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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. 834. FEDERAL DATA CENTER CONSOLIDATION INITIATIVE.

(a) Definitions- In this section:

(1) ADMINISTRATOR- The term `Administrator' means the Administrator of the Office of Electronic Government established under section 3602 of title 44, United States Code (and also known as the Office of E-Government and Information Technology), within the Office of Management and Budget.

(2) COVERED AGENCY- The term `covered agency' means the following (including all associated components of the agency):

(A) Department of Agriculture.

(B) Department of Commerce.

(C) Department of Defense.

(D) Department of Education.

(E) Department of Energy.

(F) Department of Health and Human Services.

(G) Department of Homeland Security.

(H) Department of Housing and Urban Development.

(I) Department of the Interior.

(J) Department of Justice.

(K) Department of Labor.

(L) Department of State.

(M) Department of Transportation.

(N) Department of Treasury.

(O) Department of Veterans Affairs.

(P) Environmental Protection Agency.

(Q) General Services Administration.

(R) National Aeronautics and Space Administration.

(S) National Science Foundation.

(T) Nuclear Regulatory Commission.

(U) Office of Personnel Management.

(V) Small Business Administration.

(W) Social Security Administration.

(X) United States Agency for International Development.

(3) FDCCI- The term `FDCCI' means the Federal Data Center Consolidation Initiative described in the Office of Management and Budget Memorandum on the Federal Data Center Consolidation Initiative, dated February 26, 2010, or any successor thereto.

(4) GOVERNMENT-WIDE DATA CENTER CONSOLIDATION AND OPTIMIZATION METRICS- The term `Government-wide data center consolidation and optimization metrics' means the metrics established by the Administrator under subsection (b)(2)(G).

(b) Federal Data Center Consolidation Inventories and Strategies-

(1) IN GENERAL-

(A) ANNUAL REPORTING- Except as provided in subparagraph (C), each year, beginning in the first fiscal year after the date of the enactment of this Act and each fiscal year thereafter, the head of each covered agency, assisted by the Chief Information Officer of the agency, shall submit to the Administrator--

(i) a comprehensive inventory of the data centers owned, operated, or maintained by or on behalf of the agency; and

(ii) a multi-year strategy to achieve the consolidation and optimization of the data centers inventoried under clause (i), that includes--

(I) performance metrics--

(aa) that are consistent with the Government-wide data center consolidation and optimization metrics; and

(bb) by which the quantitative and qualitative progress of the agency toward the goals of the FDCCI can be measured;

(II) a timeline for agency activities to be completed under the FDCCI, with an emphasis on benchmarks the agency can achieve by specific dates;

(III) year-by-year calculations of investment and cost savings for the period beginning on the date of the enactment of this Act and ending on the date set forth in subsection (e), broken down by each year, including a description of any initial costs for data center consolidation and optimization and life cycle cost savings and other improvements, with an emphasis on--

(aa) meeting the Government-wide data center consolidation and optimization metrics; and

(bb) demonstrating the amount of agency-specific cost savings each fiscal year achieved through the FDCCI; and

(IV) any additional information required by the Administrator.

(B) USE OF OTHER REPORTING STRUCTURES- The Administrator may require a covered agency to include the information required to be submitted under this subsection through reporting structures determined by the Administrator to be appropriate.

(C) DEPARTMENT OF DEFENSE REPORTING- For any year that the Department of Defense is required to submit a performance plan for reduction of resources required for data servers and centers, as required under section 2867(b) of the National Defense Authorization Act for Fiscal Year 2012 (10 U.S.C. 2223a note), the Department of Defense--

(i) may submit to the Administrator, in lieu of the multi-year strategy required under subparagraph (A)(ii)--

(I) the defense-wide plan required under section 2867(b)(2) of the National Defense Authorization Act for Fiscal Year 2012 (10 U.S.C. 2223a note); and

(II) the report on cost savings required under section 2867(d) of the National Defense Authorization Act for Fiscal Year 2012 (10 U.S.C. 2223a note); and

(ii) shall submit the comprehensive inventory required under subparagraph (A)(i), unless the defense-wide plan required under section 2867(b)(2) of the National Defense Authorization Act for Fiscal Year 2012 (10 U.S.C. 2223a note)--

(I) contains a comparable comprehensive inventory; and

(II) is submitted under clause (i).

