I 119THCONGRESS 1 STSESSION H. R. 2417 To improve the visibility, accountability, and oversight of agency software asset management practices, and for other purposes. IN THE HOUSE OF REPRESENTATIVES MARCH27, 2025 Mr. C ONNOLLY(for himself, Mr. FALLON, Mrs. MCCLAINDELANEY, and Ms. M ACE) introduced the following bill; which was referred to the Committee on Oversight and Government Reform A BILL To improve the visibility, accountability, and oversight of agency software asset management practices, and for other purposes. Be it enacted by the Senate and House of Representa-1 tives of the United States of America in Congress assembled, 2 SECTION 1. SHORT TITLE. 3 This Act may be cited as the ‘‘Strengthening Agency 4 Management and Oversight of Software Assets Act’’. 5 SEC. 2. DEFINITIONS. 6 In this Act: 7 VerDate Sep 11 2014 23:17 Apr 02, 2025 Jkt 059200 PO 00000 Frm 00001 Fmt 6652 Sfmt 6201 E:\BILLS\H2417.IH H2417 kjohnson on DSK7ZCZBW3PROD with $$_JOB 2 •HR 2417 IH (1) ADMINISTRATOR.—The term ‘‘Adminis-1 trator’’ means the Administrator of General Serv-2 ices. 3 (2) A GENCY.—The term ‘‘agency’’ has the 4 meaning given that term in section 3502 of title 44, 5 United States Code, except that such term does not 6 include an element of the intelligence community. 7 (3) C LOUD COMPUTING .—The term ‘‘cloud 8 computing’’ has the meaning given the term in Spe-9 cial Publication 800–145 of the National Institute of 10 Standards and Technology, or any successor docu-11 ment. 12 (4) C LOUD SERVICE PROVIDER .—The term 13 ‘‘cloud service provider’’ has the meaning given the 14 term in section 3607(b) of title 44, United States 15 Code. 16 (5) C OMPREHENSIVE ASSESSMENT .—The term 17 ‘‘comprehensive assessment’’ means a comprehensive 18 assessment conducted pursuant to section 3(a). 19 (6) D IRECTOR.—The term ‘‘Director’’ means 20 the Director of the Office of Management and Budg-21 et. 22 (7) I NTELLIGENCE COMMUNITY .—The term 23 ‘‘intelligence community’’ has the meaning given the 24 VerDate Sep 11 2014 23:17 Apr 02, 2025 Jkt 059200 PO 00000 Frm 00002 Fmt 6652 Sfmt 6201 E:\BILLS\H2417.IH H2417 kjohnson on DSK7ZCZBW3PROD with $$_JOB 3 •HR 2417 IH term in section 3 of the National Security Act of 1 1947 (50 U.S.C. 3003). 2 (8) P LAN.—The term ‘‘plan’’ means the plan 3 developed by a Chief Information Officer, or equiva-4 lent official, pursuant to section 4(a). 5 (9) S OFTWARE ENTITLEMENT .—The term 6 ‘‘software entitlement’’ means any software that— 7 (A) has been purchased, leased, or licensed 8 by or billed to an agency under any contract or 9 other business arrangement; and 10 (B) is subject to use limitations. 11 (10) S OFTWARE INVENTORY .—The term ‘‘soft-12 ware inventory’’ means the software inventory of an 13 agency required pursuant to— 14 (A) section 2(b)(2)(A) of the Making Elec-15 tronic Government Accountable By Yielding 16 Tangible Efficiencies Act of 2016 (40 U.S.C. 17 11302 note; Public Law 114–210); or 18 (B) subsequent guidance issued by the Di-19 rector pursuant to that Act. 20 SEC. 3. SOFTWARE INVENTORY UPDATE AND EXPANSION. 21 (a) I NGENERAL.—As soon as practicable, and not 22 later than 18 months after the date of enactment of this 23 Act, the Chief Information Officer of each agency, in con-24 sultation with the Chief Financial Officer, the Chief Ac-25 VerDate Sep 11 2014 23:17 Apr 02, 2025 Jkt 059200 PO 00000 Frm 00003 Fmt 6652 Sfmt 6201 E:\BILLS\H2417.IH H2417 kjohnson on DSK7ZCZBW3PROD with $$_JOB 4 •HR 2417 IH quisition Officer, the Chief Data Officer, and General 1 Counsel of the agency, or the equivalent officials of the 2 agency, shall complete a comprehensive assessment of the 3 software paid for by, in use at, or deployed throughout 4 the agency, which shall include— 5 (1) the current software inventory of the agen-6 cy, including software entitlements, contracts and 7 other agreements or arrangements of the agency, 8 and a list of the largest software entitlements of the 9 agency separated by provider and category of soft-10 