OMB CIRCULAR A-109, MAJOR SYSTEMS ACQUISITIONS

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP78M02660R000800020015-3
• Release Decision: RIPPUB
• Original Classification: K
• Document Page Count: 43
• Document Creation Date: December 16, 2016
• Document Release Date: October 18, 2004
• Sequence Number: 15
• Publication Date: October 5, 1976
• Content Type: MF

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5 OCT 1976
ORANI}UM FOR: Comptroller
Chief, Procurement Management Staff, OL
Director of Logistics
SUBJECT OMB Circular A-109, Major Systems Acquisitions
1. By memorandum of 11 June 1976, which was forwarded
through the Deputy Director for Administration, the Director
of Logistics requested that your Office accept responsibility
for implementation of the subject Office of Management and
Budget (OMB) Circular.
2, This memorandum is written to forward a 28 September
1976 memorandum from 0MB which advises of progress by various
agencies toward meeting objectives of the subject directive,
along with progress reports on agencies and a list of acquisi-
tion executives.
3. The memorandum referred to in paragraph 2 is directly
related to the subject Circular and therefore is referred to
your Office for appropriate action.
25X1
Atts
cc: DD/A, w/atts
OLC, w/atts
OL 6 4953
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 ECUTIVE OFFICE OF THE PRESIDENT
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OFFICE AAGE
OFFICE OF FEDERAL
PROCUREMENT POLICY
MEMORANDUM FOR THE ATTACHED ADDRESSES
SEP 2 8 1976
SUBJECT: OMB Circular No. A-109, Major Systems Acquisitions
On August 26, 1976, the Subcommittee on Federal Spending
Practices, Efficiency and Open Government of the Senate
Committee on Government Operations held hearings concerning
the implementation of A-109. These hearings were very
helpful in focusing attention to the many issues involved in
the development of the agencies' time-phased action plans.
As we have discussed in the past, the following items may be
useful as a check for the adequacy of your time-phased
action plan to be submitted by October 5, 1976:
? Designation of acquisition executive.
? Definition of major systems including cost
threshold(s) and other criteria for major systems.
? Schedule for identification and definition of mission
areas and the process for gaining agency head
approval of mission needs.
? Identification and scheduling of agency implementing
policy directives, regulations, and guidelines.
6 Scheduling of component implementing policy
directives, regulations, and guidelines.
? Procedures for assignment of program managers and
development of charters.
? Procedures for developing acquisition strategies.
? Policy regarding agency cost estimating capability.
O Date policies will be operative; e.g., when will all
agency major systems begin with the first key
decision point - approval of mission need.
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? Training of agency personnel in new policies,
procedures and improvements in skills that are
required; for example, program management.
To further assist your planning efforts, I have attached a
current list of acquisition executives, a summary of
Agencies' Implementation Planning submitted by- Mr. Witt
during Senator Chiles' hearings, and a number of sample
drafts of time-phased action plans and policies developed by
some agencies. OFPP pamphlet if1 relating to the application
of A-109, which also may assist in your planning efforts,
has been sent to you under separate cover.
We would appreciate receiving copies of your directives,
circulars, procedures or other issuances, which will be used
to implement the Circular prior to their promulgation.
In the event you have further questions relating to your
time-phased action plan, please contact Mr. William Hunter
of my staff, who can be reached on 395-3367 or me on
395-4677.
Your continued cooperation is truly appreciated.
