HR 2458 RDS

November 15, 2002

Received

To enhance the management and promotion of electronic Government services and processes by establishing a Federal Chief Information Officer within the Office of Management and Budget, and by establishing a broad framework of measures that require using Internet-based information technology to enhance citizen access to Government information and services, and for other purposes.

Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled,

SECTION 1. SHORT TITLE; TABLE OF CONTENTS.

(a) SHORT TITLE- This Act may be cited as the `E-Government Act of 2002'.

(b) TABLE OF CONTENTS- The table of contents for this Act is as follows:

Sec. 1. Short title; table of contents.

Sec. 2. Findings and purposes.

TITLE I--OFFICE OF MANAGEMENT AND BUDGET ELECTRONIC GOVERNMENT SERVICES

Sec. 101. Management and promotion of electronic government services.

Sec. 102. Conforming amendments.

TITLE II--FEDERAL MANAGEMENT AND PROMOTION OF ELECTRONIC GOVERNMENT SERVICES

Sec. 201. Definitions.

Sec. 202. Federal agency responsibilities.

Sec. 203. Compatibility of executive agency methods for use and acceptance of electronic signatures.

Sec. 204. Federal Internet portal.

Sec. 205. Federal courts.

Sec. 206. Regulatory agencies.

Sec. 207. Accessibility, usability, and preservation of government information.

Sec. 208. Privacy provisions.

Sec. 209. Federal information technology workforce development.

Sec. 210. Share-in-savings initiatives.

Sec. 211. Authorization for acquisition of information technology by State and local governments through Federal supply schedules.

Sec. 212. Integrated reporting study and pilot projects.

Sec. 213. Community technology centers.

Sec. 214. Enhancing crisis management through advanced information technology.

Sec. 215. Disparities in access to the Internet.

Sec. 216. Common protocols for geographic information systems.

TITLE III--INFORMATION SECURITY

Sec. 301. Information security.

Sec. 302. Management of information technology.

Sec. 303. National Institute of Standards and Technology.

Sec. 304. Information Security and Privacy Advisory Board.

Sec. 305. Technical and conforming amendments.

TITLE IV--AUTHORIZATION OF APPROPRIATIONS AND EFFECTIVE DATES

Sec. 401. Authorization of appropriations.

Sec. 402. Effective dates.

TITLE V--CONFIDENTIAL INFORMATION PROTECTION AND STATISTICAL EFFICIENCY

Sec. 501. Short title.

Sec. 502. Definitions.

Sec. 503. Coordination and oversight of policies.

Sec. 504. Effect on other laws.

Subtitle A--Confidential Information Protection

Sec. 511. Findings and purposes.

Sec. 512. Limitations on use and disclosure of data and information.

Sec. 513. Fines and penalties.

Subtitle B--Statistical Efficiency

Sec. 521. Findings and purposes.

Sec. 522. Designation of statistical agencies.

Sec. 523. Responsibilities of designated statistical agencies.

Sec. 524. Sharing of business data among designated statistical agencies.

Sec. 525. Limitations on use of business data provided by designated statistical agencies.

Sec. 526. Conforming amendments.

SEC. 2. FINDINGS AND PURPOSES.

(a) FINDINGS- Congress finds the following:

(1) The use of computers and the Internet is rapidly transforming societal interactions and the relationships among citizens, private businesses, and the Government.

(2) The Federal Government has had uneven success in applying advances in information technology to enhance governmental functions and services, achieve more efficient performance, increase access to Government information, and increase citizen participation in Government.

(3) Most Internet-based services of the Federal Government are developed and presented separately, according to the jurisdictional boundaries of an individual department or agency, rather than being integrated cooperatively according to function or topic.

(4) Internet-based Government services involving interagency cooperation are especially difficult to develop and promote, in part because of a lack of sufficient funding mechanisms to support such interagency cooperation.

(5) Electronic Government has its impact through improved Government performance and outcomes within and across agencies.

(6) Electronic Government is a critical element in the management of Government, to be implemented as part of a management framework that also addresses finance, procurement, human capital, and other challenges to improve the performance of Government.

(7) To take full advantage of the improved Government performance that can be achieved through the use of Internet-based technology requires strong leadership, better organization, improved interagency collaboration, and more focused oversight of agency compliance with statutes related to information resource management.

(b) PURPOSES- The purposes of this Act are the following:

(1) To provide effective leadership of Federal Government efforts to develop and promote electronic Government services and processes by establishing an Administrator of a new Office of Electronic Government within the Office of Management and Budget.

(2) To promote use of the Internet and other information technologies to provide increased opportunities for citizen participation in Government.

(3) To promote interagency collaboration in providing electronic Government services, where this collaboration would improve the service to citizens by integrating related functions, and in the use of internal electronic Government processes, where this collaboration would improve the efficiency and effectiveness of the processes.

(4) To improve the ability of the Government to achieve agency missions and program performance goals.

(5) To promote the use of the Internet and emerging technologies within and across Government agencies to provide citizen-centric Government information and services.

(6) To reduce costs and burdens for businesses and other Government entities.

(7) To promote better informed decisionmaking by policy makers.

(8) To promote access to high quality Government information and services across multiple channels.

(9) To make the Federal Government more transparent and accountable.

(10) To transform agency operations by utilizing, where appropriate, best practices from public and private sector organizations.

(11) To provide enhanced access to Government information and services in a manner consistent with laws regarding protection of personal privacy, national security, records retention, access for persons with disabilities, and other relevant laws.

TITLE I--OFFICE OF MANAGEMENT AND BUDGET ELECTRONIC GOVERNMENT SERVICES

SEC. 101. MANAGEMENT AND PROMOTION OF ELECTRONIC GOVERNMENT SERVICES.

(a) IN GENERAL- Title 44, United States Code, is amended by inserting after chapter 35 the following:

`CHAPTER 36--MANAGEMENT AND PROMOTION OF ELECTRONIC GOVERNMENT SERVICES

`Sec.

`3601. Definitions.

`3602. Office of Electronic Government.

`3603. Chief Information Officers Council.

`3604. E-Government Fund.

`3605. Program to encourage innovative solutions to enhance electronic Government services and processes.

`3606. E-Government report.

`Sec. 3601. Definitions

`In this chapter, the definitions under section 3502 shall apply, and the term--

`(1) `Administrator' means the Administrator of the Office of Electronic Government established under section 3602;

`(2) `Council' means the Chief Information Officers Council established under section 3603;

`(3) `electronic Government' means the use by the Government of web-based Internet applications and other information technologies, combined with processes that implement these technologies, to--

`(A) enhance the access to and delivery of Government information and services to the public, other agencies, and other Government entities; or

`(B) bring about improvements in Government operations that may include effectiveness, efficiency, service quality, or transformation;

`(4) `enterprise architecture'--

`(A) means--

`(i) a strategic information asset base, which defines the mission;

`(ii) the information necessary to perform the mission;

`(iii) the technologies necessary to perform the mission; and

`(iv) the transitional processes for implementing new technologies in response to changing mission needs; and

`(B) includes--

`(i) a baseline architecture;

`(ii) a target architecture; and

`(iii) a sequencing plan;

`(5) `Fund' means the E-Government Fund established under section 3604;

`(6) `interoperability' means the ability of different operating and software systems, applications, and services to communicate and exchange data in an accurate, effective, and consistent manner;

`(7) `integrated service delivery' means the provision of Internet-based Federal Government information or services integrated according to function or topic rather than separated according to the boundaries of agency jurisdiction; and

`(8) `tribal government' means--

`(A) the governing body of any Indian tribe, band, nation, or other organized group or community located in the continental United States (excluding the State of Alaska) that is recognized as eligible for the special programs and services provided by the United States to Indians because of their status as Indians, and

`(B) any Alaska Native regional or village corporation established pursuant to the Alaska Native Claims Settlement Act (43 U.S.C. 1601 et seq.).

`Sec. 3602. Office of Electronic Government

`(a) There is established in the Office of Management and Budget an Office of Electronic Government.

`(b) There shall be at the head of the Office an Administrator who shall be appointed by the President.

`(c) The Administrator shall assist the Director in carrying out--

`(1) all functions under this chapter;

`(2) all of the functions assigned to the Director under title II of the E-Government Act of 2002; and

`(3) other electronic government initiatives, consistent with other statutes.

`(d) The Administrator shall assist the Director and the Deputy Director for Management and work with the Administrator of the Office of Information and Regulatory Affairs in setting strategic direction for implementing electronic Government, under relevant statutes, including--

`(1) chapter 35;

`(2) subtitle III of title 40, United States Code;

`(3) section 552a of title 5 (commonly referred to as the `Privacy Act');

`(4) the Government Paperwork Elimination Act (44 U.S.C. 3504 note); and

`(5) the Federal Information Security Management Act of 2002.

`(e) The Administrator shall work with the Administrator of the Office of Information and Regulatory Affairs and with other offices within the Office of Management and Budget to oversee implementation of electronic Government under this chapter, chapter 35, the E-Government Act of 2002, and other relevant statutes, in a manner consistent with law, relating to--

`(1) capital planning and investment control for information technology;

`(2) the development of enterprise architectures;

`(3) information security;

`(4) privacy;

`(5) access to, dissemination of, and preservation of Government information;

`(6) accessibility of information technology for persons with disabilities; and

`(7) other areas of electronic Government.

`(f) Subject to requirements of this chapter, the Administrator shall assist the Director by performing electronic Government functions as follows:

`(1) Advise the Director on the resources required to develop and effectively administer electronic Government initiatives.

`(2) Recommend to the Director changes relating to Governmentwide strategies and priorities for electronic Government.

`(3) Provide overall leadership and direction to the executive branch on electronic Government.

`(4) Promote innovative uses of information technology by agencies, particularly initiatives involving multiagency collaboration, through support of pilot projects, research, experimentation, and the use of innovative technologies.

`(5) Oversee the distribution of funds from, and ensure appropriate administration and coordination of, the E-Government Fund established under section 3604.

`(6) Coordinate with the Administrator of General Services regarding programs undertaken by the General Services Administration to promote electronic government and the efficient use of information technologies by agencies.

`(7) Lead the activities of the Chief Information Officers Council established under section 3603 on behalf of the Deputy Director for Management, who shall chair the council.

`(8) Assist the Director in establishing policies which shall set the framework for information technology standards for the Federal Government developed by the National Institute of Standards and Technology and promulgated by the Secretary of Commerce under section 11331 of title 40, taking into account, if appropriate, recommendations of the Chief Information Officers Council, experts, and interested parties from the private and nonprofit sectors and State, local, and tribal governments, and maximizing the use of commercial standards as appropriate, including the following:

`(A) Standards and guidelines for interconnectivity and interoperability as described under section 3504.

`(B) Consistent with the process under section 207(d) of the E-Government Act of 2002, standards and guidelines for categorizing Federal Government electronic information to enable efficient use of technologies, such as through the use of extensible markup language.

`(C) Standards and guidelines for Federal Government computer system efficiency and security.