ware; 11 (2) a comprehensive, detailed accounting of— 12 (A) any software used by or deployed with-13 in the agency, including software developed or 14 built by the agency, or by another agency for 15 use by the agency, including shared services, as 16 of the date of the comprehensive assessment, 17 including, to the extent identifiable, the con-18 tracts and other agreements or arrangements 19 used by the agency to acquire, build, deploy, or 20 use such software; 21 (B) information and data on software enti-22 tlements, which shall include information on 23 any additional fees or costs, including fees or 24 costs for the use of cloud services, that are not 25 VerDate Sep 11 2014 23:17 Apr 02, 2025 Jkt 059200 PO 00000 Frm 00004 Fmt 6652 Sfmt 6201 E:\BILLS\H2417.IH H2417 kjohnson on DSK7ZCZBW3PROD with $$_JOB 5 •HR 2417 IH included in the initial costs of the contract, 1 agreement, or arrangement— 2 (i) for which the agency pays; 3 (ii) that are not deployed or in use by 4 the agency; and 5 (iii) that are billed to the agency 6 under any contract or business arrange-7 ment that creates duplication, or are other-8 wise determined to be unnecessary by the 9 Chief Information Officer of the agency, or 10 the equivalent official, in the deployment 11 or use by the agency; and 12 (C) the extent— 13 (i) to which any software paid for, in 14 use, or deployed throughout the agency is 15 interoperable; and 16 (ii) of the efforts of the agency to im-17 prove interoperability of software assets 18 throughout the agency enterprise; 19 (3) a categorization of software entitlements of 20 the agency by cost, volume, and type of software; 21 (4) a list of any provisions in the software enti-22 tlements of the agency that may restrict how the 23 software can be deployed, accessed, or used, includ-24 ing any such restrictions on desktop or server hard-25 VerDate Sep 11 2014 23:17 Apr 02, 2025 Jkt 059200 PO 00000 Frm 00005 Fmt 6652 Sfmt 6201 E:\BILLS\H2417.IH H2417 kjohnson on DSK7ZCZBW3PROD with $$_JOB 6 •HR 2417 IH ware, through a cloud service provider, or on data 1 ownership or access; and 2 (5) an analysis addressing— 3 (A) the accuracy and completeness of the 4 comprehensive assessment; 5 (B) agency management of and compliance 6 with all contracts or other agreements or ar-7 rangements that include or reference software 8 entitlements or software management within 9 the agency; 10 (C) the extent to which the agency accu-11 rately captures the total cost of software enti-12 tlements and related costs, including the total 13 cost of upgrades over the life of a contract, 14 cloud usage costs, and any other cost associated 15 with the maintenance or servicing of contracts; 16 and 17 (D) compliance with software license man-18 agement policies of the agency. 19 (b) C ONTRACTSUPPORT.— 20 (1) A UTHORITY.—The head of an agency may 21 enter into 1 or more contracts to support the re-22 quirements of subsection (a). 23 (2) N O CONFLICT OF INTEREST .—Contracts 24 under paragraph (1) shall not include contractors 25 VerDate Sep 11 2014 23:17 Apr 02, 2025 Jkt 059200 PO 00000 Frm 00006 Fmt 6652 Sfmt 6201 E:\BILLS\H2417.IH H2417 kjohnson on DSK7ZCZBW3PROD with $$_JOB 7 •HR 2417 IH with organizational conflicts of interest, within the 1 meaning given that term under subpart 9.5 of the 2 Federal Acquisition Regulation. 3 (3) O PERATIONAL INDEPENDENCE .—Over the 4 course of a comprehensive assessment, contractors 5 hired pursuant to paragraph (1) shall maintain oper-6 ational independence from the integration, manage-7 ment, and operations of the software inventory and 8 software entitlements of the agency. 9 (c) S UBMISSION.—On the date on which the Chief In-10 formation Officer, Chief Financial Officer, Chief Acquisi-11 tion Officer, the Chief Data Officer, and General Counsel 12 of an agency, or the equivalent officials of the agency, 13 complete the comprehensive assessment, the Chief Infor-14 mation Officer shall submit the comprehensive assessment 15 to the head of the agency. 