Remotely. R by webex, appearing members are in person, let me remind everyone that pursuant to the house attending physician and guidance come all individuals attending this hearing in person must wear a face mask. I am dropping mine only to speak. Members who were not wearing a face mask will not be recognized. Let me also make a few reminders to those members appearing in person. You will only see members and witnesses appearing remotely on the monitor in front of you when they are speaking in what is actives webex speaker view. A timer is directly in front of you. Remotely,s appearing let me remind everybody that first, you will be able to siege person speaking during the hearing whether they are in person or remote as long as you have your webex set to active speaker view. If you have any questions, Contact Committee staff. They will try to be helpful. A timer thatve should be visible on your screen when you are in the active speaker with thumbnail view. Members who wish to pen the timer to their screens should ortact Committee Staff assistance. The house rules require that we see you, so please have your oneras turned on if you are remotely on webex during this hearing. Members appearing remotely who are not recognized should remain muted to minimize the ground noise and feedback. I will recognize background noise and feedback. I will recognize members verbally. Members will be recognized otherwise in senor new order for questions. Leslie, if you want to be lastly, if you want to be recognized, you can use the chat function, you can send the name of to the majority stuff, or you unmute airsoft a state recognition. We dont want people talking over each other. Yourself to get recognition. We dont want people talking over each other. I will begin with our Opening Statements. I know you are in selfquarantine. I know you prefer to be here physically, but i am really glad we have the hybrid remote options you can participate fully in this hearing and hopefully as everything is going to be ok. I will call upon you as soon as i finish my Opening Statement for any remarks you may have. Today, march 10th, hearing examining agencies and limitation of the federal Technology Acquisition reform act. Progress andcies procurement. I am happy to announce this oversight has produced the first report card in which all agencies received a passing grade. Testamentvement is a to the hard work of federal agencies, chief Information Officers council and a testament to this committee and subcommittees steady and bipartisan oversight of the act since we enacted it in 2014. This isnt just about passing grades. These grades represent , betters Dollars Mission delivery, and serving the nation more effectively and efficiently. During this pandemic, we have come to realize how vital good i. T. And strong i. T. Governance are to federal governments and the people we serve. We have seen limitations because likeof i. T. In whic of i. T. Investment. Lack of i. T. Investment. We have also seen limitations in the unemployment system. Core howve their important recent i will underscore how important these investments really are. This would be the second in a series of hearings are subcommittee holds to gauge Agency Progress in realizing the transformative nature of the reforms. Five years later, the benefits of continued oversight are clear. One would be hardpressed to find sustained bipartisan congressional oversight initiatives on its 10th installation. Agencies have made real improvements on the scorecard. I think we are putting it up over there on that screen. Of time. Riod average grade was a d across all agencies. This year, no agency received a d or f. These improvements represent vital services, dollars saved. This process enables agencies to reduce spending and demonstrate how i. T. Investments align with the mission and business function. From helping went the agencies save 3 billion in fiscal 2015 to 20 billion this fiscal year. When the software was first added to the scorecard in june of 2017, 21 out of 24 agencies received an f grade for that metric. Now, 23 out of 24 agencies have an inventory of Software Licenses and use that inventory to make costeffective decisions and avoid duplications. Federal agencies are also in more data centers, resulting in significant savings. Reported 4. 7ave billion in cost savings for fiscal years 2012 through 2019. Those agencies have also reported plans to save more than 264 million in this fiscal year alone. At the very first hearing, our witness stated ideas no longer just the business of the cio. I. T. Is no longer the business of just the cio. It is everybodys business. Clearer thanen during the coronavirus pandemic. We have seen firsthand how the agencies continue to use outdated i. T. During the pandemic. Preventing the delivery of Government Services when the public needed it the most. Back in 2015, i cautioned the scorecard was not to be considered the scarlet letter, but a point in time snapshot to be able to measure progress and incentivizing. Later,ars of scorecards allegiances have received passing grades. The first time ever. The scorecard included Data Center Consolidation, i. T. Portfolio review savings, incremental project development delivery, and Risk Assessment transparency. Since then, the scorecards success has led the subcommittee to incorporate other aspects of federal i. T. Into the grades. Is not rigid, but like the best of id, it of all. We augmented and changed the ecard today, the scorecard incorporates grades adapted from three additional pieces of the legislation. Including the megabyte act, the modernizing technology act, and the federal Information Security management act. Thebottom line is that scorecard continues to hold showies accountable, and the American People they deserve the best i. T. Has to offer. Yet all agencies still have work to do. Today, two