`(9) Sponsor ongoing dialogue that--

`(A) shall be conducted among Federal, State, local, and tribal government leaders on electronic Government in the executive, legislative, and judicial branches, as well as leaders in the private and nonprofit sectors, to encourage collaboration and enhance understanding of best practices and innovative approaches in acquiring, using, and managing information resources;

`(B) is intended to improve the performance of governments in collaborating on the use of information technology to improve the delivery of Government information and services; and

`(C) may include--

`(i) development of innovative models--

`(I) for electronic Government management and Government information technology contracts; and

`(II) that may be developed through focused discussions or using separately sponsored research;

`(ii) identification of opportunities for public-private collaboration in using Internet-based technology to increase the efficiency of Government-to-business transactions;

`(iii) identification of mechanisms for providing incentives to program managers and other Government employees to develop and implement innovative uses of information technologies; and

`(iv) identification of opportunities for public, private, and intergovernmental collaboration in addressing the disparities in access to the Internet and information technology.

`(10) Sponsor activities to engage the general public in the development and implementation of policies and programs, particularly activities aimed at fulfilling the goal of using the most effective citizen-centered strategies and those activities which engage multiple agencies providing similar or related information and services.

`(11) Oversee the work of the General Services Administration and other agencies in developing the integrated Internet-based system under section 204 of the E-Government Act of 2002.

`(12) Coordinate with the Administrator for Federal Procurement Policy to ensure effective implementation of electronic procurement initiatives.

`(13) Assist Federal agencies, including the General Services Administration, the Department of Justice, and the United States Access Board in--

`(A) implementing accessibility standards under section 508 of the Rehabilitation Act of 1973 (29 U.S.C. 794d); and

`(B) ensuring compliance with those standards through the budget review process and other means.

`(14) Oversee the development of enterprise architectures within and across agencies.

`(15) Assist the Director and the Deputy Director for Management in overseeing agency efforts to ensure that electronic Government activities incorporate adequate, risk-based, and cost-effective security compatible with business processes.

`(16) Administer the Office of Electronic Government established under this section.

`(17) Assist the Director in preparing the E-Government report established under section 3606.

`(g) The Director shall ensure that the Office of Management and Budget, including the Office of Electronic Government, the Office of Information and Regulatory Affairs, and other relevant offices, have adequate staff and resources to properly fulfill all functions under the E-Government Act of 2002.

`Sec. 3603. Chief Information Officers Council

`(a) There is established in the executive branch a Chief Information Officers Council.

`(b) The members of the Council shall be as follows:

`(1) The Deputy Director for Management of the Office of Management and Budget, who shall act as chairperson of the Council.

`(2) The Administrator of the Office of Electronic Government.

`(3) The Administrator of the Office of Information and Regulatory Affairs.

`(4) The chief information officer of each agency described under section 901(b) of title 31.

`(5) The chief information officer of the Central Intelligence Agency.

`(6) The chief information officer of the Department of the Army, the Department of the Navy, and the Department of the Air Force, if chief information officers have been designated for such departments under section 3506(a)(2)(B).

`(7) Any other officer or employee of the United States designated by the chairperson.

`(c)(1) The Administrator of the Office of Electronic Government shall lead the activities of the Council on behalf of the Deputy Director for Management.

`(2)(A) The Vice Chairman of the Council shall be selected by the Council from among its members.

`(B) The Vice Chairman shall serve a 1-year term, and may serve multiple terms.

`(3) The Administrator of General Services shall provide administrative and other support for the Council.

`(d) The Council is designated the principal interagency forum for improving agency practices related to the design, acquisition, development, modernization, use, operation, sharing, and performance of Federal Government information resources.

`(e) In performing its duties, the Council shall consult regularly with representatives of State, local, and tribal governments.

`(f) The Council shall perform functions that include the following:

`(1) Develop recommendations for the Director on Government information resources management policies and requirements.

`(2) Share experiences, ideas, best practices, and innovative approaches related to information resources management.

`(3) Assist the Administrator in the identification, development, and coordination of multiagency projects and other innovative initiatives to improve Government performance through the use of information technology.

`(4) Promote the development and use of common performance measures for agency information resources management under this chapter and title II of the E-Government Act of 2002.

`(5) Work as appropriate with the National Institute of Standards and Technology and the Administrator to develop recommendations on information technology standards developed under section 20 of the National Institute of Standards and Technology Act (15 U.S.C. 278g-3) and promulgated under section 11331 of title 40, and maximize the use of commercial standards as appropriate, including the following:

`(A) Standards and guidelines for interconnectivity and interoperability as described under section 3504.

`(B) Consistent with the process under section 207(d) of the E-Government Act of 2002, standards and guidelines for categorizing Federal Government electronic information to enable efficient use of technologies, such as through the use of extensible markup language.

`(C) Standards and guidelines for Federal Government computer system efficiency and security.

`(6) Work with the Office of Personnel Management to assess and address the hiring, training, classification, and professional development needs of the Government related to information resources management.

`(7) Work with the Archivist of the United States to assess how the Federal Records Act can be addressed effectively by Federal information resources management activities.

`Sec. 3604. E-Government Fund

`(a)(1) There is established in the Treasury of the United States the E-Government Fund.

`(2) The Fund shall be administered by the Administrator of the General Services Administration to support projects approved by the Director, assisted by the Administrator of the Office of Electronic Government, that enable the Federal Government to expand its ability, through the development and implementation of innovative uses of the Internet or other electronic methods, to conduct activities electronically.

`(3) Projects under this subsection may include efforts to--

`(A) make Federal Government information and services more readily available to members of the public (including individuals, businesses, grantees, and State and local governments);

`(B) make it easier for the public to apply for benefits, receive services, pursue business opportunities, submit information, and otherwise conduct transactions with the Federal Government; and

`(C) enable Federal agencies to take advantage of information technology in sharing information and conducting transactions with each other and with State and local governments.

`(b)(1) The Administrator shall--

`(A) establish procedures for accepting and reviewing proposals for funding;

`(B) consult with interagency councils, including the Chief Information Officers Council, the Chief Financial Officers Council, and other interagency management councils, in establishing procedures and reviewing proposals; and

`(C) assist the Director in coordinating resources that agencies receive from the Fund with other resources available to agencies for similar purposes.

`(2) When reviewing proposals and managing the Fund, the Administrator shall observe and incorporate the following procedures:

`(A) A project requiring substantial involvement or funding from an agency shall be approved by a senior official with agencywide authority on behalf of the head of the agency, who shall report directly to the head of the agency.

`(B) Projects shall adhere to fundamental capital planning and investment control processes.

`(C) Agencies shall identify in their proposals resource commitments from the agencies involved and how these resources would be coordinated with support from the Fund, and include plans for potential continuation of projects after all funds made available from the Fund are expended.

`(D) After considering the recommendations of the interagency councils, the Director, assisted by the Administrator, shall have final authority to determine which of the candidate projects shall be funded from the Fund.

`(E) Agencies shall assess the results of funded projects.

`(c) In determining which proposals to recommend for funding, the Administrator--

`(1) shall consider criteria that include whether a proposal--

`(A) identifies the group to be served, including citizens, businesses, the Federal Government, or other governments;

`(B) indicates what service or information the project will provide that meets needs of groups identified under subparagraph (A);

`(C) ensures proper security and protects privacy;

`(D) is interagency in scope, including projects implemented by a primary or single agency that--

`(i) could confer benefits on multiple agencies; and

`(ii) have the support of other agencies; and

`(E) has performance objectives that tie to agency missions and strategic goals, and interim results that relate to the objectives; and

`(2) may also rank proposals based on criteria that include whether a proposal--

`(A) has Governmentwide application or implications;

`(B) has demonstrated support by the public to be served;

`(C) integrates Federal with State, local, or tribal approaches to service delivery;

`(D) identifies resource commitments from nongovernmental sectors;

`(E) identifies resource commitments from the agencies involved;

`(F) uses web-based technologies to achieve objectives;

`(G) identifies records management and records access strategies;

`(H) supports more effective citizen participation in and interaction with agency activities that further progress toward a more citizen-centered Government;

`(I) directly delivers Government information and services to the public or provides the infrastructure for delivery;

`(J) supports integrated service delivery;

`(K) describes how business processes across agencies will reflect appropriate transformation simultaneous to technology implementation; and

`(L) is new or innovative and does not supplant existing funding streams within agencies.

`(d) The Fund may be used to fund the integrated Internet-based system under section 204 of the E-Government Act of 2002.

`(e) None of the funds provided from the Fund may be transferred to any agency until 15 days after the Administrator of the General Services Administration has submitted to the Committees on Appropriations of the Senate and the House of Representatives, the Committee on Governmental Affairs of the Senate, the Committee on Government Reform of the House of Representatives, and the appropriate authorizing committees of the Senate and the House of Representatives, a notification and description of how the funds are to be allocated and how the expenditure will further the purposes of this chapter.

`(f)(1) The Director shall report annually to Congress on the operation of the Fund, through the report established under section 3606.

`(2) The report under paragraph (1) shall describe--

`(A) all projects which the Director has approved for funding from the Fund; and

`(B) the results that have been achieved to date for these funded projects.

`(g)(1) There are authorized to be appropriated to the Fund--

`(A) $45,000,000 for fiscal year 2003;

`(B) $50,000,000 for fiscal year 2004;

`(C) $100,000,000 for fiscal year 2005;

`(D) $150,000,000 for fiscal year 2006; and

`(E) such sums as are necessary for fiscal year 2007.

`(2) Funds appropriated under this subsection shall remain available until expended.

`Sec. 3605. Program to encourage innovative solutions to enhance electronic Government services and processes

`(a) ESTABLISHMENT OF PROGRAM- The Administrator shall establish and promote a Governmentwide program to encourage contractor innovation and excellence in facilitating the development and enhancement of electronic Government services and processes.

`(b) ISSUANCE OF ANNOUNCEMENTS SEEKING INNOVATIVE SOLUTIONS- Under the program, the Administrator, in consultation with the Council and the Administrator for Federal Procurement Policy, shall issue announcements seeking unique and innovative solutions to facilitate the development and enhancement of electronic Government services and processes.

`(c) MULTIAGENCY TECHNICAL ASSISTANCE TEAM- (1) The Administrator, in consultation with the Council and the Administrator for Federal Procurement Policy, shall convene a multiagency technical assistance team to assist in screening proposals submitted to the Administrator to provide unique and innovative solutions to facilitate the development and enhancement of electronic Government services and processes. The team shall be composed of employees of the agencies represented on the Council who have expertise in scientific and technical disciplines that would facilitate the assessment of the feasibility of the proposals.

`(2) The technical assistance team shall--

`(A) assess the feasibility, scientific and technical merits, and estimated cost of each proposal; and

`(B) submit each proposal, and the assessment of the proposal, to the Administrator.

`(3) The technical assistance team shall not consider or evaluate proposals submitted in response to a solicitation for offers for a pending procurement or for a specific agency requirement.

`(4) After receiving proposals and assessments from the technical assistance team, the Administrator shall consider recommending appropriate proposals for funding under the E-Government Fund established under section 3604 or, if appropriate, forward the proposal and the assessment of it to the executive agency whose mission most coincides with the subject matter of the proposal.

