1. FITARA & OMB Guidance
June 22, 2015

2. Federal Information Technology Acquisition Reform Act (FITARA)

3. FITARA Overview Enacted December 19, 2014 Major Goals:
Increase CIO authority
Increase Transparency
Improve Risk Management
Strategic Sourcing Initiative
Portfolio Review
Major Goals:
Increase CIO authority
Specifically, FITARA requires that CIOs have significant involvement in the decision, management, and oversight processes
Increase Transparency
FITARA requires the Director to make available for the public:
Cost
Schedule; and
Performance data
For new investments and the Operations and Maintenance of existing investments
Improve Risk Management
Major IT investments must be categorized by levels of risk
There must be a review for investments that are designated High Risk over 4 consecutive quarters
Strategic Sourcing Initiative
FITARA requires the development of a SSI for Governmentwide acquisition of software
Portfolio Review
OMB required to implement a process to assist agencies in increasing efficiency and effectiveness of IT portfolios

4. Increase CIO Authority
Budget Formulation
Review
Delegation
Budget Formulation
FITARA outlines that the Director of the OMB shall require each agency CIO:
Approve the agency’s IT Budget
As part of that approval CIOs must:
Certify investments adequately implement development
Review all positions with IT responsibilities that are requested in the budget, ensuring they are required
Review
Agencies cannot:
Enter a contract or agreement without review and approval of CIOs
Divert IT program funds without review and approval of CIOs
Agencies can:
Use the governance process of the agency to enter a contract or agreement if the CIO is a full participant in the process
Delegation
Only for non-major IT investments can the CIO delegate the approval of a contract or agreement and only to someone who reports directly to them
Agency CIOs shall approve any appointment of additional CIOs within their agency

5. Increase Transparency
Quarterly Review and Certification
Investment Evaluations
Continuously Available
As stated in the Overview, FITARA requires the Director to make available for the public:
Cost
Schedule; and
Performance data
For new investments and the Operations and Maintenance of existing investments
Quarterly Review and Certification
For the aforementioned data requirements, at least once every quarter, for each major IT investment, the agency CIO and program manager must:
Certify the information is current and accurate
Identify an data quality issues
Failure to do so, or incomplete certification, will result in the agency being publically identified by the Director
Investment Evaluations
For each major IT investment, the CIO shall:
Categorize each by level of risk
Risk rating is no lower than the higher of the
Cost Rating
Schedule Risk Rating
Risk rating cannot be lower than medium for investments not employing incremental development
Continuously Available
All of this information must be publically available 24/7
Exception: When such information would pose a national security threat as evaluated by the Director

6. Improve Risk Management
High Risk Process:
Identify
Report
Post Evaluation
High Risk Process
For investments that receive high risk ratings for 4 consecutive quarters, the Administrator of the Office of Electronic Government (OEG), the agency CIO, and the program manager of the investment shall:
Identify
The root causes of risk
If these causes can be addressed, and;
The probability of future success for the investment
Report
OEG Administrator will report these findings to:
The Committee on Homeland Security and Government Affairs and the Committee of Appropriations of the Senate
The Committee on Oversight and Government Reform and the Committee on Appropriations of the House of Representatives, and;
Any committee of Congress at their request
Post Evaluation
After one year, if the investment is still rated high risk, the Director shall:
Deny funding requests for additional development, modernization, or enhancement
This denial shall last until the agency’s CIO certifies that:
The causes have been addressed, and;
The investment can deliver on cost and schedule for remaining increments

7. Strategic Sourcing Initiative
SSI
Government User License Agreement
SSI
Developed by the Administrator of General Services and the Secretary of Defense
Intent is to enhance Governmentwide acquisition, shared use, dissemination of software, and compliance with end user license agreements
Government User License Agreement
The SSI developed must allow for the purchase of license agreements that to greatest extent practical are one user

