1. U.S. Code
  2. title 40
  3. subtitle III
  4. chapter 113
  5. subchapter II
  6. § 11312

Collapse to view only § 11312. Capital planning and investment control

§ 11311. Responsibilities

In fulfilling the responsibilities assigned under chapter 35 of title 44, the head of each executive agency shall comply with this subchapter with respect to the specific matters covered by this subchapter.

(Pub. L. 107–217, Aug. 21, 2002, 116 Stat. 1239.)

CITE AS: 40 USC 11311

§ 11312. Capital planning and investment control
(a)Design of Process.—In fulfilling the responsibilities assigned under section 3506(h) of title 44, the head of each executive agency shall design and implement in the executive agency a process for maximizing the value, and assessing and managing the risks, of the information technology acquisitions of the executive agency.
(b)Content of Process.—The process of an executive agency shall—
(1) provide for the selection of investments in information technology (including information security needs) to be made by the executive agency, the management of those investments, and the evaluation of the results of those investments;
(2) be integrated with the processes for making budget, financial, and program management decisions in the executive agency;
(3) include minimum criteria to be applied in considering whether to undertake a particular investment in information systems, including criteria related to the quantitatively expressed projected net, risk-adjusted return on investment and specific quantitative and qualitative criteria for comparing and prioritizing alternative information systems investment projects;
(4) identify information systems investments that would result in shared benefits or costs for other federal agencies or state or local governments;
(5) identify quantifiable measurements for determining the net benefits and risks of a proposed investment; and
(6) provide the means for senior management personnel of the executive agency to obtain timely information regarding the progress of an investment in an information system, including a system of milestones for measuring progress, on an independently verifiable basis, in terms of cost, capability of the system to meet specified requirements, timeliness, and quality.
(Pub. L. 107–217, Aug. 21, 2002, 116 Stat. 1239; Pub. L. 108–458, title VIII, § 8401(3), Dec. 17, 2004, 118 Stat. 3869.)

CITE AS: 40 USC 11312

§ 11313. Performance and results-based managementIn fulfilling the responsibilities under section 3506(h) of title 44, the head of an executive agency shall—
(1) establish goals for improving the efficiency and effectiveness of agency operations and, as appropriate, the delivery of services to the public through the effective use of information technology;
(2) prepare an annual report, to be included in the executive agency’s budget submission to Congress, on the progress in achieving the goals;
(3) ensure that performance measurements—
(A) are prescribed for information technology used by, or to be acquired for, the executive agency; and
(B) measure how well the information technology supports programs of the executive agency;
(4) where comparable processes and organizations in the public or private sectors exist, quantitatively benchmark agency process performance against those processes in terms of cost, speed, productivity, and quality of outputs and outcomes;
(5) analyze the missions of the executive agency and, based on the analysis, revise the executive agency’s mission-related processes and administrative processes as appropriate before making significant investments in information technology to be used in support of the performance of those missions; and
(6) ensure that the information security policies, procedures, and practices of the executive agency are adequate.
(Pub. L. 107–217, Aug. 21, 2002, 116 Stat. 1240.)

CITE AS: 40 USC 11313

§ 11314. Authority to acquire and manage information technology
(a)In General.—The authority of the head of an executive agency to acquire information technology includes—
(1) acquiring information technology as authorized by law;
(2) making a contract that provides for multiagency acquisitions of information technology in accordance with guidance issued by the Director of the Office of Management and Budget; and
(3) if the Director finds that it would be advantageous for the Federal Government to do so, making a multiagency contract for procurement of commercial products of information technology that requires each executive agency covered by the contract, when procuring those products, to procure the products under that contract or to justify an alternative procurement of the products.
(b) FTS 2000 Program.—The Administrator of General Services shall continue to manage the FTS 2000 program, and to coordinate the follow-on to that program, for and with the advice of the heads of executive agencies.
(Pub. L. 107–217, Aug. 21, 2002, 116 Stat. 1241; Pub. L. 115–232, div. A, title VIII, § 836(g)(7)(B), Aug. 13, 2018, 132 Stat. 1874.)