`Sec. 3606. E-Government report

`(a) Not later than March 1 of each year, the Director shall submit an E-Government status report to the Committee on Governmental Affairs of the Senate and the Committee on Government Reform of the House of Representatives.

`(b) The report under subsection (a) shall contain--

`(1) a summary of the information reported by agencies under section 202(f) of the E-Government Act of 2002;

`(2) the information required to be reported by section 3604(f); and

`(3) a description of compliance by the Federal Government with other goals and provisions of the E-Government Act of 2002.'.

(b) TECHNICAL AND CONFORMING AMENDMENT- The table of chapters for title 44, United States Code, is amended by inserting after the item relating to chapter 35 the following:

3601'.

SEC. 102. CONFORMING AMENDMENTS.

(a) ELECTRONIC GOVERNMENT AND INFORMATION TECHNOLOGIES-

(1) IN GENERAL- Chapter 3 of title 40, United States Code, is amended by inserting after section 304 the following new section:

`Sec. 305. Electronic Government and information technologies

`The Administrator of General Services shall consult with the Administrator of the Office of Electronic Government on programs undertaken by the General Services Administration to promote electronic Government and the efficient use of information technologies by Federal agencies.'.

(2) TECHNICAL AND CONFORMING AMENDMENT- The table of sections for chapter 3 of such title is amended by inserting after the item relating to section 304 the following:

`305. Electronic Government and information technologies.'.

(b) MODIFICATION OF DEPUTY DIRECTOR FOR MANAGEMENT FUNCTIONS- Section 503(b) of title 31, United States Code, is amended--

(1) by redesignating paragraphs (5), (6), (7), (8), and (9), as paragraphs (6), (7), (8), (9), and (10), respectively; and

(2) by inserting after paragraph (4) the following:

`(5) Chair the Chief Information Officers Council established under section 3603 of title 44.'.

(c) OFFICE OF ELECTRONIC GOVERNMENT-

(1) IN GENERAL- Chapter 5 of title 31, United States Code, is amended by inserting after section 506 the following:

`Sec. 507. Office of Electronic Government

`The Office of Electronic Government, established under section 3602 of title 44, is an office in the Office of Management and Budget.'.

(2) TECHNICAL AND CONFORMING AMENDMENT- The table of sections for chapter 5 of title 31, United States Code, is amended by inserting after the item relating to section 506 the following:

`507. Office of Electronic Government.'.

TITLE II--FEDERAL MANAGEMENT AND PROMOTION OF ELECTRONIC GOVERNMENT SERVICES

SEC. 201. DEFINITIONS.

Except as otherwise provided, in this title the definitions under sections 3502 and 3601 of title 44, United States Code, shall apply.

SEC. 202. FEDERAL AGENCY RESPONSIBILITIES.

(a) IN GENERAL- The head of each agency shall be responsible for--

(1) complying with the requirements of this Act (including the amendments made by this Act), the related information resource management policies and guidance established by the Director of the Office of Management and Budget, and the related information technology standards promulgated by the Secretary of Commerce;

(2) ensuring that the information resource management policies and guidance established under this Act by the Director, and the related information technology standards promulgated by the Secretary of Commerce are communicated promptly and effectively to all relevant officials within their agency; and

(3) supporting the efforts of the Director and the Administrator of the General Services Administration to develop, maintain, and promote an integrated Internet-based system of delivering Federal Government information and services to the public under section 204.

(b) PERFORMANCE INTEGRATION-

(1) Agencies shall develop performance measures that demonstrate how electronic government enables progress toward agency objectives, strategic goals, and statutory mandates.

(2) In measuring performance under this section, agencies shall rely on existing data collections to the extent practicable.

(3) Areas of performance measurement that agencies should consider include--

(A) customer service;

(B) agency productivity; and

(C) adoption of innovative information technology, including the appropriate use of commercial best practices.

(4) Agencies shall link their performance goals, as appropriate, to key groups, including citizens, businesses, and other governments, and to internal Federal Government operations.

(5) As appropriate, agencies shall work collectively in linking their performance goals to groups identified under paragraph (4) and shall use information technology in delivering Government information and services to those groups.

(c) AVOIDING DIMINISHED ACCESS- When promulgating policies and implementing programs regarding the provision of Government information and services over the Internet, agency heads shall consider the impact on persons without access to the Internet, and shall, to the extent practicable--

(1) ensure that the availability of Government information and services has not been diminished for individuals who lack access to the Internet; and

(2) pursue alternate modes of delivery that make Government information and services more accessible to individuals who do not own computers or lack access to the Internet.

(d) ACCESSIBILITY TO PEOPLE WITH DISABILITIES- All actions taken by Federal departments and agencies under this Act shall be in compliance with section 508 of the Rehabilitation Act of 1973 (29 U.S.C. 794d).

(e) SPONSORED ACTIVITIES- Agencies shall sponsor activities that use information technology to engage the public in the development and implementation of policies and programs.

(f) CHIEF INFORMATION OFFICERS- The Chief Information Officer of each of the agencies designated under chapter 36 of title 44, United States Code (as added by this Act) shall be responsible for--

(1) participating in the functions of the Chief Information Officers Council; and

(2) monitoring the implementation, within their respective agencies, of information technology standards promulgated by the Secretary of Commerce, including common standards for interconnectivity and interoperability, categorization of Federal Government electronic information, and computer system efficiency and security.

(g) E-GOVERNMENT STATUS REPORT-

(1) IN GENERAL- Each agency shall compile and submit to the Director an annual E-Government Status Report on--

(A) the status of the implementation by the agency of electronic government initiatives;

(B) compliance by the agency with this Act; and

(C) how electronic Government initiatives of the agency improve performance in delivering programs to constituencies.

(2) SUBMISSION- Each agency shall submit an annual report under this subsection--

(A) to the Director at such time and in such manner as the Director requires;

(B) consistent with related reporting requirements; and

(C) which addresses any section in this title relevant to that agency.

(h) USE OF TECHNOLOGY- Nothing in this Act supersedes the responsibility of an agency to use or manage information technology to deliver Government information and services that fulfill the statutory mission and programs of the agency.

(i) NATIONAL SECURITY SYSTEMS-

(1) INAPPLICABILITY- Except as provided under paragraph (2), this title does not apply to national security systems as defined in section 11103 of title 40, United States Code.

(2) APPLICABILITY- This section, section 203, and section 214 do apply to national security systems to the extent practicable and consistent with law.

SEC. 203. COMPATIBILITY OF EXECUTIVE AGENCY METHODS FOR USE AND ACCEPTANCE OF ELECTRONIC SIGNATURES.

(a) PURPOSE- The purpose of this section is to achieve interoperable implementation of electronic signatures for appropriately secure electronic transactions with Government.

(b) ELECTRONIC SIGNATURES- In order to fulfill the objectives of the Government Paperwork Elimination Act (Public Law 105-277; 112 Stat. 2681-749 through 2681-751), each Executive agency (as defined under section 105 of title 5, United States Code) shall ensure that its methods for use and acceptance of electronic signatures are compatible with the relevant policies and procedures issued by the Director.

(c) AUTHORITY FOR ELECTRONIC SIGNATURES- The Administrator of General Services shall support the Director by establishing a framework to allow efficient interoperability among Executive agencies when using electronic signatures, including processing of digital signatures.

(d) AUTHORIZATION OF APPROPRIATIONS- There are authorized to be appropriated to the General Services Administration, to ensure the development and operation of a Federal bridge certification authority for digital signature compatibility, and for other activities consistent with this section, $8,000,000 or such sums as are necessary in fiscal year 2003, and such sums as are necessary for each fiscal year thereafter.

SEC. 204. FEDERAL INTERNET PORTAL.

(a) IN GENERAL-

(1) PUBLIC ACCESS- The Director shall work with the Administrator of the General Services Administration and other agencies to maintain and promote an integrated Internet-based system of providing the public with access to Government information and services.

(2) CRITERIA- To the extent practicable, the integrated system shall be designed and operated according to the following criteria:

(A) The provision of Internet-based Government information and services directed to key groups, including citizens, business, and other governments, and integrated according to function or topic rather than separated according to the boundaries of agency jurisdiction.

(B) An ongoing effort to ensure that Internet-based Government services relevant to a given citizen activity are available from a single point.

(C) Access to Federal Government information and services consolidated, as appropriate, with Internet-based information and services provided by State, local, and tribal governments.

(D) Access to Federal Government information held by 1 or more agencies shall be made available in a manner that protects privacy, consistent with law.

(b) AUTHORIZATION OF APPROPRIATIONS- There are authorized to be appropriated to the General Services Administration $15,000,000 for the maintenance, improvement, and promotion of the integrated Internet-based system for fiscal year 2003, and such sums as are necessary for fiscal years 2004 through 2007.

SEC. 205. FEDERAL COURTS.

(a) INDIVIDUAL COURT WEBSITES- The Chief Justice of the United States, the chief judge of each circuit and district and of the Court of Federal Claims, and the chief bankruptcy judge of each district shall cause to be established and maintained, for the court of which the judge is chief justice or judge, a website that contains the following information or links to websites with the following information:

(1) Location and contact information for the courthouse, including the telephone numbers and contact names for the clerk's office and justices' or judges' chambers.

(2) Local rules and standing or general orders of the court.

(3) Individual rules, if in existence, of each justice or judge in that court.

(4) Access to docket information for each case.

(5) Access to the substance of all written opinions issued by the court, regardless of whether such opinions are to be published in the official court reporter, in a text searchable format.

(6) Access to documents filed with the courthouse in electronic form, to the extent provided under subsection (c).

(7) Any other information (including forms in a format that can be downloaded) that the court determines useful to the public.

(b) MAINTENANCE OF DATA ONLINE-

(1) UPDATE OF INFORMATION- The information and rules on each website shall be updated regularly and kept reasonably current.

(2) CLOSED CASES- Electronic files and docket information for cases closed for more than 1 year are not required to be made available online, except all written opinions with a date of issuance after the effective date of this section shall remain available online.

(c) ELECTRONIC FILINGS-

(1) IN GENERAL- Except as provided under paragraph (2) or in the rules prescribed under paragraph (3), each court shall make any document that is filed electronically publicly available online. A court may convert any document that is filed in paper form to electronic form. To the extent such conversions are made, all such electronic versions of the document shall be made available online.

(2) EXCEPTIONS- Documents that are filed that are not otherwise available to the public, such as documents filed under seal, shall not be made available online.

(3) PRIVACY AND SECURITY CONCERNS- (A)(i) The Supreme Court shall prescribe rules, in accordance with sections 2072 and 2075 of title 28, United States Code, to protect privacy and security concerns relating to electronic filing of documents and the public availability under this subsection of documents filed electronically.

(ii) Such rules shall provide to the extent practicable for uniform treatment of privacy and security issues throughout the Federal courts.

(iii) Such rules shall take into consideration best practices in Federal and State courts to protect private information or otherwise maintain necessary information security.

