIII of the Rules of the
House of Representatives, the following is the cost estimate
for H.R. 2250, as amended, provided by the Congressional Budget
Office pursuant to section 402 of the Congressional Budget Act
of 1974:

U.S. Congress,
Congressional Budget Office,
Washington, DC, February 14, 2022.
Hon. Mark Takano,
Chairman, Committee on Veterans' Affairs,
House of Representatives, Washington, DC.
Dear Mr. Chairman: The Congressional Budget Office has
prepared the enclosed cost estimate for H.R. 2250, the
Department of Veterans Affairs Information Technology Reform
Act of 2021.
If you wish further details on this estimate, we will be
pleased to provide them. The CBO staff contact is Logan Smith.
Sincerely,
Phillip L. Swagel,
Director.
Enclosure.

[GRAPHIC(S) NOT AVAILABLE IN TIFF FORMAT]

H.R. 2250 would change how the Department of Veterans
Affairs (VA) manages information technology (IT) projects.
Specifically, the bill would:
Require that all VA IT projects be managed
by interdisciplinary teams that meet a specific list of
qualifications,
Increase requirements for reporting
deviations in the cost and schedule of IT projects;
and,
Require VA to provide additional information
on unfunded IT projects in its annual budget
submission, as well as other reporting requirements.
For this estimate, CBO assumes that H.R. 2250 will be
enacted in the middle of fiscal year 2022.
Although VA generally follows governmentwide IT-reporting
requirements, and thus now meets some of the bill's
requirements, CBO estimates that the agency would need
additional human and IT resources to meet all of the bill's
requirements. Using information from VA, CBO estimates that the
agency would need the equivalent of 10 full-time employees and
that salaries and expenses would average $130,000 per person.
CBO estimates that those personnel costs would total $4 million
over the 2022-2026 period. In addition, using information from
VA, CBO estimates that the necessary IT resources would cost $2
million over the 2022-2026 period. In total, implementing the
bill would cost $6 million over the period. Such spending would
be subject to the availability of appropriated funds.
The costs of the legislation, detailed in Table 1, fall
within budget function 700 (veterans benefits and services).

TABLE 1.--ESTIMATED INCREASES IN SPENDING SUBJECT TO APPROPRIATION UNDER H.R. 2250
----------------------------------------------------------------------------------------------------------------
By fiscal year, millions of dollars--
---------------------------------------------
2022 2023 2024 2025 2026 2022-2026
----------------------------------------------------------------------------------------------------------------
Personnel:
Estimated Authorization....................................... ..... 1 1 1 1 4
Estimated Outlays............................................. ..... 1 1 1 1 4
Information Technology:
Estimated Authorization....................................... 2 0 0 0 0 2
Estimated Outlays............................................. 1 1 ..... 0 0 2
Total Changes:
Estimated Authorization....................................... 2 1 1 1 1 6
Estimated Outlays............................................. 1 2 1 1 1 6
----------------------------------------------------------------------------------------------------------------
* = between zero and $500,000.

The CBO staff contact for this estimate is Logan Smith. The
estimate was reviewed by Leo Lex, Deputy Director of Budget
Analysis.

Federal Mandates Statement

The Committee adopts as its own the estimate of Federal
mandates regarding H.R. 2250, as amended, prepared by the
Director of the Congressional Budget Office pursuant to section
423 of the Unfunded Mandates Reform Act.

Advisory Committee Statement

No advisory committees within the meaning of section 5(b)
of the Federal Advisory Committee Act would be created by H.R.
2250, as amended.

Statement of Constitutional Authority

Pursuant to Article I, section 8 of the United States
Constitution, H.R. 2250, as amended, is authorized by Congress'
power to ``provide for the common Defense and general Welfare
of the United States.''

Applicability to Legislative Branch

The Committee finds that H.R. 2250, as amended, does not
relate to the terms and conditions of employment or access to
public services or accommodations within the meaning of section
102(b)(3) of the Congressional Accountability Act.

Statement on Duplication of Federal Programs

Pursuant to clause 3(c)(5) of rule XIII of the Rules of the
House of Representatives, the Committee finds that no provision
of H.R. 2250, as amended, 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 Rulemaking

Pursuant to clause 3(c)(5) of rule XIII, the Committee
estimates that H.R. 2250, as amended, contains no directed rule
making that would require the Secretary to prescribe
regulations.

