Management of Federal Information Resources; Notice OFFICE OF MANAGEMENT AND BUDGET

Federal RegisterJul 25, 1994

Ask Donna

What actually matters in this document.

Text

SUMMARY: The Office of Management and Budget is revising Circular No.

A-130, Management of Federal Information Resources (hereafter referred

to as Circular A-130). The revision is being done in stages.

Transmittal 1 to Circular A-130, effective June 25, 1993, and

published on July 2, 1993 (58 FR 36068) addressed the Information

Management Policy section of the Circular (Section 8a), as well as

Appendix I, ``Federal Agency Responsibilities for Maintaining Records

About Individuals.'' That issuance dealt primarily with how the Federal

government manages its information holdings, particularly information

exchange with the public.

The revisions contained herein address agencies' internal

management practices for information systems and information technology

(Section 8b). These revisions to the circular: (1) promote agency

investments in information technology that improve service delivery to

the public, reduce burden on the public, and lower the cost of Federal

program administration; (2) encourage agencies to use information

technology as a strategic resource to promote fundamental reevaluation

of federal agency work processes, organizational structures, and ways

of interacting with the public; and (3) recognize the changes in the

technical, legal, and operational environment that agencies face when

managing information technology.

Also, the revisions make minor changes to Section 5,

``Background,'' Section 6, ``Definitions,'' Section 7, ``Basic

Considerations and Assumptions,'' and Appendix IV, ``Analysis of Key

Sections'' of the Circular.

DATE: The revisions to the Circular are effective July 15, 1994.

ELECTRONIC AVAILABILITY: This document is available in electronic form

at no charge from FEDWORLD, a service of the National

Technical Information Service. To access the document using a computer

and a modem, dial (703) 321-8020; from the Internet, telnet to

fedworld.gov (192.239.92.201). From the FEDWORLD menu, enter ``fsw-

house'', which will connect you to the White House Library of files. At

the White House Library, enter ``fka130'', which will list all files in

the system associated with OMB Circular A-130. The revised circular

will be clearly marked with the word ``REVISED.'' These files can also

be accessed using the Internet File Transfer Protocol by connecting to

ftp.fedworld.gov (192.239.92.205). Go to directory ``w-house'' and look

for files beginning with ``A-130.''

FOR FURTHER INFORMATION CONTACT: All questions or inquiries should be

addressed to the Office of Information and Regulatory Affairs, Office

of Management and Budget, Washington, D.C. 20503. Telephone: (202) 395-

3785. Interested parties may obtain copies of the original OMB Circular

A-130 (50 FR 52730) and Transmittal 1 (58 FR 36070) from the Executive

Office of the President, Publications Services, by calling (202) 395-

7732, between 9 am and 4 pm EST.

SUPPLEMENTARY INFORMATION

Background

The Paperwork Reduction Act (44 U.S.C. Chapter 35) assigns the

Director of the Office of Management and Budget (OMB) responsibility

for maintaining a comprehensive set of information resources management

policies, and for promoting the application of information technology

to improve the use and dissemination of information in the operation of

Federal programs. To fulfill these responsibilities, OMB originally

issued Circular No. A-130, Management of Federal Information Resources

(50 FR 52730; December 24, 1985), which provided a policy framework for

Federal information resources management (IRM). Since the Circular was

issued in 1985, Congress has enacted several laws bearing on the

information technology management section of the Circular, especially

amendments to the Paperwork Reduction Act (Pub. L. 99-500).

OMB published four notices relating to this revision of the

Circular. On March 4, 1991, OMB published a notice setting forth plans

for revising all of the Circular (56 FR 9026) and on April 29, 1992,

OMB specifically requested comments on topics for the proposed revision

to Section 8b, Information Systems and Information Technology

Management, of the Circular (57 FR 18296). On July 2, 1993, OMB

published a notice (58 FR 36068) amending most of the Circular; in that

notice, OMB stated its plans for amending other parts of the Circular

(58 FR 36069-70). On September 10, 1993, OMB published a notice (58 FR

47790) requesting comment on the proposed changes to the information

technology portion of the Circular.

Structure of this Revision

This revision substantially reorganizes Section 8b, Information

Systems and Information Technology Management, which was issued in 1985

(50 FR 52736-37, December 24, 1985). For the convenience of readers of

the circular, this issuance fully incorporates and supersedes

Transmittal 1 of Circular A-130, which revised Section 8a and other

related sections dealing with information management (58 FR 36070, July

2, 1993). This revision primarily addresses portions of the Circular

that were not revised in the July 1993 Federal Register notice (i.e.,

Section 8b and Appendix II). However, this issuance also affects

Section 5, Background, Section 6, Definitions, Section 7, Basic

Considerations and Assumptions, and Appendix IV, Analysis of Key

Sections, which were previously revised in the July 1993 notice.

Outline of Circular A-130 [as Revised]:

1. Purpose: [Unchanged; see 58 FR 36070]

2. Rescissions: [Unchanged; see 58 FR 36070]

3. Authorities: [Unchanged; see 58 FR 36070]

4. Applicability and Scope: [Unchanged; see 58 FR 36070]

5. Background: [Changed]

6. Definitions: [Changed]

7. Basic Considerations and Assumptions: [Changed]

8. Policies:

a. Information Management Policy: [Unchanged; see 58 FR 36071-73]

b. Information Systems and Information Technology Management:

[Changed]

9. Assignment of Responsibilities: [Unchanged; see 58 FR 36073-74]

10. Oversight: [Unchanged; see 58 FR 36074]

11. Effectiveness: [Unchanged; see 58 FR 36074]

12. Inquiries: [Unchanged; see 58 FR 36074]

13. Sunset Review Date: [Unchanged; see 58 FR 36075]

Appendix I: Federal Agency Responsibilities for Maintaining Records

about Individuals [Unchanged; see 58 FR 36075-79]

Appendix II: Cost Accounting, Cost Recovery, and Interagency

Sharing of Information Technology Facilities [Deleted]

Appendix III: Security of Federal Automated Information Systems

[Unchanged; see 50 FR 52742-44]

Appendix IV: Analysis of Key Sections [Changed]

Summary of Revisions

Section 5. Background. This revision substitutes the term

``information resources management'' for the term ``information

management'' in the first sentence.

Section 6. Definitions.

