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Barry McVay's FEDERAL CONTRACTS DISPATCH

DATE: December 12, 2000

FROM: Barry McVay, CPCM

SUBJECT: Office of Management and Budget Circular A-130, Management of Federal Information Resources

SOURCE: Federal Register, December 12, 2000, Vol. 65, No. 239, page 77677

AGENCIES: Office of Management and Budget (OMB), Executive Office of the President

ACTION: Revision

SYNOPSIS: OMB is revising Circular No. A-130 to implement provisions of the Clinger-Cohen Act (Division E of Public Law 104-106, the Fiscal Year 1996 Defense Authorization Act), and to follow more closely OMB Circular A-11, Preparation and Submission of Budget Estimates, which addresses the acquisition, use, and disposal of information technology (IT) as a capital asset by the federal government. Also, this revision incorporates the contents of several OMB memoranda that addressed Clinger-Cohen Act implementation.

EDITOR'S NOTE: OMB Circulars A-130 and A-11 are available at the OMB site http://www.whitehouse.gov/OMB/circulars/index.html.

For more on the proposed revision to OMB Circular A-130, see the April 14, 2000, FEDERAL CONTRACTS DISPATCH "Office of Management and Budget Circular A-130, Management of Federal Information Resources."

EFFECTIVE DATE: November 28, 2000.

FOR FURTHER INFORMATION CONTACT: Tony Frater, Information Policy and Technology Branch, Office of Information and Regulatory Affairs, ffice of Management and Budget, Room 10236, New Executive Office Building, Washington, DC 20503, 202-395-3785.

SUPPLEMENTAL INFORMATION: The Clinger-Cohen Act grants OMB various authorities for overseeing the acquisition, use, and disposal of IT by the federal government. It supplements the information resources management (IRM) policies contained in the Paperwork Reduction Act (PRA) by establishing a comprehensive approach to improving the acquisition and management of agency information systems through work process redesign, and by linking planning and investment strategies to the budget process.

The Clinger-Cohen Act establishes clear accountability for IRM activities by creating agency Chief Information Officers (CIOs) with the authority and management responsibility necessary to advise agency heads and oversee the design, development, and implementation of information systems. In addition, the Clinger-Cohen Act directs agencies to work together towards the common goal of using IT to improve the productivity, effectiveness, and efficiency of federal programs, and to promote an interoperable, secure, and shared government-wide information resources infrastructure.

To provide agencies with additional guidance on implementing the Clinger-Cohen Act and to reflect legislative and other changes that had occurred since February 20, 1996, the last time OMB Circular A-130 had been revised, OMB published a proposed revision on April 13, 2000, and received comments from 34 organizations and individuals. Most comments proposed changes in clarity and detail, and OMB incorporated those that did not conflict with the substance of the proposed change. However, several organizations suggested changes to parts of OMB Circular A-130 that were not within the scope of the proposed revision, and OMB states in the introduction to the final revision that it intends to review OMB Circular A-130 for other revisions in 2001.

The following is a summary of the major changes being made to OMB Circular A-130, with changes made in response to comments contained in brackets ("[ ]"):

• Section 3, Authorities: This section cites the Clinger-Cohen Act; Executive Order 13011, Federal Information Technology, dated July 6, 1996; and Public Law 104-231, the Electronic Freedom of Information Act (EFOIA), which reinforces the PRA requirement that agencies maintain an inventory of their major information systems and an information locator service.
  
  
• Section 5, Background: A discussion of the basic principles and goals of the Clinger-Cohen Act is added.
  
  
• Section 6, Definitions: The terms "capital planning and investment control process", "Chief Information Officers Council", "executive agency", and "Information Technology Resources Board" are added. Also, "information technology" is amended to reflect definition changes made by the Clinger-Cohen Act, and the term "national security system" cites the limitations placed on OMB Circular A-130's applicability to such systems by the Clinger-Cohen Act's Section 5141, Applicability to National Security Systems.
  
  
• Section 7, Basic Considerations and Assumptions: Subsection (r) is added to reflect the relevant goals and purposes of the Clinger-Cohen Act and Executive Order 13011: "The Chief Information Officers Council and the Information Technology Resources Board will help in the development and operation of interagency and interoperable shared information resources to support the performance of government missions."
  
