“The federal agencies managing a central fund for loaning money to other agencies to upgrade aging IT—a fund that just received $1 billion from Congress as part of the second COVID-19 stimulus package—released an outline Tuesday updating priorities and making fundamental changes to how the fund works…”
“The $1 billion came with a mandate to focus on pandemic and cybersecurity remediation needs, and suggestions that the agencies that manage the fund—the Office of Management and Budget and General Services Administration—should waive the repayment structure for those projects.
On Tuesday, OMB and GSA released new details on the fund’s structure going forward and the kinds of projects that will be prioritized.
The most significant change will be to the repayment model, which will go from a 100% requirement for all projects to a three-tier approach. From the TMF website:
- Full repayment: The TMF has historically operated under a full repayment model, and will continue to do so for projects that yield financial savings realized by the proposing agency. The board expects this to apply to single-agency investments with direct cost savings, such as replacing a legacy system with one that can be operated and maintained more efficiently.
- Partial repayment: The board anticipates a range of proposals meriting partial repayment, depending on the positive impact to the public and agency operations, alignment with overall TMF priorities, and the likelihood that the proposing agency can realize financial savings…
- Minimal repayment: GSA and OMB will consider approving the most flexible payment arrangements for proposals that tackle the most urgent IT cybersecurity and modernization problems facing our government, and where cost savings are not easily realized by the proposing agency…”
“’The updated TMF model provides the clarity and flexibility necessary to encourage federal agencies to prioritize technology modernization while transforming the relationship between the federal government and the public we serve,’ acting GSA Administrator Katy Kale said in the release. ‘It is more aggressive—to meet the urgent technology needs of the federal government today, as well as more ambitious—to anticipate the demands of tomorrow.’…” Read the full article here.
Source: OMB Prioritizes Cyber, COVID Tech For New TMF Payback Model – By Aaron Boyd, My 4, 2021. Nextgov.