This revision to the Circular adds definitions for the terms ``full

costs,'' ``information management,'' ``information resources,''

``information processing service organization,'' ``information systems

life cycle,'' ``major information systems,'' and ``service recipient.''

In addition, the revision amends the definitions for the terms

``information resources management'' and ``information system.'' The

following summarizes the changes to Section 6.

The term ``full costs'' describes the costs agencies should account

for when charging for services provided by an Information Processing

Service Organization (IPSO). This definition is changed from the

September 10, 1993, proposal (58 FR 47793). The new definition has been

made more detailed in response to agency comments.

The term ``information management'' is defined to distinguish the

management of information from the management of information technology

where necessary.

The term ``information resources,'' implied in Circular A-130's

previous definition of ``information resources management'' (Sec. 6i,

58 FR 36070), is defined specifically in order to broaden the

applicability of some policy statements beyond just information

technology or just information.

The term ``information resources management'' is changed from the

July 2, 1993, issuance (Sec. 6i, 58 FR 36070) to emphasize the process

of managing information resources instead of listing management

activities for information resources.

The term ``information system'' is changed from the July 2, 1993,

issuance (Sec. 6j, 58 FR 36070) to stress that information systems are

discrete sets of resources--not just processes.

``Information systems life cycle,'' a term formerly contained in

Appendix IV (50 FR 52749), is moved into Section 6 consistent with the

discussion of information systems management oversight in Section

8b(3).

The new term ``information processing services organization''

(IPSO) replaces the term ``information technology facility'' (Sec. 6l,

58 FR 36071), which is deleted. This final issuance defines the term

differently than proposed (Sec. 6l, 58 FR 47793) in response to agency

comments.

The definition of ``major information system'' is changed slightly

from the proposal (Sec. 6m, 58 FR 47793) for clarity.

``Service recipient'' is a new term used solely in the context of

interagency sharing or cross-servicing of information resources for

purposes of establishing charge-back mechanisms. This term is being

adopted rather than the term ``user'' proposed in the September 10,

1993, notice (Sec. 6t, 58 FR 47793).

Section 7. Basic Considerations and Assumptions.

The September 10, 1993, notice proposed to amend two statements of

basic considerations and assumptions (Sec. 7i and 7l), and to add one

(Sec. 7n) (58 FR 47793). This notice amends Section 7i, as proposed;

adds a new Section 7n, revised from the proposal; amends Section 7l,

with most of the proposed revision being moved to new Sections 7o and

7p; and adds a new Section 7q. These changes address:

(1) The need for agencies to apply information resources to meet

the mission needs of the agency as agreed upon through agency strategic

planning processes,

(2) The need for skills, training, and knowledge to support the

management of information resources as the government moves toward

program delivery to the public that relies more heavily on automation,

and

(3) The need for federal managers with program delivery

responsibilities to assume responsibility for the effective stewardship

of information resources to fulfill mission needs.

(4) One basic consideration and assumption proposed (Section 7l, 58

FR 47793) is split into two separate statements in this issuance to

emphasize:

(a) The need for agencies to recognize the opportunity that the

introduction of information technology presents for organizational

streamlining, work process redesign, and making public interactions

with the Federal government more ``user-friendly'';

(b) The availability of government information in electronic forms

to improve the management and use of this information for the

government and the public; and

(5) The role of information resources in supporting the achievement

of mission goals.

Section 8b. Information Systems and Information Technology

Management Policy.

(1) Evaluation and Performance Measurement.

This section expands on the guidance for evaluating investments in

information technology previously found in Section 43 of OMB Circular

No. A-11, Preparation and Submission of Budget Estimates, and OMB

Circular No. A-94, Guidelines and Discount Rates for Benefit-Cost

Analysis of Federal Programs (57 FR 53519, November 10, 1992).

Additionally, OMB broadens the criteria for evaluating information

systems to include benefits to the public. This policy requires

agencies to prepare a benefit-cost analysis for each information system

as a management oversight tool. The policy also requires agencies to

devise an agency-wide investment strategy, using benefit-cost analyses

for individual systems, that maximizes the return on investment on

information technology across the agency.

This section has been changed from the proposal (Sec. 8b(1), 58 FR

47793-4) to emphasize the role of reengineering in ensuring the

greatest return possible from investments in information technology.

Other changes add operational risk as a criterion for evaluating

individual information systems and require agencies to review benefits

that have accrued from implementing an information system. Finally,

this issuance requires agencies to consider the return on investments

in information technology from an organization-wide perspective. These

changes reflect comments from the General Accounting Office.

(2) Strategic Information Resources Management (IRM) Planning.

This section describes a planning framework that links the

management of information resources to operational and strategic IRM

planning and agency-wide strategic planning. In addition, it expands

the scope of the current planning requirement beyond automatic data

processing equipment to planning for all information resources.

This section reflects changes from the proposal (Sec. 8b(2), 58 FR

47794) to provide more detailed instructions on the content of agency

planning requirements, in response to agency comments. In particular,

some material previously required to be reported to OMB in Section 43

of OMB Circular A-11 are now included in this Circular as required

elements of agency operational information technology plans.

(3) Information Systems Management Oversight.

Section 8b(3) addresses the need for agencies to create management

oversight processes that ensure information systems meet mission

requirements. This represents a slight change in language and emphasis

from the proposal (Sec. 8b(3), 58 FR 47794). The language in this final

issuance stresses a higher level of agency management attention to the

progress of major information systems projects, with less emphasis on

the term ``life cycle management.''

A new policy at Section 8b(3)(g) links the oversight of financial

management systems through Circular No. A-127, Financial Management

Systems (58 FR 41014-19, July 23, 1993), to the management of

information systems more generally.

(4) Use of Information Resources.

A new policy is added at 8b(4) that prompts agencies to address the

need for organization-wide frameworks for using information resources.

This clarifies the proposal concerning information and information

technology architectures contained in the section on IRM planning (Sec.

8b(2)(c), FR 58 47794), in response to agency comments.

The policy statement on the use of Federal Information Processing

Standards (FIPS) is dropped from Section 8b of the Circular (Sec.

8b(14), 50 FR 52737) because it is now covered in Section 8a(1)(h).

This change recognizes that the Computer Security Act of 1987 amended

the Brooks Act to give the Secretary of Commerce the responsibility for

determining the applicability of FIPS (see 40 U.S.C. 759(d)).

