Information Technology Management Reform Act Summary

INFORMATION TECHNOLOGY MANAGEMENT REFORM ACT SUMMARY

Note: This summary reflects an interpretation of the Act by the staff of the Center for Information Technology at the National Institutes of Health. It has no standing as an approved document. Its purpose is to provide a short summary of the legislation and the authorities and responsibilities of agency heads.

EXECUTIVE SUMMARY

This Act repeals Section 111 of the Federal Property and Administrative Services Act of 1949 (40 U.S.C. 759), which was often referred to as the Brooks Act, and gave the General Services Administration exclusive authority to acquire computer resources for all of the Federal government. It assigns overall responsibility for the acquisition and management of information technology (IT), previously referred to as Federal Information Processing (FIP) in the Federal government to the Director, Office of Management and Budget (OMB). It also gives the authority to acquire IT resources to the head of each executive agency and makes them responsible for effectively managing their IT investments.

The primary purposes of the bill were to streamline IT acquisitions and emphasize life cycle management of IT as a capital investment. The key acquisition actions were to:

give IT procurement authority back to the agencies,
eliminate the Federal Information Resources Management Regulation (FIRMR) which governed acquisition and management of FIP (computer and telecommunications) resources.
move the General Services Board of Contract Appeals authority to hear bid protests on IT contracts to the General Accounting Office (GAO),
encourage incremental acquisition of IT systems,
encourage the acquisition of commercial off the shelf (COTS) IT products, and
allow the Administrator for Federal Procurement Policy to conduct pilot programs in Federal agencies to test alternative approaches for acquisition of IT resources.

The key IT management actions were to require agency heads to:

design and implement an IT management process for maximizing the value and assessing and managing the risks of the IT acquisitions,
integrate the IT management process with the processes for making budget, financial, and program management decisions,
establish goals for improving the efficiency and effectiveness of agency operations and, as appropriate, the delivery of services to the public through the effective use of IT, and prepare an annual report, to be included in the executive agency's budget submission to Congress, on the progress in achieving the goals,
ensure that performance measurements are prescribed for IT by or to be acquired for, the agency and that they measure how well the IT supports agency programs,
ensure that the information security policies, procedures, and practices of the agency are adequate,
appoint a Chief Information Officer (CIO), and
inventory all computer equipment and maintain an inventory of any such equipment that is excess or surplus property.

Note: The remainder of this document includes definitions and the responsibilities and authorities of the agencies as stated in the ITMRA.

DEFINITIONS

(1) INFORMATION TECHNOLOGY-
    (A) The term `information technology', with respect to an executive agency means
        any equipment or interconnected system or subsystem of equipment, that is
  	used in the automatic acquisition, storage, manipulation, management,
        movement, control, display, switching, interchange, transmission, or reception
        of data or information by the executive agency.  For purposes of the preceding
        sentence, equipment is used by an executive agency if the equipment is used by
        the executive agency directly or is used by a contractor under a contract with
        the executive agency which (i) requires the use of such equipment, or (ii)
	requires the use, to a significant extent, of such equipment in the performance
	of a service or the furnishing of a product.
    (B) The term `information technology' includes computers, ancillary equipment,
 	software, firmware and similar procedures, services (including support
        services), and related resources.
    (C) Notwithstanding subparagraphs (A) and (B), the term `information technology'
	does not include any equipment that is acquired by a Federal contractor
	incidental to a Federal contract.

(2) The term `Director' means the Director of the Office of Management and Budget.

(3) The term executive agency includes the following Departments: Agriculture,
    Commerce, Defense, Education, Energy, Health & Human Services, Housing and
    Urban Development, Interior, Justice, Labor, State, Transportation, Treasury, and
    Veterans Affairs; and the Environmental Protection Agency, National Aeronautics and
    Space Administration, Agency for International Development, Federal Emergency
    Management Agency, General Services Administration, National Science Foundation,
    Nuclear Regulatory Agency, Office of Personnel Management, and Small Business
    Administration.