16 (d) S UBSEQUENTSUBMISSION.—Not later than 30 17 days after the date on which the head of an agency re-18 ceives the comprehensive assessment under subsection (c), 19 the head of the agency shall submit the comprehensive as-20 sessment to— 21 (1) the Director; 22 (2) the Administrator; 23 (3) the Comptroller General of the United 24 States; 25 VerDate Sep 11 2014 23:17 Apr 02, 2025 Jkt 059200 PO 00000 Frm 00007 Fmt 6652 Sfmt 6201 E:\BILLS\H2417.IH H2417 kjohnson on DSK7ZCZBW3PROD with $$_JOB 8 •HR 2417 IH (4) the Committee on Homeland Security and 1 Governmental Affairs of the Senate; and 2 (5) the Committee on Oversight and Account-3 ability of the House of Representatives. 4 (e) C ONSULTATION.—In order to ensure the utility 5 and standardization of the comprehensive assessment of 6 each agency, including to support the development of each 7 plan and the report required under section 4(e)(2), the 8 Director, in consultation with the Administrator, shall 9 share information, best practices, and recommendations 10 relating to the activities performed in the course of a com-11 prehensive assessment of an agency. 12 (f) I NTELLIGENCECOMMUNITY.—For each element 13 of the intelligence community, a comprehensive assess-14 ment described under subsection (a) shall be— 15 (1) conducted separately; 16 (2) performed only by an entity designated by 17 the head of the element of the intelligence commu-18 nity, in accordance with appropriate applicable laws; 19 (3) performed in such a manner as to ensure 20 appropriate protection of information which, if dis-21 closed, may adversely affect national security; and 22 (4) submitted in summary form, not later than 23 30 days after the date on which the head of the ele-24 ment of the intelligence community receives the as-25 VerDate Sep 11 2014 23:17 Apr 02, 2025 Jkt 059200 PO 00000 Frm 00008 Fmt 6652 Sfmt 6201 E:\BILLS\H2417.IH H2417 kjohnson on DSK7ZCZBW3PROD with $$_JOB 9 •HR 2417 IH sessment, by the head of the element of the intel-1 ligence community to— 2 (A) the Director; 3 (B) the Select Committee on Intelligence 4 of the Senate; and 5 (C) the Permanent Select Committee on 6 Intelligence of the House of Representatives. 7 SEC. 4. SOFTWARE MODERNIZATION PLANNING AT AGEN-8 CIES. 9 (a) I NGENERAL.—The Chief Information Officer of 10 each agency, in consultation with the Chief Financial Offi-11 cer, the Chief Acquisition Officer, the Chief Data Officer, 12 and the General Counsel of the agency, or the equivalent 13 officials of the agency, shall use the information developed 14 pursuant to the comprehensive assessment of the agency 15 to develop a plan for the agency— 16 (1) to consolidate software entitlements of the 17 agency; 18 (2) to ensure that, in order to improve the per-19 formance of, and reduce unnecessary costs to, the 20 agency, the Chief Information Officer, Chief Data 21 Officer, and Chief Acquisition Officer of the agency, 22 or the equivalent officers, develop criteria and proce-23 dures for how the agency will adopt cost-effective ac-24 quisition strategies, including enterprise licensing, 25 VerDate Sep 11 2014 23:17 Apr 02, 2025 Jkt 059200 PO 00000 Frm 00009 Fmt 6652 Sfmt 6201 E:\BILLS\H2417.IH H2417 kjohnson on DSK7ZCZBW3PROD with $$_JOB 10 •HR 2417 IH across the agency that reduce costs, eliminate excess 1 licenses, and improve performance; and 2 (3) to restrict the ability of a bureau, program, 3 component, or operational entity within the agency 4 to acquire, use, develop, or otherwise leverage any 5 software entitlement (or portion thereof) without the 6 approval of the Chief Information Officer of the 7 agency, in consultation with the Chief Acquisition 8 Officer of the agency, or the equivalent officers of 9 the agency. 10 (b) P LANREQUIREMENTS.