(iv) To the extent that such rules provide for the redaction of certain categories of information in order to protect privacy and security concerns, such rules shall provide that a party that wishes to file an otherwise proper document containing such information may file an unredacted document under seal, which shall be retained by the court as part of the record, and which, at the discretion of the court and subject to any applicable rules issued in accordance with chapter 131 of title 28, United States Code, shall be either in lieu of, or in addition, to, a redacted copy in the public file.

(B)(i) Subject to clause (ii), the Judicial Conference of the United States may issue interim rules, and interpretive statements relating to the application of such rules, which conform to the requirements of this paragraph and which shall cease to have effect upon the effective date of the rules required under subparagraph (A).

(ii) Pending issuance of the rules required under subparagraph (A), any rule or order of any court, or of the Judicial Conference, providing for the redaction of certain categories of information in order to protect privacy and security concerns arising from electronic filing shall comply with, and be construed in conformity with, subparagraph (A)(iv).

(C) Not later than 1 year after the rules prescribed under subparagraph (A) take effect, and every 2 years thereafter, the Judicial Conference shall submit to Congress a report on the adequacy of those rules to protect privacy and security.

(d) DOCKETS WITH LINKS TO DOCUMENTS- The Judicial Conference of the United States shall explore the feasibility of technology to post online dockets with links allowing all filings, decisions, and rulings in each case to be obtained from the docket sheet of that case.

(e) COST OF PROVIDING ELECTRONIC DOCKETING INFORMATION- Section 303(a) of the Judiciary Appropriations Act, 1992 (28 U.S.C. 1913 note) is amended in the first sentence by striking `shall hereafter' and inserting `may, only to the extent necessary,'.

(f) TIME REQUIREMENTS- Not later than 2 years after the effective date of this title, the websites under subsection (a) shall be established, except that access to documents filed in electronic form shall be established not later than 4 years after that effective date.

(g) DEFERRAL-

(1) IN GENERAL-

(A) ELECTION-

(i) NOTIFICATION- The Chief Justice of the United States, a chief judge, or chief bankruptcy judge may submit a notification to the Administrative Office of the United States Courts to defer compliance with any requirement of this section with respect to the Supreme Court, a court of appeals, district, or the bankruptcy court of a district.

(ii) CONTENTS- A notification submitted under this subparagraph shall state--

(I) the reasons for the deferral; and

(II) the online methods, if any, or any alternative methods, such court or district is using to provide greater public access to information.

(B) EXCEPTION- To the extent that the Supreme Court, a court of appeals, district, or bankruptcy court of a district maintains a website under subsection (a), the Supreme Court or that court of appeals or district shall comply with subsection (b)(1).

(2) REPORT- Not later than 1 year after the effective date of this title, and every year thereafter, the Judicial Conference of the United States shall submit a report to the Committees on Governmental Affairs and the Judiciary of the Senate and the Committees on Government Reform and the Judiciary of the House of Representatives that--

(A) contains all notifications submitted to the Administrative Office of the United States Courts under this subsection; and

(B) summarizes and evaluates all notifications.

SEC. 206. REGULATORY AGENCIES.

(a) PURPOSES- The purposes of this section are to--

(1) improve performance in the development and issuance of agency regulations by using information technology to increase access, accountability, and transparency; and

(2) enhance public participation in Government by electronic means, consistent with requirements under subchapter II of chapter 5 of title 5, United States Code, (commonly referred to as the `Administrative Procedures Act').

(b) INFORMATION PROVIDED BY AGENCIES ONLINE- To the extent practicable as determined by the agency in consultation with the Director, each agency (as defined under section 551 of title 5, United States Code) shall ensure that a publicly accessible Federal Government website includes all information about that agency required to be published in the Federal Register under paragraphs (1) and (2) of section 552(a) of title 5, United States Code.

(c) SUBMISSIONS BY ELECTRONIC MEANS- To the extent practicable, agencies shall accept submissions under section 553(c) of title 5, United States Code, by electronic means.

(d) ELECTRONIC DOCKETING-

(1) IN GENERAL- To the extent practicable, as determined by the agency in consultation with the Director, agencies shall ensure that a publicly accessible Federal Government website contains electronic dockets for rulemakings under section 553 of title 5, United States Code.

(2) INFORMATION AVAILABLE- Agency electronic dockets shall make publicly available online to the extent practicable, as determined by the agency in consultation with the Director--

(A) all submissions under section 553(c) of title 5, United States Code; and

(B) other materials that by agency rule or practice are included in the rulemaking docket under section 553(c) of title 5, United States Code, whether or not submitted electronically.

(e) TIME LIMITATION- Agencies shall implement the requirements of this section consistent with a timetable established by the Director and reported to Congress in the first annual report under section 3606 of title 44 (as added by this Act).

SEC. 207. ACCESSIBILITY, USABILITY, AND PRESERVATION OF GOVERNMENT INFORMATION.

(a) PURPOSE- The purpose of this section is to improve the methods by which Government information, including information on the Internet, is organized, preserved, and made accessible to the public.

(b) DEFINITIONS- In this section, the term--

(1) `Committee' means the Interagency Committee on Government Information established under subsection (c); and

(2) `directory' means a taxonomy of subjects linked to websites that--

(A) organizes Government information on the Internet according to subject matter; and

(B) may be created with the participation of human editors.

(c) INTERAGENCY COMMITTEE-

(1) ESTABLISHMENT- Not later than 180 days after the date of enactment of this title, the Director shall establish the Interagency Committee on Government Information.

(2) MEMBERSHIP- The Committee shall be chaired by the Director or the designee of the Director and--

(A) shall include representatives from--

(i) the National Archives and Records Administration;

(ii) the offices of the Chief Information Officers from Federal agencies; and

(iii) other relevant officers from the executive branch; and

(B) may include representatives from the Federal legislative and judicial branches.

(3) FUNCTIONS- The Committee shall--

(A) engage in public consultation to the maximum extent feasible, including consultation with interested communities such as public advocacy organizations;

(B) conduct studies and submit recommendations, as provided under this section, to the Director and Congress; and

(C) share effective practices for access to, dissemination of, and retention of Federal information.

(4) TERMINATION- The Committee may be terminated on a date determined by the Director, except the Committee may not terminate before the Committee submits all recommendations required under this section.

(d) CATEGORIZING OF INFORMATION-

(1) COMMITTEE FUNCTIONS- Not later than 2 years after the date of enactment of this Act, the Committee shall submit recommendations to the Director on--

(A) the adoption of standards, which are open to the maximum extent feasible, to enable the organization and categorization of Government information--

(i) in a way that is searchable electronically, including by searchable identifiers; and

(iii) in ways that are interoperable across agencies;

(B) the definition of categories of Government information which should be classified under the standards; and

(C) determining priorities and developing schedules for the initial implementation of the standards by agencies.

(2) FUNCTIONS OF THE DIRECTOR- Not later than 1 year after the submission of recommendations under paragraph (1), the Director shall issue policies--

(A) requiring that agencies use standards, which are open to the maximum extent feasible, to enable the organization and categorization of Government information--

(i) in a way that is searchable electronically, including by searchable identifiers;

(ii) in ways that are interoperable across agencies; and

(iii) that are, as appropriate, consistent with the provisions under section 3602(f)(8) of title 44, United States Code;

(B) defining categories of Government information which shall be required to be classified under the standards; and

(C) determining priorities and developing schedules for the initial implementation of the standards by agencies.

(3) MODIFICATION OF POLICIES- After the submission of agency reports under paragraph (4), the Director shall modify the policies, as needed, in consultation with the Committee and interested parties.

(4) AGENCY FUNCTIONS- Each agency shall report annually to the Director, in the report established under section 202(g), on compliance of that agency with the policies issued under paragraph (2)(A).

(e) PUBLIC ACCESS TO ELECTRONIC INFORMATION-

(1) COMMITTEE FUNCTIONS- Not later than 2 years after the date of enactment of this Act, the Committee shall submit recommendations to the Director and the Archivist of the United States on--

(A) the adoption by agencies of policies and procedures to ensure that chapters 21, 25, 27, 29, and 31 of title 44, United States Code, are applied effectively and comprehensively to Government information on the Internet and to other electronic records; and

(B) the imposition of timetables for the implementation of the policies and procedures by agencies.

(2) FUNCTIONS OF THE ARCHIVIST- Not later than 1 year after the submission of recommendations by the Committee under paragraph (1), the Archivist of the United States shall issue policies--

(A) requiring the adoption by agencies of policies and procedures to ensure that chapters 21, 25, 27, 29, and 31 of title 44, United States Code, are applied effectively and comprehensively to Government information on the Internet and to other electronic records; and

(B) imposing timetables for the implementation of the policies, procedures, and technologies by agencies.

(3) MODIFICATION OF POLICIES- After the submission of agency reports under paragraph (4), the Archivist of the United States shall modify the policies, as needed, in consultation with the Committee and interested parties.

(4) AGENCY FUNCTIONS- Each agency shall report annually to the Director, in the report established under section 202(g), on compliance of that agency with the policies issued under paragraph (2)(A).

(f) AGENCY WEBSITES-

(1) STANDARDS FOR AGENCY WEBSITES- Not later than 2 years after the effective date of this title, the Director shall promulgate guidance for agency websites that includes--

(A) requirements that websites include direct links to--

(i) descriptions of the mission and statutory authority of the agency;

(ii) information made available to the public under subsections (a)(1) and (b) of section 552 of title 5, United States Code (commonly referred to as the `Freedom of Information Act');

(iii) information about the organizational structure of the agency; and

(iv) the strategic plan of the agency developed under section 306 of title 5, United States Code; and

(B) minimum agency goals to assist public users to navigate agency websites, including--

(i) speed of retrieval of search results;

(ii) the relevance of the results;

(iii) tools to aggregate and disaggregate data; and

(iv) security protocols to protect information.

(2) AGENCY REQUIREMENTS- (A) Not later than 2 years after the date of enactment of this Act, each agency shall--

(i) consult with the Committee and solicit public comment;

(ii) establish a process for determining which Government information the agency intends to make available and accessible to the public on the Internet and by other means;

(iii) develop priorities and schedules for making Government information available and accessible;

(iv) make such final determinations, priorities, and schedules available for public comment;

(v) post such final determinations, priorities, and schedules on the Internet; and

(vi) submit such final determinations, priorities, and schedules to the Director, in the report established under section 202(g).

(B) Each agency shall update determinations, priorities, and schedules of the agency, as needed, after consulting with the Committee and soliciting public comment, if appropriate.

(3) PUBLIC DOMAIN DIRECTORY OF PUBLIC FEDERAL GOVERNMENT WEBSITES-

(A) ESTABLISHMENT- Not later than 2 years after the effective date of this title, the Director and each agency shall--

(i) develop and establish a public domain directory of public Federal Government websites; and

(ii) post the directory on the Internet with a link to the integrated Internet-based system established under section 204.