thirds of agencies head of report to the the agency. It is true more cios are getting a seat at the table with other sweet positions. But we will hear from none of the 24 agencies with established policies that fully address the role of the cio as called for by federal law and guidance. We must continue to work to excuset all cios me have the authorities and policies in place to be able to probably properly do their jobs. This hearing will discuss which metrics have achieved their goals and which need to be considered for retirement. We are also starting careful discussion about what metrics might be incorporated in future scorecards to improve the government. In other words, continue the scorecard. Today, i hope to hear from witnesses about what it takes to continuously improve and use efficient acquisition and Management Practices to do that. What powers and authorities might cios need to improve government i. T. In return, what transparency and oversight will be provided to arere those policies effective and efficient. We must continue to see the dividends for putting resources toward modernizing legacy systems, migrating to the club, and maintaining a strong cyber posture. ,ith the coronavirus resurging the stakes are higher than ever. When executed well, modernization can ensure the delivery of critical services, improve the governments knowledge, and save lives. When executed poorly, it can unfortunately lead to outright failures and serving the American People when they need the government the most. Simply put, the fate of the Worlds Largest economy it is no exaggeration to say rises and falls with the ability of government i. D. Systems i. T. Systems to deliver in an emergency. I. T. Is tooe use of great to ignore. The subcommittee will continue its oversight of agencies i. T. Acquisition and management as we move forward. I call upon the Ranking Member. Thank you, chairman. Thank you for holding this hearing. As you all know, this has been a bright spot of bipartisan work for this committee. I look forward to continuing to see the development of scorecards usefulness as it relates to federal i. T. Reform. Also, i would like to take a moment to give a shout out and thanks to the outgoing federal chief Information Officer. Dedicated. Extremely its deeply appreciated. As you well know, enhanced cio authority is one of the pillars, literally, of the whole system. Jobhas done an outstanding with her leadership and enthusiasm to really help drive some of the i. T. Modernization efforts that have been out lined in the agenda. I hope we continue to build upon the initiatives that she has championed. As you shared, we are here today 10th scorecard. Agencies have really made tremendous progress over the past five years. Onant to congratulate them their dedication to improve the idea procurement and management processes. A job well done. Some of the things we have seen accomplished over the last savings ofrs include literally billions of dollars, we have increased transparency for risque i. T. Investments, and of course, the elevation of the cio position and authority within the agencies. For all these successes, we are very grateful for what has been done, but obviously, there is work yet that needs to be accomplished. I would suggest some of those things, we need to continue to update the metrics so that they better and more effectively match the i. T. Management and implementation practices that are actually being used today. I also think it is imperative that we, as a committee, but in place the right kind of incentives to bring about i. T. Modernization as it relates to the pandemics scale. This has really highlighted and exposed to us the heavy reliance we have on some legacy systems and some longstanding we needgy problems, and to find ways to get agencies to move the needle on some of these crucial issues. Need somestly, we forwardlooking metrics to help modernize government as a whole. Some of those things would , moving forward, as it relates to citizens experience, i think you have actually referred to that, mr. Chairman. It is important we move in that direction. Enhancing the skills of federal i. T. Workforce. I think we need to continue looking toward that. Also just overall, moving towards a more agile and secure Cloud Computing environment. All the things are extremely important that we continue to move towards. I look forward to hearing from our witnesses today. I want to say thank you to each of our witnesses for being here today. We appreciate your time and expertise that you will bring to the table. With that, i will yield back. Thank you. I also want to thank you personally. The subcommittee has always had a strong bipartisan process, especially on the subject. I worked closely in writing this act and expanding on it. On the scorecard, as well as with mr. Meadows, now the chief of staff to the president of the u. S. You pledged to do the same. I very much appreciate that and look forward to continuing to work with you. Helping inare ok in georgia. Thank you for your remarks. Harris, if you would and unmute yourself in order to be sworn in. Or affirm that the testimony you are about to give is the truth and nothing but the truth so hope you got . God . Let the record show all of our witnesses answered in the affirmative. Your written statements will be part of the record. Carol harris, director of i. T. Management issues and government at the government and Ability Office to give us some of her testimony. Harris. Ms. Thank you. I would like to thank you and your excellent staff for your continued oversight of federal i. T. Management and cybersecurity with this tends set of grades tenth set of grades. Your scorecard has served as a good barometer to measure progress of this implementation. During this time, the agencies have made significant progress. In this latest scorecard, there 14 cs. , 9 bs, and this is the first scorecard in which all 24 agencies received a passing grade. This is huge, considering only seven agencies had passing grades and the past in the last scorecard. The greatest chance for mission has been the department of education, moving from an f to a b . First Agency Progress made. I will start with incremental development. The number of major i. T. Projects has increased from 58 76 . 