CITE AS: 40 USC 11314

§ 11315. Agency Chief Information Officer
(a)Definition.—In this section, the term “information technology architecture”, with respect to an executive agency, means an integrated framework for evolving or maintaining existing information technology and acquiring new information technology to achieve the agency’s strategic goals and information resources management goals.
(b)General Responsibilities.—The Chief Information Officer of an executive agency is responsible for—
(1) providing advice and other assistance to the head of the executive agency and other senior management personnel of the executive agency to ensure that information technology is acquired and information resources are managed for the executive agency in a manner that implements the policies and procedures of this subtitle, consistent with chapter 35 of title 44 and the priorities established by the head of the executive agency;
(2) developing, maintaining, and facilitating the implementation of a sound, secure, and integrated information technology architecture for the executive agency; and
(3) promoting the effective and efficient design and operation of all major information resources management processes for the executive agency, including improvements to work processes of the executive agency.
(c)Duties and Qualifications.—The Chief Information Officer of an agency listed in section 901(b) of title 31—
(1) has information resources management duties as that official’s primary duty;
(2) monitors the performance of information technology programs of the agency, evaluates the performance of those programs on the basis of the applicable performance measurements, and advises the head of the agency regarding whether to continue, modify, or terminate a program or project; and
(3) annually, as part of the strategic planning and performance evaluation process required (subject to section 1117 of title 31) under section 306 of title 5 and sections 1105(a)(28), 1115–1117, and 9703 (as added by section 5(a) of the Government Performance and Results Act of 1993 (Public Law 103–62, 107 Stat. 289)) of title 31—
(A) assesses the requirements established for agency personnel regarding knowledge and skill in information resources management and the adequacy of those requirements for facilitating the achievement of the performance goals established for information resources management;
(B) assesses the extent to which the positions and personnel at the executive level of the agency and the positions and personnel at management level of the agency below the executive level meet those requirements;
(C) develops strategies and specific plans for hiring, training, and professional development to rectify any deficiency in meeting those requirements; and
(D) reports to the head of the agency on the progress made in improving information resources management capability.
(Pub. L. 107–217, Aug. 21, 2002, 116 Stat. 1241; Pub. L. 108–458, title VIII, § 8401(4), Dec. 17, 2004, 118 Stat. 3869.)

CITE AS: 40 USC 11315

§ 11316. AccountabilityThe head of each executive agency, in consultation with the Chief Information Officer and the Chief Financial Officer of that executive agency (or, in the case of an executive agency without a chief financial officer, any comparable official), shall establish policies and procedures to ensure that—
(1) the accounting, financial, asset management, and other information systems of the executive agency are designed, developed, maintained, and used effectively to provide financial or program performance data for financial statements of the executive agency;
(2) financial and related program performance data are provided on a reliable, consistent, and timely basis to executive agency financial management systems; and
(3) financial statements support—
(A) assessments and revisions of mission-related processes and administrative processes of the executive agency; and
(B) measurement of the performance of investments made by the agency in information systems.
(Pub. L. 107–217, Aug. 21, 2002, 116 Stat. 1242.)

CITE AS: 40 USC 11316

§ 11317. Significant deviations

The head of each executive agency shall identify in the strategic information resources management plan required under section 3506(b)(2) of title 44 any major information technology acquisition program, or any phase or increment of that program, that has significantly deviated from the cost, performance, or schedule goals established for the program.

(Pub. L. 107–217, Aug. 21, 2002, 116 Stat. 1242.)

CITE AS: 40 USC 11317

§ 11318.

The head of an executive agency may use amounts available to the agency for oversight, acquisition, and procurement of information technology to support jointly with other executive agencies the activities of interagency groups that are established to advise the Director of the Office of Management and Budget in carrying out the Director’s responsibilities under this chapter. The use of those amounts for that purpose is subject to requirements and limitations on uses and amounts that the Director may prescribe. The Director shall prescribe the requirements and limitations during the Director’s review of the executive agency’s proposed budget submitted to the Director by the head of the executive agency for purposes of section 1105 of title 31.