(B) DEVELOPMENT- With the assistance of each agency, the Director shall--

(i) direct the development of the directory through a collaborative effort, including input from--

(I) agency librarians;

(II) information technology managers;

(III) program managers;

(IV) records managers;

(V) Federal depository librarians; and

(VI) other interested parties; and

(ii) develop a public domain taxonomy of subjects used to review and categorize public Federal Government websites.

(C) UPDATE- With the assistance of each agency, the Administrator of the Office of Electronic Government shall--

(i) update the directory as necessary, but not less than every 6 months; and

(ii) solicit interested persons for improvements to the directory.

(g) ACCESS TO FEDERALLY FUNDED RESEARCH AND DEVELOPMENT-

(1) DEVELOPMENT AND MAINTENANCE OF GOVERNMENTWIDE REPOSITORY AND WEBSITE-

(A) REPOSITORY AND WEBSITE- The Director of the Office of Management and Budget (or the Director's delegate), in consultation with the Director of the Office of Science and Technology Policy and other relevant agencies, shall ensure the development and maintenance of--

(i) a repository that fully integrates, to the maximum extent feasible, information about research and development funded by the Federal Government, and the repository shall--

(I) include information about research and development funded by the Federal Government, consistent with any relevant protections for the information under section 552 of title 5, United States Code, and performed by--

(aa) institutions not a part of the Federal Government, including State, local, and foreign governments; industrial firms; educational institutions; not-for-profit organizations; federally funded research and development centers; and private individuals; and

(bb) entities of the Federal Government, including research and development laboratories, centers, and offices; and

(II) integrate information about each separate research and development task or award, including--

(aa) the dates upon which the task or award is expected to start and end;

(bb) a brief summary describing the objective and the scientific and technical focus of the task or award;

(cc) the entity or institution performing the task or award and its contact information;

(dd) the total amount of Federal funds expected to be provided to the task or award over its lifetime and the amount of funds expected to be provided in each fiscal year in which the work of the task or award is ongoing;

(ee) any restrictions attached to the task or award that would prevent the sharing with the general public of any or all of the information required by this subsection, and the reasons for such restrictions; and

(ff) such other information as may be determined to be appropriate; and

(ii) 1 or more websites upon which all or part of the repository of Federal research and development shall be made available to and searchable by Federal agencies and non-Federal entities, including the general public, to facilitate--

(I) the coordination of Federal research and development activities;

(II) collaboration among those conducting Federal research and development;

(III) the transfer of technology among Federal agencies and between Federal agencies and non-Federal entities; and

(IV) access by policymakers and the public to information concerning Federal research and development activities.

(B) OVERSIGHT- The Director of the Office of Management and Budget shall issue any guidance determined necessary to ensure that agencies provide all information requested under this subsection.

(2) AGENCY FUNCTIONS- Any agency that funds Federal research and development under this subsection shall provide the information required to populate the repository in the manner prescribed by the Director of the Office of Management and Budget.

(3) COMMITTEE FUNCTIONS- Not later than 18 months after the date of enactment of this Act, working with the Director of the Office of Science and Technology Policy, and after consultation with interested parties, the Committee shall submit recommendations to the Director on--

(A) policies to improve agency reporting of information for the repository established under this subsection; and

(B) policies to improve dissemination of the results of research performed by Federal agencies and federally funded research and development centers.

(4) FUNCTIONS OF THE DIRECTOR- After submission of recommendations by the Committee under paragraph (3), the Director shall report on the recommendations of the Committee and Director to Congress, in the E-Government report under section 3606 of title 44 (as added by this Act).

(5) AUTHORIZATION OF APPROPRIATIONS- There are authorized to be appropriated for the development, maintenance, and operation of the Governmentwide repository and website under this subsection--

(A) $2,000,000 in each of the fiscal years 2003 through 2005; and

(B) such sums as are necessary in each of the fiscal years 2006 and 2007.

SEC. 208. PRIVACY PROVISIONS.

(a) PURPOSE- The purpose of this section is to ensure sufficient protections for the privacy of personal information as agencies implement citizen-centered electronic Government.

(b) PRIVACY IMPACT ASSESSMENTS-

(1) RESPONSIBILITIES OF AGENCIES-

(A) IN GENERAL- An agency shall take actions described under subparagraph (B) before--

(i) developing or procuring information technology that collects, maintains, or disseminates information that is in an identifiable form; or

(ii) initiating a new collection of information that--

(I) will be collected, maintained, or disseminated using information technology; and

(II) includes any information in an identifiable form permitting the physical or online contacting of a specific individual, if identical questions have been posed to, or identical reporting requirements imposed on, 10 or more persons, other than agencies, instrumentalities, or employees of the Federal Government.

(B) AGENCY ACTIVITIES- To the extent required under subparagraph (A), each agency shall--

(i) conduct a privacy impact assessment;

(ii) ensure the review of the privacy impact assessment by the Chief Information Officer, or equivalent official, as determined by the head of the agency; and

(iii) if practicable, after completion of the review under clause (ii), make the privacy impact assessment publicly available through the website of the agency, publication in the Federal Register, or other means.

(C) SENSITIVE INFORMATION- Subparagraph (B)(iii) may be modified or waived for security reasons, or to protect classified, sensitive, or private information contained in an assessment.

(D) COPY TO DIRECTOR- Agencies shall provide the Director with a copy of the privacy impact assessment for each system for which funding is requested.

(2) CONTENTS OF A PRIVACY IMPACT ASSESSMENT-

(A) IN GENERAL- The Director shall issue guidance to agencies specifying the required contents of a privacy impact assessment.

(B) GUIDANCE- The guidance shall--

(i) ensure that a privacy impact assessment is commensurate with the size of the information system being assessed, the sensitivity of information that is in an identifiable form in that system, and the risk of harm from unauthorized release of that information; and

(ii) require that a privacy impact assessment address--

(I) what information is to be collected;

(II) why the information is being collected;

(III) the intended use of the agency of the information;

(IV) with whom the information will be shared;

(V) what notice or opportunities for consent would be provided to individuals regarding what information is collected and how that information is shared;

(VI) how the information will be secured; and

(VII) whether a system of records is being created under section 552a of title 5, United States Code, (commonly referred to as the `Privacy Act').

(3) RESPONSIBILITIES OF THE DIRECTOR- The Director shall--

(A) develop policies and guidelines for agencies on the conduct of privacy impact assessments;

(B) oversee the implementation of the privacy impact assessment process throughout the Government; and

(C) require agencies to conduct privacy impact assessments of existing information systems or ongoing collections of information that is in an identifiable form as the Director determines appropriate.

(c) PRIVACY PROTECTIONS ON AGENCY WEBSITES-

(1) PRIVACY POLICIES ON WEBSITES-

(A) GUIDELINES FOR NOTICES- The Director shall develop guidance for privacy notices on agency websites used by the public.

(B) CONTENTS- The guidance shall require that a privacy notice address, consistent with section 552a of title 5, United States Code--

(i) what information is to be collected;

(ii) why the information is being collected;

(iii) the intended use of the agency of the information;

(iv) with whom the information will be shared;

(v) what notice or opportunities for consent would be provided to individuals regarding what information is collected and how that information is shared;

(vi) how the information will be secured; and

(vii) the rights of the individual under section 552a of title 5, United States Code (commonly referred to as the `Privacy Act'), and other laws relevant to the protection of the privacy of an individual.

(2) PRIVACY POLICIES IN MACHINE-READABLE FORMATS- The Director shall issue guidance requiring agencies to translate privacy policies into a standardized machine-readable format.

(d) DEFINITION- In this section, the term `identifiable form' means any representation of information that permits the identity of an individual to whom the information applies to be reasonably inferred by either direct or indirect means.

SEC. 209. FEDERAL INFORMATION TECHNOLOGY WORKFORCE DEVELOPMENT.

(a) PURPOSE- The purpose of this section is to improve the skills of the Federal workforce in using information technology to deliver Government information and services.

(b) WORKFORCE DEVELOPMENT-

(1) IN GENERAL- In consultation with the Director of the Office of Management and Budget, the Chief Information Officers Council, and the Administrator of General Services, the Director of the Office of Personnel Management shall--

(A) analyze, on an ongoing basis, the personnel needs of the Federal Government related to information technology and information resource management;

(B) identify where current information technology and information resource management training do not satisfy the personnel needs described in subparagraph (A);

(C) oversee the development of curricula, training methods, and training priorities that correspond to the projected personnel needs of the Federal Government related to information technology and information resource management; and

(D) assess the training of Federal employees in information technology disciplines in order to ensure that the information resource management needs of the Federal Government are addressed.

(2) INFORMATION TECHNOLOGY TRAINING PROGRAMS- The head of each Executive agency, after consultation with the Director of the Office of Personnel Management, the Chief Information Officers Council, and the Administrator of General Services, shall establish and operate information technology training programs consistent with the requirements of this subsection. Such programs shall--

(A) have curricula covering a broad range of information technology disciplines corresponding to the specific information technology and information resource management needs of the agency involved;

(B) be developed and applied according to rigorous standards; and

(C) be designed to maximize efficiency, through the use of self-paced courses, online courses, on-the-job training, and the use of remote instructors, wherever such features can be applied without reducing the effectiveness of the training or negatively impacting academic standards.

(3) GOVERNMENTWIDE POLICIES AND EVALUATION- The Director of the Office of Personnel Management, in coordination with the Director of the Office of Management and Budget, shall issue policies to promote the development of performance standards for training and uniform implementation of this subsection by Executive agencies, with due regard for differences in program requirements among agencies that may be appropriate and warranted in view of the agency mission. The Director of the Office of Personnel Management shall evaluate the implementation of the provisions of this subsection by Executive agencies.

(4) CHIEF INFORMATION OFFICER AUTHORITIES AND RESPONSIBILITIES- Subject to the authority, direction, and control of the head of an Executive agency, the chief information officer of such agency shall carry out all powers, functions, and duties of the head of the agency with respect to implementation of this subsection. The chief information officer shall ensure that the policies of the agency head established in accordance with this subsection are implemented throughout the agency.

(5) INFORMATION TECHNOLOGY TRAINING REPORTING- The Director of the Office of Management and Budget shall ensure that the heads of Executive agencies collect and maintain standardized information on the information technology and information resources management workforce related to the implementation of this subsection.

(6) AUTHORITY TO DETAIL EMPLOYEES TO NON-FEDERAL EMPLOYERS- In carrying out the preceding provisions of this subsection, the Director of the Office of Personnel Management may provide for a program under which a Federal employee may be detailed to a non-Federal employer. The Director of the Office of Personnel Management shall prescribe regulations for such program, including the conditions for service and duties as the Director considers necessary.

(7) COORDINATION PROVISION- An assignment described in section 3703 of title 5, United States Code, may not be made unless a program under paragraph (6) is established, and the assignment is made in accordance with the requirements of such program.

(8) EMPLOYEE PARTICIPATION- Subject to information resource management needs and the limitations imposed by resource needs in other occupational areas, and consistent with their overall workforce development strategies, agencies shall encourage employees to participate in occupational information technology training.

(9) AUTHORIZATION OF APPROPRIATIONS- There are authorized to be appropriated to the Office of Personnel Management for the implementation of this subsection, $15,000,000 in fiscal year 2003, and such sums as are necessary for each fiscal year thereafter.

