NDAA for Fiscal Year 2012

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TITLE VIII--ACQUISITION POLICY, ACQUISITION MANAGEMENT, AND RELATED MATTERS Subtitle D--Federal Information Technology Acquisition Reform
P. L. 113-291	Explanatory Statement, 12/4/14, H8671
SEC. 833. PORTFOLIO REVIEW. Section 11319 of title 40, United States Code, as added by section 831, is amended by adding at the end the following new section: `(c) Information Technology Portfolio, Program, and Resource Reviews- `(1) PROCESS- The Director of the Office of Management and Budget, in consultation with the Chief Information Officers of appropriate agencies, shall implement a process to assist covered agencies in reviewing their portfolio of information technology investments-- `(A) to identify or develop ways to increase the efficiency and effectiveness of the information technology investments of the covered agency; `(B) to identify or develop opportunities to consolidate the acquisition and management of information technology services, and increase the use of shared-service delivery models; `(C) to identify potential duplication and waste; `(D) to identify potential cost savings; `(E) to develop plans for actions to optimize the information technology portfolio, programs, and resources of the covered agency; `(F) to develop ways to better align the information technology portfolio, programs, and financial resources of the covered agency to any multi-year funding requirements or strategic plans required by law; `(G) to develop a multi-year strategy to identify and reduce duplication and waste within the information technology portfolio of the covered agency, including component-level investments and to identify projected cost savings resulting from such strategy; and `(H) to carry out any other goals that the Director may establish. `(2) METRICS AND PERFORMANCE INDICATORS- The Director of the Office of Management and Budget, in consultation with the Chief Information Officers of appropriate agencies, shall develop standardized cost savings and cost avoidance metrics and performance indicators for use by agencies for the process implemented under paragraph (1). `(3) ANNUAL REVIEW- The Chief Information Officer of each covered agency, in conjunction with the Chief Operating Officer or Deputy Secretary (or equivalent) of the covered agency and the Administrator of the Office of Electronic Government, shall conduct an annual review of the information technology portfolio of the covered agency. `(4) APPLICABILITY TO THE DEPARTMENT OF DEFENSE- In the case of the Department of Defense, processes established pursuant to this subsection shall apply only to the business systems information technology portfolio of the Department of Defense and not to national security systems as defined by section 11103(a) of this title. The annual review required by paragraph (3) shall be carried out by the Deputy Chief Management Officer of the Department of Defense (or any successor to such Officer), in consultation with the Chief Information Officer, the Under Secretary of Defense for Acquisition, Technology, and Logistics, and other appropriate Department of Defense officials. The Secretary of Defense may designate an existing investment or management review process to fulfill the requirement for the annual review required by paragraph (3), in consultation with the Administrator of the Office of Electronic Government. `(5) QUARTERLY REPORTS- `(A) IN GENERAL- The Administrator of the Office of Electronic Government shall submit a quarterly report on the cost savings and reductions in duplicative information technology investments identified through the review required by paragraph (3) to-- `(i) the Committee on Homeland Security and Governmental Affairs and the Committee on Appropriations of the Senate; `(ii) the Committee on Oversight and Government Reform and the Committee on Appropriations of the House of Representatives; and `(iii) upon a request by any committee of Congress, to that committee. `(B) INCLUSION IN OTHER REPORTS- The reports required under subparagraph (A) may be included as part of another report submitted to the committees of Congress described in clauses (i), (ii), and (iii) of subparagraph (A). `(6) SUNSET- This subsection shall not be in effect on and after the date that is 5 years after the date of the enactment of the Carl Levin and Howard P. `Buck' McKeon National Defense Authorization Act for Fiscal Year 2015.'.	Portfolio review (sec. 833) The House bill contained a provision (sec. 5301) that would inventory information technology software assets. The Senate committee-reported bill contained no similar provision. The agreement contains the House provision with a clarifying amendment. Additional Information H. Rpt. 113-359 to accompany the Federal Information Technology Acquisition Reform Act Section 301. Inventory of information technology assets Requires the Director of Office of Management and Budget (OMB) to develop and then implement a plan for conducting a Governmentwide inventory of IT assets with particular focus on software licenses. Elimination of wasteful IT management practices must begin from an adequate awareness of the current IT assets. The Committee recognizes past attempts for comprehensive inventory of IT assets have had limited success. The Committee is also aware that there are various innovative tools and evolving technology to aid software and hardware asset management. For example, DHS-led continuous diagnostics and mitigation (also known as continuous monitoring) program or cloud-based solutions may offer alternate ways to discover and manage IT assets or even transform the way software rights are purchased and deployed. As such, this section is not intended to require any particular IT inventory methodology or perpetuate existing software asset management practices.