EXECUTIVE AGENCY RESPONSIBILITIES & AUTHORITIES

The head of each executive agency has responsibilities and authorities in the areas described below.

CAPITAL PLANNING AND INVESTMENT CONTROL

The head of each executive agency shall design and implement in the executive agency a process for maximizing the value and assessing and managing the risks of the information technology acquisitions of the executive agency. The process of an executive agency shall--

 (1) provide for the selection of information technology investments to be made by
     the executive agency, the management of such investments, and the evaluation
     of the results of such investments;
 (2) be integrated with the processes for making budget, financial, and program
     management decisions within the executive agency;
 (3) include minimum criteria to be applied in considering whether to undertake a
     particular investment in information systems, including criteria related to the
     quantitatively expressed projected net, risk-adjusted return on investment and
     specific quantitative and qualitative criteria for comparing and prioritizing
     alternative information systems investment projects;
 (4) provide for identifying information systems investments that would result in
     shared benefits or costs for other Federal agencies or State or local
     governments;
 (5) provide for identifying for a proposed investment quantifiable measurements for
     determining the net benefits and risks of the investment; and
 (6) provide the means for senior management personnel of the executive agency to
     obtain timely information regarding the progress of an investment in an
     information system, including a system of milestones for measuring progress,
     on an independently verifiable basis, in terms of cost, capability of the system to
     meet specified requirements, timeliness, and quality.

PERFORMANCE AND RESULTS-BASED MANAGEMENT

The head of an executive agency shall--
 (1) establish goals for improving the efficiency and effectiveness of agency
     operations and, as appropriate, the delivery of services to the public through the
     effective use of information technology;
 (2) prepare an annual report, to be included in the executive agency's budget
     submission to Congress, on the progress in achieving the goals;
 (3) ensure that performance measurements are prescribed for information
     technology used by or to be acquired for, the executive agency and that the
     performance measurements measure how well the information technology
     supports programs of the executive agency;
 (4) where comparable processes and organizations in the public or private sectors
     exist, quantitatively benchmark agency process performance against such
     processes in terms of cost, speed, productivity, and quality of outputs and
     outcomes;
 (5) analyze the missions of the executive agency and, based on the analysis, revise
     the executive agency's  mission-related processes and administrative processes
     as appropriate before making significant investments in information technology
     that is to be used in support of the performance of those missions; and
 (6) ensure that the information security policies, procedures, and practices of the
     executive agency are adequate.

ACQUISITIONS OF INFORMATION TECHNOLOGY.

The authority of the head of an executive agency to conduct an acquisition of
information technology includes the following authorities⁽¹⁾:
 (1) To acquire information technology as authorized by law.
 (2) To enter into a contract that provides for multiagency acquisitions of
     information technology in accordance with guidance issued by the Director.
 (3) If the Director finds that it would be advantageous for the Federal Government
     to do so, to enter into a multiagency contract for procurement of commercial
     items of information technology that requires each executive agency covered by
     the contract, when procuring such items, either to procure the items under that
     contract or to justify an alternative procurement of the items.

SIGNIFICANT DEVIATIONS.

The head of an executive agency shall identify in the strategic information resources management plan any major information technology acquisition program, or any phase or increment of such a program, that has significantly deviated from the cost, performance, or schedule goals established for the program.

IDENTIFICATION OF EXCESS AND SURPLUS COMPUTER EQUIPMENT

Not later than six months after the date of the enactment of this Act, the head of an executive agency shall inventory all computer equipment under the control of that official. After completion of the inventory, the head of the executive agency shall maintain, in accordance with title II of the Federal Property and Administrative Services Act of 1949 (40 U.S.C. 481 et seq.), an inventory of any such equipment that is excess or surplus property.

