The Federal Information Technology Acquisition Reform Act (FITARA): Frequently Asked Questions
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The Federal Information Technology
Acquisition Reform Act (FITARA): Frequently
Asked Questions
(name redacted)
Specialist in Internet and Telecommunications Policy
June 1, 2016
Congressional Research Service
7-....
www.crs.gov
R44462
FITARA: FAQ
Summary
Federal agencies rely on information technology (IT) to conduct their work, requiring extensive
investments in both updating existing IT and developing new IT. The Government Accountability
Office (GAO) has reported that the federal government budgets more than $80 billion each year
for IT investment. In FY2017, that investment will be more than $89 billion. Unfortunately, these
investments often incur “multi-million dollar cost overruns and years-long schedule delays,” may
contribute little to mission-related outcomes, and in some cases fail altogether. The Federal
Information Technology Acquisition Reform Act (FITARA) (P.L. 113-291) was enacted on
December 19, 2014, to address this problem. FITARA outlines seven areas of reform to how
federal agencies purchase and manage their information technology (IT) assets, including—
enhancing the authority of agency chief information officers (CIOs);
improving transparency and risk management of IT investments;
setting forth a process for agency IT portfolio review;
refocusing the Federal Data Center Consolidation Initiative (FDCCI) from only
consolidation to optimization;
expanding the training and use of “IT Cadres,” as initially outlined in the “25
Point Implementation Plan to Reform Federal Information Management
Technology” issued by the CIO of the United States;
maximizing the benefits of the Federal Strategic Sourcing Initiative (FSSI); and
creating a govemment-wide software purchasing program, in conjunction with
the General Services Administration.
Not all federal agencies are covered by FITARA. Generally, agencies identified in the Chief
Financial Officers Act of 1990, as well as their subordinate divisions and offices, are subject to
the requirements of FITARA. The Department of Defense, the Intelligence Community, and
portions of other agencies that operate systems related to national security are subject to only
certain portions of FITARA.
The Office of Management and Budget (OMB) published guidance to implement the
requirements of FITARA in June 2015 (OMB Memorandum M-15-14). In addition to
implementing FITARA, this guidance also harmonizes the requirements of FITARA with existing
laws, primarily the Clinger-Cohen Act of 1996 (P.L. 104-106) and the E-Government Act of 2002
(P.L. 107-347). The OMB also monitors agency implementation of FITARA. Congress also
monitors the progress of FITARA implementation through audits conducted by GAO and
hearings by relevant House and Senate committees. Since FITARA was signed into law, the
Senate and House have each held two hearings on overall agency FITARA implementation.
OMB imposed an April 30, 2016, deadline for agencies to submit updated FITARA common
baseline self-assessments and GAO has reported that as of May 2016, 22 of the 24 CFO Act
agencies had made their plans publicly available.
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FITARA: FAQ
Contents
What is the Federal Information Technology Acquisition Reform Act? ......................................... 1
How is FITARA being implemented? ............................................................................................. 1
Are other laws affected by FITARA? .............................................................................................. 2
Why was FITARA enacted? ............................................................................................................ 2
What agencies are covered by FITARA? ........................................................................................ 3
How is FITARA implementation monitored? ................................................................................. 3
What is the status of FITARA implementation? .............................................................................. 5
What are the next steps in the FITARA implementation process? .................................................. 6
Figures
Figure 1. House Oversight and Government Reform FITARA Implementation Scorecard ........... 6
Tables
Table 1. Agencies Subject to the Requirements of FITARA ........................................................... 4
Contacts
Author Contact Information ............................................................................................................ 7
Congressional Research Service
FITARA: FAQ
What is the Federal Information Technology
Acquisition Reform Act?
The Federal Information Technology Acquisition Reform Act (FITARA) was enacted on
December 19, 2014.1 The law outlines seven areas of reform that affect how federal agencies
purchase and manage their information technology (IT) assets, including—
enhancing the authority of agency chief information officers (CIOs);
improving transparency and risk management of IT investments;
setting forth a process for agency IT portfolio review;
refocusing the Federal Data Center Consolidation Initiative (FDCCI) from only
consolidation to optimization;
expanding the training and use of “IT Cadres,” as initially outlined in the “25
Point Implementation Plan to Reform Federal Information Management
Technology”;2
maximizing the benefits of the Federal Strategic Sourcing Initiative (FSSI);3 and
creating a govemment-wide software purchasing program, in conjunction with
the General Services Administration.
How is FITARA being implemented?
