SECTION 1. PURPOSE.

This Order prescribes the policy and responsibilities for administering Departmental oversight of major systems projects undertaken by individual operating units and Departmental offices of the Department of Commerce (the "Department").

SECTION 2. SCOPE.

The objectives of this Order are to: provide a vehicle for coordinating implementation of Departmental policies for oversight, review and approval of major systems while avoiding unnecessary burdens on operating units; ensure that major systems are planned, acquired and managed in a manner that will fulfill Departmental mission needs and maximize net benefits to the Government; and establish an institutional mechanism to conduct the major systems oversight process.

SECTION 3. DEFINITIONS.

OMB Circular A-109 defines a major system as that combination of elements that will function together to produce the capabilities required to fulfill a mission need. The elements may include, for example, hardware, equipment, software, construction or other improvements, and real property. Within the Department of Commerce, personnel and support services also may be considered as elements of a major system. For purposes of this order, major systems are those systems that comply with the above definition, and are comprised of a program or programs that:

a. are directed at and critical to fulfilling an agency mission;

b. entail expenditure of significant levels of resources;

c. warrant special management attention; or

d. are designated as major systems by the Chief Financial Officer and Assistant Secretary for Administration.

SECTION 4. POLICY.

The Department shall provide for coordinated oversight, review and approval of planning, acquisition and management of major systems, as defined in Section 3. of this Order, and including professional services contracts that provide support for those systems. These review and approval activities will be required for critical management decisions affecting major systems, including any management action that will have a substantial effect on a major system project or move it to a new stage of development. In addition to the key decision points defined by OMB Circular A-109, critical management decisions could include, but not be limited to:

a. establishment of mission need;

b. completion of acquisition strategy;

c. release of technical specifications; and

d. award of contracts.

SECTION 5. PROCEDURES.

.01 A Major Systems Oversight Council (MSOC) shall be established by the Chief Financial Officer and Assistant Secretary for Administration. The Council will be composed of the:

a. Chief Financial Officer and Assistant Secretary for Administration, who will serve as Chair for the Council;

b. Deputy Assistant Secretary for Administration;

c. Director for Budget, Planning and Organization;

d. Director for Information Resources Management; and

e. Director for Procurement and Administrative Services.

.02 In the event that an MSOC member is unable to attend a Council meeting, an alternate will be designated by the principal. As determined by the Chair, additional participants, such as operating unit project managers, other Directors in the Office of the Chief Financial Officer and Assistant Secretary for Administration (e.g., Human Resources Management), or representatives of the Offices of General Counsel and Inspector General, may be invited to attend an MSOC session and advise the Council.

.03 The Council will be assisted by a support staff consisting of personnel from the Office of the Secretary and staff members assigned on detail from other Department of Commerce operating units.

.04 Major systems projects designated for MSOC review will be determined by the Council based upon recommendations from Council members and the MSOC support staff. The MSOC Chair will establish a schedule for meetings to be convened at intervals sufficient for timely review of major systems projects and issues.

SECTION 6. RESPONSIBILITIES.

.01 The MSOC will advise on and approve key management decisions for major systems and oversee the management of such systems throughout their life-cycle, from mission need determination through acquisition, installation and operation. Critical management decisions must receive MSOC approval in writing prior to implementation by the project sponsor. To fulfill these responsibilities, the MSOC may:

a. Direct the establishment of "Blue Ribbon" advisory panels and acquire the services of technical experts to review major systems;

b. Initiate multi-disciplinary reviews of major systems by Departmental staff;

c. Review and approve establishment of major system project manager and contracting officer positions; and the individuals selected to fill these positions;

d. Advise on the establishment and periodic update of DOC policies for major systems.

.02 The MSOC will work in concert with existing review processes, but not duplicate their functions. Prior to receiving MSOC approval, all proposed system concepts, plans and management actions must comply with other, existing Departmental review and approval processes.

.03 The MSOC will develop and issue comprehensive operational procedures for administering the policies and responsibilities prescribed by this order.

Signed by: Chief Financial Officer and Assistant Secretary for Administration

Office of Primary Interest: Office of Budget, Planning and Organization

Index Changes:

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Departmental Oversight of Major Systems 201-45

Oversight of Major Systems, Departmental 201-45