—The plan of an agency 11 shall— 12 (1) include a detailed strategy for— 13 (A) the remediation of any software asset 14 management deficiencies found during the com-15 prehensive assessment of the agency; 16 (B) the ongoing maintenance of software 17 asset management upon the completion of the 18 remediation; 19 (C) automation of software license man-20 agement processes and incorporation of dis-21 covery tools across the agency; 22 (D) ensuring that officers and employees 23 of the agency are adequately trained in the poli-24 cies, procedures, rules, regulations, and guid-25 VerDate Sep 11 2014 23:17 Apr 02, 2025 Jkt 059200 PO 00000 Frm 00010 Fmt 6652 Sfmt 6201 E:\BILLS\H2417.IH H2417 kjohnson on DSK7ZCZBW3PROD with $$_JOB 11 •HR 2417 IH ance relating to the software acquisition and 1 development of the agency before entering into 2 any agreement relating to any software entitle-3 ment (or portion thereof) for the agency, in-4 cluding training on— 5 (i) negotiating options within con-6 tracts to address and minimize provisions 7 that restrict how the agency may deploy, 8 access, or use the software, including re-9 strictions on deployment, access, or use on 10 desktop or server hardware and restric-11 tions on data ownership or access; 12 (ii) the differences between acquiring 13 commercial software products and services 14 and acquiring or building custom software; 15 and 16 (iii) determining the costs of different 17 types of licenses and options for adjusting 18 licenses to meet increasing or decreasing 19 demand; and 20 (E) maximizing the effectiveness of soft-21 ware deployed by the agency, including, to the 22 extent practicable, leveraging technologies 23 that— 24 VerDate Sep 11 2014 23:17 Apr 02, 2025 Jkt 059200 PO 00000 Frm 00011 Fmt 6652 Sfmt 6201 E:\BILLS\H2417.IH H2417 kjohnson on DSK7ZCZBW3PROD with $$_JOB 12 •HR 2417 IH (i) measure actual software usage via 1 analytics that can identify inefficiencies to 2 assist in rationalizing software spending; 3 (ii) allow for segmentation of the user 4 base; 5 (iii) support effective governance and 6 compliance in the use of software; and 7 (iv) support interoperable capabilities 8 between software; 9 (2) identify categories of software the agency 10 could prioritize for conversion to more cost-effective 11 software licenses, including enterprise licenses, as 12 the software entitlements, contracts, and other 13 agreements or arrangements come up for renewal or 14 renegotiation; 15 (3) provide an estimate of the costs to move to-16 ward more enterprise, open-source, or other licenses 17 that do not restrict the use of software by the agen-18 cy, and the projected cost savings, efficiency meas-19 ures, and improvements to agency performance 20 throughout the total software lifecycle; 21 (4) identify potential mitigations to minimize 22 software license restrictions on how such software 23 can be deployed, accessed, or used, including any 24 mitigations that would minimize any such restric-25 VerDate Sep 11 2014 23:17 Apr 02, 2025 Jkt 059200 PO 00000 Frm 00012 Fmt 6652 Sfmt 6201 E:\BILLS\H2417.IH H2417 kjohnson on DSK7ZCZBW3PROD with $$_JOB 13 •HR 2417 IH tions on desktop or server hardware, through a cloud 1 service provider, or on data ownership or access; 2 (5) ensure that the purchase by the agency of 3 any software is based on publicly available criteria 4 that are not unduly structured to favor any specific 5 vendor, unless prohibited by law (including regula-6 tion); 7 (6) include any estimates for additional re-8 sources, services, or support the agency may need to 9 implement the plan; 10 (7) provide information on the prevalence of 11 software products in use across multiple software 12 categories; and 13 (8) include any additional information, data, or 14 analysis determined necessary by the Chief Informa-15 tion Officer, or other equivalent official, of the agen-16 cy. 17 (c) S UPPORT.—The Chief Information Officer, or 18 other equivalent official, of an agency may request support 19 from the Director and the Administrator for any analysis 20 or developmental needs to create the plan of the agency. 21 (d) A GENCYSUBMISSION.— 22 (1) I N GENERAL.