On June 10, 2015, OMB published guidance4 to implement the requirements of FITARA and
harmonize existing policy and guidance with the new law. Among other goals, the requirements
are intended to—
assist agencies in establishing management practices that align IT resources with
agency missions, goals, programmatic priorities, and statutory requirements;
establish government-wide IT management controls that will meet FITARA
requirements while providing agencies with the flexibility to adapt to agency
processes and unique mission requirements;
establish universal roles, responsibilities, and authorities of the agency CIO and
other senior agency officials;5
1
Title VIII, Subtitle D of the National Defense Authorization Act (NDAA) for Fiscal Year 2015, P.L. 113-291.
The “25-Point Implementation Plan to Reform Federal IT Management” was one of the original policy documents
developed as part of a comprehensive effort to increase the operational efficiency of federal technology assets. “A 25Point Implementation Plan to Reform Federal IT Management,” Office of the U.S. Chief Information Officer,
December 9, 2010, https://cio.gov/wp-content/uploads/2012/09/25-Point-Implementation-Plan-to-ReformFederalIT.pdf.
3
Strategic sourcing is “a method of managing procurement processes for an organization in which the procedures,
methods, and sources are constantly re-evaluated to optimize value to the organization. Strategic sourcing, which is
considered a key aspect of supply chain management, involves elements such as examination of purchasing budgets,
the landscape of the supply market, negotiation with suppliers, and periodic assessments of supply transactions.”
BusinessDictionary.com, http://www.businessdictionary.com/definition/strategic-sourcing.html.
4
“Management and Oversight of Federal Information Technology,” OMB-M-15-14, Office of Management and
Budget, June 15, 2015, https://www.whitehouse.gov/sites/default/files/omb/memoranda/2015/m-15-14.pdf (hereinafter
“Management and Oversight of Federal Information Technology” [OMB-M-15-14], OMB).
2
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FITARA: FAQ
strengthen the agency CIO’s accountability for the agency’s IT costs, schedules,
performance, and security;
strengthen the relationship between agency and bureau CIOs;
establish consistent government-wide interpretation of FITARA terms and
requirements; and
provide appropriate visibility and involvement of the agency CIO in the
management and oversight of IT resources to support the implementation of
effective cybersecurity policies.6
Are other laws affected by FITARA?
In addition to implementing FITARA, OMB Memorandum M-15-14, “Management and
Oversight of Federal Information Technology,”7 also harmonizes the requirements of FITARA
with existing law, primarily the Clinger-Cohen Act of 1996 and the E-Government Act of 2002.8
Those laws require OMB to issue management guidance for information technology and
electronic government activities across the government, respectively. FITARA also contains
provisions that required OMB interpretation before implementation.
Why was FITARA enacted?
The Government Accountability Office (GAO) has reported that the federal government budgets
more than $80 billion each year for IT investment. In FY2017, that investment will be more than
$89 billion.9 Unfortunately, these investments often incur “multi-million dollar cost overruns and
years-long schedule delays,” may contribute little to mission-related outcomes, and in some cases
fail altogether.10 For example—
the Department of Defense (DOD) canceled its Expeditionary Combat Support
System in December 2012 after it had spent more than a billion dollars, but had
not deployed the system within five years of initially obligating funds;
(...continued)
5
Senior Agency Officials, as referred to in OMB M-15-14, include positions, for example, chief financial officer, chief
administrative officer, chief operating officer, and program manager.
6
“Management and Oversight of Federal Information Technology” (OMB-M-15-14), OMB.
7
“Implementation of Reform Legislation Needed to Improve Acquisitions and Operations,” GAO-16-204T,
Government Accountability Office, November 4, 2015 (hereinafter “Implementation of Reform Legislation Needed,”
GAO).
8
P.L. 104-106 (40 U.S.C. 1401 et seq.) and P.L. 107-347 (43 U.S.C. 1601 et seq.), respectively. For information on
federal acquisition generally, see CRS Report R42826, The Federal Acquisition Regulation (FAR): Answers to
Frequently Asked Questions, by (name redacted), (name redacted), and (name redacted)
.
9
“OMB and Agencies Need to Focus Continued Attention on Implementing Reform Law,” Statement of David A.
Powner, Director, Information Technology Management Issues, Testimony Before the Subcommittees on Government
Operations and Information Technology, Committee on Oversight and Government Reform, House of Representatives,
May 18, 2016, https://oversight.house.gov/wp-content/uploads/2016/05/2016-05-18-Powner-Testimony-GAO-1.pdf
(hereinafter “Powner Testimony,” GAO).
