United States Department of Agriculture
Research, Education and Economics

ARS * CSREES * ERS * NASS

Bulletin

Background

This Bulletin specifies the current requirements and procedures to be followed for IT acquisitions under the IT moratorium. On November 12, 1996, the Deputy Secretary placed a moratorium on all significant Information Technology (IT) acquisitions. Initially, the USDA Chief Information Officer (OCIO) defined “significant” as those acquisitions over $250,000. On September 19, 1997, the OCIO reduced this threshold to $25,000 to better manage the Department's efforts to fix Year 2000-related computer problems.


Revised Requirements

On March 14, 2000, the OCIO restored the threshold to $250,000 for all significant IT acquisitions. IT items are defined as automated data processing hardware, telecommunications equipment, software, and support services. Components of a significant IT system include, but are not limited to, personal, laptop, and/or hand held computers, ancillary equipment such as printers and software, telecommunications circuits, switches, routers, network servers, hubs, cabling, and telephone systems. Support services include, but are not limited to, systems development contracts and consulting services. This moratorium applies to orders against all existing contracts and General Services Administration schedules.

The following requirements continue as part of the IT acquisition moratorium:

1. Renewal of existing contracts for maintenance and leases are exempt if the optional enhancements and/or upgrades do not exceed the $250,000.
   
   
2. IT acquisitions for organizations other than USDA agencies are exempt except when funded by USDA grants.

Some special activities require formal waivers:

3. Telecommunications Network Stabilization and Migration Program requirements must be satisfied before the acquisition of telecommunications equipment. This includes entry of planned telecommunications acquisitions into the Forecast, Inventory and Reporting System.
   
   
4. Software or hardware for major systems within the functional areas of the Department's Corporate Administrative and Financial Systems Portfolio. The purpose is to ensure that agency activities are coordinated with the Secretary's Administrative/Financial Executive Group, while enabling agencies to proceed on priorities that are not part of the corporate portfolio. Specifically, the functional areas include:
   

• Accounting/Budget Execution;
  
• Budget Formulation/Salary Projections;
  
• Human Resources;
  
• Procurement (Purchase Card and other acquisitions);
  
• Property (Personal and Real);
  
• Payroll; and
  
• Travel.

New Overall Requirement

Each waiver request must be include an information security plan that identifies system security requirements and the actions that support those requirements.

Application of Policy to REE

Each requisition (AD-700) over $250,000 forwarded to the Contracting Office must have the OCIO's approved waiver attached. Requirements will not be split in order to circumvent the $250,000 threshold, and the spirit of the moratorium will be observed for acquisitions below $250,000.

REE Contracting Officers will not award a contract/order for an IT acquisition costing over $250,000 or if the acquisition does not meet the exceptions previously listed. To support the Office of Management and Budget's requirement of strong enforcement of the moratorium, the OCIO staff will conduct random checks of contract files of USDA agencies.

Obtaining a Waiver

Requests for a waiver from the moratorium must be submitted by the Agency Administrator through the Under Secretary for Research, Education, and Economics to the OCIO. The OCIO will act on waiver requests in writing within 10 working days and expedite waiver requests to meet agency requirements.

The OCIO may request a technical review of waiver by the members of the Information Resources Management Council. For waivers concerning financial and mixed systems, the OCIO consults with the Office of the Chief Financial Officer. For waivers involving administrative systems, the OCIO consults with the Assistant Secretary for Administration.

Specific REE waiver procedures are explained in Exhibit 1. Exhibit 2 is the modified decision memo format for a waiver request.

-/Sd/-

KEITH W. ANDERSON
Director
Information Technology Division

Exhibits
1     REE Waiver Procedures
2     IT Moratorium Waiver Request Memorandum
3     REE Information Resource Managers

Exhibit 1

REE WAIVER PROCEDURES

PROCESS STEPS

USE AGENCY ADMINISTRATOR'S OFFICE LETTERHEAD

INFORMATION TECHNOLOGY MORATORIUM WAIVER REQUEST FOR THE CHIEF INFORMATION OFFICER

THROUGH:    I. Miley Gonzalez
                          Under Secretary
                           Research, Education, and Economics

FROM:            Agency Administrator

MISSION CRITICAL JUSTIFICATION:
Identify the unit and location needing the acquisition
Briefly describe the unit's mission
Briefly explain the system applications
Describe the existing hardware, software or information system To: AFM Council/ACS
State the consequence if the acquisition is not approved

DESCRIPTION OF ACQUISITION:
For Hardware or Software requests include:
    Technical description of hardware and software
    List of cost, quantity, type, and manufacturer name and model, if available
    Statement that items will conform to USDA architecture
For Support Services or Services requests, attach:
    List of technical and business requirements
    Statement of Work, if available

Project Schedule
    Indicate start timeframe, major milestones, and completion date

BUDGET INFORMATION:
Dollar amount of acquisition broken out by Fiscal Year and Information Technology category: hardware, software, & support services.

Indicate that the current Information Technology Investment Portfolio System (I-TIPS) budget information is enclosed. (The agency IRM manager will add this information to the package before forwarding it to the agency administrator.)

SECURITY REQUIREMENTS
Include reference to enclosed Information Security Plan.

AGENCY CONTACT:
Name, telephone number, and e-mail address of agency point of contact

DECISION BY THE CHIEF INFORMATION OFFICER:
Approve:        ________________________________

Disapprove:        ________________________________

Discuss with me:    ________________________________

Date:        _________________________________