50 U.S.C. § 3100 — Intelligence community business system

Page 677 TITLE 50—WAR AND NATIONAL DEFENSE § 3100 1 See References in Text note below. (ii) prior to the date that is 1 year after Oc- tober 7, 2010, in the case of a major system for which Milestone B or an equivalent acquisi- tion decision— (I) was completed prior to such date; or (II) is completed on a date during the 180- day period following such date. (B) The Director may submit to the congres- sional intelligence committees an initial vulner- ability assessment required by clause (ii) of sub- paragraph (A) not later than 180 days after the date such assessment is required to be sub- mitted under such clause if the Director notifies the congressional intelligence committees of the extension of the submission date under this sub- paragraph and provides a justification for such extension. (C) The initial vulnerability assessment of a major system and its significant items of supply shall include use of an analysis-based approach to— (i) identify vulnerabilities; (ii) define exploitation potential; (iii) examine the system’s potential effec- tiveness; (iv) determine overall vulnerability; and (v) make recommendations for risk reduc- tion. (2) If an initial vulnerability assessment for a major system is not submitted to the congres- sional intelligence committees as required by paragraph (1), funds appropriated for the acqui- sition of the major system may not be obligated for a major contract related to the major sys- tem. Such prohibition on the obligation of funds for the acquisition of the major system shall cease to apply on the date on which the congres- sional intelligence committees receive the ini- tial vulnerability assessment. (b) Subsequent vulnerability assessments (1) The Director of National Intelligence shall, periodically throughout the procurement of a major system or if the Director determines that a change in circumstances warrants the issuance of a subsequent vulnerability assess- ment, conduct a subsequent vulnerability as- sessment of each major system and its signifi- cant items of supply within the National Intel- ligence Program. (2) Upon the request of a congressional intel- ligence committee, the Director of National In- telligence may, if appropriate, recertify the pre- vious vulnerability assessment or may conduct a subsequent vulnerability assessment of a par- ticular major system and its significant items of supply within the National Intelligence Pro- gram. (3) Any subsequent vulnerability assessment of a major system and its significant items of supply shall include use of an analysis-based ap- proach and, if applicable, a testing-based ap- proach, to monitor the exploitation potential of such system and reexamine the factors described in clauses (i) through (v) of subsection (a)(1)(C). (c) Major system management The Director of National Intelligence shall give due consideration to the vulnerability as- sessments prepared for a given major system when developing and determining the National Intelligence Program budget. (d) Congressional oversight (1) The Director of National Intelligence shall provide to the congressional intelligence com- mittees a copy of each vulnerability assessment conducted under subsection (a) or (b) not later than 10 days after the date of the completion of such assessment. (2) The Director of National Intelligence shall provide the congressional intelligence commit- tees with a proposed schedule for subsequent periodic vulnerability assessments of a major system under subsection (b)(1) when providing such committees with the initial vulnerability assessment under subsection (a) of such system as required by paragraph (1). (e) Definitions In this section: (1) The term ‘‘item of supply’’ has the mean- ing given that term in section 4(10) 1 of the Of- fice of Federal Procurement Policy Act (41 U.S.C. 403(10)). (2) The term ‘‘major contract’’ means each of the 6 largest prime, associate, or Govern- ment-furnished equipment contracts under a major system that is in excess of $40,000,000 and that is not a firm, fixed price contract. (3) The term ‘‘major system’’ has the mean- ing given that term in section 3097(e) of this title. (4) The term ‘‘Milestone B’’ means a decision to enter into major system development and demonstration pursuant to guidance pre- scribed by the Director of National Intel- ligence. (5) The term ‘‘vulnerability assessment’’ means the process of identifying and quanti- fying vulnerabilities in a major system and its significant items of supply. (July 26, 1947, ch. 343, title V, § 506C, as added Pub. L. 111–259, title III, § 321(a)(1), Oct. 7, 2010, 124 Stat. 2667.) Editorial Notes REFERENCES IN TEXT Section 4(10) of the Office of Federal Procurement Policy Act, referred to in subsec. (e)(1), which was clas- sified to section 403(10) of former Title 41, Public Con- tracts, was repealed and reenacted as sections 108 and 115 of Title 41, Public Contracts, by Pub. L. 111–350, §§ 3, 7(b), Jan. 4, 2011, 124 Stat. 3677, 3855. CODIFICATION Section was formerly classified to section 415a–5 of this title prior to editorial reclassification and renum- bering as this section. § 3100. Intelligence community business system transformation (a) Limitation on obligation of funds (1) Subject to paragraph (3), no funds appro- priated to any element of the intelligence com- munity may be obligated for an intelligence community business system transformation that will have a total cost in excess of $3,000,000 unless— (A) the Director of the Office of Business Transformation of the Office of the Director of Page 678 TITLE 50—WAR AND NATIONAL DEFENSE § 3100 