Sincerely,
/?' " " -/r Gam;
Fred H. Dietrich
Assistant Administrator
for Systems Acquisition
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Director, Office of Operations
Department of Agriculture
Washington, D.C. 20250
STOP 209
Chief, Procurement Management Staff
Office of Logistics
Central Intelligence Agency
Washington, D.C. 20505
STOP 64
Mr. Donald J. Biglin
Director, Bureau of Management
Services
Civil Service Commission
1900 E Street, N.W., Room 5554
Washington, D.C. 20415
STOP 227
Mr. George F. Merlino
Deputy Director for Program
Development
Office of Administrative Services
and Procurement, Room 6859
Department of Commerce
Washington, D.C. 20230
STOP 206
Mr. Joseph G. Berke
Chief, Procurement Programs
Experimental Technology Incentives
National Bureau of Standards
Administration Bldg., Room A-738
Washington, D.C. 20234
STOP 3
Mr. Dale R. Babione
Deputy Assistant Secretary
of Defense (Procurement)
OASD (I9L), The Pentagon, Room 3E760
Washington, D.C. 20301
STOP 103
Mr. Michael J. Tashjian
Director of Procurement
Energy Research and Development
Administration
Washington, D.C. 20545
STOP 4
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 Mr. Will~ppxovffid RdaRtease 2004/10/27: CIA-RDP78M02660R000800020015-3
Director, Contracts Management
Division (PM 214)
Environmental Protection Agency
401 M Street, S.W., Room 2003
Washington, D.C. 20460
STOP 460
Mr. William B. Ferguson
Director of Procurement
Federal Energy Administration
The Federal Building, Room 8435
Washington, D.C. 20461
STOP 461
Mr. Terry Chambers
Deputy Administrator
General Services Administration
t~7ashington, D.C. 20405
STOP 29
Mr. Paul A. Stone
Deputy Assistant Secretary for Grants
and Procurement Management
Department of Health, Education,
and Welfare
Room 513-D, South Portal Building
Washington, D.C. 20201
STOP 367
Mr. Thomas R. Whittleton
Director, Office of Procurement
and Contracts
Department of Housing and Urban
Development
451-7th St., S.W., Room B-133
Washington, D.C. 20410
STOP 98
Mr. James E. Johnson
Assistant Director for Procurement
Office of Management Services
Department of the Interior
Washington, D.C. 20240
STOP 43
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 Mr. Irvine Jaffe
Depu.y 4pl vfglf.@rg,@ ee8 3Qp4ilAWr:; JA-RDP78M02660R000800020015-3
Civil Division, Room 3607
Department of Justice
Washington, D.C. 20530
STOP 219
Mr. Walter C. Terry
Director, Office of Grants, Procurement
S ADP Management Policy
Department of Labor, Room S-1325
byWashington, D.C. 20210
STOP 205
Mr. Stuart J. Evans
Assistant Administrator for
Procurement
National Aeronautics and Space
Administration
Washington, D.C. 20546
STOP 85
Mr. Eldon Taylor.
Assistant Director for Administration
National Science Foundation
1800 G Street, N'-W., Room 525
Washington, D.C. 20550
STOP 19
Mr. Edward L. Halman
Director, Division. of Contracts
Nuclear Regulatory Commission
Washington, D.C. 20555
STOP 555
Mr. Thomas M. Constant
Assistant to the Governor
Canal Zone Government
Panama Canal Company
425-13th Street, N.W., Room 312
Washington, D.C. 20004
Dr. George Lenches
Director, Office of Planning
and Development
Renegotiation Board
2000 M Street, N.W.
Washington, D.C. 20446
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 Mr. Har9;~rd,ed VPC&2Ee 204/10/27: CIA-RDP78M02660R000800020015-3
Associate Administrator for Procurement
Small Business Administration
1441 L Street, N.W.
Washington, D.C. 20416
STOP 71
Mr. Thaddeus J. Figura
Chief, Supply & Transportation Division
Department of State
Room 532, SA--6
Washington, D.C. 20520
STOP 27
Mr. Clarence G. Snyder
Chief, Policy Branch
Office of Contract Management
Agency for International Development
Department of State
Washington, D.C. 20523
STOP 100
Mr. Barnett M. Anceleitz
Director, Installations & Logistics
Department of Transportation
Washington, D.C. 20590
STOP 330
Mr. Thomas P. O'Malley
Assistant Director
Office of Administrative Programs
(Procurement & Personal Property Mgt)
Department of the Treasury
1331 G Street, N.W., Room 900
c/o Main Treasury Mail Room
15th & Pennsylvania Avenue, N.W.
Washington, D.C. 20220
STOP 223
Mr. James T. Mcliwee
Chief, Contract & Procurement Division
Office of Administration
United States Information Agency
Washington, D.C. 20547
STOP 121
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 'Mr. Clyde `C. Cook
Dire'ctoApP Y f?r ReI!egs(t,004/10/27: CIA-RDP78MO266OR000800020015-3
Department of Medicine and Surgery
Veterans Administration
Washington, D.C. 20420
STOP 73
Mr. Daniel M. Steckler
Office of the Comptroller
Federal Power, Commission
Washington, D.C. 20426
STOP 22
Mr. Frank Battle
Management and Finance Office
Department of Justice
Washington, D.C. 20530
STOP 219
Mr. Alfred L. Esposito
Defense Science Board
ODDR&E, The Pentagon, Room 3D1040
Washington, D.G. 20301
STOP 103
Mr. Steven Dola (DAEN--CS?-SA)
Office of the Assistant Secretary
of the Army (Civil Rights)
Forrestal Bldg., Room 4G-026
Washington, D.C. 20314
STOP 391
Mr. Harry P. Barton
Director, Office of Supply Services
Smithsonian Institution
Amtrak Building, Room 3120
955 L'Enfant Plaza, S.W.
Washington, D.C. 20024
Mr. Eugene A. Keller
Assistant for Procurement Policy
Procurement and Supply Department
United States Postal Service, Pm. 1512
Washington, D.C. 20260
Mr. James L. Williams, Jr.