(D) STATEMENT- Each year, beginning in the first fiscal year after the date of the enactment of this Act and each fiscal year thereafter, the head of each covered agency, acting through the Chief Information Officer of the agency, shall--

(i)(I) submit a statement to the Administrator stating whether the agency has complied with the requirements of this section; and

(II) make the statement submitted under subclause (I) publicly available; and

(ii) if the agency has not complied with the requirements of this section, submit a statement to the Administrator explaining the reasons for not complying with such requirements.

(E) AGENCY IMPLEMENTATION OF STRATEGIES-

(i) IN GENERAL- Each covered agency, under the direction of the Chief Information Officer of the agency, shall--

(I) implement the strategy required under subparagraph (A)(ii); and

(II) provide updates to the Administrator, on a quarterly basis, of--

(aa) the completion of activities by the agency under the FDCCI;

(bb) any progress of the agency towards meeting the Government-wide data center consolidation and optimization metrics; and

(cc) the actual cost savings and other improvements realized through the implementation of the strategy of the agency.

(ii) DEPARTMENT OF DEFENSE- For purposes of clause (i)(I), implementation of the defense-wide plan required under section 2867(b)(2) of the National Defense Authorization Act for Fiscal Year 2012 (10 U.S.C. 2223a note) by the Department of Defense shall be considered implementation of the strategy required under subparagraph (A)(ii).

(F) RULE OF CONSTRUCTION- Nothing in this section shall be construed to limit the reporting of information by a covered agency to the Administrator, the Director of the Office of Management and Budget, or Congress.

(2) ADMINISTRATOR RESPONSIBILITIES- The Administrator shall--

(A) establish the deadline, on an annual basis, for covered agencies to submit information under this section;

(B) establish a list of requirements that the covered agencies must meet to be considered in compliance with paragraph (1);

(C) ensure that information relating to agency progress towards meeting the Government-wide data center consolidation and optimization metrics is made available in a timely manner to the general public;

(D) review the inventories and strategies submitted under paragraph (1) to determine whether they are comprehensive and complete;

(E) monitor the implementation of the data center strategy of each covered agency that is required under paragraph (1)(A)(ii);

(F) update, on an annual basis, the cumulative cost savings realized through the implementation of the FDCCI; and

(G) establish metrics applicable to the consolidation and optimization of data centers Government-wide, including metrics with respect to--

(i) costs;

(ii) efficiencies, including, at a minimum, server efficiency; and

(iii) any other factors the Administrator considers appropriate.

(3) COST SAVING GOAL AND UPDATES FOR CONGRESS-

(A) IN GENERAL- Not later than one year after the date of the enactment of this Act, the Administrator shall develop, and make publicly available, a goal, broken down by year, for the amount of planned cost savings and optimization improvements achieved through the FDCCI during the period beginning on the date of the enactment of this Act and ending on the date set forth in subsection (e).

(B) ANNUAL UPDATE-

(i) IN GENERAL- Not later than one year after the date on which the goal described in subparagraph (A) is made publicly available, and each year thereafter, the Administrator shall aggregate the reported cost savings of each covered agency and optimization improvements achieved to date through the FDCCI and compare the savings to the projected cost savings and optimization improvements developed under subparagraph (A).

(ii) UPDATE FOR CONGRESS- The goal required to be developed under subparagraph (A) shall be submitted to Congress and shall be accompanied by a statement describing--

(I) the extent to which each covered agency has developed and submitted a comprehensive inventory under paragraph (1)(A)(i), including an analysis of the inventory that details specific numbers, use, and efficiency level of data centers in each inventory; and

(II) the extent to which each covered agency has submitted a comprehensive strategy that addresses the items listed in paragraph (1)(A)(ii).

(4) GAO REVIEW-

(A) IN GENERAL- Not later than one year after the date of the enactment of this Act, and each year thereafter, the Comptroller General of the United States shall review and verify the quality and completeness of the inventory and strategy of each covered agency required under paragraph (1)(A).