This section incorporates guidance formerly found in Appendix II

(50 FR 52741-42) into Section 8b(4). This reflects changes in the

technical environment surrounding the sharing of federal information

processing services that allow for sharing of more than just mainframe

computing resources. Moving this guidance into the policy section of

the Circular gives it more prominence and fosters better integration of

these principles in agencies' information technology management

programs.

Section 8b(4) also collapses and simplifies the guidance found in

proposed Section 8b(5) (58 FR 47794-5). This change reflects agency

comments that the proposal for Section 8b(5) was too burdensome and

detailed to serve its intended purposes cost-effectively.

Sec. 8b(4)(f) adds a policy statement stating the high-level policy

principles of the Computer Security Act of 1987 (U.S.C. 759 note), as

requested in several comments.

(5) Acquisition of Information Technology.

This section applies the economic principle of maximizing return on

investment when acquiring information technology. This supports the

criterion used in 8b(1) to evaluate investments in information

technology for improvements in service delivery to the public. It had

been proposed as part of a different section (Sec. 8b(4), 58 FR 47794),

but now stands as a separate section in this issuance.

4. Appendix II: Cost Accounting, Cost Recovery, and Interagency

Sharing of Information Technology Facilities.

In the July 1993 Federal Register notice (58 FR 36069-70), OMB

stated its intention to revise the guidance in Appendix II, issued in

1985 (50 FR 52741-42). In the September 10, 1993, notice OMB proposed

to delete the guidance in Appendix II and place revised guidance in

Section 8b (58 FR 47793). This notice contains the revised guidance in

Section 8b. Accordingly, policy pertaining to cost accounting, cost

recovery, and interagency sharing of information technology facilities

has been deleted from Appendix II. Appendix II will be reserved for

future policy topics.

5. Appendix IV: Analysis of Key Sections.

OMB has completely revised the portion of this appendix pertaining

to Section 8b, Information Systems and Information Technology

Management (see 50 FR 52748-50) to reflect the changes made in Section

8b. Accordingly, Appendix IV now consists of the discussion concerning

sections 1-8 and 9a(11) of the Circular, contained herein, plus the

discussion of Section 9, Assignment of Responsibilities, and 10,

Oversight, in Appendix IV from the 1985 issuance (50 FR 52750-51),

which remains in effect.

Development of Future Topics

Section 9, Assignment of Responsibilities, and Section 10,

Oversight. As part of the final stage of revising the Circular, OMB

will review the assignment of responsibilities and oversight provisions

to ensure that they reflect changes in Section 8, Policies, of the

Circular.

Appendix III: Security of Federal Automated Information Systems.

OMB did not amend Appendix III (50 FR 52742-44) in the July 1993

Federal Register notice, and is not amending Appendix III in this

notice. OMB intends to issue a proposal that would revise Appendix III

to incorporate requirements of the Computer Security Act of 1987

including requirements for security plans described in OMB Bulletin 90-

08. Those revisions will incorporate changes based on the experience

gained in recent computer security visits to agencies by teams of staff

from OMB, the National Institute of Standards and Technology (NIST),

and the National Security Agency. OMB will also work with NIST to

implement recommendations of the Computer Security and Privacy Advisory

Board (established by the Computer Security Act) regarding better

coordination between this Circular and OMB Circular No. A-123.

Accordingly, Circular A-130 is revised as set forth below.

Sally Katzen,

Administrator, Office of Information and Regulatory Affairs

Circular No. A-130--Revised

Transmittal Memorandum No. 2

To the Heads of Executive Departments and Establishments

SUBJECT: Management of Federal Information Resources

Circular No. A-130 provides uniform government-wide information

resources management policies as required by the Paperwork Reduction

Act of 1980, 44 U.S.C. Chapter 35. This Transmittal Memorandum contains

updated guidance on those portions of the Circular dealing with the

management of information technology. It also contains a revised

Appendix IV, ``Analysis of Key Sections'' and reprints Transmittal No.

1 (58 FR 36070-36086) with a few changes.

Leon E. Panetta,

Director

Circular No. A-130--Revised

Transmittal Memorandum No. 2

To the Heads of Executive Departments and Establishments

SUBJECT: Management of Federal Information Resources

1. Purpose: This Circular establishes policy for the management of

Federal information resources. Procedural and analytic guidelines for

implementing specific aspects of these policies are included as

appendices.

2. Rescissions: This Circular rescinds OMB Circulars No. A-3, A-71,

A-90, A-108, A-114, and A-121, and all Transmittal Memoranda to those

circulars.

3. Authorities: This Circular is issued pursuant to the Paperwork

Reduction Act (PRA), as amended (44 U.S.C. Chapter 35); the Privacy

Act, as amended (5 U.S.C. 552a); the Chief Financial Officers Act (31

U.S.C. 3512 et seq.); the Federal Property and Administrative Services

Act, as amended (40 U.S.C. 759 and 487); the Computer Security Act (40

U.S.C. 759 note); the Budget and Accounting Act, as amended (31 U.S.C.

Chapter 11); Executive Order No. 12046 of March 27, 1978; and Executive

Order No. 12472 of April 3, 1984.

4. Applicability and Scope:

a. The policies in this Circular apply to the information

activities of all agencies of the executive branch of the Federal

government.

b. Information classified for national security purposes should

also be handled in accordance with the appropriate national security

directives. National security emergency preparedness activities should

be conducted in accordance with Executive Order No. 12472.

5. Background: The Paperwork Reduction Act establishes a broad

mandate for agencies to perform their information resources management

activities in an efficient, effective, and economical manner. To assist

agencies in an integrated approach to information resources management,

the Act requires that the Director of OMB develop and implement uniform

and consistent information resources management policies; oversee the

development and promote the use of information management principles,

standards, and guidelines; evaluate agency information resources

management practices in order to determine their adequacy and

efficiency; and determine compliance of such practices with the

policies, principles, standards, and guidelines promulgated by the

Director.