(10) EXECUTIVE AGENCY DEFINED- For purposes of this subsection, the term `Executive agency' has the meaning given the term `agency' under section 3701 of title 5, United States Code (as added by subsection (c)).

(c) INFORMATION TECHNOLOGY EXCHANGE PROGRAM-

(1) IN GENERAL- Subpart B of part III of title 5, United States Code, is amended by adding at the end the following:

`CHAPTER 37--INFORMATION TECHNOLOGY EXCHANGE PROGRAM

`Sec.

`3701. Definitions.

`3702. General provisions.

`3703. Assignment of employees to private sector organizations.

`3704. Assignment of employees from private sector organizations.

`3705. Application to Office of the Chief Technology Officer of the District of Columbia.

`3706. Reporting requirement.

`3707. Regulations.

`Sec. 3701. Definitions

`For purposes of this chapter--

`(1) the term `agency' means an Executive agency, but does not include the General Accounting Office; and

`(2) the term `detail' means--

`(A) the assignment or loan of an employee of an agency to a private sector organization without a change of position from the agency that employs the individual, or

`(B) the assignment or loan of an employee of a private sector organization to an agency without a change of position from the private sector organization that employs the individual,

whichever is appropriate in the context in which such term is used.

`Sec. 3702. General provisions

`(a) ASSIGNMENT AUTHORITY- On request from or with the agreement of a private sector organization, and with the consent of the employee concerned, the head of an agency may arrange for the assignment of an employee of the agency to a private sector organization or an employee of a private sector organization to the agency. An eligible employee is an individual who--

`(1) works in the field of information technology management;

`(2) is considered an exceptional performer by the individual's current employer; and

`(3) is expected to assume increased information technology management responsibilities in the future.

An employee of an agency shall be eligible to participate in this program only if the employee is employed at the GS-11 level or above (or equivalent) and is serving under a career or career-conditional appointment or an appointment of equivalent tenure in the excepted service, and applicable requirements of section 209(b) of the E-Government Act of 2002 are met with respect to the proposed assignment of such employee.

`(b) AGREEMENTS- Each agency that exercises its authority under this chapter shall provide for a written agreement between the agency and the employee concerned regarding the terms and conditions of the employee's assignment. In the case of an employee of the agency, the agreement shall--

`(1) require the employee to serve in the civil service, upon completion of the assignment, for a period equal to the length of the assignment; and

`(2) provide that, in the event the employee fails to carry out the agreement (except for good and sufficient reason, as determined by the head of the agency from which assigned) the employee shall be liable to the United States for payment of all expenses of the assignment.

An amount under paragraph (2) shall be treated as a debt due the United States.

`(c) TERMINATION- Assignments may be terminated by the agency or private sector organization concerned for any reason at any time.

`(d) DURATION- Assignments under this chapter shall be for a period of between 3 months and 1 year, and may be extended in 3-month increments for a total of not more than 1 additional year, except that no assignment under this chapter may commence after the end of the 5-year period beginning on the date of the enactment of this chapter.

`(e) ASSISTANCE- The Chief Information Officers Council, by agreement with the Office of Personnel Management, may assist in the administration of this chapter, including by maintaining lists of potential candidates for assignment under this chapter, establishing mentoring relationships for the benefit of individuals who are given assignments under this chapter, and publicizing the program.

`(f) CONSIDERATIONS- In exercising any authority under this chapter, an agency shall take into consideration--

`(1) the need to ensure that small business concerns are appropriately represented with respect to the assignments described in sections 3703 and 3704, respectively; and

`(2) how assignments described in section 3703 might best be used to help meet the needs of the agency for the training of employees in information technology management.

`Sec. 3703. Assignment of employees to private sector organizations

`(a) IN GENERAL- An employee of an agency assigned to a private sector organization under this chapter is deemed, during the period of the assignment, to be on detail to a regular work assignment in his agency.

`(b) COORDINATION WITH CHAPTER 81- Notwithstanding any other provision of law, an employee of an agency assigned to a private sector organization under this chapter is entitled to retain coverage, rights, and benefits under subchapter I of chapter 81, and employment during the assignment is deemed employment by the United States, except that, if the employee or the employee's dependents receive from the private sector organization any payment under an insurance policy for which the premium is wholly paid by the private sector organization, or other benefit of any kind on account of the same injury or death, then, the amount of such payment or benefit shall be credited against any compensation otherwise payable under subchapter I of chapter 81.

`(c) REIMBURSEMENTS- The assignment of an employee to a private sector organization under this chapter may be made with or without reimbursement by the private sector organization for the travel and transportation expenses to or from the place of assignment, subject to the same terms and conditions as apply with respect to an employee of a Federal agency or a State or local government under section 3375, and for the pay, or a part thereof, of the employee during assignment. Any reimbursements shall be credited to the appropriation of the agency used for paying the travel and transportation expenses or pay.

`(d) TORT LIABILITY; SUPERVISION- The Federal Tort Claims Act and any other Federal tort liability statute apply to an employee of an agency assigned to a private sector organization under this chapter. The supervision of the duties of an employee of an agency so assigned to a private sector organization may be governed by an agreement between the agency and the organization.

`(e) SMALL BUSINESS CONCERNS-

`(1) IN GENERAL- The head of each agency shall take such actions as may be necessary to ensure that, of the assignments made under this chapter from such agency to private sector organizations in each year, at least 20 percent are to small business concerns.

`(2) DEFINITIONS- For purposes of this subsection--

`(A) the term `small business concern' means a business concern that satisfies the definitions and standards specified by the Administrator of the Small Business Administration under section 3(a)(2) of the Small Business Act (as from time to time amended by the Administrator);

`(B) the term `year' refers to the 12-month period beginning on the date of the enactment of this chapter, and each succeeding 12-month period in which any assignments under this chapter may be made; and

`(C) the assignments `made' in a year are those commencing in such year.

`(3) REPORTING REQUIREMENT- An agency which fails to comply with paragraph (1) in a year shall, within 90 days after the end of such year, submit a report to the Committees on Government Reform and Small Business of the House of Representatives and the Committees on Governmental Affairs and Small Business of the Senate. The report shall include--

`(A) the total number of assignments made under this chapter from such agency to private sector organizations in the year;

`(B) of that total number, the number (and percentage) made to small business concerns; and

`(C) the reasons for the agency's noncompliance with paragraph (1).

`(4) EXCLUSION- This subsection shall not apply to an agency in any year in which it makes fewer than 5 assignments under this chapter to private sector organizations.

`Sec. 3704. Assignment of employees from private sector organizations

`(a) IN GENERAL- An employee of a private sector organization assigned to an agency under this chapter is deemed, during the period of the assignment, to be on detail to such agency.

`(b) TERMS AND CONDITIONS- An employee of a private sector organization assigned to an agency under this chapter--

`(1) may continue to receive pay and benefits from the private sector organization from which he is assigned;

`(2) is deemed, notwithstanding subsection (a), to be an employee of the agency for the purposes of--

`(A) chapter 73;

`(B) sections 201, 203, 205, 207, 208, 209, 603, 606, 607, 643, 654, 1905, and 1913 of title 18;

`(C) sections 1343, 1344, and 1349(b) of title 31;

`(D) the Federal Tort Claims Act and any other Federal tort liability statute;

`(E) the Ethics in Government Act of 1978;

`(F) section 1043 of the Internal Revenue Code of 1986; and

`(G) section 27 of the Office of Federal Procurement Policy Act;

`(3) may not have access to any trade secrets or to any other nonpublic information which is of commercial value to the private sector organization from which he is assigned; and

`(4) is subject to such regulations as the President may prescribe.

The supervision of an employee of a private sector organization assigned to an agency under this chapter may be governed by agreement between the agency and the private sector organization concerned. Such an assignment may be made with or without reimbursement by the agency for the pay, or a part thereof, of the employee during the period of assignment, or for any contribution of the private sector organization to employee benefit systems.

`(c) COORDINATION WITH CHAPTER 81- An employee of a private sector organization assigned to an agency under this chapter who suffers disability or dies as a result of personal injury sustained while performing duties during the assignment shall be treated, for the purpose of subchapter I of chapter 81, as an employee as defined by section 8101 who had sustained the injury in the performance of duty, except that, if the employee or the employee's dependents receive from the private sector organization any payment under an insurance policy for which the premium is wholly paid by the private sector organization, or other benefit of any kind on account of the same injury or death, then, the amount of such payment or benefit shall be credited against any compensation otherwise payable under subchapter I of chapter 81.

`(d) PROHIBITION AGAINST CHARGING CERTAIN COSTS TO THE FEDERAL GOVERNMENT- A private sector organization may not charge the Federal Government, as direct or indirect costs under a Federal contract, the costs of pay or benefits paid by the organization to an employee assigned to an agency under this chapter for the period of the assignment.

`Sec. 3705. Application to Office of the Chief Technology Officer of the District of Columbia

`(a) IN GENERAL- The Chief Technology Officer of the District of Columbia may arrange for the assignment of an employee of the Office of the Chief Technology Officer to a private sector organization, or an employee of a private sector organization to such Office, in the same manner as the head of an agency under this chapter.

`(b) TERMS AND CONDITIONS- An assignment made pursuant to subsection (a) shall be subject to the same terms and conditions as an assignment made by the head of an agency under this chapter, except that in applying such terms and conditions to an assignment made pursuant to subsection (a), any reference in this chapter to a provision of law or regulation of the United States shall be deemed to be a reference to the applicable provision of law or regulation of the District of Columbia, including the applicable provisions of the District of Columbia Government Comprehensive Merit Personnel Act of 1978 (sec. 1-601.01 et seq., D.C. Official Code) and section 601 of the District of Columbia Campaign Finance Reform and Conflict of Interest Act (sec. 1-1106.01, D.C. Official Code).

`(c) DEFINITION- For purposes of this section, the term `Office of the Chief Technology Officer' means the office established in the executive branch of the government of the District of Columbia under the Office of the Chief Technology Officer Establishment Act of 1998 (sec. 1-1401 et seq., D.C. Official Code).

`Sec. 3706. Reporting requirement

`(a) IN GENERAL- The Office of Personnel Management shall, not later than April 30 and October 31 of each year, prepare and submit to the Committee on Government Reform of the House of Representatives and the Committee on Governmental Affairs of the Senate a semiannual report summarizing the operation of this chapter during the immediately preceding 6-month period ending on March 31 and September 30, respectively.

`(b) CONTENT- Each report shall include, with respect to the 6-month period to which such report relates--

`(1) the total number of individuals assigned to, and the total number of individuals assigned from, each agency during such period;

`(2) a brief description of each assignment included under paragraph (1), including--

`(A) the name of the assigned individual, as well as the private sector organization and the agency (including the specific bureau or other agency component) to or from which such individual was assigned;

`(B) the respective positions to and from which the individual was assigned, including the duties and responsibilities and the pay grade or level associated with each; and

`(C) the duration and objectives of the individual's assignment; and

`(3) such other information as the Office considers appropriate.

