United States Department of Agriculture

Research, Education, and Economics

ARS CSREES ERS NASS

Bulletin

Title:	Moratorium on Significant Information Technology

Acquisitions

Number:	01-001

Date:	December 28, 2001	Expiration: Remains in effect until further notification

Originating Office:	Office of the Chief Information Officer, ARS

Distribution:	REE Offices in Headquarters, Areas and Field Locations

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 of USDA 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. 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:

a.	Renewal of existing contracts for maintenance and leases are exempt if the optional enhancements and/or upgrades do not exceed the $250,000.

b.	IT acquisitions for organizations other than USDA agencies are exempt except when funded by USDA grants.

Some special activities require formal waivers regardless of the dollar amount of the acquisition:

c.	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.

d.	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.

General Requirements

Each IT activity or project requiring one or more acquisitions exceeding $250,000 in total cost must obtain an approved waiver from the USDA, OCIO. The waiver request is developed by a designated project manager. A project plan detailing the nature, scope and objectives of the project and/or acquisition must accompany the waiver request, along with any statements of work or other contracts involved in the acquisition. The project and/or acquisition must be reviewed and approved by the Chief Information Officer (CIO) prior to submission to USDA.

Each IT acquisition waiver request must include an information systems security plan that identifies security requirements and considerations for system and/or technology implementation and operation. The information systems security plan must address the level of security warranted for the system and/or technology, and a description of the specific measures that will be taken to ensure system security. Typically, USDA will not approve significant acquisitions for which IT security measures have not been adequately identified and addressed. An exemplary guidance on preparing information systems security plans can be found on http://ftp.afm.ars.usda.gov/.

Each IT acquisition waiver request must also include as an attachment the appropriate IT Investment Portfolio System (I-TIPS) budget information. The agency CIO will add the current I-TIPS record to the package before forwarding it to the agency administrator.

Procurement Processing for Significant IT Acquisitions

Each requisition (AD-700) over $250,000 forwarded to the Contracting Office must have the USDA 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 without an approved waiver from USDA 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 USDA OCIO staff will conduct random checks of contract files of USDA agencies.

No obligation of funds or intergovernmental transfer of funds will be processed for significant IT acquisitions until an approved waiver is obtained from the USDA OCIO.

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 USDA OCIO. The USDA OCIO will typically act on waiver requests in writing within 10 working days and expedite waiver requests to meet agency requirements. To ensure timely waiver approval, waiver requests for end of fiscal year purchases should be submitted no later than mid-August.

The USDA OCIO may conduct a technical review of the waiver request. For waivers concerning financial and mixed systems, the USDA OCIO consults with the Office of the Chief Financial Officer. For waivers involving administrative systems, the USDA OCIO consults with the Assistant Secretary for Administration.

Specific waiver procedures for each REE agency are explained in Exhibit 1. Exhibit 2 provides the format for the waiver request memorandum.

Yann P. King

Office of the Chief Information Officer

Agricultural Research Service

Exhibits

1 REE Waiver Procedures

2 Format for IT Moratorium Waiver Request

3 REE IT Waiver Points of Cont

Exhibit 1 - REE Waiver Procedures

Step Cognizant Office	Action
Project Manager/Requesting Office	Develops draft waiver request, project plan and/or statement of work, and security plan. The requesting office IT manager and security officer need to be involved in the process. Forwards via a cover memo through appropriate levels of approval to the agency CIO for review (see Exhibit 3 for a listing). Uses attached format for waiver request. The agency CIO will prepare the final waiver request on their office letterhead
Agency CIO	Reviews, signs, and forwards the waiver request through the Agency Administrator to the Under Secretary to USDA OCIO
Agency Administrator	Reviews, signs, and forwards the waiver request through the Under Secretary
Under Secretary	Reviews, signs, and forwards the waiver request to the USDA OCIO
USDA OCIO	Decides on the waiver request.

Exhibit 2 - Format for IT Moratorium Waiver Request

INFORMATION TECHNOLOGY MORATORIUM WAIVER REQUEST FOR THE CHIEF INFORMATION OFFICER

THROUGH:	Under Secretary

Research, Education, and Economics

Administrator

(Name of the agency)

FROM:	Chief Information Officer

(Name of the agency)

JUSTIFICATION FOR ACQUISITION:

- Identify the unit and location needing the acquisition

- Briefly describe the unit's mission

- Briefly explain the purpose of and business requirements for the new or modified system or technology

- Describe the existing hardware, software and/or information system, if applicable

- Address the consequences 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

- City(s) and State(s) of office(s) where items will be located

- Statement of conformance with USDA IT Architecture (Describe how the new system and/or technology is consistent with or differs from the Agency and/or USDA IT architecture (available from USDA))

For Support Services or Services requests, attach:

- List of technical and business requirements

- Statement of Work, if available

- Start and completion dates

SECURITY REQUIREMENTS:

Describe security requirements/analysis, approach, and costs, and reference an enclosed Information Security plan.

BUDGET INFORMATION:

Dollar amount of acquisition broken out by Fiscal Year and Information Technology (object class) category: hardware, software, support services, and services.

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

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:	_________________________________

2 Enclosures:

Security Plan for xyz system

ITIPS Record for xyz system

Exhibit 3 - REE IT Waiver Points of Contact, As of March 2001

ARS	Dr. Yann King, Deputy Chief Information Officer

(301) 504-5600

Mail Stop 5143

USDA-ARS-OA-OCIO

5601 Sunnyside Avenue

Beltsville, MD 20705-5119

yking@ars.usda.gov

CSREES	Curtis Clark,

(202) 720-4241

Water Front, Room 4104

800 9th Street, SW

Washington D.C.

USDA-REE-CSREES-PS- CTDE

SOAGRIBG, Rm 3328

P.O. Box 2216

1400 Independence Ave

Washington D.C. 22050-33213

cclark@reeusda.gov

ERS	Michael Ahrens

(202) 694-5070

USDA-REE-ERS-ISD-ITSB

S3129

1800 M Street NW

Washington, DC 20036-5831

mahrens@econ.ag.gov

NASS	Jack Nealon, Chief Information Officer

(202) 720-2984

USDA-REE-NASS-ITD-OD

Room 5847

1400 Independence Ave., SW.

Washington, DC 20250

Jack.nealon@nass.usda.gov