Section-by-Section Analysis of the Legislation

Sec. 1. Short title

Section 1 names the Act the ``Department of Veterans
Affairs Information Technology Reform Act of 2021''.

Sec. 2. Management of major information technology projects

Section 2 amends chapter 81 of title 38, United State Code
to add a new subchapter VI, Information Technology Projects and
Activities. This subchapter contains the new sections 8171,
8172, 8173, 8174, and 8175.
Section 8171 contains definitions. The ``appropriate
congressional committees,'' to which the reporting mandated in
the bill is directed, are the Committees on Veterans' Affairs
of the House and Senate and the Subcommittees on Military
Construction, Veterans' Affairs, and Related Agencies of the
Committees on Appropriations of the House and Senate. The term
``information technology'' is defined in section 11101 of title
40, as follows:
(6) Information technology.--The term ``information
technology''--
(A) with respect to an executive agency means
any equipment or interconnected system or
subsystem of equipment, used in the automatic
acquisition, storage, analysis, evaluation,
manipulation, management, movement, control,
display, switching, interchange, transmission,
or reception of data or information by the
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 that requires the use--
(i) of that equipment; or
(ii) of that equipment to a
significant extent in the performance
of a service or the furnishing of a
product;
(B) includes computers, ancillary equipment
(including imaging peripherals, input, output,
and storage devices necessary for security and
surveillance), peripheral equipment designed to
be controlled by the central processing unit of
a computer, software, firmware and similar
procedures, services (including support
services), and related resources; but
(C) does not include any equipment acquired
by a federal contractor incidental to a federal
contract.
This definition, created by P.L. 107-217 in 2002, makes
repeated mention of ``equipment'' but, crucially, also includes
``. . . software, firmware and similar procedures, services
(including support services), and related resources''. Since
2002, software has become a much larger proportion of the
overall IT marketplace than equipment. Notwithstanding that
fact, the term ``information technology'' remains sufficiently
expansive. The meaning of the term ``information technology
project'' is derived from the definition of ``information
technology''; it is, simply, ``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.'' This is not limited
to projects originating from or managed by OIT. On the
contrary, it includes projects originating from, managed by, or
for the benefit of the Veterans Benefits Administration,
Veterans Health Administration, National Cemetery
Administration, VA staff offices, or any other organizational
element of the Department. The term ``information technology
project (emphasis added)'' is inclusive of ``projects'' as well
as ``programs'' in recognition of the fact that these terms are
sometimes used by VA officials and in documents interchangeably
while at other times used differently, with ``project''
connoting a smaller or temporary effort, and ``program''
connoting a larger or permanent effort. (To clarify any
ambiguity in how these words are used in practice, the
legislation includes the term ``major (emphasis added)
information technology project'', discussed later.) The second
sentence of the definition of ``information technology
project'' clarifies the unit of reporting: in other words, how
a project or program may consist of multiple consolidated,
subordinated, or component projects or programs in the same
manner that an information system may consist of multiple
component systems. The ``information technology project'' to be
reported is the one which results in the acquisition or
implementation of a discrete information technology capability.
Information shall be reported to the appropriate congressional
committees in the same manner, using the same unit of
reporting, as reported to OMB. 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 (emphasis added) of the
Department.'' This definition is not limited to costs incurred
or assigned to OIT. The term ``major information technology
project'' sets forth which information technology projects are
``major.'' This is a two-pronged definition, including those
projects that are designated as such 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 when ``the dollar value of the project is estimated by
the Secretary to exceed $500,000,000 (as adjusted for inflation
pursuant to section 1908 of title 41) for the total life cycle
costs of the project.'' As a result, this definition includes
those projects or ``investments,'' which has a similar meaning
to ``information technology project,'' already being reported
by VA to OMB by virtue of their designation as ``major'' as
well as other projects or investments not already being
reported but whose dollar values warrant coverage. Finally, 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.'' This term's purpose is to specify which VA
officials are to generate or compile the information ultimately
transmitted to the appropriate congressional committees by the
Chief Information Officer.
Section 8172 sets forth the reporting regime for major
information technology projects. The Secretary is prohibited
from obligating or expending funds for any new major
information technology project until the Chief Information
Officer submits to the appropriate congressional committees a
report containing certain cost, schedule, and performance
information for the project. The purpose of this requirement is
to give the House and Senate Committees on Veterans' Affairs
the necessary information, in advance, to consider whether to
authorize, prohibit, or allow to proceed without authorization
each major information technology project. Each report shall
include an estimate of acquisition costs, implementation costs,
and life cycle costs (which may be inclusive of acquisition or
implementation costs); an intended implementation schedule
indicating significant milestones, when initial operating