10
“Additional Actions and Oversight Urgently Needed to Reduce Waste and Improve Performance in Acquisitions and
Operations,” GAO-15-675T, Government Accountability Office, June 10, 2015 )hereinafter “Additional Actions and
Oversight Urgently Needed,” GAO).
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the Department of Homeland Security’s Secure Border Initiative Network
program was canceled in January 2011 after it had spent more than $1 billion
because the program did not meet cost-effectiveness and viability standards;
the Department of Veterans Affairs’ (VA’s) Financial and Logistics Integrated
Technology Enterprise program, which was intended to be delivered by 2014 at a
total estimated cost of $609 million, was terminated in October 2011 due to
challenges in managing the program;
the Farm Service Agency’s Modernize and Innovate the Delivery of Agricultural
Systems program, which was to replace aging hardware and software
applications that process benefits to farmers, was canceled after 10 years at a cost
of at least $423 million, while delivering only about 20% of the functionality that
was originally planned; and
the Office of Personnel Management’s Retirement System Modernization
program was canceled in February 2011 after the agency had spent
approximately $231 million on its third attempt to automate the processing of
federal employee retirement claims.
These undesirable results, according to GAO, “can be traced to a lack of disciplined and effective
management and inadequate executive-level oversight.”11 FITARA was enacted to reduce the
likelihood of such results.12
What agencies are covered by FITARA?
Generally, agencies identified in the Chief Financial Officers (CFO) Act of 1990,13 as well as
their subordinate divisions and offices, are subject to the requirements of FITARA (Table 1). The
DOD, the Intelligence Community, and portions of other agencies that operate systems related to
national security are subject to only certain portions of FITARA. Additionally, executive branch
agencies not named in the CFO Act are encouraged, but not required, to follow FITARA
guidelines.
How is FITARA implementation monitored?
The OMB develops and promulgates guidance based on the codified requirements of FITARA
and monitors agency implementation of that guidance. Additionally, Congress monitors the
progress of FITARA implementation through audits conducted by GAO and hearings by relevant
House and Senate committees.
11
“Additional Actions and Oversight Urgently Needed,” GAO.
See H.Rept. 113-359, https://www.congress.gov/113/crpt/hrpt359/CRPT-113hrpt359.pdf.
13
P.L. 101-576.
12
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Table 1. Agencies Subject to the Requirements of FITARA
Department of Agriculture
Department of Transportation
Department of Commerce
Department of the Treasury
Department of Defense
Department of Veterans Affairs
Department of Education
Environmental Protection Agency
Department of Energy
Agency for International Development (USAID)
Department of Health and Human Services
General Services Administration
Department of Homeland Security
National Aeronautics and Space Administration
Department of Housing and Urban Development
National Science Foundation
Department of the Interior
Nuclear Regulatory Commission
Department of Justice
Office of Personnel Management
Department of Labor
Small Business Administration
Department of State
Social Security Administration
Source: U.S. Chief Financial Officers Council, https://cfo.gov/frpc/.
Between FY2010 and FY2015, GAO has made approximately 800 recommendations to OMB
and agencies to improve acquisition and operations of IT. As of October 2015, GAO reported that
about a third of its recommendations had been implemented.14 That percentage remained the
same in May 2016.15 Since FITARA was signed into law in December 2014, the Senate has held
two hearings and the House has held four hearings on FITARA implementation:
Risky Business: Examining GAO’s 2015 List of High Risk Government
Programs16
Senate Committee on Homeland Security and Governmental Affairs (Full
Committee)
February 11, 2015
Reducing Unnecessary Duplication in Federal Programs: Billions More
Could Be Saved17
Senate Committee on Homeland Security and Governmental Affairs (Full
Committee)
April 14, 2015
The Role of FITARA in Reducing IT Acquisition Risk18
Joint Hearing: House Committee on Oversight and Government Reform
(Subcommittees on Information Technology and Government Operations)
June 10, 2015
14
“Implementation of Reform Legislation Needed,” GAO.
“Powner Testimony,” GAO.
16
Information about this hearing can be found at http://www.hsgac.senate.gov/hearings/risky-business-examininggaos-2015-list-of-high-risk-government-programs.
17
Information about this hearing can be found at http://www.hsgac.senate.gov/hearings/reducing-unnecessaryduplication-in-federal-programs-billions-more-could-be-saved.
18
Information about this hearing can be found at http://docs.house.gov/Committee/Calendar/ByEvent.aspx?EventID=
103599.