(Pub. L. 107–217, Aug. 21, 2002, 116 Stat. 1242.)

CITE AS: 40 USC 11318

§ 11319. Resources, planning, and portfolio management
(a)Definitions.—In this section:
(1) The term “covered agency” means each agency listed in section 901(b)(1) or 901(b)(2) of title 31.
(2) The term “information technology” has the meaning given that term under capital planning guidance issued by the Office of Management and Budget.
(b)Additional Authorities for Chief Information Officers.—
(1)Planning, programming, budgeting, and execution authorities for cios.—
(A)In general.—The head of each covered agency other than the Department of Defense shall ensure that the Chief Information Officer of the agency has a significant role in—
(i) the decision processes for all annual and multi-year planning, programming, budgeting, and execution decisions, related reporting requirements, and reports related to information technology; and
(ii) the management, governance, and oversight processes related to information technology.
(B)Budget formulation.—The Director of the Office of Management and Budget shall require in the annual information technology capital planning guidance of the Office of Management and Budget the following:
(i) That the Chief Information Officer of each covered agency other than the Department of Defense approve the information technology budget request of the covered agency, and that the Chief Information Officer of the Department of Defense review and provide recommendations to the Secretary of Defense on the information technology budget request of the Department.
(ii) That the Chief Information Officer of each covered agency certify that information technology investments are adequately implementing incremental development, as defined in capital planning guidance issued by the Office of Management and Budget.
(C)Review.—
(i)In general.—A covered agency other than the Department of Defense—(I) 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 of the agency;(II) may not request the reprogramming of any funds made available for information technology programs, unless the request has been reviewed and approved by the Chief Information Officer of the agency; and(III) may use the governance processes of the agency to approve such a contract or other agreement if the Chief Information Officer of the agency is included as a full participant in the governance processes.
(ii)Delegation.—(I)In general.—Except as provided in subclause (II), the duties of a Chief Information Officer under clause (i) are not delegable.(II)Non-major information technology investments.—For a contract or agreement for a non-major information technology investment, as defined in the annual information technology capital planning guidance of the Office of Management and Budget, the Chief Information Officer of a covered agency other than the Department of Defense may delegate the approval of the contract or agreement under clause (i) to an individual who reports directly to the Chief Information Officer.
(2)Personnel-related authority.—Notwithstanding any other provision of law, for each covered agency other than the Department of Defense, the Chief Information Officer of the covered agency shall approve the appointment of any other employee with the title of Chief Information Officer, or who functions in the capacity of a Chief Information Officer, for any component organization within the covered agency.
(c)Limitation.—None of the authorities provided in this section shall apply to telecommunications or information technology that is fully funded by amounts made available—
(1) under the National Intelligence Program, defined by section 3(6) of the National Security Act of 1947 (50 U.S.C. 3003(6));
(2) under the Military Intelligence Program or any successor program or programs; or
(3) jointly under the National Intelligence Program and the Military Intelligence Program (or any successor program or programs).
(d)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 Chief Information Officer of the Department of Defense, in consultation with the Under Secretary of Defense for Acquisition and Sustainment 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).
(Added and amended Pub. L. 113–291, div. A, title VIII, §§ 831(a), 833, title IX, § 901(n)(1), Dec. 19, 2014, 128 Stat. 3438, 3442, 3469; Pub. L. 115–88, § 3, Nov. 21, 2017, 131 Stat. 1278; Pub. L. 115–91, div. A, title VIII, § 819(b), title X, § 1081(b)(1)(D), Dec. 12, 2017, 131 Stat. 1464, 1597; Pub. L. 115–232, div. A, title X, § 1081(f)(1)(A)(iii), Aug. 13, 2018, 132 Stat. 1986; Pub. L. 116–92, div. A, title IX, § 902(87), Dec. 20, 2019, 133 Stat. 1554; Pub. L. 118–31, div. A, title IX, § 901(f), Dec. 22, 2023, 137 Stat. 355.)

CITE AS: 40 USC 11319