capability and full operating capability should be achieved,
and when the project should be completed; and key business,
functional, and performance objectives. Subsection (c) of
section 2 applies this reporting requirement, within 90 days of
enactment, to existing major information technology projects.
As such projects are not ``new,'' the prohibition against
obligating or extending funds does not apply. Otherwise, as
described in paragraph (2) Report on Current Projects, the
material to be reported is identical. After the Chief
Information Officer's initial reporting on cost, schedule, and
performance for each major information technology project, this
information shall be used to establish a baseline against which
changes or variances are to be measured during the life cycle
of each project. This baseline information shall be contained
in VA's annual budget justification materials, alongside the
existing IT project-level information, and updated by the
Secretary annually. A ``change'' is an impact to actual cost,
schedule, or performance resulting from a change in
requirements, such as a change order. A ``variance'' is an
impact to actual cost, schedule, or performance (in the absence
of a change in requirements) due to external factors. A
``change'' connotes an intentional event. A ``variance''
connotes an unintentional event. Annual baseline updates
include a compulsory element and a discretionary element: the
budget justification materials must enumerate all changes or
variances in cost, schedule, or performance regardless of
magnitude during the previous fiscal year; the Secretary may
also determine that a change, variance, or collection of
changes or variances in the areas of cost, schedule, or
performance objectives constitute a new baseline. Additionally,
changes and variances of sufficient size occurring at any time
must be reported, within 60 days after they occur, separately
from the budget justification materials. The Chief Information
Officer shall notify the appropriate congressional committees,
and provide a description and explanation, for each change or
variance ``with respect to the acquisition, implementation, or
life cycle cost of the project, or development increment
therein . . .'' that is 10 percent or greater compared to the
baseline; ``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 . . .'' that is 180 days or
greater compared to the baseline; and ``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.'' The term ``development
increment'' is included to accommodate incremental software
development and project management methodologies, such as
agile. While VA must report initial baselines for entire
projects, VA retains the ability to report changes and
variances for individual development increments within
projects. This is in recognition of the fact that cost
estimates and schedules, and to a lesser extent performance
objectives, may be somewhat speculative for major projects at
their inceptions. Finally, section 8172 sets forth requirements
for the leadership and composition of interdisciplinary project
teams managing major information technology projects. Such
teams must consist of an adequately qualified project manager,
a functional lead, a technical lead, a contracting officer, and
sufficient other project management, functional, technical, and
procurement personnel as the Secretary determines appropriate.
The project manager may be an employee of OIT or the
organizational element in which the project originates (such as
the Veterans Benefits Administration, Veterans Health
Administration, National Cemetery Administration, a staff
office, or others). The project manager must be certified at
level three in project management by the Department, the
Federal Acquisition Institute, the Department of Defense, or a
private sector project management certification organization as
determined appropriate by the Secretary. Certification by the
Federal Acquisition Institute is conferred upon civilian
Federal employees; this may be by the Institute directly, by
the Department on behalf of the Institute, or by another
civilian Federal agency, for which the employee previously
worked, on behalf of the Institute. Certification by the
Department of Defense is conferred upon members of the military
or civilian Department of Defense employees by the Department
of Defense under the Defense Acquisition Workforce Improvement
Act (chapter 87 of title 10, United States Code). As relevant
here, Department of Defense certification would have been
conferred on VA employees while in the military or while
previously working for the Department of Defense. An example of
a private sector project management organization that the
Secretary may determine appropriate is the Project Management
Institute. The functional lead must be an employee of the
organizational element of the Department at which the project
originates. The functional lead is responsible for identifying
functional requirements, such a business or non-technical
requirements, and performance objectives. The technical lead
must be an employee of OIT. The technical lead is responsible
for identifying technical requirements and the execution of the
same.
Section 8173 concerns the IT activities of the VA Financial
Services Center (FSC). The Committee understands that the FSC
operates more than 80 IT systems. This section clarifies that,
consistent with sections 11302 and 11319 of title 40, ``the
Chief Information Officer of the Department shall 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 supervise the information
technology employees and contractors of the Financial Services
Center . . .'' This should already be happening but, in
reality, is not, due in large part to the FSC's autonomy, in
policy and in custom, derived from its self-financing status as
a revolving fund entity. Additionally, this section stipulates
that, ``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,'' and that, ``the Chief Information
Officer shall have oversight and operational authority over all
information security practices of the Financial Services Center
of the Department.''
Section 8174 requires the Secretary, acting through the
