Federal Legislation pertaining to Capital Planning

1. Clinger-Cohen Act (formerly the Information Technology Management Reform Act).
   CCA requires federal agencies to focus more on the results achieved through IT investments while streamlining the federal IT procurement process. Specifically this Act introduces much more rigor and structure into how agencies approach the selection and management of IT projects. Among other things, the head of each agency is required to implement a process for maximizing the value and assessing and managing the risks of the agency's IT acquisitions.
2. Chief Financial Officers Act (CFO Act). The CFO Act focuses on the need to significantly improve the financial management and reporting practices of the federal Government.
   
   Specific sections of the CFO Act related to IT investments include:

   CFO Act 31 USC 501 note - Purpose statements: (1) provide for improvement, in each agency of the federal government, of systems of accounting, financial management, and internal controls to assure the issuance of reliable financial information and to deter fraud, waste, and abuse of government resources; and (2) provide for the production of complete, reliable, timely, and consistent financial information for use by the Executive Branch and the Congress in the financing, management, and evaluation of federal programs.

   CFO Act 31 USC 902(a)(3) - The agency Chief Financial Officer shall develop and maintain an integrated agency accounting and financial management system, including financial reporting and internal controls, which provides for (1) complete, reliable, consistent, and timely information which is prepared on a uniform basis and which is responsive to the financial information needs of agency management; (2) the development and reporting of cost information; (3) the integration of accounting and budgeting information; and (4) the systematic measurement of performance.

1. Government Performance and Results Act (GPRA). GPRA requires agencies to define missions, set goals, measure performance, and report on their accomplishments. As such, an agency's IT investments should directly support the accomplishment of these goals. The specific section of GPRA related to IT investments include:

   GPRA 5 USC 306 - By 9/30/97, agency heads are to submit to OMB and the Congress a strategic plan for their program activities, including a comprehensive mission statement covering major agency functions and operations.

   GPRA 31 USC 1115 - Starting with FY 1999, agencies are to prepare annual performance plans covering each program activity set forth in the budget. The plans are to establish performance goals in objective, quantifiable, and measurable form and performance indicators to be used in measuring relevant outputs, service levels, and outcomes of each program activity.

   GPRA 31 USC 1116 - No later than March 31, 2000, and annually thereafter, agency heads are to prepare and submit to the President and the Congress program performance reports setting forth the performance indicators and comparing actual program performance against the performance goals.

2. Paperwork Reduction Act of 1995 (PRA)
   
   PRA requires agencies to use information resources to improve the efficiency and effectiveness of their operations and fulfillment of their missions. As such, it is the "umbrella" IRM legislation for the federal government with other statutes elaborating on the goals within PRA. Specific sections of PRA related to IT investments include:

   PRA 3502(7) - Definition of IRM: the process of managing information resources to accomplish agency missions and improve agency performance.

   PRA 3506(a)(4) - Agency program officials, in consultation with the Chief Information Officer and Chief Financial Officer (or comparable official), are to define program information needs and develop strategies, systems, and capabilities to meet those needs.

   PRA 3506(b)(2) - Each agency is to develop and maintain a strategic IRM plan on how IRM activities help accomplish agency missions (the plan is to include plans for reducing information burdens imposed on the public, for enhancing public access to and dissemination of government information, and for meeting the information technology needs of the government).

   PRA 3506(b)(3)(A) - each agency is to maintain an ongoing process to ensure that IRM operations and decisions are integrated with organizational planning, budget, financial management, human resources management, and program decisions.

   PRA 3506(b)(3)(C) - agencies are to establish goals for IRM improving the productivity, efficiency, and effectiveness of agency operations and methods for measuring progress in achieving the goals.

   PRA 3506(h)(5) - Agencies are to maximize the value and assess and manage the risks of major information system initiatives through a process that (a) integrates budget, financial, and program management decisions and (b) is used to select, control, and evaluate the results of the initiatives.

   PRA 3506(h)(5)(B) - Agencies are to maximize the value of major information systems initiatives and evaluate the results of such initiatives.

   PRA 3514(a)(2)(D) - the OMB Director is to provide an annual report to the Congress on (among other things) the extent agencies have improved program performance and the accomplishment of agency missions through IRM.

3. Federal Acquisition Streamlining Act (FASA). The Federal Acquisition Streamlining Act of 1994 (FASA) was signed into law on October 13, 1994 by President Clinton. Pursuant to FASA an interim rule for simplified acquisition procedures and FACNET was issued July 3,1995.This interim rule replaced regulation provisions pertaining to "small purchases." The rule was effective immediately.

http://www.ocio.usda.gov/cpic/fed_legislation.html
Last Modified: 05/17/2007