The Speaker of the
Department of Agriculture
Submitted for your consideration are requests to transfer $240 million from the Information Technology Systems and Related Expenses Account for Year 2000 (Y2K) compliance to 15 Federal agencies. This is the third release of contingent emergency funding for Y2K from funds appropriated in P.L. 105-277, the Omnibus Consolidated and Emergency Supplemental Appropriations Act, 1999. On November 6, 1998, you allocated $891 million, and on December 8, 1998, you allocated $338 million. In addition, $30 million in emergency funding was released to the Legislative and Judicial Branches when you signed P.L. 105-277.
The contingent emergency funding provided in P.L. 105-277 -- $1.1 billion for defense-related activities and $2.25 billion for non-defense activities -- has enabled Federal agencies to respond effectively to unanticipated Y2K-related issues. With this release of funds, a total of $752 million remains in the contingent emergency reserve for non-defense activities. I will be forwarding a proposal related to the defense funding shortly. I am encouraged by the strong, steady progress that Federal agencies are making. OMB continues its oversight and is working to ensure that agencies have sufficient FY 1999 resources to address Y2K and that flexible contingent emergency funding remains available to address emerging needs.
The requested transfers will continue to support a range of activities to ensure that important computer systems will operate smoothly through the Year 2000 and beyond. Federal agencies would use this funding for various Y2K compliance activities, including remediation for information technology systems, testing to ensure that systems are Y2K compliant, replacement of embedded computer chips, creation and verification of continuity of operations and contingency plans, and cooperative activities with non-Federal entities in support of the Year 2000 Conversion Council. The enclosed requests for transfers are for non-defense agencies; therefore, the funds would be transferred from the Information Technology Systems and Related Expenses account established in P.L. 105-277.
Pursuant to the requirements of Public Law 105-277, OMB will prepare and submit reports to Congress on the proposed allocation and plan for each affected agency to achieve Y2K compliance for technology information systems before funds can be released to the agency. The report for agencies represented in this third release of Y2K contingent emergency funds will be transmitted to the congressional committees specified in P.L. 105-277 concurrent with this request for release of the funds. In addition, OMB has directed each affected agency to provide detailed justification materials in support of its plan and allocation to the relevant appropriations subcommittees. OMB will continue to monitor agency requirements and will address additional funding needs as they emerge.
I recommend that you designate the amounts listed on the enclosure as emergency requirements in accordance with section 251(b)(2)(A) of the Balanced Budget and Emergency Deficit Control Act of 1985, as amended. No further congressional action will be required. Pursuant to P.L. 105-277, funds will be made available to agencies 15 days after this designation is forwarded to Congress.
I have carefully reviewed these proposals and am satisfied that
they are necessary at this time. Therefore, I join the heads of
the affected Departments and agencies in recommending that you make
the requested funds available by signing the enclosed letter to
the Speaker of the House of Representatives.
APPROPRIATIONS: AMOUNTS PREVIOUSLY APPROPRIATED
YEAR 2000 (Y2K) CONVERSION
C.W. Bill Young
Dear Mr. Chairman:
In accordance with provisions of Public Law 105-277, the Omnibus Consolidated and Emergency Supplemental Appropriations Act, 1999, I am transmitting a proposed allocation and plan for Year 2000 (Y2K) compliance activities of the following agencies:
of Agriculture [revision]
As noted, for 12 of the agencies listed above, the materials transmitted revise the allocations and plans for these agencies that were submitted on November 6, 1998 and/or December 9, 1998.
In monitoring Federal agency progress towards Y2K compliance, OMB has directed agencies to estimate the total FY 1999 resources necessary for Y2K compliance and related expenses. Further, OMB and the agencies have worked together to determine whether resource requirements associated with Y2K can be accommodated within appropriated levels, or whether contingent emergency funds should be allocated.
For the agencies listed above, the allocation of contingent emergency funds required at this time is displayed on the enclosed table. The table indicates which agencies will be receiving a second and/or third allocation of emergency funding -- those allocations and plans that are being revised -- to demonstrate how their resource requirements have been addressed over time. In addition, all of the agencies listed above have been directed to provide detailed justification materials for these requirements to the committees specified in Public Law 105-277, as well as to the relevant appropriations subcommittees, concurrent with the transmittal of this allocation and plan. These materials detail agency funding requirements associated with systems remediation, and discuss how that funding will assist an agency in achieving Y2K compliance. In addition, funding for activities in support of the President's Council on Year 2000 Conversion is discussed. OMB will continue to monitor agency requirements and will address additional funding needs as they emerge.
OMB's strategy to ensure agency Y2K compliance is predicated on agency accountability. We have systematically monitored agency progress through agency goals for: compliance of mission critical systems, progress on the status of mission critical systems, status of mission critical systems being repaired, and agency Y2K cost estimates.
These performance measures have proved useful in ensuring agency accountability without diverting vital resources from Y2K compliance activities to reporting requirements. Provided with this package is OMB's November 1998 Y2K Quarterly Report to the House and Senate Appropriations Committees, which includes an assessment of these performance measures and the Government's overall progress. In assessing agency progress towards compliance, OMB has focused on the four measures described above. The report also details other initiatives -- such as our work with the States on data exchanges -- that are part of the Administration's overall plan for achieving Y2K compliance.
For most of the agencies listed in this transmittal, the following constitutes the agency plan as required by Public Law 105-277:
For several small, independent agencies included in this transmittal -- the Commodity Futures Trading Commission, the Federal Labor Relations Authority, and the National Gallery of Art -- the justification materials provided serve as the agency plan. OMB has been monitoring the progress of these small agencies, and will ask them to report back on their status.
Thank you again for your cooperation on this important issue.
Identical Letter Sent To:
C.W. Bill Young