`(c) PUBLICATION- A copy of each report submitted under subsection (a)--

`(1) shall be published in the Federal Register; and

`(2) shall be made publicly available on the Internet.

`(d) AGENCY COOPERATION- On request of the Office, agencies shall furnish such information and reports as the Office may require in order to carry out this section.

`Sec. 3707. Regulations

`The Director of the Office of Personnel Management shall prescribe regulations for the administration of this chapter.'.

(2) REPORT- Not later than 4 years after the date of the enactment of this Act, the General Accounting Office shall prepare and submit to the Committee on Government Reform of the House of Representatives and the Committee on Governmental Affairs of the Senate a report on the operation of chapter 37 of title 5, United States Code (as added by this subsection). Such report shall include--

(A) an evaluation of the effectiveness of the program established by such chapter; and

(B) a recommendation as to whether such program should be continued (with or without modification) or allowed to lapse.

(3) CLERICAL AMENDMENT- The analysis for part III of title 5, United States Code, is amended by inserting after the item relating to chapter 35 the following:

--3701'.

(d) ETHICS PROVISIONS-

(1) ONE-YEAR RESTRICTION ON CERTAIN COMMUNICATIONS- Section 207(c)(2)(A) of title 18, United States Code, is amended--

(A) by striking `or' at the end of clause (iii);

(B) by striking the period at the end of clause (iv) and inserting `; or'; and

(C) by adding at the end the following:

`(v) assigned from a private sector organization to an agency under chapter 37 of title 5.'.

(2) DISCLOSURE OF CONFIDENTIAL INFORMATION- Section 1905 of title 18, United States Code, is amended by inserting `or being an employee of a private sector organization who is or was assigned to an agency under chapter 37 of title 5,' after `(15 U.S.C. 1311-1314),'.

(3) CONTRACT ADVICE- Section 207 of title 18, United States Code, is amended by adding at the end the following:

`(l) CONTRACT ADVICE BY FORMER DETAILS- Whoever, being an employee of a private sector organization assigned to an agency under chapter 37 of title 5, within one year after the end of that assignment, knowingly represents or aids, counsels, or assists in representing any other person (except the United States) in connection with any contract with that agency shall be punished as provided in section 216 of this title.'.

(4) RESTRICTION ON DISCLOSURE OF PROCUREMENT INFORMATION- Section 27 of the Office of Federal Procurement Policy Act (41 U.S.C. 423) is amended in subsection (a)(1) by adding at the end the following new sentence: `In the case of an employee of a private sector organization assigned to an agency under chapter 37 of title 5, United States Code, in addition to the restriction in the preceding sentence, such employee shall not, other than as provided by law, knowingly disclose contractor bid or proposal information or source selection information during the three-year period after the end of the assignment of such employee.'.

(e) REPORT ON EXISTING EXCHANGE PROGRAMS-

(1) EXCHANGE PROGRAM DEFINED- For purposes of this subsection, the term `exchange program' means an executive exchange program, the program under subchapter VI of chapter 33 of title 5, United States Code, and any other program which allows for--

(A) the assignment of employees of the Federal Government to non-Federal employers;

(B) the assignment of employees of non-Federal employers to the Federal Government; or

(C) both.

(2) REPORTING REQUIREMENT- Not later than 1 year after the date of the enactment of this Act, the Office of Personnel Management shall prepare and submit to the Committee on Government Reform of the House of Representatives and the Committee on Governmental Affairs of the Senate a report identifying all existing exchange programs.

(3) SPECIFIC INFORMATION- The report shall, for each such program, include--

(A) a brief description of the program, including its size, eligibility requirements, and terms or conditions for participation;

(B) specific citation to the law or other authority under which the program is established;

(C) the names of persons to contact for more information, and how they may be reached; and

(D) any other information which the Office considers appropriate.

(f) REPORT ON THE ESTABLISHMENT OF A GOVERNMENTWIDE INFORMATION TECHNOLOGY TRAINING PROGRAM-

(1) IN GENERAL- Not later January 1, 2003, the Office of Personnel Management, in consultation with the Chief Information Officers Council and the Administrator of General Services, shall review and submit to the Committee on Government Reform of the House of Representatives and the Committee on Governmental Affairs of the Senate a written report on the following:

(A) The adequacy of any existing information technology training programs available to Federal employees on a Governmentwide basis.

(B)(i) If one or more such programs already exist, recommendations as to how they might be improved.

(ii) If no such program yet exists, recommendations as to how such a program might be designed and established.

(C) With respect to any recommendations under subparagraph (B), how the program under chapter 37 of title 5, United States Code, might be used to help carry them out.

(2) COST ESTIMATE- The report shall, for any recommended program (or improvements) under paragraph (1)(B), include the estimated costs associated with the implementation and operation of such program as so established (or estimated difference in costs of any such program as so improved).

(g) TECHNICAL AND CONFORMING AMENDMENTS-

(1) AMENDMENTS TO TITLE 5, UNITED STATES CODE- Title 5, United States Code, is amended--

(A) in section 3111, by adding at the end the following:

`(d) Notwithstanding section 1342 of title 31, the head of an agency may accept voluntary service for the United States under chapter 37 of this title and regulations of the Office of Personnel Management.';

(B) in section 4108, by striking subsection (d); and

(C) in section 7353(b), by adding at the end the following:

`(4) Nothing in this section precludes an employee of a private sector organization, while assigned to an agency under chapter 37, from continuing to receive pay and benefits from such organization in accordance with such chapter.'.

(2) AMENDMENT TO TITLE 18, UNITED STATES CODE- Section 209 of title 18, United States Code, is amended by adding at the end the following:

`(g)(1) This section does not prohibit an employee of a private sector organization, while assigned to an agency under chapter 37 of title 5, from continuing to receive pay and benefits from such organization in accordance with such chapter.

`(2) For purposes of this subsection, the term `agency' means an agency (as defined by section 3701 of title 5) and the Office of the Chief Technology Officer of the District of Columbia.'.

(3) OTHER AMENDMENTS- Section 125(c)(1) of Public Law 100-238 (5 U.S.C. 8432 note) is amended--

(A) in subparagraph (B), by striking `or' at the end;

(B) in subparagraph (C), by striking `and' at the end and inserting `or'; and

(C) by adding at the end the following:

`(D) an individual assigned from a Federal agency to a private sector organization under chapter 37 of title 5, United States Code; and'.

SEC. 210. SHARE-IN-SAVINGS INITIATIVES.

(a) DEFENSE CONTRACTS- (1) Chapter 137 of title 10, United States Code, is amended by adding at the end the following new section:

`Sec. 2332. Share-in-savings contracts

`(a) AUTHORITY TO ENTER INTO SHARE-IN-SAVINGS CONTRACTS- (1) The head of an agency may enter into a share-in-savings contract for information technology (as defined in section 11101(6) of title 40) in which the Government awards a contract to improve mission-related or administrative processes or to accelerate the achievement of its mission and share with the contractor in savings achieved through contract performance.

`(2)(A) Except as provided in subparagraph (B), a share-in-savings contract shall be awarded for a period of not more than five years.

`(B) A share-in-savings contract may be awarded for a period greater than five years, but not more than 10 years, if the head of the agency determines in writing prior to award of the contract that--

`(i) the level of risk to be assumed and the investment to be undertaken by the contractor is likely to inhibit the government from obtaining the needed information technology competitively at a fair and reasonable price if the contract is limited in duration to a period of five years or less; and

`(ii) usage of the information technology to be acquired is likely to continue for a period of time sufficient to generate reasonable benefit for the government.

`(3) Contracts awarded pursuant to the authority of this section shall, to the maximum extent practicable, be performance-based contracts that identify objective outcomes and contain performance standards that will be used to measure achievement and milestones that must be met before payment is made.

`(4) Contracts awarded pursuant to the authority of this section shall include a provision containing a quantifiable baseline that is to be the basis upon which a savings share ratio is established that governs the amount of payment a contractor is to receive under the contract. Before commencement of performance of such a contract, the senior procurement executive of the agency shall determine in writing that the terms of the provision are quantifiable and will likely yield value to the Government.

`(5)(A) The head of the agency may retain savings realized through the use of a share-in-savings contract under this section that are in excess of the total amount of savings paid to the contractor under the contract, but may not retain any portion of such savings that is attributable to a decrease in the number of civilian employees of the Federal Government performing the function. Except as provided in subparagraph (B), savings shall be credited to the appropriation or fund against which charges were made to carry out the contract and shall be used for information technology.

`(B) Amounts retained by the agency under this subsection shall--

`(i) without further appropriation, remain available until expended; and

`(ii) be applied first to fund any contingent liabilities associated with share-in-savings procurements that are not fully funded.

`(b) CANCELLATION AND TERMINATION- (1) If funds are not made available for the continuation of a share-in-savings contract entered into under this section in a subsequent fiscal year, the contract shall be canceled or terminated. The costs of cancellation or termination may be paid out of--

`(A) appropriations available for the performance of the contract;

`(B) appropriations available for acquisition of the information technology procured under the contract, and not otherwise obligated; or

`(C) funds subsequently appropriated for payments of costs of cancellation or termination, subject to the limitations in paragraph (3).

`(2) The amount payable in the event of cancellation or termination of a share-in-savings contract shall be negotiated with the contractor at the time the contract is entered into.

`(3)(A) Subject to subparagraph (B), the head of an agency may enter into share-in-savings contracts under this section in any given fiscal year even if funds are not made specifically available for the full costs of cancellation or termination of the contract if funds are available and sufficient to make payments with respect to the first fiscal year of the contract and the following conditions are met regarding the funding of cancellation and termination liability:

`(i) The amount of unfunded contingent liability for the contract does not exceed the lesser of--

`(I) 25 percent of the estimated costs of a cancellation or termination; or

`(II) $5,000,000.

`(ii) Unfunded contingent liability in excess of $1,000,000 has been approved by the Director of the Office of Management and Budget or the Director's designee.

`(B) The aggregate number of share-in-savings contracts that may be entered into under subparagraph (A) by all agencies to which this chapter applies in a fiscal year may not exceed 5 in each of fiscal years 2003, 2004, and 2005.

`(c) DEFINITIONS- In this section:

`(1) The term `contractor' means a private entity that enters into a contract with an agency.

`(2) The term `savings' means--

`(A) monetary savings to an agency; or

`(B) savings in time or other benefits realized by the agency, including enhanced revenues (other than enhanced revenues from the collection of fees, taxes, debts, claims, or other amounts owed the Federal Government).

`(3) The term `share-in-savings contract' means a contract under which--

`(A) a contractor provides solutions for--

`(i) improving the agency's mission-related or administrative processes; or

`(ii) accelerating the achievement of agency missions; and

`(B) the head of the agency pays the contractor an amount equal to a portion of the savings derived by the agency from--

`(i) any improvements in mission-related or administrative processes that result from implementation of the solution; or

`(ii) acceleration of achievement of agency missions.

`(d) TERMINATION- No share-in-savings contracts may be entered into under this section after September 30, 2005.'.

