TO THE HEADS OF EXECUTIVE
DEPARTMENTS AND ESTABLISHMENTS
This Transmittal Memorandum
revises Circular No. A-127, "Financial Management Systems",
dated July 23, 1993, by revising Sections 8d and 9b. It also will add
new Sections 9a(3) and 9c. These changes are being made to reflect
recommendations from the Chief Financial Officers (CFO) Council. These
recommendations change the process for acquiring software to meet core
financial system requirements by eliminating the restriction to only
acquire the software and related services from the FMSS Schedule, and
to provide for software testing that is independent of the procurement
process. These updates will become effective on the dates specified
in the attachment. A complete revision of Circular A-127 is forthcoming
in the near future which will incorporate these changes in the text
of the Circular.
All questions or inquiries
concerning OMB Circular A-127 should be addressed to the Office of
Federal Financial Management, Federal Financial Systems Branch, telephone
Jacob J. Lew Director
The changes to Circular
A-127 are as follows.
Section 8d of the current
Circular should be deleted in its entirety and replaced with the
8d(1)Use of "Off-the-Shelf"
Software. Agencies replacing software to meet core financial
system requirements are required to use the GSA FMSS Multiple Award
Schedule until its expiration on September 30, 1999. As of October
1, 1999 agencies replacing software to meet core financial system
requirements are no longer required to use the GSA FMSS Multiple
Award Schedule; they must use "off-the-shelf" software
that has been tested and certified through the JFMIP software certification
process as meeting JFMIP Core Financial Management System Requirements.
Agencies may purchase this software using the strategy and procurement
vehicle they believe will best enable them to meet their needs in
a timely and effective manner following the competition requirements
associated with the procurement vehicle being used to conduct the
In addition, agencies
will notify JFMIP that a core financial management software procurement
is planned - - preferably prior to, or in the early phases of, acquisition
planning. JFMIP will electronically post a public message to permit
interested certified system vendors to market agencies. The sole
purpose of this message is to facilitate agency market research.
This message is not intended to, and shall not, serve as an invitation
for offerors to submit bids, proposals, or quotes.
OMB policy pertaining
to using "off-the-shelf" software is contained in OMB Circular
A-130 and must be followed when replacing financial management systems.
8d(2) Software Certification
Testing. "Off-the-shelf" software will be tested
to ensure that it meets core financial system requirements as defined
in the Core Financial System Requirements document published
by JFMIP. JFMIP will coordinate the testing process and issue software
certifications. Information on the details of the certification
testing process and its results will be available to any interested
Federal agency for any certified software package.
A new section 9a(3)
is being added to the current Circular as follows:
9a.(3) Notify JFMIP
on Plans to Acquire Core Financial System Software. Agencies
shall notify JFMIP on plans to acquire software supporting core
financial system functions.
Section 9b of
the current Circular is revised to read as follows:
9b. GSA Responsibilities. GSA is responsible for continuing to support
existing contracts under the FMSS Schedule until their completion. GSA also will
make procurement vehicles available to agencies for acquiring software which
has been certified according to the processes in Section8d(2).
A new Section 9c is
being added and will read as follows:
9c. JFMIP Responsibilities.
JFMIP will establish processes for testing "off-the-shelf" software
supporting core financial system requirements which include:
administering the certification test.
when a software package successfully completes the certification
parties with information on the core financial system requirements
and their related testing scenarios.
parties with details on the results of the certification
tests for certified software packages.
posting a public
notice on planned core financial system procurements.