8. Portfolio Review Process Metrics and Performance Indicators Reviews
Federal Data Center Consolidation
Process
Director of OMB must implement a process to help agencies evaluate IT portfolios
This must help identify/develop:
Ways to increase efficiency and effectiveness of IT investments
Opportunities for consolidation
Plans to optimize portfolios, programs, and resources
Potential sources of waste and for savings
Ways to align portfolios, programs, and resources with long –term plans
Multi-year strategies for reducing waste
Metrics and Performance Indicators
To assist aforementioned process, OMB must develop standardized cost saving and performance indicators
Reviews
Annual
CIO, CO and Administrator of OEG must conduct annual review of agency portfolio
Quarterly
Administrator of OEG must submit a quarterly report on cost savings and duplication reductions that resulted from reviews to:
The Committee on Homeland Security and Government Affairs and the Committee of Appropriations of the Senate
Any committee of Congress at their request
The Committee on Oversight and Government Reform and the Committee on Appropriations of the House of Representatives, and;
Federal Data Center Consolidation
General
Agency head and CIO will submit, on an annual basis, to OMB:
Inventory of data centers
Strategy for optimizing/consolidating data centers
With a timeline, measurement of progress, and a year-by-year calculation of cost and savings
CIO will submit a statement, made publicly available, to the OMB. This will assert whether the agency has or has not done the aforementioned process. If the agency has not, the CIO must justify why
Administrator Responsibilities
Will make a deadline and establish requirements for the aforementioned submissions
Ensure information is made public in a timely fashion
Annually update the cumulative savings from this initiative
Monitor the implementation of each agency’s strategies
Establish metrics for consolidation and optimization of data centers
With respect to:
Costs
Efficiencies
Any other metric established by the Administrator
Congressional Update
After 1 year, Administrator will make a goal
Annually, the Administrator will take the reported savings and optimizations and compare them to the predicted goal
This goal will be broken down year-by-year for planned savings and optimizations that will be achieved through this initiative
This prediction and comparison must be submitted to Congress. Additionally, there must be accompanied by a statement regarding whether each agency submitted a comprehensive inventory and consolidation strategy
GAO Review
Annually, the Comptroller General will review and verify quality and completeness of the inventories and strategies. They will publish a report on their findings
Ensuring Cybersecurity Standards
Agencies will follow all federal guidance when carrying out this initiative’s guidance

9. Office of Management and Budget (OMB) FITARA Guidance

10. OMB Guidance Overview Issued June 10, 2015 Major Goals:
Consistent Interpretation
Implementing the Common Baseline
Reporting
Federal Data Center Consolidation
IT Acquisition Initiatives
Consistent Interpretation
To implement FITARA, OMB established a Governmentwide interpretation of:
“Information Technology Resources,” and;
“Information Technology”
OMB Circular A-130, OMB Circular A-11, and the FAR will be updated to reflect these new interpretations
Implementing the Common Baseline
The “Common Baseline” provides guidance and a framework for the CIO’s and other Senior Agency Officials’ roles and responsibilities for the management of IT.
Reporting
In addressing Transparency, Risk Management, Reviews, and Reporting; OMB’s guidance refers to existing structures that will aide agencies in adhering to FITARA
Federal Data Center Consolidation
OMB dictates that agencies will continue the reporting of phase one of FDCCI in their quarterly IDC submissions. Additionally, OMB will publish an updated FDCCI guidance by the end of FY 2015 that will describe the second phase and how it will fit into FITARA requirements
IT Acquisition Initiatives
Additional Requirements
Civilian CFO Agencies shall continue to send annual Acquisition Human Capital Plans to OMB OFPP
New reporting elements detailed, will be discussed in further detail on appropriate slide
Category Management and the Federal Strategic Sourcing Initiative
Upcoming New Rule
Purchases of services and supplies of types offered under an FSSI agreement without using an FSSI agreement
Agencies will be required to comply with this rule
Other strategies around category management being developed by OFPP
Practice where spending is managed by common categories of spending
Helps avoid duplicative spending and activities
Governmentwide Software Purchasing Program
GSA and OMB will create a Governmentwide enterprise software licenses through new awards

11. Consistent Interpretation
“Information Technology Resources”
“Information Technology”
As mentioned previously, in order to implement FITARA, OMB established a Governmentwide interpretation of these terms. OMB Circular A-130, OMB Circular A-11, and the FAR will be updated to reflect these new interpretations.
“Information Technology Resources”
Includes all:
“Agency budgetary resources, personnel, equipment, facilities, or services that are primarily used in the management, operation, acquisition, disposition, and transformation, or other activity related to the lifecycle of information technology.
Acquisitions or interagency agreements that include information technology and the services or equipment provided by such acquisitions or interagency agreements.”
Does not include:
“Grants to third parties which establish or support information technology not operated directly by the Federal Government.”
“Information Technology”
“Any services or equipment, or interconnected system(s) or subsystem(s) of equipment, that are used in the automatic acquisition, storage, analysis, evaluation, manipulation, management, movement, control, display, switching, interchange, transmission, or reception of data or information by the agency.
Where such services or equipment are ' used by an agency' if used by the agency directly or if used by a contractor under a contract with the agency that requires either use of the services or equipment or requires use of the services or equipment to a significant extent in the performance of a service or the furnishing of a product.
The term " information technology" 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 provisioned services such as cloud computing and support services that support any point of the lifecycle of the equipment or service), and related resources.
The term " information technology" does not include any equipment that is acquired by a contractor incidental to a contract that does not require use of the equipment.