15
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The Role of FITARA in Reducing IT Acquisition Risk, Part II—Measuring
Agencies’ FITARA Implementation19
Joint Hearing: House Committee on Oversight and Government Reform
(Subcommittees on Information Technology and Government Operations)
November 4, 2015
The Federal Information Technology Reform Act Scorecard 2.020
Joint Hearing: House Committee on Oversight and Government Reform
(Subcommittees on Information Technology and Government Operations)
May 18, 2016
Federal Agencies’ Reliance on Outdated and Unsupported Information
Technology21
House Committee on Oversight and Government Reform
May 25, 2016
What is the status of FITARA implementation?
The House Committee on Oversight and Government Reform released a “FITARA scorecard” in
conjunction with its November 4, 2015, hearing on the status of FITARA implementation (see
Table 1). In explaining the scorecard, Representative Gerry Connolly, ranking Member of the
Subcommittee on Government Operations and co-author of FITARA, stated:
This scorecard is not intended to be a juridical, prescriptive exercise. It is an initial
assessment, a point in time snapshot, much like a quarterly report card one might get in a
university or school. The intent isn’t to punish or stigmatize. It is, in fact, to exhort and
urge agencies to seize this opportunity, and use the scorecard as a management tool to
better guide decision making and investments within the agency. While the grades
themselves are illustrative of overall performance, it is the multiple elements that make
up the grades on which agencies and our committee will focus to ensure we deliver on the
transformative promise of FITARA. 22
The committee scored agencies across four of the seven requirement areas of FITARA to develop
a final score: data center consolidation plans, planned IT portfolio review savings, transparency
of IT project risk assessment, and incremental development for IT projects. Across the four
metrics and the final score, agencies earned a total of 14 “A” ratings out of 120 total grades. The
only agencies to get a passing grade in each of the four categories were the Department of
Commerce and the General Services Administration, which both received overall B ratings.23
19
Information about this hearing can be found at http://docs.house.gov/Committee/Calendar/ByEvent.aspx?EventID=
104158.
20
Information about this hearing can be found at https://oversight.house.gov/hearing/the-federal-informationtechnology-reform-act-scorecard-2-0/.
21
Information about this hearing can be found at https://oversight.house.gov/hearing/federal-agencies-reliance-onoutdated-and-unsupported-information-technology-a-ticking-time-bomb/
22
“CIOs Receive Low Marks on IT Reform Report Card,” CIO.gov, November 10, 2015, http://www.cio.com/article/
3003518/government/cios-receive-low-marks-on-it-reform-report-card.html.
23
“FITARA Scorecard Shows Agencies Making Little Progress,” Federal Times, November 4, 2015,
http://www.federaltimes.com/story/government/it/management/2015/11/04/fitara-scorecard/75169026.
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FITARA: FAQ
What are the next steps in the FITARA
implementation process?
GAO has stated that legislative oversight of agencies and their progress in implementing FITARA
will continue and perhaps increase during 2016, as plans and expectations become more concrete.
Another issue to be resolved is that OMB approved 22 out of 24 agencies’ original selfassessments and FITARA implementation plans, but GAO found that not all of the selfassessments were accurate.
OMB imposed an April 30, 2016, deadline for agencies to submit updated FITARA common
baseline self-assessments and GAO has reported that as of May 2016, 22 of the 24 CFO Act
agencies had made their plans publicly available.24
Figure 1. House Oversight and Government Reform
FITARA Implementation Scorecard
November 2015
Source: House Committee on Oversight and Government Reform, https://oversight.house.gov/wp-content/
uploads/2015/11/FINAL-4-area-report-card.pdf.
24
“Powner Testimony,” GAO.
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FITARA: FAQ
Notes: (1) The methodology used to score the agencies is available at https://oversight.house.gov/wp-content/
uploads/2015/11/FINAL-Combined-1-pagers-2.pdf. (2) Three agencies—HUD, SBA, and USAID—did not report
any planned data center consolidation cost savings goals; therefore, no grade has been determined for these
agencies. (3) This area measures agencies ‘major’ investments—defined as those that are spending at least 50% of
their planned spending in development (per the Office of Management and Budget, Fiscal Year 2016 Budget of
the U.S. Government). NASA, NSF, and USAID did not have any projects that met this definition.
Author Contact Information
(name redacted)
Specialist in Internet and Telecommunications
Policy
[redacted]@crs.loc.gov, 7-....
Congressional Research Service
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