Chief Information officer, to submit to the appropriate
congressional committees each annual review of VA's IT
portfolio conducted pursuant to section 11319(d)(3) of title
40. The first annual review submitted shall include copies of
each previous annual review. The Committee understands that VA
has not conducted such IT portfolio reviews in each year since
this requirement has been in statute.
Section 8175 adds three new descriptive elements concerning
IT to VA's annual budget justification materials. This
section's purpose is to present a complete view of all
individual projects, regardless of size, and to quantity the
Department's IT needs beyond the fiscal year of the budget
request. Subsection (a) requires a list of all IT projects in
effect. It directs the Secretary to ``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).'' This list should include similar descriptive
information as is currently presented for the information
technology projects listed in the budget justification
materials. Subsection (a) of section 8175 works in concert with
section 8172 to present all information technology projects
regardless of size and major information technology projects,
respectively. Subsection (b) requires a list of all unfunded IT
projects for three fiscal years in the future. It directs the
Secretary to ``ensure that the budget justification materials
described in [this] 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.'' This is the first
requirement for VA to rank IT projects. It is similar in
concept, though different in mechanics, to the Department's
longstanding Strategic Capital Investment Planning process and
list. The stipulation that ranked projects be ``unfunded'' does
not necessarily mean that such projects have been proposed and
denied for funding or unable to obtain funding in the past,
though this is possible. Rather, it supposes that such projects
have not yet commenced. It is a list of all such projects that
are in some stage of planning or proposal. The subsection
directs the Secretary to ``ensure such list represents a
ranking of all proposed information technology projects that
reflects the needs of all elements of the Department''; it is
not limited to projects or proposed projects originating in
OIT. The subsection also directs the Secretary to ``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 ensure that the list does not disaggregate and
rank information technology projects based on element of the
Department and does identify the element of the Department
requesting the information technology project.'' In other
words, VA shall not segregate lists or rank separately projects
requested, funded by, or originating in OIT, the Veterans
Benefits Administration, Veterans Health Administration,
National Cemetery Administration, or other organizational
elements of the Department; there shall be one list for the
Department. The subsection lists the ranking factors to be
used:
(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 the Secretary considers
appropriate.
The ranking factors are presented in no sequence or
hierarchy; the Secretary may order or weight them as he
determines best. Factor (i) is intended to incentivize better
planning, requirements definition, and management in functional
and technical areas between OIT and other organizational
elements of the Department in order to acquire information
technology that serves multiple organizational elements' needs,
is more compatible, and makes more economical use of IT
infrastructure. This is in contrast to OIT and other
organizational elements planning, defining their requirements,
and managing IT projects in isolation, creating waste and
duplication. In factor (ii), operational or efficiency benefits
to employees may be quantitative or qualitative. In factor
(iii), lower life cycle costs are considered more favorable and
should be ranked more highly. The Secretary may opt to define
categories of magnitude so as to compare projects of similar
magnitude and avoid comparing very large projects to very small
projects, which would inevitably produce lower rankings for the
larger projects. In factor (iv), cost savings and cost
avoidance should be measured or quantified as the same manner
used by the Department elsewhere, including in its internal
programming or budgeting processes. In factor (v), lower time
to completion is considered more favorable and should be ranked
more highly. In factor (vi), a higher difficulty should be
considered less favorable and ranked lower; a higher likelihood
of completion should be considered more favorable and ranked
more highly; a higher risk or risks should be considered less
favorable and ranked lower. In factor (vii), tangible benefits
to veterans may take various forms, as determined by the
Secretary, but in all cases should be quantifiable. Subsection
(c) requires the Secretary to project VA's IT funding needs
one, two, and three fiscal years in the future. Such
projections shall be disaggregated by portfolio and product or
business line, which are the groupings and units of analysis
already used by the Department in its budget justification
materials as well as in reporting to OMB. The Secretary shall
also present the projections of funding needs in terms of the
categories of: infrastructure and equipment requirements (apart
from software and services costs), development, operations and
maintenance, and cybersecurity. These categories of are
particular interest; they are not, however, all-encompassing of
projected funding needs and would not necessarily add up to the
total funding need projections disaggregated by portfolio and
product or business line. The remainder of section 8175 is
administrative. Subsection (b) inserts a new table index of the
sections being added. Subsection (c) applies the new section
8172 retroactively as previously discussed. Subsection (d)
specifies that the effective date of the new budget
justification material requirements is ``the first Monday in
the second January beginning after the date of the enactment of
this Act.'' The purpose of this subsection is to avoid applying
these requirements to the budget request immediately following
enactment.

