BULLETIN NO.: MGR-98-023

TO:    	All Reinsured Companies
     
FROM:  	Kenneth D. Ackerman
     		Administrator

SUBJECT:  Year 2000 Contingency Planning and Certification Reporting


BACKGROUND:

There is growing concern about the ability of government agencies and their private sector
partners to deliver Department of Agriculture (USDA) benefits to their customers in year 2000. 
Year 2000 compliance includes information technology, communications, and other vulnerable
systems and processes such as buildings and facilities.
 
On April 28, 1998, the Risk Management Agency (RMA) issued Informational Memorandum
R&D-98-016, Year 2000 Compliance, which provided certification to companies regarding
RMA's Year 2000 readiness and compliance.  This informational memorandum also discusses
reinsured company responsibility to report company compliance for the Year 2000.  A copy of
R&D-98-016 is provided as Attachment 1.

During the last year RMA has had several discussions at Data Processing Managers meetings
regarding Year 2000 compliance issues.  In addition, this issue has also been discussed at
Technology and Information Processing Committee meetings.  In these discussions, RMA has
communicated certification requirements that will be needed from the companies to verify Y2K
compliance.

The Office of the Chief Information Officer (OCIO), USDA, has published a guide on
contingency planning reporting and certification of system compliance.  Information regarding
this USDA document and its reporting guidelines are provided in Attachment 2.  A certification
form (Attachment 3) is provided by OCIO-USDA and is required for each system involved in
program delivery that must be verified for Y2K compliance.  

It is critical that RMA's delivery partners provide contingency plans for continuity of service and
certification of system compliance through the millennium change.
ACTION:

Reinsured companies are requested to provide a contingency plan for continuity of service to
RMA no later than September 8, 1998.  In addition, reinsured companies are also requested to
provide certification of those systems involved in benefit and program delivery for RMA
programs no later than November 1, 1998.

DISPOSAL:

This bulletin is for the purpose of transmitting/updating information.  The expiration date is
December 31, 1998.


FCIC:KC/R&D:DHoffmann:flm:926-3406:8/04/98:\mgr98xxx.wpd

NOTE:  Denise Hoffmann and Bobbie Waggoner (for Tim Witt) initialed off on document
8/4/98.