Memoranda 97-12

April 25, 1997

M-97-12

MEMORANDUM FOR HEADS OF SELECTED AGENCIES

As the first-year anniversary of the Information Technology Management Reform Act (ITMRA) of 1996, P.L. 104-106 approaches, OMB would like to evaluate your agency's implementation of the act. Specifically, OMB would like to ascertain the status of agencies' capital planning processes. In addition, OMB would like to verify the status of compliance with OMB Memorandum 96-20, Implementation of the Information Technology Management Reform Act of 1996, regarding the duties, qualifications, and placement of the chief information officer (CIO). This memorandum requests that you provide to OMB by May 1, 1997, information to assist us in this evaluation. Subsequent to providing these written materials, each agency may be invited to meet with OMB to discuss the agency's ITMRA implementation status.

Background

ITMRA directs the head of each executive agency to design and implement processes for ensuring effective and efficient management and acquisition of information technology (IT), and makes the CIO responsible for providing assistance to the agency head in implementing these IT management and acquisition practices, focusing on:

• selecting, managing and evaluating investments in IT
  
• linking the selection of IT investments to the budget, financial and program management processes of the agency; and
  
• identifying and cooperating in cross-governmental IT investments.

A review of best practices in the private sector and Federal government demonstrates that these processes are critical elements of an agency's success in using IT. These planning and performance based management processes are consistent with the ITMRA, OMB Circular A-11 guidance, and OMB's forthcoming Capital Programming Guide. This guide has been developed with input from many agency staffs and will be available soon for agency use.

Meeting with OMB

After materials are received, OMB may schedule a meeting with the chief operating officer and CIO of your agency to discuss your agency's implementation of ITMRA, to identify improvements for the coming year, and where appropriate, discuss preliminary agency plans for the FY 1999 budget request. In addition, each agency should be able to discuss its strategy with regard to the transition to year 2000. You should also be able to discuss how the IT investments listed in Table IV-3, Program Performance Benefits from Major Information Technology Investments (pp.45-46, The President's Budget, FY 1998) comply with each of the eight investment criteria contained in OMB Memorandum 97-02, Funding Information Systems Investments(October 25, 1996).

Written Materials Requested

In responding to this request, the creation of new materials should be minimized -- existing materials should be referenced and attached to the submission whenever possible. If materials are not readily available, the agency should provide a timetable indicating when the materials will be provided. In instances where an agency has several investment review processes underway -- at the department-wide level as well as at the subcomponent (or bureau level), please provide information on the integration of the review processes, discussing how the multi-level capital planning processes will interact. For the purposes of this memorandum, military departments should coordinate their submissions through the Department of Defense CIO.

By May 1, 1997, each agency listed in the Attachment needs to describe its activities in the following areas:

• Capital Planning Process

• CIO Appointment Process

Provide an updated version of the materials requested under OMB. Specifically provide:

Additional Information:

Inquiries may be directed to Jasmeet Seehra, (202) 395-3123, or Lew Oleinick (202) 395-4638. Please mail all materials to the Information Policy and Technology Branch, Room 10236, NEOB, Washington, DC, 20503.

Attachment