Sec. 3. Report on Information Technology Dashboard Information

Section 3 requires that not later than 90 days after
enactment, the Secretary, acting through the Chief Information
Officer, shall submit to the appropriate congressional
committees a report containing an explanation of the ratings,
rankings, and risk categorizations used by the Chief
Information Officer in OMB's IT Dashboard, as well as copies or
supporting or explanatory information provided by the Chief
Information Officer to OMB but not publicly displaying on the
IT Dashboard.

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 (existing law
proposed to be omitted is enclosed in black brackets, new
matter is printed in italics, and existing law in which no
change is proposed is shown in roman):

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 38, UNITED STATES CODE

* * * * * * *
PART VI--ACQUISITION AND DISPOSITION OF PROPERTY

* * * * * * *

CHAPTER 81--ACQUISITION AND OPERATION OF HOSPITAL AND DOMICILIARY
FACILITIES; PROCUREMENT AND SUPPLY; ENHANCED-USE LEASES OF REAL
PROPERTY

SUBCHAPTER I--ACQUISITION AND OPERATION OF MEDICAL FACILITIES

Sec.
8101. Definitions.
* * * * * * *

SUBCHAPTER VI--INFORMATION TECHNOLOGY PROJECTS AND ACTIVITIES

8171. Definitions.
8172. Management of major information technology projects.
8173. Information technology activities of the Financial Services
Center.
8174. Submission of annual reviews of information technology.
8175. Information technology matters to be included in budget
justification materials for the Department.

* * * * * * *

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 Subcommittee on Military Construction,
Veterans Affairs and Related Agencies of the
Committee on Appropriations of the Senate; and
(B) the Committee on Veterans' Affairs and
the Subcommittee on Military Construction,
Veterans Affairs and Related Agencies of 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) 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. 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, such term 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
$500,000,000 (as adjusted for inflation
pursuant to section 1908 of title 41) for the
total life cycle costs of the project.
(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 may not obligate or expend funds for any major
information technology project that begins after the date of
the enactment of the Department of Veterans Affairs Information
Technology Reform Act of 2021 unless the Secretary, acting
through the Chief Information Officer of the Department,
submits to the appropriate congressional committees a report
containing information on the cost, schedule, and performance
of such project, as generated by the business owner of the
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 is--
(A) certified in project management at level
three by the Department, the Federal
Acquisition Institute pursuant to section 1201
of title 41, or the Department of Defense
pursuant to section 1701a of title 10, or who
holds an equivalent certification by a private
sector project management certification
organization, as determined appropriate by the
Secretary; and
(B) 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).
(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 portfolio and product
line of the Department that requires the funding.
(2) In addition to the projections under paragraph (1), the
Secretary shall include a description of the following, with
respect to each of the periods set forth in such paragraph,
disaggregated by major business line of the Department:
(A) The information technology infrastructure and
equipment requirements.
(B) The funding required for development.
(C) The funding required for operations and
maintenance.
(D) The funding required by cybersecurity.
(E) Such other categories of the information
technology needs of the Department as the Secretary
considers relevant and important.

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