MEMORANDUM FOR THE
HEADS OF EXECUTIVE DEPARTMENTS AND ESTABLISHMENTS
of the Information Technology Management Reform Act
This memorandum provides
preliminary guidance to Federal agencies on the implementation
of the Information Technology Management Reform Act of 1996 (ITMRA),
Pub. L. 104106, which President Clinton signed into law on February
10, 1996. ITMRA repeals Section 111 of the Federal Property and
Administrative Services Act of 1949 (popularly referred to as
the "Brooks Act") and establishes a new statutory scheme for information
technology management and acquisition within the Executive branch.
The Act's provisions take effect on August 8, 1996, 180 days after
enactment. This memorandum addresses two areas -- the designation
of the chief information officer (CIO) and the role of the General
Services Board of Contract Appeals (GSBCA) in information technology
In addition to this
memorandum, OMB Circulars will be revised to provide further guidance
to agencies. OMB will seek agency and public comment of draft
revisions to Circular A130, "Management of Federal Information
Resources," so that these revisions will be final by early August
1996. In addition, OMB Circular A-l l, "Preparation and Submission
of Budget Estimates," will be revised as part of the annual update
of that Circular.
Chief Information Officers
Section 5125(a) of
ITMRA amends Section 3506 of the Paperwork Reduction Act of 1996
(PRA), Pub. L. 104-13, 44 U.S.C. Chapter 35, by establishing the
position of Chief Information Officer in place of the designated
senior of official for information resources management previously
established by the PRA. This provision is intended to establish
clear accountability for agency information resources management
activities, provide for greater coordination among the agency's
information activities, and ensure greater visibility of such
activities within each agency.
One of the most important
responsibilities of the CIO is to promote effective agency operations
by implementing budget-linked capital planning for, and performance-based
management of, information technology systems. Under the ITMRA,
agencies are to determine, before making an investment in a new
information system to support a particular function, whether the
function should be performed or supported by the private sector
or another agency. Agencies should also, where appropriate, reorganize
and revise the way a function is performed to improve its effectiveness
before making significant IT investments to support that work.
To ensure that these strategic issues are addressed by the agency,
the Act makes the CIO explicitly responsible for promoting improvements
in agency work processes.
The CIO is also charged
with facilitating the development, implementation, and maintenance
of a sound and integrated information technology architecture
for the agency, and promoting the effective design and operation
of all major information resources management processes. The duties
of the CIO are set forth at section S 125(c) of the ITMRA.
and Organizational Placement of the Chief information Officer.
Each agency head
is expected to select and position a CIO to ensure the effective
acquisition and use of IT and to carry out the agency's information
resources management responsibilities. While the organizational
placement of the CIO is to be determined by the agency head, the
person selected should report to the agency head directly, and
not through another official. The CIO must actively participate,
with the agency head and other senior agency officials, in planning
and budgeting deliberations, support of work process redesign
in areas being considered for IT investment, and the development
of information technology program performance measures. Consistent
with the ITMRA for the agencies listed in the Attachment, information
resources management shall be the primary duty of the CIO.
The agency head may
designate as the CIO any individual who has the professional qualifications
and experience required for the duties of the position. The position
may be filled by recruiting and appointing someone from outside
the agency, by the current senior information resources management
official, or by someone holding another position in the agency.
Agencies may also
establish CIOs for major subcomponents or bureaus, and may also
appoint deputy CIOs that have additional experience in work process
redesign, design and management of information technology architectures,
and data and telecommunications management.
to Chief Financial Officer (CFO).
The head of the agency
is responsible for defining the operating relationship between
the CIO and CFO functions and ensuring coordination in the implementation
of the ITMRA, the PRA, the Chief Financial Officers Act, and the
Government Performance and Results Act. The CFO continues to be
responsible for developing, implementing, and maintaining the
financial management systems as provided for in the CFO Act. In
agencies where financial systems represent a substantial part
of the agency's information systems portfolio, it may be appropriate
for the same person to serve as both CIO and CFO, so long as the
mix of the CFO/CIO duties and qualifications is consistent with
the intent of ITMRA. Finally, Section S 126 of the 11 ITMRA encourages
the CIO and CFO to work together under the direction of the agency
head to ensure that the agency's information systems provide reliable,
consistent, and timely program performance information.
By August 8, 1996,
the head of each agency shall designate its Chief Information
Officer, as required by ITMRA and the PRA.
Each agency listed
in the Attachment should consult with the OMB Deputy Director
for Management prior to establishing and filling the position,
and provide the following information:
the CIO's name,
background and experience.
chart which identifies the CIO's position relative to the
head of the agency, and other senior agency officials, and
the agency staff and associated resources assigned, or to
be assigned, to the CIO for the performance of functions assigned
by the PRA and ITMRA.
of the CIO's authority and responsibilities.
All agencies should
provide the name, title, and phone number for the CIO to OMB once
the position is filled. This information should be mailed to Room
10236, New Executive Office Building, Washington, D.C. 20503.
This information should be updated as changes occur.
of the General Services Board Of Contract Appeals (GSBCA)
The repeal of the
Brooks Act revokes the GSBCA's authority to hear and decide bid
protests. The GSBCA will continue to hear and decide protests
received up to and including August 7, 1996. The GSBCA will not
accept any protest received on or after August 8, 1996.
or suggestions regarding the role of the Chief Information Officer
may be directed to the Information Policy and Technology Branch
in OMB's Office of Information and Regulatory Affairs (202) 395-3785.
Inquiries regarding the role of the GSBCA should be directed to
OMB's Office of Federal Procurement Policy (202) 395-6803.
In agencies listed in the Attachment, if the position is placed
in the Senior Executive Service (career or non-career), the
agency head may set the pay of the incumbent at any rate of
the Senior Executive Service in accordance with 5 U.S.C. S383.
Department of Commerce
Department of Defense
Department of the Army
Department of the Navy
Department of the Air Force
Department of Education
Department of Energy
Department of Health and Human Services
Department of Housing and Urban Development
Department of Interior
Department of Justice
Department of Labor
Department of State
Department of Transportation
Department of Treasury
Department of Veterans Affairs
Environmental Protection Agency
National Aeronautics and Space Administration
Social Security Administration
Agency for International Development
Federal Emergency Management Agency
General Services Administration
National Science Foundation
Nuclear Regulatory Commission
Office of Personnel Management
Small Business Administration