6. Definitions:

a. The term ``agency'' means any executive department, military

department, government corporation, government controlled corporation,

or other establishment in the executive branch of the Federal

government, or any independent regulatory agency. Within the Executive

Office of the President, the term includes only OMB and the Office of

Administration.

b. The term ``audiovisual production'' means a unified

presentation, developed according to a plan or script, containing

visual imagery, sound or both, and used to convey information.

c. The term ``dissemination'' means the government initiated

distribution of information to the public. Not considered dissemination

within the meaning of this Circular is distribution limited to

government employees or agency contractors or grantees, intra- or

inter-agency use or sharing of government information, and responses to

requests for agency records under the Freedom of Information Act (5

U.S.C. 552) or Privacy Act.

d. The term ``full costs,'' when applied to the expenses incurred

in the operation of an Information Processing Services Organization

(IPSO), is comprised of all direct, indirect, general, and

administrative costs incurred in the operation of an IPSO. These costs

include, but are not limited to, personnel, equipment, software,

supplies, contracted services from private sector providers, space

occupancy, intra-agency services from within the agency, inter-agency

services from other Federal agencies, other services that are provided

by State and local governments, and Judicial and Legislative branch

organizations.

e. The term ``government information'' means information created,

collected, processed, disseminated, or disposed of by or for the

Federal Government.

f. The term ``government publication'' means information which is

published as an individual document at government expense, or as

required by law. (44 U.S.C. 1901)

g. The term ``information'' means any communication or

representation of knowledge such as facts, data, or opinions in any

medium or form, including textual, numerical, graphic, cartographic,

narrative, or audiovisual forms.

h. The term ``information dissemination product'' means any book,

paper, map, machine-readable material, audiovisual production, or other

documentary material, regardless of physical form or characteristic,

disseminated by an agency to the public.

i. The term ``information life cycle'' means the stages through

which information passes, typically characterized as creation or

collection, processing, dissemination, use, storage, and disposition.

j. The term ``information management'' means the planning,

budgeting, manipulating, and controlling of information throughout its

life cycle.

k. The term ``information resources'' includes both government

information and information technology.

l. The term ``information processing services organization'' (IPSO)

means a discrete set of personnel, information technology, and support

equipment with the primary function of providing services to more than

one agency on a reimbursable basis.

m. The term ``information resources management'' means the process

of managing information resources to accomplish agency missions. The

term encompasses both information itself and the related resources,

such as personnel, equipment, funds, and information technology.

n. The term ``information system'' means a discrete set of

information resources organized for the collection, processing,

maintenance, transmission, and dissemination of information, in

accordance with defined procedures, whether automated or manual.

o. The term ``information system life cycle'' means the phases

through which an information system passes, typically characterized as

initiation, development, operation, and termination.

p. The term ``information technology'' means the hardware and

software operated by a Federal agency or by a contractor of a Federal

agency or other organization that processes information on behalf of

the Federal government to accomplish a Federal function, regardless of

the technology involved, whether computers, telecommunications, or

others. It includes automatic data processing equipment as that term is

defined in Section 111(a)(2) of the Federal Property and Administrative

Services Act of 1949. For the purposes of this Circular, automatic data

processing and telecommunications activities related to certain

critical national security missions, as defined in 44 U.S.C. 3502(2)

and 10 U.S.C. 2315, are excluded.

q. The term ``major information system'' means an information

system that requires special management attention because of its

importance to an agency mission; its high development, operating, or

maintenance costs; or its significant role in the administration of

agency programs, finances, property, or other resources.

r. The term ``records'' means all books, papers, maps, photographs,

machine-readable materials, or other documentary materials, regardless

of physical form or characteristics, made or received by an agency of

the United States Government under Federal law or in connection with

the transaction of public business and preserved or appropriate for

preservation by that agency or its legitimate successor as evidence of

the organization, functions, policies, decisions, procedures,

operations, or other activities of the government or because of the

informational value of the data in them. Library and museum material

made or acquired and preserved solely for reference or exhibition

purposes, extra copies of documents preserved only for convenience of

reference, and stocks of publications and of processed documents are

not included. (44 U.S.C. 3301)

s. The term ``records management'' means the planning, controlling,

directing, organizing, training, promoting, and other managerial

activities involved with respect to records creation, records

maintenance and use, and records disposition in order to achieve

adequate and proper documentation of the policies and transactions of

the Federal Government and effective and economical management of

agency operations. (44 U.S.C. 2901(2))

t. The term ``service recipient'' means an agency organizational

unit, programmatic entity, or chargeable account that receives

information processing services from an Information Processing Services

Organization (IPSO). A service recipient may be either internal or

external to the organization responsible for providing information

resources services, but normally does not report either to the manager

or director of the IPSO or to the same immediate supervisor.

7. Basic Considerations and Assumptions:

a. The Federal Government is the largest single producer,

collector, consumer, and disseminator of information in the United

States. Because of the extent of the government's information

activities, and the dependence of those activities upon public

cooperation, the management of Federal information resources is an

issue of continuing importance to all Federal agencies, State and local

governments, and the public.

b. Government information is a valuable national resource. It

provides the public with knowledge of the government, society, and

economy--past, present, and future. It is a means to ensure the

accountability of government, to manage the government's operations, to

maintain the healthy performance of the economy, and is itself a

commodity in the marketplace.

c. The free flow of information between the government and the

public is essential to a democratic society. It is also essential that

the government minimize the Federal paperwork burden on the public,

minimize the cost of its information activities, and maximize the

usefulness of government information.

d. In order to minimize the cost and maximize the usefulness of

government information, the expected public and private benefits

derived from government information should exceed the public and

private costs of the information, recognizing that the benefits to be

derived from government information may not always be quantifiable.

e. The nation can benefit from government information disseminated

both by Federal agencies and by diverse nonfederal parties, including

State and local government agencies, educational and other not-for-

profit institutions, and for-profit organizations.

f. Because the public disclosure of government information is

essential to the operation of a democracy, the management of Federal

information resources should protect the public's right of access to

government information.

g. The individual's right to privacy must be protected in Federal

Government information activities involving personal information.

h. Systematic attention to the management of government records is

an essential component of sound public resources management which

ensures public accountability. Together with records preservation, it

protects the government's historical record and guards the legal and

financial rights of the government and the public.

i. Agency strategic planning can improve the operation of

government programs. The application of information resources should

support an agency's strategic plan to fulfill its mission. The

integration of IRM planning with agency strategic planning promotes the

appropriate application of Federal information resources.

j. Because State and local governments are important producers of

government information for many areas such as health, social welfare,

labor, transportation, and education, the Federal Government must

cooperate with these governments in the management of information

resources.

k. The open and efficient exchange of scientific and technical

government information, subject to applicable national security

controls and the proprietary rights of others, fosters excellence in

scientific research and effective use of Federal research and

development funds.

l. Information technology is not an end in itself. It is one set of

resources that can improve the effectiveness and efficiency of Federal

program delivery.

m. Federal Government information resources management policies and

activities can affect, and be affected by, the information policies and

activities of other nations.

n. Users of Federal information resources must have skills,

knowledge, and training to manage information resources, enabling the

Federal government to effectively serve the public through automated

means.

o. The application of up-to-date information technology presents

opportunities to promote fundamental changes in agency structures, work

processes, and ways of interacting with the public that improve the

effectiveness and efficiency of Federal agencies.

p. The availability of government information in diverse media,

including electronic formats, permits agencies and the public greater

flexibility in using the information.

q. Federal managers with program delivery responsibilities should

recognize the importance of information resources management to mission

performance.