(B) REPORT- The Comptroller General of the United States shall, on an annual basis, publish a report on each review conducted under subparagraph (A).

(c) Ensuring Cybersecurity Standards for Data Center Consolidation and Cloud Computing-

(1) IN GENERAL- In implementing a data center consolidation and optimization strategy under this section, a covered agency shall do so in a manner that is consistent with Federal guidelines on cloud computing security, including--

(A) applicable provisions found within the Federal Risk and Authorization Management Program (FedRAMP); and

(B) guidance published by the National Institute of Standards and Technology.

(2) RULE OF CONSTRUCTION- Nothing in this section shall be construed to limit the ability of the Director of the Office of Management and Budget to update or modify the Federal guidelines on cloud computing security.

(d) Waiver of Requirements- The Director of National Intelligence and the Secretary of Defense, or their respective designee, may waive the applicability to any national security system, as defined in section 3542 of title 44, United States Code, of any provision of this section if the Director of National Intelligence or the Secretary of Defense, or their respective designee, determines that such waiver is in the interest of national security. Not later than 30 days after making a waiver under this subsection, the Director of National Intelligence or the Secretary of Defense, or their respective designee, shall submit to the Committee on Homeland Security and Governmental Affairs and the Select Committee on Intelligence of the Senate and the Committee on Oversight and Government Reform and the Permanent Select Committee on Intelligence of the House of Representatives a statement describing the waiver and the reasons for the waiver.

(e) Sunset- This section is repealed effective on October 1, 2018.

Federal data center consolidation initiative (sec. 834)

The House bill contained a provision (sec. 5203) that would provide for the consolidation of federal data centers.

The Senate committee-reported bill contained no similar provision.

The agreement includes the House provision with a clarifying amendment.

We believe that the Department of Defense (DOD) has made significant strides in consolidating its data center infrastructure, by maturing its process for evaluating data centers as well as finding opportunities to leverage commercial cloud computing capabilities. However, as both savings and efficiencies from data center consolidation reach a point of diminishing returns, we believe that DOD can continue to make further progress by also integrating efforts to assess the applications that run on this infrastructure to determine which require dedicated servers and which can potentially be migrated to virtualized or cloud environments.

We believe that software application rationalization and consolidation is a natural extension of, and next step in, data center consolidation. Reducing the data center footprint eliminates unneeded infrastructure, but software application rationalization is needed to more efficiently utilize the infrastructure that remains, and to better determine if any further data center consolidation may or may not be warranted.

Therefore, we direct the Chief Information Office of DOD, in consultation with the Chief Information Officers of the military departments, to carry out an assessment to identify and prioritize the software applications in use throughout DOD that should be considered for migration to a cloud computing environment and to submit a report on the results of the assessment to the Committees on Armed Services of the Senate and House of Representatives by December 15, 2015. This assessment should include the following:

(1) Whether each of the software applications used by DOD can be readily transitioned to a cloud computing environment with minimal additional investment of developmental funding;

(2) If a software application used by DOD cannot be readily transitioned to a cloud computing environment, the cost and time required to enable, either by modification or replacement, the operation of the software application in a cloud computing environment;

(3) Whether it would be cost-effective to enable, either by modification or replacement, the operation of a software application in a cloud computing environment;

(4) A list of software applications used by DOD that should be enabled, either by modification or replacement, to operate in a cloud computing environment, listed in the order of priority by which they should be enabled, and a schedule for such modification or replacement; and

(5) An estimate of the cloud computing workload needs of DOD time-phased across the future years defense plan to inform DOD's cloud computing needs under the Joint Information Environment initiative that might be satisfied by government-owned and -operated or commercial cloud computing solutions.


Additional Information

H. Rpt. 113-359 to accompany the Federal Information Technology Acquisition Reform Act

Section 203. Federal Data Center Optimization Initiative

Requires the Federal CIO to develop and implement the Federal Data Center Optimization Initiative to optimize the usage and efficiency of federal data centers.

 

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