Director, Division of Purchasing
Tennessee Valley Authority
Chattanooga, Tennessee 37401
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 EXECUTIVE OFFICE OF '[ iE PRESIDENT
WASHINGTON, D.C. 20503
OFFICE OF FEDERAL
August 26, 1976
SUMMARY OF AGENCIES' IMPLEMENTATION PLANNING
OMB Circular A-109, Major System Acquisitions
The following is a brief summary from executive agencies of
current status and planned actions leading to their submis-
sion of time-phased implementation action plans by October 5,
1976.
A riculture, Dept. of
-- Identification of need is left to policy staff,
including the Secretary, Under Secretary, Assistant
Secretary, and Director, Agriculture Economics.
-- MBA dollar threshold has been established at $10
million or more.
-- Schedule of actions in implementing A-109 is
as follows:
a.
Draft chapter to be included in
Administrative Regulation.
Completed
b.
Request comments on proposed chapter
insertion.
Completed
c.
Make necessary modifications and obtain
approval by acquisition executive.
Aug. 15
d.
Publish plan.
Sep. 1
e.
Submit plan to OFPP.
Sep. 1
Commerce, Deptt of
Schedule of actions for supporting the
implemsntati.on of the Circular:
a. Complete review of draft Department
Adimministr'at.ve Orders 208-?1, and 208-3
by OFPP and Department.
Sep. 3
b. Publication and issuance of the Orders
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c. Formulation of draft time-phased
action plan. Oct. 1
d. Submission of time-phased action
plan per A-109. Oct. 5
Defense,De t. of
- The analysis of A-109 and previous direction given
by Mr. Clements will be incorporated in a top
document.
- 5000.1 and 5000.2 will be restructured to include
all A-109 items and will be supported by a
family of documents.
- The time-phased action plan submitted
to OFPP. Aug. 26
- Finalization of 5000.1. Dec. 1
- Finalization of 5000.2. Jan. 15,1977
- Finalization of all documents
implementing A-109. March, 1977
Health, Education, & Welfare, Dept. of
- Issuance of Department policy directives,
regulations, and guidelines:
a. Identification of proposed acquisition
to be treated as major system acquisitions.
b. Major system acquisition planning.
c. Major system acquisition strategy tailoring.
d. Major system acquisition program managers.
e. Major system acquisition key decision points.
- Designation of the acquisition executive.
- These actions will be projected in a_--top document outlining the proposed implement.a-___,J_
tion plan in terms of the functions to be _
served by them. Oct. 5
... Target date for completion of these actions -- Apr. 5, 1977
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Housing and Urban Development, Dept. of
- Task force has been organized, to compare
present directives to A-109 -- develop plan. Completed
- Submission of time-phased action plan. Oct. 5
- Anticipate an amendment to the HUD
Procurement Regulations be published. Oct. 30
Interior, Dept. of the
- Schedule of actions in implementing A-109
is as follows:
a. Complete preliminary draft of
regulations. Sep. 1
b. Apointing acquisition executive. Oct. 5
c. Publish implementing regulations. Oct. 5
d. Submit time-phased action plan. Oct. 5
e. Begin triennial review of FY 1979
budget process. Dec. 5
Labor, Dept. of
- Tentative dollars of MSA threshold is set at
$500,000 or more.
- Formation of draft policy. Completed
- Office of the Assistant Secretary for
Administration and Management approval Completed
- Department approval Sep. 7
- Submission of time-phased action plan. Oct. 5
State, Dent. o f
- Draft submitted to OMB.
-- Departmental approval.
- Submittal of approved time--phased action
plan.
Completed
Sep. 17
Sep. 24
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Transportation, Dept. of
- A task force has been set up.
- The Assistant Secretary for Administration has
been tentatively designated the acquisition
executive.
- The Office of Installations and Logistics
within the Department of Transportation is
in the process of re-writing the DOT Order
on major systems acquisitions to conform
to OMB Circular A-109. The following
tentative schedule applies to this process:
a.. Initial draft completed and submitted
to a committee of procurement, budget
and program representatives for
informal review.
b. Office of installations and Logistics
incorporates informal review comments
into a final draft.
c. Final draft completed and distributed
throughout the Department for formal
comment.
d. Implementation of revised DOT Order
on major systems acquisition.