8. Policy:

a. Information Management Policy

(1) Information Management Planning. Agencies shall plan in an

integrated manner for managing information throughout its life cycle.

Agencies shall:

(a) Consider, at each stage of the information life cycle, the

effects of decisions and actions on other stages of the life cycle,

particularly those concerning information dissemination;

(b) Consider the effects of their actions on members of the public

and ensure consultation with the public as appropriate;

governments and ensure consultation with those governments as

appropriate;

(d) Seek to satisfy new information needs through interagency or

intergovernmental sharing of information, or through commercial

sources, where appropriate, before creating or collecting new

information;

(e) Integrate planning for information systems with plans for

resource allocation and use, including budgeting, acquisition, and use

of information technology;

(f) Train personnel in skills appropriate to management of

information;

(g) Protect government information commensurate with the risk and

magnitude of harm that could result from the loss, misuse, or

unauthorized access to or modification of such information;

(h) Use voluntary standards and Federal Information Processing

Standards where appropriate or required;

(i) Consider the effects of their actions on the privacy rights of

individuals, and ensure that appropriate legal and technical safeguards

are implemented;

(j) Record, preserve, and make accessible sufficient information to

ensure the management and accountability of agency programs, and to

protect the legal and financial rights of the Federal Government;

(k) Incorporate records management and archival functions into the

design, development, and implementation of information systems;

(l) Provide for public access to records where required or

appropriate.

(2) Information Collection. Agencies shall collect or create only

that information necessary for the proper performance of agency

functions and which has practical utility.

(3) Electronic Information Collection. Agencies shall use

electronic collection techniques where such techniques reduce burden on

the public, increase efficiency of government programs, reduce costs to

the government and the public, and/or provide better service to the

public. Conditions favorable to electronic collection include:

(a) The information collection seeks a large volume of data and/or

reaches a large proportion of the public;

(b) The information collection recurs frequently;

sought by the information collection does not change significantly over

several years;

(d) The agency routinely converts the information collected to

electronic format;

(e) A substantial number of the affected public are known to have

ready access to the necessary information technology and to maintain

the information in electronic form;

(f) Conversion to electronic reporting, if mandatory, will not

impose substantial costs or other adverse effects on the public,

especially State and local governments and small business entities.

(4) Records Management. Agencies shall:

(a) Ensure that records management programs provide adequate and

proper documentation of agency activities;

(b) Ensure the ability to access records regardless of form or

medium;

Archivist of the United States for, retention schedules for Federal

records; and

(d) Provide training and guidance as appropriate to all agency

officials and employees and contractors regarding their Federal records

management responsibilities.

(5) Providing Information to the Public. Agencies have a

responsibility to provide information to the public consistent with

their missions. Agencies shall discharge this responsibility by:

(a) Providing information, as required by law, describing agency

organization, activities, programs, meetings, systems of records, and

other information holdings, and how the public may gain access to

agency information resources;

(b) Providing access to agency records under provisions of the

Freedom of Information Act and the Privacy Act, subject to the

protections and limitations provided for in these Acts;

for the proper performance of agency functions; and

(d) In determining whether and how to disseminate information to

the public, agencies shall:

(i) Disseminate information in a manner that achieves the best

balance between the goals of maximizing the usefulness of the

information and minimizing the cost to the government and the public;

(ii) Disseminate information dissemination products on equitable

and timely terms;

(iii) Take advantage of all dissemination channels, Federal and

nonfederal, including State and local governments, libraries and

private sector entities, in discharging agency information

dissemination responsibilities;

(iv) Help the public locate government information maintained by or

for the agency.

(6) Information Dissemination Management System. Agencies shall

maintain and implement a management system for all information

dissemination products which shall, at a minimum:

(a) Assure that information dissemination products are necessary

for proper performance of agency functions (44 U.S.C. 1108);

(b) Consider whether an information dissemination product available

from other Federal or nonfederal sources is equivalent to an agency

information dissemination product and reasonably fulfills the

dissemination responsibilities of the agency;

dissemination products;

(d) Develop such other aids to locating agency information

dissemination products including catalogs and directories, as may

reasonably achieve agency information dissemination objectives;

(e) Identify in information dissemination products the source of

the information, if from another agency;

(f) Ensure that members of the public with disabilities whom the

agency has a responsibility to inform have a reasonable ability to

access the information dissemination products;

(g) Ensure that government publications are made available to

depository libraries through the facilities of the Government Printing

Office, as required by law (44 U.S.C. Part 19);

(h) Provide electronic information dissemination products to the

Government Printing Office for distribution to depository libraries;

(i) Establish and maintain communications with members of the

public and with State and local governments so that the agency creates

information dissemination products that meet their respective needs;

(j) Provide adequate notice when initiating, substantially

modifying, or terminating significant information dissemination

products; and

(k) Ensure that, to the extent existing information dissemination

policies or practices are inconsistent with the requirements of this

Circular, a prompt and orderly transition to compliance with the

requirements of this Circular is made.

(7) Avoiding Improperly Restrictive Practices. Agencies shall:

(a) Avoid establishing, or permitting others to establish on their

behalf, exclusive, restricted, or other distribution arrangements that

interfere with the availability of information dissemination products

on a timely and equitable basis;

(b) Avoid establishing restrictions or regulations, including the

charging of fees or royalties, on the reuse, resale, or redissemination

of Federal information dissemination products by the public; and,

level sufficient to recover the cost of dissemination but no higher.