12. The Common Baseline: What is it?
Attachment A of Guidance
Set of Responsibilities and Processes
Required Implementation by December 31, 2015

13. Implementing the Common Baseline
Agency Self-Assessment and Plan
Support Ongoing Oversight
Conduct Annual Review and Update
Federal CIO Council
Support PMC Follow-Up
Agency Self-Assessment and Plan
By 2016, each agency shall:
Conduct a self-assessment to identify current conformity with the Common Baseline.
Develop a plan to implement changes to rectify any gaps in conformity identified
Implement the aforementioned plan
Self-assessments and implementation plans due to OMB Resource Management Office by August 15, 2015
Also, the agencies must post their implementation plans on their public website within 30 days of OMB approval
Support Ongoing Oversight
Agencies must follow all guidance in the implementation of the Common Baseline and report any problems/issues to OMB
Conduct Annual Review and Update
Agency self-assessments must be updated annually to document any obstacles or incomplete implementations
First update by April 30, 2016 and each April 30 subsequently
Federal CIO Council
The Council shall develop and share on-going support and tools
At least once per quarter, the Council must dedicate time to discuss current Common Baseline topics
The Council should work with CFO council to develop materials to support changes related to the Common Baseline
Additionally, required to provide examples of agency governance processes and IT policies to assist agencies
Support PMC Follow-Up
President’s Management Council must select three members by June 30, 2015 to provide updates on Governmentwide implementation of FITARA
Updates required on a quarterly basis through the end of FY 2016

14. Attachment A

15. Example Page from Guidance

20. Summary of Common Baseline from Guidance

21. Reporting Standardized Metrics and Indicators Monthly Reporting
TechStat Sessions
PortfolioStat Sessions
Standardized Metrics and Indicators
As a part of the Integrated Data Collection (IDC) reporting requirements, agencies will continue to report cost savings and avoidance achieved through adopted strategies
This will be used to provide agencies with a scorecard
The scorecard will provide agency specific performance data and portfolio analysis
This information will be reported to Congress and the general public on a quarterly basis by OMB
Monthly Reporting
At least once every month, agencies will provide updates on Major IT investment risk, performance, and activity to the Federal IT Dashboard
If the data used in the update is not timely or reliable the CIO must notify OMB
Within 30 days, the CIO must develop a plan to address inefficiencies
Updates on this plan and its progress must be provided on a quarterly basis until the issue is resolved
TechStat Sessions
TechStat sessions are face-to-face reviews with agency leadership of an IT program. The sessions are a tool for addressing problems with investments and, when appropriate, terminating struggling investments.
Outcomes of the sessions are to reported through the quarterly IDC
Investments with a High Risk rating for more than 3 consecutive months must have a TechStat session held by their agency.
Must be held within 30 days of the third month
If High Risk remains after one year, OMB can take “appropriate performance and/or budgetary actions” until the problem is fixed
PortfolioStat Sessions
PortfolioStat is a data-driven tool for agencies to use in assessing their IT portfolio management processes
Must be held on a quarterly basis
Held with:
OMB
Agency CIO
During the sessions, agencies will:
Discuss and update a multi-year strategy for reducing duplication and waste from the portfolio
Identify/develop ways to increase efficiency and effectiveness
Identify/develop ways to increase use of shared-services delivery models
Develop plans to optimize the agency’s IT portfolio, programs, and resources
Review investments
Develop ways to better align long term goals with the agency’s IT portfolio, programs, and resources
Status of action items must be reported in the IDC by agencies
Must be on at least a quarterly basis
Agency heads must review and certify the status of these items with the CIO annually by April 30. This must be then submitted to OMB.
OMB will use information submitted to asses agency PortfolioStat progress

22. Federal Data Center Consolidation
2012 OMB FDCCI Guidance
Updated Guidance
As stated previously, OMB dictates that agencies will continue the reporting of phase one of FDCCI in their quarterly IDC submissions. Additionally, OMB will publish an updated FDCCI guidance by the end of FY 2015 that will describe the second phase and how it will fit into FITARA requirements
2012 OMB FDCCI Guidance
This guidance provided agencies with an outline of goals, responsibilities, and reporting requirements through the end of FY 2015.
Updated Guidance
By the end of FY 2015, OMB will publish guidance describing the second phase of the initiative and how the initiative will comply with FITARA