Completed
Completed
Sep. 1
Oct. 1
e. Submission of time-phased plan to OFPP. Oct. 5
Treasury, Dept_ of the
- Major system thresholds:
a. ADP system over $10 million.
b. Construction projects over $10 million.
- A--109 has been closely reviewed by budget,
program analysis.
- Schedule of actions in implementing A-109
is as follows:
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a. Draft of Departmental directive's to
be circulated to appropriate top
management officials.
b. Comments received, reviewed and, as
needed, incorporated in revised
directive.
C. Directive issued throughout Treasury. Sep. 15
d. Submission of time-phased plan to OFPP. Oct. 5
Ene.r9VResearch and Develooment Administration
-- Task force set up and two subgroups formed:
a. One group represents planning,
budgeting, analysis and other
functional offices. They are
developing guidance in support
of paragraphs 10, 13 and 14
of A-109.
b. Other group represents fossil and
nuclear energy and other technical
groups.
- The object of subgroups is to submit a plan'
to the task force. Completed
- Task force will develop time-phased action
plan by mid-September and final plan to be
submitted to OFPP.
Environmental Protection.Agency
- Formation of task force to establish
policy. Completed
-- Draft of time-phased action plan. Oct. 1
- Time-phased action plan submitted to OFPP. Oct. 5
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General Services Administration
- Establish office responsible for
preparation of A-109 plan and
its implementation.
- Establish GSA system acquisition
committee to participate in
developing plan.
Completed
Sep. 8
- Draft the GSA A-109 plan. Sep. 24
- Complete final form of plan and
submit to OFPP.
National Aeronautics and S ace Administration
- A committee was organized.
- Currently comparing A-109 to existing
documents and a matrix has been
developed.
- NASA intends to develop a top document
by extracting from existing procedures.
- The production phase of the acquisition
process is not a problem at NASA.
- The time--phased action plan will be
submitted.
- Provisions of subordinate NASA issuances
referenced and involved in a top policy
document planned to be completed.
National Science Foundation
- Draft implementing circular to be
completed. Aug. 31
- Comments will be received. Sep. 10
- Time-phased action plan to be submitted. Oct. 5
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Veterans Administration
The Assistant Administrator for Planning
and Evaluation has been designated the
acquisition executive.
- Schedule of actions supporting the
implementation of the Circular:
a. All directives relevant to major
system acquisitions and proposed
changes in implementing A-109 will
be submitted. by the committee to
the acquisition executive.
Aug. 16
b. Each member of the commit-Cee is
to submit a draft of goals and changes
to implement the time-phased plan. Aug. 30
c. Committee to commence drafting an
agency time-phased plan. Sep. 6
d. Final plan to be submitted to OFPP. Oct. 5
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Plan to Implement OMB Circular A-109
I. General
This DoD Plan is in response to OMB Circular A-109, 5 April 1976
and is directed to all DoD activities for implementation. The
Defense Acquisition Executive is the OSD official responsible for
implementation.
IL Purpose
The Plan outlines the key actions scheduled to complete the imple-
mentation of OMB Circular A-109, dealing with major system
acquisition. The Plan does not identify the many internal actions
required of the DoD Components to implement the procedural changes
that will result from the policy announced by the Circular..
III. General Ap roach
A revision to DoD Directive 5000. 1 "Acquisition of Major Defense
Systems," will be issued to establish the fundamental policy applic-
able to the acquisition of major systems. In addition a DoD
Instruction 5000.2., ".Defense System Acquisition Process," will be
issued to supplement DoD Directive 5000. 1 with further policies and
procedural details covering the system acquisition decision process
and the management interface involving the SecDef and the DoD
Component Heads. DoD Directive 5000. 1. and DoD Instruction 50Q0.2
will implement the policy contained in OMB Circular A-109 and form
the basis for related actions by the OSD Staff, the JCS and the DoD
Components to issue the necessary policy and procedural documents
to implement the new policy throughout the operating activities.
Policy execution will be monitored and individual systems programs
will be examined for conformance to policy.
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The following key actions are scheduled to complete the implemen-
tation of the OMB Circular.
A. Designation of Defense Acquisition Executive 17 May 1976
Issue charter by DoD Directive 1 Sept 1976
The Defense Acquisition Executive will have
the responsibility to implement OMB Circular.
A-109, to maintain liaison with OFPP on all policy
matters involving major system acquisition and
to work with the DoD Component Heads in the
implementation of changes to the acquisition
process.