National Intelligence makes a certification described in paragraph (2) with respect to such intelligence community business system transformation; and (B) such certification is approved by the board established under subsection (f). (2) The certification described in this para- graph for an intelligence community business system transformation is a certification made by the Director of the Office of Business Trans- formation of the Office of the Director of Na- tional Intelligence that the intelligence commu- nity business system transformation— (A) complies with the enterprise architec- ture under subsection (b) and such other poli- cies and standards that the Director of Na- tional Intelligence considers appropriate; or (B) is necessary— (i) to achieve a critical national security capability or address a critical requirement; or (ii) to prevent a significant adverse effect on a project that is needed to achieve an es- sential capability, taking into consideration any alternative solutions for preventing such adverse effect. (3) With respect to a fiscal year after fiscal year 2010, the amount referred to in paragraph (1) in the matter preceding subparagraph (A) shall be equal to the sum of— (A) the amount in effect under such para- graph (1) for the preceding fiscal year (deter- mined after application of this paragraph), plus (B) such amount multiplied by the annual percentage increase in the consumer price index (all items; U.S. city average) as of Sep- tember of the previous fiscal year. (b) Enterprise architecture for intelligence com- munity business systems (1) The Director of National Intelligence shall, acting through the board established under sub- section (f), develop and implement an enterprise architecture to cover all intelligence commu- nity business systems, and the functions and ac- tivities supported by such business systems. The enterprise architecture shall be sufficiently de- fined to effectively guide, constrain, and permit implementation of interoperable intelligence community business system solutions, con- sistent with applicable policies and procedures established by the Director of the Office of Man- agement and Budget. (2) The enterprise architecture under para- graph (1) shall include the following: (A) An information infrastructure that will enable the intelligence community to— (i) comply with all Federal accounting, fi- nancial management, and reporting require- ments; (ii) routinely produce timely, accurate, and reliable financial information for man- agement purposes; (iii) integrate budget, accounting, and pro- gram information and systems; and (iv) provide for the measurement of per- formance, including the ability to produce timely, relevant, and reliable cost informa- tion. (B) Policies, procedures, data standards, and system interface requirements that apply uni- formly throughout the intelligence commu- nity. (c) Responsibilities for intelligence community business system transformation The Director of National Intelligence shall be responsible for the entire life cycle of an intel- ligence community business system trans- formation, including review, approval, and over- sight of the planning, design, acquisition, de- ployment, operation, and maintenance of the business system transformation. (d) Intelligence community business system in- vestment review (1) The Director of the Office of Business Transformation of the Office of the Director of National Intelligence shall establish and imple- ment, not later than 60 days after October 7, 2010, an investment review process for the intel- ligence community business systems for which the Director of the Office of Business Trans- formation is responsible. (2) The investment review process under para- graph (1) shall— (A) meet the requirements of section 11312 of title 40; and (B) specifically set forth the responsibilities of the Director of the Office of Business Trans- formation under such review process. (3) The investment review process under para- graph (1) shall include the following elements: (A) Review and approval by an investment review board (consisting of appropriate rep- resentatives of the intelligence community) of each intelligence community business system as an investment before the obligation of funds for such system. (B) Periodic review, but not less often than annually, of every intelligence community business system investment. (C) Thresholds for levels of review to ensure appropriate review of intelligence community business system investments depending on the scope, complexity, and cost of the system in- volved. (D) Procedures for making certifications in accordance with the requirements of sub- section (a)(2). (e) Repealed. Pub. L. 112–277, title III, § 310(a)(3), Jan. 14, 2013, 126 Stat. 2475 (f) Intelligence community business system transformation governance board (1) The Director of National Intelligence shall establish a board within the intelligence com- munity business system transformation govern- ance structure (in this subsection referred to as the ‘‘Board’’). (2) The Board shall— (A) recommend to the Director policies and procedures necessary to effectively integrate all business activities and any transformation, reform, reorganization, or process improve- ment initiatives undertaken within the intel- ligence community; (B) review and approve any major update of— (i) the enterprise architecture developed under subsection (b); and Page 679 TITLE 50—WAR AND NATIONAL DEFENSE § 3100 1 See References in Text note below. (ii) any plans for an intelligence commu- nity business systems modernization; (C) manage cross-domain integration con- sistent with