23. IT Acquisition Initiatives
Additional Requirements
Category Management
Governmentwide Software Purchasing Program
Additional Requirements
New Reporting Elements/Additional Requirements for civilian CFO Act agencies to those established in Acquisition Workforce Development Strategic Plan for Civilian Agencies – FY2010 – 2014.
IT Acquisition Cadres
Must explain if they have developed this position. Why or why not?
Personnel Development
Must explain if their agency has taken steps to develop personnel for IT acquisition and training.
Specialized Career Path for IT Program Managers
Must explain if agency has utilized the specialized career path for IT program managers and if they have strengthened IT program management
Direct Hire Authority
Must detail if agency has used Direct Hire for IT acquisition personnel
Peer Reviews
Must explain if agency has conducted peer reviews of IT acquisition
Pilot Programs
Must explain if agency has made use of pilot programs for IT acquisition
Category Management
Upcoming New Rule
As stated previously, the upcoming new rule regards the:
Purchases of services and supplies of types offered under an FSSI agreement without using an FSSI agreement
Agencies will be required to comply with this rule
FAR Council initiated rulemaking in February 2015
Creates a preference for strategically sourced vehicles
Once finalized, contract files will be required to include a brief analysis of the comparative value between services and supplies offered under the FSSI, to that of the source(s) purchased from
Other strategies around category management being developed by OFPP
As stated previously, category management:
Is a practice where spending is managed by common categories of spending
Helps avoid duplicative spending and activities
OMB launched the Category Management Initiative in December 2014
Governmentwide Software Purchasing Program
Through new awards, GSA and OMB will create and allow agencies access to Governmentwide enterprise software licenses
These awards, at a minimum, will allow for licensee agreements available for use by all Executive Agencies

24. Summary of Agency Deadlines and Requirements

25. Summary of Agency Deadlines and Requirements

26. Summary of Agency Deadlines and Requirements

27. Reception

28. What has been said Don’t Leave it to Agencies
How Flexible Should FITARA be?
Not Just an Update
Real and Lasting Impact
Don’t Leave it to Agencies
“Dave Powner, GAO’s director of IT management issues, said Congress needs to stay involved in the process, too.
‘History tells us that if you leave it up to the administration -- OMB and the agencies -- it doesn't work as well,’ Powner said of past efforts to transform the way the government budgets for and spend IT.”
Powner pointed to the TechStat sessions that were started in 2010 and had great success, saving $3 billion. However, since March 2013, OMB has not conducted any sessions and has not listed any savings from the sessions since June Instead, OMB has left the process to agencies to handle internally and, thus, lost billions in potential savings.
--June 11, 2015, NextGov
How Flexible Should FITARA be?
There are cultural issues that could impeded acceptance of the centralized agency CIO authority in highly federated departments according to Richard Spires, former CIO of the Department of Homeland Security.
Seeing that with the attempted carve-out by the Department of Energy in the Senate appropriations bill for the department
"One-size-fits-all models don’t work well, and I am concerned that this well-intentioned law could make it more difficult to develop the technology we need to support the Department of Energy’s research and national security missions,“--Sen. Lamar Alexander (R-Tenn.)
“Rep. Gerry Connolly (D-Va.), one of the original sponsors of FITARA, warned administration officials that agency leaders are looking to Congress for exceptions…He urged the administration to "resist that temptation" to grant one-off exceptions to certain programs or agencies.”
--June 10, 2015, FCW
Not Just an Update
“FITARA, in many ways, isn't just updating the 1996 Clinger-Cohen Act, but reinforcing many of the requirements that agencies ignored, misinterpreted or just got lost in the business of government over the last two decades.”
Knowing that it has been 20 years since the aforementioned law, Congress used FITARA to try and clean up some of the issues that have come to light over the years, including:
OMB requirements for the CIO to:
Be included in all internal planning processes for how the agency uses IT resources
Approve the IT components of any plans, and;
Be included in an agency-wide budget development process
OMB expansion the definition of what IT is beyond the traditional ones found in Clinger-Cohen and in Circular A-11.
--April 30, 2015, Federal News Radio
Real and Lasting Impact
Tony Scott, U.S. Chief Information Officer:
“If you think about nothing else about FITARA, think about good governance and good conversation and pithy conversations that enable the leadership of whatever organization is involved to make the best possible decisions going forward.“
“…FITARA gives us good guidance in how governance and interaction among senior leaders…should exist.”
Two reasons why he is confident in FITARA:
Times have changed since Clinger-Cohen Act in 1996
Increased awareness of the importance of CIOs’ role
Consistent oversight of implementation of FITARA by Congress
Additionally, the article offers a third reason for confidence in FITARA’s success:
The partnership between OMB and OFPP
Working together to improve how agencies buy IT products and services
Especially, enterprise buying software
OFPP Administrator, Ann Rung has detailed plans for an interagency team (OFPP, GSA, & DoD) to develop a strategic plan to boost these agreements across government
Additionally, Rung has stated that guidance from OMB can be expected later this summer concerning policy changes to improve the management
of software acquisition
--June 22, 2015, Federal News Radio

29. Questions?

30. Your attention was appreciated!
Thank You!
Your attention was appreciated!