(2) The table of sections at the beginning of such chapter is amended by adding at the end of the following new item:

`2332. Share-in-savings contracts.'.

(b) OTHER CONTRACTS- Title III of the Federal Property and Administrative Services Act of 1949 is amended by adding at the end the following:

`SEC. 317. SHARE-IN-SAVINGS CONTRACTS.

`(a) AUTHORITY TO ENTER INTO SHARE-IN-SAVINGS CONTRACTS- (1) The head of an executive agency may enter into a share-in-savings contract for information technology (as defined in section 11101(6) of title 40, United States Code) in which the Government awards a contract to improve mission-related or administrative processes or to accelerate the achievement of its mission and share with the contractor in savings achieved through contract performance.

`(2)(A) Except as provided in subparagraph (B), a share-in-savings contract shall be awarded for a period of not more than five years.

`(B) A share-in-savings contract may be awarded for a period greater than five years, but not more than 10 years, if the head of the agency determines in writing prior to award of the contract that--

`(i) the level of risk to be assumed and the investment to be undertaken by the contractor is likely to inhibit the government from obtaining the needed information technology competitively at a fair and reasonable price if the contract is limited in duration to a period of five years or less; and

`(ii) usage of the information technology to be acquired is likely to continue for a period of time sufficient to generate reasonable benefit for the government.

`(3) Contracts awarded pursuant to the authority of this section shall, to the maximum extent practicable, be performance-based contracts that identify objective outcomes and contain performance standards that will be used to measure achievement and milestones that must be met before payment is made.

`(4) Contracts awarded pursuant to the authority of this section shall include a provision containing a quantifiable baseline that is to be the basis upon which a savings share ratio is established that governs the amount of payment a contractor is to receive under the contract. Before commencement of performance of such a contract, the senior procurement executive of the agency shall determine in writing that the terms of the provision are quantifiable and will likely yield value to the Government.

`(5)(A) The head of the agency may retain savings realized through the use of a share-in-savings contract under this section that are in excess of the total amount of savings paid to the contractor under the contract, but may not retain any portion of such savings that is attributable to a decrease in the number of civilian employees of the Federal Government performing the function. Except as provided in subparagraph (B), savings shall be credited to the appropriation or fund against which charges were made to carry out the contract and shall be used for information technology.

`(B) Amounts retained by the agency under this subsection shall--

`(i) without further appropriation, remain available until expended; and

`(ii) be applied first to fund any contingent liabilities associated with share-in-savings procurements that are not fully funded.

`(b) CANCELLATION AND TERMINATION- (1) If funds are not made available for the continuation of a share-in-savings contract entered into under this section in a subsequent fiscal year, the contract shall be canceled or terminated. The costs of cancellation or termination may be paid out of--

`(A) appropriations available for the performance of the contract;

`(B) appropriations available for acquisition of the information technology procured under the contract, and not otherwise obligated; or

`(C) funds subsequently appropriated for payments of costs of cancellation or termination, subject to the limitations in paragraph (3).

`(2) The amount payable in the event of cancellation or termination of a share-in-savings contract shall be negotiated with the contractor at the time the contract is entered into.

`(3)(A) Subject to subparagraph (B), the head of an executive agency may enter into share-in-savings contracts under this section in any given fiscal year even if funds are not made specifically available for the full costs of cancellation or termination of the contract if funds are available and sufficient to make payments with respect to the first fiscal year of the contract and the following conditions are met regarding the funding of cancellation and termination liability:

`(i) The amount of unfunded contingent liability for the contract does not exceed the lesser of--

`(I) 25 percent of the estimated costs of a cancellation or termination; or

`(II) $5,000,000.

`(ii) Unfunded contingent liability in excess of $1,000,000 has been approved by the Director of the Office of Management and Budget or the Director's designee.

`(B) The aggregate number of share-in-savings contracts that may be entered into under subparagraph (A) by all executive agencies to which this chapter applies in a fiscal year may not exceed 5 in each of fiscal years 2003, 2004, and 2005.

`(c) DEFINITIONS- In this section:

`(1) The term `contractor' means a private entity that enters into a contract with an agency.

`(2) The term `savings' means--

`(A) monetary savings to an agency; or

`(B) savings in time or other benefits realized by the agency, including enhanced revenues (other than enhanced revenues from the collection of fees, taxes, debts, claims, or other amounts owed the Federal Government).

`(3) The term `share-in-savings contract' means a contract under which--

`(A) a contractor provides solutions for--

`(i) improving the agency's mission-related or administrative processes; or

`(ii) accelerating the achievement of agency missions; and

`(B) the head of the agency pays the contractor an amount equal to a portion of the savings derived by the agency from--

`(i) any improvements in mission-related or administrative processes that result from implementation of the solution; or

`(ii) acceleration of achievement of agency missions.

`(d) TERMINATION- No share-in-savings contracts may be entered into under this section after September 30, 2005.'.

(c) DEVELOPMENT OF INCENTIVES- The Director of the Office of Management and Budget shall, in consultation with the Committee on Governmental Affairs of the Senate, the Committee on Government Reform of the House of Representatives, and executive agencies, develop techniques to permit an executive agency to retain a portion of the savings (after payment of the contractor's share of the savings) derived from share-in-savings contracts as funds are appropriated to the agency in future fiscal years.

(d) REGULATIONS- Not later than 270 days after the date of the enactment of this Act, the Federal Acquisition Regulation shall be revised to implement the provisions enacted by this section. Such revisions shall--

(1) provide for the use of competitive procedures in the selection and award of share-in-savings contracts to--

(A) ensure the contractor's share of savings reflects the risk involved and market conditions; and

(B) otherwise yield greatest value to the government; and

(2) allow appropriate regulatory flexibility to facilitate the use of share-in-savings contracts by executive agencies, including the use of innovative provisions for technology refreshment and nonstandard Federal Acquisition Regulation contract clauses.

(e) ADDITIONAL GUIDANCE- The Administrator of General Services shall--

(1) identify potential opportunities for the use of share-in-savings contracts; and

(2) in consultation with the Director of the Office of Management and Budget, provide guidance to executive agencies for determining mutually beneficial savings share ratios and baselines from which savings may be measured.

(f) OMB REPORT TO CONGRESS- In consultation with executive agencies, the Director of the Office of Management and Budget shall, not later than 2 years after the date of the enactment of this Act, submit to Congress a report containing--

(1) a description of the number of share-in-savings contracts entered into by each executive agency under by this section and the amendments made by this section, and, for each contract identified--

(A) the information technology acquired;

(B) the total amount of payments made to the contractor; and

(C) the total amount of savings or other measurable benefits realized;

(2) a description of the ability of agencies to determine the baseline costs of a project against which savings can be measured; and

(3) any recommendations, as the Director deems appropriate, regarding additional changes in law that may be necessary to ensure effective use of share-in-savings contracts by executive agencies.

(g) GAO REPORT TO CONGRESS- The Comptroller General shall, not later than 6 months after the report required under subsection (f) is submitted to Congress, conduct a review of that report and submit to Congress a report containing--

(1) the results of the review;

(2) an independent assessment by the Comptroller General of the effectiveness of the use of share-in-savings contracts in improving the mission-related and administrative processes of the executive agencies and the achievement of agency missions; and

(3) a recommendation on whether the authority to enter into share-in-savings contracts should be continued.

(h) REPEAL OF SHARE-IN-SAVINGS PILOT PROGRAM-

(1) REPEAL- Section 11521 of title 40, United States Code, is repealed.

(2) CONFORMING AMENDMENTS TO PILOT PROGRAM AUTHORITY-

(A) Section 11501 of title 40, United States Code, is amended--

(i) in the section heading, by striking `programs' and inserting `program';

(ii) in subsection (a)(1), by striking `conduct pilot programs' and inserting `conduct a pilot program pursuant to the requirements of section 11521 of this title';

(iii) in subsection (a)(2), by striking `each pilot program' and inserting `the pilot program';

(iv) in subsection (b), by striking `LIMITATIONS- ' and all that follows through `$750,000,000.' and inserting the following: `LIMITATION ON AMOUNT- The total amount obligated for contracts entered into under the pilot program conducted under this chapter may not exceed $375,000,000.'; and

(v) in subsection (c)(1), by striking `a pilot' and inserting `the pilot'.

(B) The following provisions of chapter 115 of such title are each amended by striking `a pilot' each place it appears and inserting `the pilot':

(i) Section 11502(a).

(ii) Section 11502(b).

(iii) Section 11503(a).

(iv) Section 11504.

(C) Section 11505 of such chapter is amended by striking `programs' and inserting `program'.

(3) ADDITIONAL CONFORMING AMENDMENTS-

(A) Section 11522 of title 40, United States Code, is redesignated as section 11521.

(B) The chapter heading for chapter 115 of such title is amended by striking `PROGRAMS' and inserting `PROGRAM'.

(C) The subchapter heading for subchapter I and for subchapter II of such chapter are each amended by striking `PROGRAMS' and inserting `PROGRAM'.

(D) The item relating to subchapter I in the table of sections at the beginning of such chapter is amended to read as follows:

`SUBCHAPTER I--CONDUCT OF PILOT PROGRAM'.

(E) The item relating to subchapter II in the table of sections at the beginning of such chapter is amended to read as follows:

`SUBCHAPTER II--SPECIFIC PILOT PROGRAM'.

(F) The item relating to section 11501 in the table of sections at the beginning of such is amended by striking `programs' and inserting `program'.

(G) The table of sections at the beginning of such chapter is amended by striking the item relating to section 11521 and redesignating the item relating to section 11522 as section 11521.

(H) The item relating to chapter 115 in the table of chapters for subtitle III of title 40, United States Code, is amended to read as follows:

11501'.

(i) DEFINITIONS- In this section, the terms `contractor', `savings', and `share-in-savings contract' have the meanings given those terms in section 317 of the Federal Property and Administrative Services Act of 1949 (as added by subsection (b)).

SEC. 211. AUTHORIZATION FOR ACQUISITION OF INFORMATION TECHNOLOGY BY STATE AND LOCAL GOVERNMENTS THROUGH FEDERAL SUPPLY SCHEDULES.

(a) AUTHORITY TO USE CERTAIN SUPPLY SCHEDULES- Section 502 of title 40, United States Code, is amended by adding at the end the following new subsection:

`(c) USE OF CERTAIN SUPPLY SCHEDULES-

`(1) IN GENERAL- The Administrator may provide for the use by State or local governments of Federal supply schedules of the General Services Administration for automated data processing equipment (including firmware), software, supplies, support equipment, and services (as contained in Federal supply classification code group 70).

`(2) VOLUNTARY USE- In any case of the use by a State or local government of a Federal supply schedule pursuant to paragraph (1), participation by a firm that sells to the Federal Government through the supply schedule shall be voluntary with respect to a sale to the State or local government through such supply schedule.

`(3) DEFINITIONS- In this subsection:

`(A) The term `State or local government' includes any State, local, regional, or tribal government, or any instrumentality thereof (including any local educational agency or institution of higher education).

`(B) The term `tribal government' me