such enterprise architecture; (D) coordinate initiatives for intelligence community business system transformation to maximize benefits and minimize costs for the intelligence community, and periodically re- port to the Director on the status of efforts to carry out an intelligence community business system transformation; (E) ensure that funds are obligated for intel- ligence community business system trans- formation in a manner consistent with sub- section (a); and (F) carry out such other duties as the Direc- tor shall specify. (g) Relation to annual registration requirements Nothing in this section shall be construed to alter the requirements of section 8083 of the De- partment of Defense Appropriations Act, 2005 (Public Law 108–287; 118 Stat. 989), with regard to information technology systems (as defined in subsection (d) of such section). (h) Relationship to defense business enterprise architecture Nothing in this section shall be construed to exempt funds authorized to be appropriated to the Department of Defense from the require- ments of section 2222 of title 10 to the extent that such requirements are otherwise applica- ble. (i) Relation to Clinger-Cohen Act (1) Executive agency responsibilities in chap- ter 113 of title 40 for any intelligence commu- nity business system transformation shall be ex- ercised jointly by— (A) the Director of National Intelligence and the Chief Information Officer of the Intel- ligence Community; and (B) the head of the executive agency that contains the element of the intelligence com- munity involved and the chief information of- ficer of that executive agency. (2) The Director of National Intelligence and the head of the executive agency referred to in paragraph (1)(B) shall enter into a Memorandum of Understanding to carry out the requirements of this section in a manner that best meets the needs of the intelligence community and the ex- ecutive agency. (j) Reports Not later than March 31 of each of the years 2011 through 2014, the Director of National Intel- ligence shall submit to the congressional intel- ligence committees a report on the compliance of the intelligence community with the require- ments of this section. Each such report shall— (1) describe actions taken and proposed for meeting the requirements of subsection (a), in- cluding— (A) specific milestones and actual perform- ance against specified performance meas- ures, and any revision of such milestones and performance measures; and (B) specific actions on the intelligence community business system transformations submitted for certification under such sub- section; (2) identify the number of intelligence com- munity business system transformations that received a certification described in sub- section (a)(2); and (3) describe specific improvements in busi- ness operations and cost savings resulting from successful intelligence community busi- ness systems transformation efforts. (k) Definitions In this section: (1) The term ‘‘enterprise architecture’’ has the meaning given that term in section 3601(4) of title 44. (2) The terms ‘‘information system’’ and ‘‘in- formation technology’’ have the meanings given those terms in section 11101 of title 40. (3) The term ‘‘intelligence community busi- ness system’’ means an information system, including a national security system, that is operated by, for, or on behalf of an element of the intelligence community, including a finan- cial system, mixed system, financial data feeder system, and the business infrastructure capabilities shared by the systems of the busi- ness enterprise architecture, including people, process, and technology, that build upon the core infrastructure used to support business activities, such as acquisition, financial man- agement, logistics, strategic planning and budgeting, installations and environment, and human resource management. (4) The term ‘‘intelligence community busi- ness system transformation’’ means— (A) the acquisition or development of a new intelligence community business sys- tem; or (B) any significant modification or en- hancement of an existing intelligence com- munity business system (other than nec- essary to maintain current services). (5) The term ‘‘national security system’’ has the meaning given that term in section 3542 1 of title 44. (6) The term ‘‘Office of Business Trans- formation of the Office of the Director of Na- tional Intelligence’’ includes any successor of- fice that assumes the functions of the Office of Business Transformation of the Office of the Director of National Intelligence as carried out by the Office of Business Transformation on October 7, 2010. (July 26, 1947, ch. 343, title V, § 506D, as added Pub. L. 111–259, title III, § 322(a)(1), Oct. 7, 2010, 124 Stat. 2669; amended Pub. L. 112–277, title III, § 310(a)(3), Jan. 14, 2013, 126 Stat. 2475; Pub. L. 113–126, title III, § 329(b)(3), July 7, 2014, 128 Stat. 1406.) Editorial Notes REFERENCES IN TEXT Section 8083 of the Department of Defense Appropria- tions Act, 2005, referred to in subsec. (g), is section 8083 of Pub. L. 108–287, title VIII, Aug. 5, 2004, 118 Stat. 989, which is not classified to the Code. Page 680 TITLE 50—WAR AND NATIONAL DEFENSE § 3101 Section 3542 of title 44, referred to in subsec. (k)(5), was repealed by Pub. L. 113–283, § 2(a), Dec. 18, 2014, 128 Stat. 3073. Provisions defining ‘‘national security sys- tem’’ are now contained in section 3552 of title 44, as enacted by Pub. L. 113–283. CODIFICATION Section was formerly classified to section 415a–6 of this title prior to editorial reclassification and renum- bering as this section. AMENDMENTS 2014—Subsec. (j). Pub. L. 113–126 substituted ‘‘2014’’ for ‘‘2015’’ in introductory provisions. 