  
• Section 8b, How Will Agencies Manage Information Systems and Information Technology?: This section is substantially revised. New Section 8b(1) (which combines old Sections 8b(1), 8b(2), and 8b(3)) better integrates requirements under the Clinger-Cohen Act, the Government Performance and Results Act (Public Law 103-62), and OMB Circular A-11. It stresses the need to redesign work processes before making significant investments in automation, and the need to evaluate commercial off-the-shelf software as part of the capital planning process. [In addition, OMB has revised this section to describe in much greater detail the different objectives of the IT Capital Plan and the IRM Strategic Plans: the IT Capital Plan is operational in nature while the IRM Strategic Plan is a long range planning document. Also, to elaborate on how the Enterprise Architecture (EA) and the capital planning and investment control (CPIC) process should work together, OMB has moved the information in the proposed Appendix II regarding the EA to Section 8b and expanded it to how the various EA documents link between mission needs, information sources and content, and IT. Finally, OMB Memorandum M-00-07, Incorporating and Funding Security in Information Systems Investments, issued February 28, 2000, is incorporated.]
  
  
• Section 9a, All Federal Agencies: This is modified to add a new Subsection 9a(3) to reflect the CIO position created by the Clinger-Cohen Act and to describe the position's responsibilities. Also, new Subsection 9a(15) encourages agencies to "permit, to the extent practicable, the use of one agency's contract by another agency or the award of multi-agency contracts, provided the action is within the scope of the contract and consistent with OMB guidance."
  
  
• Section 9b, Department of State: It is revised to reflect the responsibilities described in the Clinger-Cohen Act and Executive Order 13011: liaison, consultation, and negotiation with foreign governments and intergovernmental organizations on matters related to information resources management.
  
  
• Section 9c, Department of Commerce: Paragraph (1) requires agencies and the CIO Council to make recommendations, as appropriate, to the Secretary of Commerce regarding Federal Information Processing Standards (FIPS) development.
  
• Section 9e, General Services Administration (GSA): It is revised to reflect that the Clinger-Cohen Act removed from GSA the responsibility for IT policy and oversight functions. Nevertheless, GSA will continue to provide services, training, and assistance as requested by the agencies and OMB.
  
  
• Section 9h, Office of Management and Budget (OMB): It is revised to reflect OMB's responsibilities as assigned by the Clinger-Cohen Act, and to state that OMB will provide guidance on the implementation of the Clinger-Cohen Act and on the management of information resources to the executive agencies, to the CIO Council, and to the Information Technology Resources Board. Also, it directs OMB to "designate one or more heads of executive agencies as executive agent for government-wide acquisitions of information technology."
  
  
• Appendix II, which had been reserved, now consists of OMB Memorandum M-00-10, Implementation of the Government Paperwork Elimination Act, April 25, 2000, which was published in the Federal Register on May 2, 2000 (page 25508). It requires agencies to provide, by October 21, 2003, (1) the option of electronic maintenance, submission, or disclosure of information, when practicable as a substitute for paper; and (2) use and acceptance of electronic signatures, when practicable. (EDITOR'S NOTE: On June 30, 2000, President Clinton signed into law the Electronic Signatures in Global and National Commerce Act (Public Law 106-229), which makes electronic signatures as valid as "normal" signatures for most documents, including contracts. For more on the Electronic Signatures in Global and National Commerce Act (Public Law 106-229), see the July 3, 2000, FEDERAL CONTRACTS DISPATCH "Electronic Signatures in Global and National Commerce Act 'Signed' Into Law.") [This material was proposed to be included in Section 8(a), but was moved to Appendix II.]
  
  
• Appendix IV, Analysis of Key Sections: It is amended to incorporate OMB Memorandum M-98-09, issued in April 1998, which provides guidance on implementing the EFOIA's handbook requirement.

FOR FURTHER INFORMATION CONTACT: Barry McVay at 703-451-5953 or by e-mail to BarryMcVay@FedGovContracts.com.

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