They shall exclude from calculation of the charges costs associated

with original collection and processing of the information. Exceptions

to this policy are:

(i) Where statutory requirements are at variance with the policy;

(ii) Where the agency collects, processes, and disseminates the

information for the benefit of a specific identifiable group beyond the

benefit to the general public;

(iii) Where the agency plans to establish user charges at less than

cost of dissemination because of a determination that higher charges

would constitute a significant barrier to properly performing the

agency's functions, including reaching members of the public whom the

agency has a responsibility to inform; or

(iv) Where the Director of OMB determines an exception is

warranted.

(8) Electronic Information Dissemination. Agencies shall use

electronic media and formats, including public networks, as appropriate

and within budgetary constraints, in order to make government

information more easily accessible and useful to the public. The use of

electronic media and formats for information dissemination is

appropriate under the following conditions:

(a) The agency develops and maintains the information

electronically;

(b) Electronic media or formats are practical and cost effective

ways to provide public access to a large, highly detailed volume of

information;

(d) The agency knows a substantial portion of users have ready

access to the necessary information technology and training to use

electronic information dissemination products;

(e) A change to electronic dissemination, as the sole means of

disseminating the product, will not impose substantial acquisition or

training costs on users, especially State and local governments and

small business entities.

(9) Safeguards. Agencies shall:

(a) Ensure that information is protected commensurate with the risk

and magnitude of the harm that would result from the loss, misuse, or

unauthorized access to or modification of such information;

(b) Limit the collection of information which identifies

individuals to that which is legally authorized and necessary for the

proper performance of agency functions;

contains proprietary information to that which is legally authorized,

and impose appropriate conditions on use where a continuing obligation

to ensure the confidentiality of the information exists;

(d) Provide individuals, upon request, access to records about them

maintained in Privacy Act systems of records, and permit them to amend

such records as are in error consistent with the provisions of the

Privacy Act.

b. Information Systems and Information Technology Management.

(1) Evaluation and Performance Measurement. Agencies shall promote

the appropriate application of Federal information resources as

follows:

(a) Seek opportunities to improve the effectiveness and efficiency

of government programs through work process redesign and the judicious

application of information technology;

(b) Prepare, and update as necessary throughout the information

system life cycle, a benefit-cost analysis for each information system:

(i) at a level of detail appropriate to the size of the investment;

(ii) consistent with the methodology described in OMB Circular No.

A-94, ``Guidelines and Discount Rates for Benefit-Cost Analysis of

Federal Programs;'' and

(iii) that relies on systematic measures of mission performance,

including the:

(a) effectiveness of program delivery;

(b) efficiency of program administration; and

imposed on the public;

oversight processes that maximize return on investment and minimize

financial and operational risk for investments in major information

systems on an agency-wide basis; and

(d) Conduct post-implementation reviews of information systems to

validate estimated benefits and document effective management practices

for broader use.

(2) Strategic Information Resources Management (IRM) Planning.

Agencies shall establish and maintain strategic information resources

management planning processes which include the following components:

(a) Strategic IRM planning that addresses how the management of

information resources promotes the fulfillment of an agency's mission.

This planning process should support the development and maintenance of

a strategic IRM plan that reflects and anticipates changes in the

agency's mission, policy direction, technological capabilities, or

resource levels;

(b) Information planning that promotes the use of information

throughout its life cycle to maximize the usefulness of information,

minimize the burden on the public, and preserve the appropriate

integrity, availability, and confidentiality of information. It shall

specifically address the planning and budgeting for the information

collection burden imposed on the public as defined by 5 C.F.R. 1320;

information technology to anticipated program and mission needs,

reflects budget constraints, and forms the basis for budget requests.

This planning should result in the preparation and maintenance of an

up-to-date five-year plan, as required by 44 U.S.C. 3506, which

includes:

(i) a listing of existing and planned major information systems;

(ii) a listing of planned information technology acquisitions;

(iii) an explanation of how the listed major information systems

and planned information technology acquisitions relate to each other

and support the achievement of the agency's mission; and

iv) a summary of computer security planning, as required by Section

6 of the Computer Security Act of 1987 (40 U.S.C. 759 note); and

(d) Coordination with other agency planning processes including

strategic, human resources, and financial resources.

(3) Information Systems Management Oversight. Agencies shall

establish information system management oversight mechanisms that:

(a) Ensure that each information system meets agency mission

requirements;

(b) Provide for periodic review of information systems to

determine:

(i) how mission requirements might have changed;

(ii) whether the information system continues to fulfill ongoing

and anticipated mission requirements; and

(iii) what level of maintenance is needed to ensure the information

system meets mission requirements cost effectively;

an information system is responsible and accountable for the management

of that information system throughout its life cycle;

(d) Provide for the appropriate training for users of Federal

information resources;

(e) Prescribe Federal information system requirements that do not

unduly restrict the prerogatives of State, local, and tribal

governments;

(f) Ensure that major information systems proceed in a timely

fashion towards agreed-upon milestones in an information system life

cycle, meet user requirements, and deliver intended benefits to the

agency and affected publics through coordinated decision making about

the information, human, financial, and other supporting resources; and

(g) Ensure that financial management systems conform to the

requirements of OMB Circular No. A-127, ``Financial Management

Systems.''

(4) Use of Information Resources. Agencies shall create and

maintain management and technical frameworks for using information

resources that document linkages between mission needs, information

content, and information technology capabilities. These frameworks

should guide both strategic and operational IRM planning. They should

also address steps necessary to create an open systems environment.

Agencies shall implement the following principles:

(a) Develop information systems in a manner that facilitates

necessary interoperability, application portability, and scalability of

computerized applications across networks of heterogeneous hardware,

software, and communications platforms;

(b) Ensure that improvements to existing information systems and

the development of planned information systems do not unnecessarily

duplicate information systems available within the same agency, from

other agencies, or from the private sector;

extent practicable and legally permissible;

(d) Meet information technology needs through intra-agency and

inter-agency sharing, when it is cost effective, before acquiring new

information technology resources;

(e) For Information Processing Service Organizations (IPSOs) that

have costs in excess of $5 million per year, agencies shall:

(i) account for the full costs of operating all IPSOs;

(ii) recover the costs incurred for providing IPSO services to all

service recipients on an equitable basis commensurate with the costs

required to provide those services; and

(iii) document sharing agreements between service recipients and

IPSOs; and

(f) Establish a level of security for all information systems that

is commensurate with the risk and magnitude of the harm resulting from

the loss, misuse, or unauthorized access to or modification of the

information contained in these information systems.