—Not later than 1 year after 23 the date on which the head of an agency submits the 24 comprehensive assessment pursuant to section 3(d), 25 VerDate Sep 11 2014 23:17 Apr 02, 2025 Jkt 059200 PO 00000 Frm 00013 Fmt 6652 Sfmt 6201 E:\BILLS\H2417.IH H2417 kjohnson on DSK7ZCZBW3PROD with $$_JOB 14 •HR 2417 IH the head of the agency shall submit to the Director, 1 the Committee on Homeland Security and Govern-2 mental Affairs of the Senate, and the Committee on 3 Oversight and Accountability of the House of Rep-4 resentatives the plan of the agency. 5 (2) I NTELLIGENCE COMMUNITY .—Not later 6 than 1 year after the date on which the head of an 7 element of the intelligence community submits the 8 summary assessment pursuant to section 3(f)(4), the 9 head of the element shall separately submit the plan 10 of the element to the Director, the Select Committee 11 on Intelligence of the Senate, and the Permanent 12 Select Committee on Intelligence of the House of 13 Representatives. 14 (e) C ONSULTATION AND COORDINATION.—The Di-15 rector— 16 (1) in coordination with the Administrator, the 17 Chief Information Officers Council, the Chief Acqui-18 sition Officers Council, the Chief Data Officers 19 Council, the Chief Financial Officers Council, and 20 other government and industry representatives iden-21 tified by the Director, shall establish processes, 22 using existing reporting functions, as appropriate, to 23 identify, define, and harmonize common definitions, 24 terms and conditions, standardized requirements, 25 VerDate Sep 11 2014 23:17 Apr 02, 2025 Jkt 059200 PO 00000 Frm 00014 Fmt 6652 Sfmt 6201 E:\BILLS\H2417.IH H2417 kjohnson on DSK7ZCZBW3PROD with $$_JOB 15 •HR 2417 IH and other information and criteria to support agency 1 heads in developing and implementing the plans re-2 quired by this section; and 3 (2) in coordination with the Administrator, and 4 not later than 2 years after the date of enactment 5 of this Act, submit to the Committee on Homeland 6 Security and Governmental Affairs of the Senate 7 and the Committee on Oversight and Accountability 8 of the House of Representatives a report detailing 9 recommendations to leverage Government procure-10 ment policies and practices with respect to software 11 acquired by, developed by, deployed within, or in use 12 at 1 or more agencies to— 13 (A) increase the interoperability of soft-14 ware licenses, including software entitlements 15 and software built by Government agencies; 16 (B) consolidate licenses, as appropriate; 17 (C) reduce costs; 18 (D) improve performance; and 19 (E) modernize the management and over-20 sight of software entitlements and software 21 built by Government agencies, as identified 22 through an analysis of agency plans. 23 VerDate Sep 11 2014 23:17 Apr 02, 2025 Jkt 059200 PO 00000 Frm 00015 Fmt 6652 Sfmt 6201 E:\BILLS\H2417.IH H2417 kjohnson on DSK7ZCZBW3PROD with $$_JOB 16 •HR 2417 IH SEC. 5. GAO REPORT. 1 Not later than 3 years after the date of enactment 2 of this Act, the Comptroller General of the United States 3 shall submit to the Committee on Homeland Security and 4 Governmental Affairs of the Senate and the Committee 5 on Oversight and Accountability of the House of Rep-6 resentatives a report on— 7 (1) Government-wide trends in agency software 8 asset management practices; 9 (2) comparisons of software asset management 10 practices among agencies; 11 (3) the establishment by the Director of proc-12 esses to identify, define, and harmonize common 13 definitions, terms, and conditions under section 4(e); 14 (4) agency compliance with the restrictions on 15 contract support under section 3(b); and 16 (5) other analyses of and findings regarding the 17 plans of agencies, as determined by the Comptroller 18 General of the United States. 19 SEC. 6. NO ADDITIONAL FUNDS. 20 No additional funds are authorized to be appro-21 priated for the purpose of carrying out this Act. 22 Æ VerDate Sep 11 2014 23:17 Apr 02, 2025 Jkt 059200 PO 00000 Frm 00016 Fmt 6652 Sfmt 6301 E:\BILLS\H2417.IH H2417 kjohnson on DSK7ZCZBW3PROD with $$_JOB