[Federal Register Volume 64, Number 126 (Thursday, July 1, 1999)]
[Notices]
[Pages 35701-35702]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 99-16763]
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OFFICE OF MANAGEMENT AND BUDGET
[OMB Circular A-127, ``Financial Management Systems.'']
Interim Final Revision of OMB Circular A-127, ``Financial
Management Systems''
AGENCY: Office of Management and Budget, Executive Office of the
President.
SUMMARY: OMB Circular No. A-127 ``Financial Management Systems,'' dated
July 23, 1993, prescribes policies and standards for executive
departments and agencies to follow in developing, operating,
evaluating, and reporting on financial management systems. The Office
of Management and Budget is issuing an interim final revision to
Circular A-127 to incorporate recommendations from the Chief Financial
Officers (CFO) Council. These recommendations change the process for
acquiring software to meet core financial system requirements by
eliminating the restriction to only acquire the software and related
services from the FMSS Schedule, and to provide for software testing
that is independent of the procurement process. These recommendations
will result in the revision of Sections 8d and 9b, as well as adding a
new Section 9a(3) and 9c. These changes are shown below.
DATES: The interim final revision is effective July 1, 1999. Comments
on the interim final revision must be received on or before August 2,
1999.
ADDRESSES: Comments on this interim final revision should be addressed
to Jean Holcombe, Federal Financial Systems Branch, Office of Federal
Financial Management, Office of Management and Budget, 725 17th Street,
N.W., Room 6025, Washington, DC 20503. Comments up to three pages in
length may be submitted via facsimile to 202-395-3952. Electronic mail
comments may be submitted via Internet to [email protected]. Please
include the full body of electronic mail comments in the text and not
as an attachment. Please include the name, title, organization, postal
address, and E-mail address in the text of the message.
FOR FURTHER INFORMATION CONTACT: Jean Holcombe, Federal Financial
Systems Branch, Office of Federal Financial Management, Office of
Management and Budget, (202) 395-3993.
SUPPLEMENTARY INFORMATION: In January, 1997, at the request of Federal
agencies, the Financial Systems Committee (FSC) of the Chief Financial
Officers (CFO) Council formed the Joint Systems Solution Team (JSST) to
assess the core financial management system acquisition process that
was based upon using the FMSS Schedule. At that time, the mandatory GSA
FMSS Schedule acquisition award process was linked directly with the
software certification (testing) process. The team recommended to the
CFO Council an approach that included separation of the testing of
products from the acquisition process in order to: (1) Provide more
information to agencies; (2) provide assistance to vendors to stimulate
product development, and (3) establish a procurement vehicle with
streamlined procedures. Through research and analysis, including on-
site visits and groupware sessions with public and private sector
representatives, the JSST recommended a three-phase program to achieve
the goals of effective certification of the off-the-shelf financial
systems and simplified procurement. The three phases recommended were:
(1) Determinations of requirements, (2) test and qualification of
software, and (3) establishment of a procurement vehicle with
streamlined procedures. The JSST also recommended that a Program
Management Office (PMO) within the Joint Financial Management
Improvement Program (JFMIP) be responsible for the requirements
determination and the testing and qualification phases and that GSA
manage the establishment and administration of the procurement vehicle.
These recommendations were approved by the CFO Council. Circular A-127
is being revised to reflect changes in testing and acquiring that
resulted from these recommendations. In addition, OMB intends to seek
public comment on additional revision to A-127 later this year. These
revisions will include: (1) FFMIA review and reporting requirements;
(2) guidance on procuring financial management systems and services;
and (3) clarifications of current financial management system
requirements.
Jacob J. Lew,
Director.
The changes to Circular A-127 are as follows.
1. Section 8d of the current Circular should be deleted in its
entirety and replaced with the following:
8d(1). Use of ``Off-the-Shelf'' Software. Agencies replacing
software to meet core financial system requirements are required to use
the GSA FMSS Multiple Award Schedule until its expiration on September
30, 1999. As of October 1, 1999 agencies replacing software to meet
core financial system
[[Page 35702]]
requirements are no longer required to use the GSA FMSS Multiple Award
Schedule; they must use ``off-the-shelf'' software that has been tested
and certified through the JFMIP software certification process as
meeting JFMIP Core Financial Management System Requirements. Agencies
may purchase this software using the strategy and procurement vehicle
they believe will best enable them to meet their needs in a timely and
effective manner following the competition requirements associated with
the procurement vehicle being used to conduct the acquisition.
In addition, agencies will notify JFMIP that a core financial
management software procurement is planned-preferably prior to, or in
the early phases of, acquisition planning. JFMIP will electronically
post a public message to permit interested certified system vendors to
market agencies. The sole purpose of this message is to facilitate
agency market research. This message is not intended to, and shall not,
serve as an invitation for offerors to submit bids, proposals, or
quotes.
OMB policy pertaining to using ``off-the-shelf'' software is
contained in OMB Circular A-130 and must be followed when replacing
financial management systems.
8d(2). Software Certification Testing. ``Off-the-shelf'' software
will be tested to ensure that it meets core financial system
requirements as defined in the Core Financial System Requirements
document published by JFMIP. JFMIP will coordinate the testing process
and issue software certifications. Information on the details of the
certification testing process and its results will be available to any
interested Federal agency for any certified software package.
2. A new section 9a(3) is being added to the current Circular as
follows:
9a.(3). Notify JFMIP on Plans to Acquire Core Financial System
Software. Agencies shall notify JFMIP on plans to acquire software
supporting core financial system functions.
3. Section 9b of the current Circular is revised to read as
follows:
9b. GSA Responsibilities. GSA is responsible for continuing to
support existing contracts under the FMSS Schedule until their
completion. GSA also will make procurement vehicles available to
agencies for acquiring software which has been certified according to
the processes in Section8d(2).
4. A new Section 9c is being added and will read as follows:
9c. JFMIP Responsibilities. JFMIP will establish processes for
testing ``off-the-shelf'' software supporting core financial system
requirements which include:
--Developing and administering the certification test.
--Notifying GSA when a software package successfully completes the
certification test.
--Providing interested parties with information on the core financial
system requirements and their related testing scenarios.
--Providing interested parties with details on the results of the
certification tests for certified software packages.
--Posting a public notice on planned core financial system
procurements.
[FR Doc. 99-16763 Filed 6-30-99; 8:45 am]
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