What You Should Know About MGT Act Funding
To fund your modernization initiatives, your federal agency may apply to borrow from a central fund of 500 million taxpayer dollars, available through 2019. The savings realized from your modernization initiatives can be used to pay back the investment.
To receive funding from the central fund, you must create a business case outlining the goals of your modernization project. This must be approved by your agency CIO and the Technology Modernization Board.
The Board has approved a Statement of Principles that will guide how it manages the central fund, including when deciding which modernization projects receive funding:
- Serve the best interest of the American public.
- Abide by an open, transparent and fair process for evaluating project proposals.
- Develop an agile project implementation process that supports the mission of the fund.
- Promote the health, sustainability and utility of the fund.
- Operate according to board rules and procedures.
After paying back the investment to the central fund, your agency can also leverage its own IT working capital fund, which may be self-funded through savings from existing programs for up to three years. You can use these funds to make further modernizations, migrate appropriate workloads to the cloud, implement cybersecurity improvements and execute digital transformation initiatives, as approved by your CIO.
But that’s just the start of it. To help you secure the MGT Act funding you need to develop and support your mainframe modernization project, we’ve compiled key documents and information that explain the MGT Act in detail:
- MGT Act (the bill)
- Report to the President on Federal IT Modernization
- MGT Guidance from the Office of the Federal CIO
Prepare for the MGT Act
One approach to preparing for the MGT act is to:
- Prioritize funds for cost-saving measures
- Inventory your assets and determine what can be updated or eliminated
- Identify and prioritize potential modernization projects based on citizen demands/needs
- Reprogram funds from the savings initiatives for IT modernization projects
- Choose your initial modernization project
- Develop a business case that aligns with Centers of Excellence (CoE) best practices
- Apply to the Technology Modernization Board for funding
Align with a Center of Excellence
There are five Centers of Excellence (CoE) associated with the MGT Act that agencies should look to as examples of how the Federal Government expects funds to be leveraged for modernization:
- Cloud Adoption
- IT Infrastructure Optimization (e.g., your mainframe)
- Customer Service Experience
- Service Delivery Analytics
- Contact Centers
Agencies that use mainframes should work towards aligning with the IT Infrastructure Optimization CoE, as it will enable them to focus on:
- Agency architecture assessments and end-state planning
- Application inventory
- Functions intersecting IT infrastructure
- Developing frameworks to target end state of systems environment
- IT security reviews
- Test systems and processes
Compuware can help you create your business case with this CoE focus to present to your CIO and the Technology Modernization Board to help your mainframe modernization project receive the funding it needs.
Convince Your CIO and the Technology Modernization Board
When considering where to allocate MGT Act funds for modernization, the CIO of your agency and the Technology Modernization Board will take into consideration:
- Strength of business case
- Technical design
- Commercial off-the-shelf products and services
- Procurement strategy
- Adequate use of rapid, iterative software development practices
- Program management
The Technology Modernization Board will consist of seven voting members from the Federal Government and will evaluate submissions from agencies to use the central fund. Proposals to the Board will be evaluated on the following criteria:
- Addressing the greatest security, privacy and operational risks
- Having the greatest government-wide impact
- Having a high probability of success
For more information, contact Claire Bailey, Compuware Director, Federal, State and Local Solutions at [email protected].