2013—Subsec. (e). Pub. L. 112–277 struck out subsec. (e) which required inclusion of certain budget informa- tion in the budget materials submitted to Congress for each fiscal year after fiscal year 2011. Statutory Notes and Related Subsidiaries IMPLEMENTATION Pub. L. 111–259, title III, § 322(b), Oct. 7, 2010, 124 Stat. 2673, provided that: ‘‘(1) CERTAIN DUTIES.—Not later than 60 days after the date of the enactment of this Act [Oct. 7, 2010], the Di- rector of National Intelligence shall designate a chair and other members to serve on the board established under subsection (f) of such section 506D of the Na- tional Security Act of 1947 [50 U.S.C. 3100(f)] (as added by subsection (a)). ‘‘(2) ENTERPRISE ARCHITECTURE.— ‘‘(A) SCHEDULE FOR DEVELOPMENT.—The Director shall develop the enterprise architecture required by subsection (b) of such section 506D [50 U.S.C. 3100(b)] (as so added), including the initial Business Enter- prise Architecture for business transformation, not later than 60 days after the enactment of this Act. ‘‘(B) REQUIREMENT FOR IMPLEMENTATION PLAN.—In developing such an enterprise architecture, the Di- rector shall develop an implementation plan for such enterprise architecture that includes the following: ‘‘(i) An acquisition strategy for new systems that are expected to be needed to complete such enter- prise architecture, including specific time-phased milestones, performance metrics, and a statement of the financial and nonfinancial resource needs. ‘‘(ii) An identification of the intelligence commu- nity business systems in operation or planned as of the date that is 60 days after the enactment of this Act that will not be a part of such enterprise archi- tecture, together with the schedule for the phased termination of the utilization of any such systems. ‘‘(iii) An identification of the intelligence com- munity business systems in operation or planned as of such date, that will be a part of such enterprise architecture, together with a strategy for modi- fying such systems to ensure that such systems comply with such enterprise architecture. ‘‘(C) SUBMISSION OF ACQUISITION STRATEGY.—Based on the results of an enterprise process management review and the availability of funds, the Director shall submit the acquisition strategy described in subparagraph (B)(i) to the congressional intelligence committees not later than March 31, 2011.’’ [For definitions of terms used in section 322(b) of Pub. L. 111–259, set out above, see section 2 of Pub. L. 111–259, set out as a note under section 3003 of this title.] § 3101. Reports on the acquisition of major sys- tems (a) Definitions In this section: (1) The term ‘‘cost estimate’’— (A) means an assessment and quantifica- tion of all costs and risks associated with the acquisition of a major system based upon reasonably available information at the time the Director establishes the 2010 adjusted total acquisition cost for such sys- tem pursuant to subsection (h) or restruc- tures such system pursuant to section 3102(c) of this title; and (B) does not mean an ‘‘independent cost es- timate’’. (2) The term ‘‘critical cost growth thresh- old’’ means a percentage increase in the total acquisition cost for a major system of at least 25 percent over the total acquisition cost for the major system as shown in the current Baseline Estimate for the major system. (3)(A) The term ‘‘current Baseline Estimate’’ means the projected total acquisition cost of a major system that is— (i) approved by the Director, or a designee of the Director, at Milestone B or an equiva- lent acquisition decision for the develop- ment, procurement, and construction of such system; (ii) approved by the Director at the time such system is restructured pursuant to sec- tion 3102(c) of this title; or (iii) the 2010 adjusted total acquisition cost determined pursuant to subsection (h). (B) A current Baseline Estimate may be in the form of an independent cost estimate. (4) Except as otherwise specifically provided, the term ‘‘Director’’ means the Director of Na- tional Intelligence. (5) The term ‘‘independent cost estimate’’ has the meaning given that term in section 3097(e) of this title. (6) The term ‘‘major contract’’ means each of the 6 largest prime, associate, or Govern- ment-furnished equipment contracts under a major system that is in excess of $40,000,000 and that is not a firm, fixed price contract. (7) The term ‘‘major system’’ has the mean- ing given that term in section 3097(e) of this title. (8) The term ‘‘Milestone B’’ means a decision to enter into major system development and demonstration pursuant to guidance pre- scribed by the Director. (9) The term ‘‘program manager’’ means— (A) the head of the element of the intel- ligence community that is responsible for the budget, cost, schedule, and performance of a major system; or (B) in the case of a major system within the Office of the Director of National Intel- ligence, the deputy who is responsible for the budget, cost, schedule, and performance of the major system. (10) The term ‘‘significant cost growth threshold’’ means the percentage increase in the total acquisition cost for a major system of at least 15 percent over the total acquisi- tion cost for such system as shown in the cur- rent Baseline Estimate for such system. (11) The term ‘‘total acquisition cost’’ means the amount equal to the total cost for develop- ment and procurement of, and system-specific construction for, a major system. (b) Major system cost reports (1) The program manager for a major system shall, on a quarterly basis, submit to the Direc-