B. SecDef approval of a plan to structure the front
end of the acquisition process to start new pro-
grams on approval of mission needs.
The plan to structure the front end established
the four key program decisions to be exercised
by the SecDef, and the initiation of new system
acquisition programs upon SecDef approval of
mission needs and approval to investigate
alternative design concepts to meet the mission
7tceds.
C. SecDef approval of a plan to decentralize selected
system program reviews to DoD Component
Heads.
Places increased management responsibility
with the DoD Component Heads but does not
alter the decision-making role of the Sec Def.
D. DoD Directive 5000.1, "Acquisition of Major -
Defense Systems.
A. revision of DoD Directive 5000. 1 will be
issued to implement the fundamental policy
contained.in OMB Circular A-109. The
.Directive will state broad DoD policy for
major system acquisitions and will form the
? 17 May 1976
17 May 1976
1 Dec 1976
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and the DoD Components to implement the
changes throughout the DoD operating
activities. This Directive will be the
principal policy document dealing with major
system acquisition in DoD and will be the
responsibility of the Defense Acquisition
Executive in OSD.
E. DoD Instruction 5000. 2, "Defense System
Acquisition Process."
DoD Instruction 5000. 2 will be issued to
supplement DoD Directive 5000. 1. This
Instruction will be a revision of DoD Instruc-
tion 5000. 2, "The DCP and DSARC Process,"
to cover the acquisition process in detail
starting with the SecDef decision approving
a mission need and the subsequent decisions
and activity through the complete system
acquisition cycle. The Defense Acquisition
Executive is responsible for this Instruction
in OSD.
F. DoD Policy Documents to be Revised -- The
following documents relate to functional activities
involved in the system acquisition process and will
be revised as necessary to conform to the policy
and procedural changes contained in DoD Directive
5000. 1 and DoD Instruction 5000. 2 as issued.
15 Jan 1977
1.
DoD Directive 5000. 3, "Test and Evaluation"
15 Jan 1977
2.
DoD Directive 5000. 4, "Cost Analysis
Improvement Group"
15 Jan 1977
3.
DoD Directive 7000.1, "Resource Manage-
ment Systems of the DoD"
1 Mar 1977
4.
DoD Instruction 7045. 7, "Plan.ning, Program-
ming and Budgeting System"
1 Mar 1.977
5.
DoD Instruction 7110.1 (DoD Manual 7110. 1 M),
"Guidance for the Preparation of Budget
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 C'/
Apportionment Request and Related Support
Materials"
p`p 't a egeleA!n j%q4L437uLgA-PiOpap1~19 ?OaR gO800020015-3
1 Mar 1977
6. DoD Directive 4105. 62, "Source Selection" 15 Jan 1977
CJ r %'~adf ~G': r1~ G1 c~ el 4- A'-~. e-, 21,J /Jar
1 Mar 1977
i C U h /0 47
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ts,
refs: (a) Office of :,Management and Budget. Circular A-109,
"Major System, Acquisition," April 5, 1976
(b) DoD Directive 5000.1, "Acquisition of Major Defense
Systemstl
,
(c) DoD Directive 5000. 19, "Policies for the Management
and Control of Information requirements," :?farch 12,
1976..
I. GENERAL-:-
Pursuant to the huthority vested in the Secretary of Defense
and-as directed by the provisions of Paragraph SA of
reference (a), the. Defense Acquisition 7Executive-sba11-_have__
the- responsibilities;" functions;--and-- authorities- as -
re-_--scribed herein.:
Dep n en' of Deg ense Dal ective
SUBJECT Defense Acquisition Executive
II. RESPONSIBILITIES
A. The Defense Acquisition Executive is the principal
advi.sor_and-staff:assistaat to the Secretary of
Defense=for- the. :aacquisit?on:of def dnse_systems:_and.;:~::
equipment;--
'the ?Def~:nse-Acdirisitibn__"
Executive-during- any-given-time period will= be -so-=---
designated -by the=Secretary-of. Defense:_,_-_
III FUJNCTIONS
Under the direction; authority;-and control of the:Secretary
of*Defense, :and "in coordin:ation_with:the _functi_onal-:a'.
Assistant Secretaries.of Defense; t.:e Defense Acquisition.-.:_
-Executive :shat] per- or-W-the'_fol-lowicg .fanctio~s: y_:
A. -integrate and--unify the mana-;event process; policies; ---
and.procedur.es for defense system acquisition._._
B. Monitor the' im-A.enentatien of t:he -policies -:end practices
in the Circular ..-1.0?, fe e ! (a) , and in the Sy step
ace nisi rio,: t I- I I_c.~