APPLICATION OF MORE STRINGENT STANDARDS

The head of a Federal agency may employ standards for the cost-effective security and privacy of sensitive information in a Federal computer system within or under the supervision of that agency that are more stringent than the standards promulgated by the Secretary of Commerce, if such standards contain, at a minimum, the provisions of those applicable standards made compulsory and binding by the Secretary of Commerce.

WAIVER OF STANDARDS

The Secretary of Commerce may delegate to the head of one or more Federal agencies authority to waive such standards to the extent to which the Secretary determines such action to be necessary and desirable to allow for timely and effective implementation of Federal computer system standards. The head of such agency may redelegate such authority only to a Chief Information Officer. Notice of each such waiver and delegation shall be transmitted promptly to Congress and shall be published promptly in the Federal Register.

INTERAGENCY SUPPORT

Funds available for an executive agency for oversight, acquisition, and procurement of information technology may be used by the head of the executive agency to support jointly with other executive agencies the activities of interagency groups that are established to advise the Director in carrying out the Director's responsibilities under this title. The use of such funds for that purpose shall be subject to such requirements and limitations on uses and amounts as the Director may prescribe.

AGENCY CHIEF INFORMATION OFFICERS

The head of an executive agency shall designate an agency Chief Information Officer
(CIO) who shall be responsible for--
 (1) providing advice and other assistance to the head of the executive agency and other
     senior management personnel of the executive agency to ensure that information
     technology is acquired and information resources are managed for the executive
     agency in a manner that implements the policies and procedures of this division of
     the Act, consistent with chapter 35 of title 44, United States Code, and the priorities
     established by the head of the executive agency;
 (2) developing, maintaining, and facilitating the implementation of a sound and
     integrated information technology architecture⁽²⁾ for the executive agency; and
 (3) promoting the effective and efficient design and operation of all major information
     resources management processes for the executive agency, including improvements
     to work processes of the executive agency.

The duties and qualifications of the CIO of  an agency shall--
 (1) have information resources management duties as that official's primary duty;
 (2) monitor the performance of information technology programs of the agency,
     evaluate the performance of those programs on the basis of the applicable
     performance measurements, and advise the head of the agency regarding whether to
     continue, modify, or terminate a program or project; and
 (3) annually, as part of the strategic planning and performance evaluation process 
     (A) assess the requirements established for agency personnel regarding
	 knowledge and skill in information resources management and the adequacy
	 of such requirements for facilitating the achievement of the performance
	 goals  established for information resources management;
     (B) assess the extent  to which the positions and personnel at the executive level
	 of the agency and the positions and personnel at management level of the
	 agency below the executive level meet those requirements;
     (C) in order to rectify any deficiency in meeting those requirements, develop
	 strategies and specific plans for hiring, training, and professional
	 development; and
     (D) report to the head of the agency on the progress made in improving
  	 information resources management capability.

ACCOUNTABILITY

The head of each executive agency, in consultation with the Chief Information Officer and
the Chief Financial Officer of that executive agency (or, in the case of an executive agency
without a Chief Financial Officer, any comparable official), shall establish policies and
procedures that--
 (1) ensure that the accounting, financial, and asset management systems and other
     information systems of the executive agency are designed, developed, maintained,
     and used effectively to provide financial or program performance data for financial
     statements of the executive agency;
 (2) ensure that financial and related program performance data are provided on a
     reliable, consistent, and timely basis to executive agency financial management
     systems; and
 (3) ensure that financial statements support--
     (A) assessments and revisions of mission-related processes and administrative
         processes of the executive agency; and
     (B) performance measurement of the performance in the case of investments
 	 made by the agency in information systems.

FOOTNOTES

1. Notwithstanding any other provision of this or any other law, the Administrator of General Services shall continue to manage the FTS 2000 program, and to coordinate the follow-on to that program, on behalf of and with the advice of the heads of executive agencies.

2. The term `information technology architecture', with respect to an executive agency, means an integrated framework for evolving or maintaining existing information technology and acquiring new information technology to achieve the agency's strategic goals and information resources management goals.

Page last updated: 05/09/2000