58 to the level of transparency has improved with 61 of Major Projects in reported as red or yellow as compared to 24 with the first scorecard. We have also seen dramatic improvements in the agencies management of Software Licenses, going from two as, to 23. Has increased from 11 to 16 . Today, the agencies have closed more than 6300 data centers and saved shy of 20 billion through stat initiative. The progress made in all of the areas would not have happened to this extent without your scorecard and oversight. Aree these are compliments noteworthy, significant actions remain to be completed to build on this progress. This brings me to my next point on where we are at. ciosird of the agencies are not reporting to the agency head. Cios have told us this is critical to kerry at the responsibilities. It gives cios a seat at the management table and will likely help to attract more qualified individuals to these positions over time. About half of the agencies have not established working capital transitioning from systems. Roughly 80 of the over 90 billion spent annually on federal i. T. Is on operations and maintenance, including aging legacy systems. Establishing these funds are so critical, so that the and optimization can be reinvested in priorities. If each of these agencies did these things, the great would be and 5 cs. s, this is achievable by the next scorecard. We remain concerned about these current guidances, which revises classification of data centers and Data Center Optimization metrics. The definition excludes more than 2000 facilities that agencies previously reported on. Many of these excluded facilities represent what omb has identified as possible Security Risks. The changes will likely slow down or even halt important progress agencies should be making to consolidate, optimize, and secure data centers. Finally, regarding where we need to go, scorecard wise, the preview of the federal transition will draw urgent attention to one area that has historically been neglected by the agencies. For example, at the fire at the prior , agencies could have saved millions of dollars. Scheduleies are behind and could again be missing out on hundreds of millions in savings. The scorecard will be an effective means for Holding Agencies accountable and ensuring a timely transition. This concludes my comments. I look forward to your questions. I look forward to those questions, as well. M. Ire you are recognized for five minutes. Thank you for the opportunity to discuss the status of the Information Technology at the office of Personnel Management and to provide thoughts on the future of the act. I joined opm in february of 2019 is the seventh cio in seven years. I entered an agency with several key challenges. Vacancies,affing antiquated and fragile technology, and a charge to fully transition the id system d to theystem, now department of defensetsa, now dtsa, to the department of defense. This is a complex operating environment. Meeting and balancing numerous executive, legislative, and oversight requirements while working in an uncertain and inflexible budgetary cycle is quite challenging. I would like to focus on what is possible, however, because that is what opm employees and the American People deserve. One of the first authorities i rned about was for was the act to make Strategic Investments that make the best use of taxpayer dollars. I have received a steady stream leadership. Rom opm im sorry i have received a steady stream of support from opm leadership to meet the provisions of fitara idestablishing an agencywide strategy. We anticipate working with Program Offices and enabling organizations as we move forward in this direction. Proud oftremely raising the fitara c . E to a a we have been able to make significant progress and show people within opm what is possible, like rolling out new laptops across the organization and moving to cloudy mail. Cloud emailed. This has allowed us to continue meeting our mission while employees anda contractors in a maximum telework environment during the pandemic. Just a few weeks ago, the dedicated cio Team Successfully migrated our mainframe platform from the Teddy Roosevelt welding here in d. C. To a commercial data center. Opm and dcsa systems are fully new modern in a environment with continuity of operations in place. Once we transition the daily i. T. Operations of this Important NationalSecurity Mission to our colleagues at the department of defense this fall, opm will be able to focus on opms mission and begin our digital modernization journey. Funding flexibility. Model with seven funding streams for cio creates incredible complexity and inflexibility to address i. T. Challenges. Working capital fund with authority dedicated to the i. T. Enterprise investment and cio Oversight Authority over this funding, we will create enterprise efficiencies and measurable cost avoidance. Becausedern technology, federal employees deserve the tools ive had the benefit of using in the private sector. Attracting, retaining, training, and rescaling our workforce with the Customer First mindset utilizing agile development, modern tools, and modern technology is essential. Our modernization strategy begins with upgrading our existing paperbased processes and workflows with modern equivalents, allowing us to retire in the flight systems. All of these retire and the flight systems. All of this is possible, giving ops customers a 21st century experience they des