WASHINGTON – May 17, 2017 – Earlier today, the House of Representatives passed the Modernizing Government Technology (MGT) Act (H.R. 2227). Passage of the MGT Act is a critical step toward a more secure and more efficient federal government. The costs of relying on outdated legacy systems are unsustainable. Unfortunately, federal procurement policies create perverse incentives for government agencies to overspend on maintaining such systems even when replacing them with modernized systems would save money in the long-run. As a result, nearly 75 percent of current federal IT spending goes towards maintenance of outdated systems that, in some cases, are more than 50 years old. Perhaps more importantly, the continued reliance on outdated legacy systems also exacerbates the risks associated with cyber-attacks. The MGT Act seeks to remedy these perverse incentives through sensible policies that would encourage agencies to hasten the transition to cloud computing and other IT products and services that will improve the federal government’s cybersecurity posture. BSA commends Representatives Hurd and Hoyer for their work on securing House passage of this important legislation and BSA looks forward to engaging with Senate leadership to ensure swift entry into law.