(5) Acquisition of Information Technology. Agencies shall:

(a) Acquire information technology in a manner that makes use of

full and open competition and that maximizes return on investment;

(b) Acquire off-the-shelf software from commercial sources, unless

the cost effectiveness of developing custom software to meet mission

needs is clear and has been documented;

No. A-109, ``Acquisition of Major Systems,'' where appropriate; and

(d) Acquire information technology in a manner that considers the

need for accommodations of accessibility for individuals with

disabilities to the extent that needs for such access exist.

9. Assignment of Responsibilities:

a. All Federal Agencies. The head of each agency shall:

(1) Have primary responsibility for managing agency information

resources;

(2) Ensure that the information policies, principles, standards,

guidelines, rules, and regulations prescribed by OMB are implemented

appropriately within the agency;

(3) Develop internal agency information policies and procedures and

oversee, evaluate, and otherwise periodically review agency information

resources management activities for conformity with the policies set

forth in this Circular;

(4) Develop agency policies and procedures that provide for timely

acquisition of required information technology;

(5) Maintain an inventory of the agencies' major information

systems and information dissemination programs;

(6) Create, maintain, and dispose of a record of agency activities

in accordance with the Federal Records Act of 1950, as amended;

(7) Identify to the Director, OMB, statutory, regulatory, and other

impediments to efficient management of Federal information resources

and recommend to the Director legislation, policies, procedures, and

other guidance to improve such management;

(8) Assist OMB in the performance of its functions under the PRA

including making services, personnel, and facilities available to OMB

for this purpose to the extent practicable;

(9) Appoint a senior official, as required by 44 U.S.C. 3506(b),

who shall report directly to the agency head to carry out the

responsibilities of the agency under the PRA. The head of the agency

shall keep the Director, OMB, advised as to the name, title, authority,

responsibilities, and organizational resources of the senior official.

For purposes of this paragraph, military departments and the Office of

the Secretary of Defense may each appoint one official.

(10) Designate an office with responsibility for management

oversight of agency audiovisual productions and establish an

appropriate program for the management of audiovisual productions,

facilities, and activities in conformance with the requirements

contained at 36 CFR 1232.4.

(11) Direct the senior official appointed pursuant to 44 U.S.C.

3506(b) to monitor agency compliance with the policies, procedures, and

guidance in this Circular. Acting as an ombudsman, the senior official

shall consider alleged instances of agency failure to comply with this

Circular and recommend or take corrective action as appropriate. The

senior official shall report annually, not later than February 1st of

each year, to the Director those instances of alleged failure to comply

with this Circular and their resolution.

b. Department of State. The Secretary of State shall:

(1) Advise the Director, OMB, on the development of United States

positions and policies on international information policy issues

affecting Federal Government information activities and ensure that

such positions and policies are consistent with Federal information

resources management policy;

(2) Ensure, in consultation with the Secretary of Commerce, that

the United States is represented in the development of international

information technology standards, and advise the Director, OMB, of such

activities.

c. Department of Commerce. The Secretary of Commerce shall:

(1) Develop and issue Federal Information Processing Standards and

guidelines necessary to ensure the efficient and effective acquisition,

management, security, and use of information technology;

(2) Advise the Director, OMB, on the development of policies

relating to the procurement and management of Federal

telecommunications resources;

(3) Provide OMB and the agencies with scientific and technical

advisory services relating to the development and use of information

technology;

(4) Conduct studies and evaluations concerning telecommunications

technology, and concerning the improvement, expansion, testing,

operation, and use of Federal tele communications systems and advise

the Director, OMB, and appropriate agencies of the recommendations that

result from such studies;

(5) Develop, in consultation with the Secretary of State and the

Director of OMB, plans, policies, and programs relating to

international telecommunications issues affecting government

information activities;

(6) Identify needs for standardization of telecommunications and

information processing technology, and develop standards, in

consultation with the Secretary of Defense and the Administrator of

General Services, to ensure efficient application of such technology;

(7) Ensure that the Federal Government is represented in the

development of national and, in consultation with the Secretary of

State, international information technology standards, and advise the

Director, OMB, of such activities.

d. Department of Defense. The Secretary of Defense shall develop,

in consultation with the Administrator of General Services, uniform

Federal telecommunications standards and guidelines to ensure national

security, emergency preparedness, and continuity of government.

e. General Services Administration. The Administrator of General

Services shall:

(1) Advise the Director, OMB, and agency heads on matters affecting

the procurement of information technology;

(2) Coordinate and, when required, provide for the purchase, lease,

and maintenance of information technology required by Federal agencies;

(3) Develop criteria for timely procurement of information

technology and delegate procurement authority to agencies that comply

with the criteria;

(4) Provide guidelines and regulations for Federal agencies, as

authorized by law, on the acquisition, maintenance, and disposition of

information technology;

(5) Develop policies and guidelines that facilitate the sharing of

information technology among agencies as required by this Circular;

(6) Review agencies' information resources management activities to

meet the objectives of the triennial reviews required by the PRA and

report the results to the Director, OMB;

(7) Manage the Automatic Data Processing Fund and the Federal

Telecommunications Fund in accordance with the Federal Property and

Administrative Services Act as amended;

(8) Establish procedures for approval, implementation, and

dissemination of Federal telecommunications standards and guidelines

and for implementation of Federal Information Processing Standards.

f. Office of Personnel Management. The Director, Office of

Personnel Management, shall:

(1) Develop and conduct training programs for Federal personnel on

information resources management including end-user computing;

(2) Evaluate periodically future personnel management and staffing

requirements for Federal information resources management;

(3) Establish personnel security policies and develop training

programs for Federal personnel associated with the design, operation,

or maintenance of information systems.

g. National Archives and Records Administration. The Archivist of

the United States shall:

(1) Administer the Federal records management program in accordance

with the National Archives and Records Act;

(2) Assist the Director, OMB, in developing standards and

guidelines relating to the records management program.

h. Office of Management and Budget. The Director of the Office of

Management and Budget shall:

(1) Provide overall leadership and coordination of Federal

information resources management within the executive branch;

(2) Serve as the President's principal adviser on procurement and

management of Federal telecommunications systems, and develop and

establish policies for procurement and management of such systems;

(3) Issue policies, procedures, and guidelines to assist agencies

in achieving integrated, effective, and efficient information resources

management;

(4) Initiate and review proposals for changes in legislation,

regulations, and agency procedures to improve Federal information

resources management;

(5) Review and approve or disapprove agency proposals for

collection of information from the public, as defined by 5 CFR 1320.7;

(6) Develop and publish annually in consultation with the

Administrator of General Services, a five-year plan for meeting the

information technology needs of the Federal Government;

(7) Evaluate agencies' information resources management and

identify cross-cutting information policy issues through the review of

agency information programs, information collection budgets,

information technology acquisition plans, fiscal budgets, and by other

means;

(8) Provide policy oversight for the Federal records management

function conducted by the National Archives and Records Administration

and coordinate records management policies and programs with other

information activities;

(9) Review, with the advice and assistance of the Administrator of

General Services, selected agencies' information resources management

activities to meet the objectives of the triennial reviews required by

the PRA;

(10) Review agencies' policies, practices, and programs pertaining

to the security, protection, sharing, and disclosure of information, in

order to ensure compliance with the Privacy Act and related statutes;

(11) Resolve information technology procurement disputes between

agencies and the General Services Administration pursuant to Section

111 of the Federal Property and Administrative Services Act;

(12) Review proposed U.S. Government Position and Policy statements

on international issues affecting Federal Government information

activities and advise the Secretary of State as to their consistency

with Federal information resources management policy.

10. Oversight:

a. The Director, OMB, will use information technology planning

reviews, fiscal budget reviews, information collection budget reviews,

management reviews, GSA reviews of agency information resources

management measures and such other measures as the Director deems

necessary to evaluate the adequacy and efficiency of each agency's

information resources management and compliance with this Circular.

b. The Director, OMB, may, upon written request of an agency, grant

a waiver from particular requirements of this Circular. Requests for

waivers must detail the reasons why a particular waiver is sought,

identify the duration of the waiver sought, and include a plan for the

prompt and orderly transition to full compliance with the requirements

of this Circular. Notice of each waiver request shall be published

promptly by the agency in the Federal Register, with a copy of the

waiver request made available to the public on request.

11. Effectiveness: This Circular is effective upon issuance.

Nothing in this Circular shall be construed to confer a private right

of action on any person.

12. Inquiries: All questions or inquiries should be addressed to

the Office of Information and Regulatory Affairs, Office of Management

and Budget, Washington, D.C. 20503. Telephone: (202) 395-3785.

13. Sunset Review Date: OMB will review this Circular three years

from the date of issuance to ascertain its effectiveness.

Appendix I to OMB Circular No. A-130--Federal Agency

Responsibilities for Maintaining Records About Individuals

1. Purpose and Scope.

This Appendix describes agency responsibilities for implementing

the reporting and publication requirements of the Privacy Act of 1974,

5 U.S.C. 552a, as amended (hereinafter ``the Act''). It applies to all

agencies subject to the Act. Note that this Appendix does not rescind

other guidance OMB has issued to help agencies interpret the Privacy

Act's provisions, e.g., Privacy Act Guidelines (40 FR 28949-28978, July

9, 1975), or Final Guidance for Conducting Matching Programs (54 FR at

25819, June 19, 1989).

2. Definitions.

a. The terms ``agency,'' ``individual,'' ``maintain,'' ``record,''

``system of records,'' and ``routine use,'' as used in this Appendix,

are defined in the Act (5 U.S.C. 552a(a)).

b. Matching Agency. Generally, the Recipient Federal agency (or the

Federal source agency in a match conducted by a nonfederal agency) is

the matching agency and is responsible for meeting the reporting and

publication requirements associated with the matching program. However,

in large, multi-agency matching programs, where the recipient agency is

merely performing the matches and the benefit accrues to the source

agencies, the partners should assign responsibility for compliance with

the administrative requirements in a fair and reasonable way. This may

mean having the matching agency carry out these requirements for all

parties, having one participant designated to do so, or having each

source agency do so for its own matching program(s).

c. Nonfederal Agency. Nonfederal agencies are State or local

governmental agencies receiving records from a Federal agency's

automated system of records to be used in a matching program.

d. Recipient Agency. Recipient agencies are Federal agencies or

their contractors receiving automated records from the Privacy Act

systems of records of other Federal agencies, or from State or local

governments, to be used in a matching program as defined in the Act.

e. Source Agency. A source agency is a Federal agency that

discloses automated records from a system of records to another Federal

agency or to a State or local agency to be used in a matching program.

It is also a State or local agency that discloses records to a Federal

agency for use in a matching program.

3. Assignment of Responsibilities.

a. All Federal Agencies. In addition to meeting the agency

requirements contained in the Act and the specific reporting and

publication requirements detailed in this Appendix, the head of each

agency shall ensure that the following reviews are conducted as often

as specified below, and be prepared to report to the Director, OMB, the

results of such reviews and the corrective action taken to resolve

problems uncovered. The head of each agency shall:

(1) Section (m) Contracts. Review every two years a random sample

of agency contracts that provide for the maintenance of a system of

records on behalf of the agency to accomplish an agency function, in

order to ensure that the wording of each contract makes the provisions

of the Act binding on the contractor and his or her employees. (See 5

U.S.C. 552a(m)(1))

(2) Recordkeeping Practices. Review annually agency recordkeeping

and disposal policies and practices in order to assure compliance with

the Act, paying particular attention to the maintenance of automated

records.

(3) Routine Use Disclosures. Review every four years the routine

use disclosures associated with each system of records in order to

ensure that the recipient's use of such records continues to be

compatible with the purpose for which the disclosing agency collected

the information.

(4) Exemption of Systems of Records. Review every four years each

system of records for which the agency has promulgated exemption rules

pursuant to Section (j) or (k) of the Act in order to determine whether

such exemption is still needed.

(5) Matching Programs. Review annually each ongoing matching

program in which the agency has participated during the year, either as

a source or as a matching agency, in order to ensure that the

requirements of the Act, the OMB guidance, and any agency regulations,

operating instructions, or guidelines have been met.

(6) Privacy Act Training. Review annually agency training practices

in order to ensure that all agency personnel are familiar with the

requirements of the Act, with the agency's implementing regulation, and

with any special requirements of their specific jobs.

(7) Violations. Review annually the actions of agency personnel

that have resulted either in the agency being found civilly liable

under Section (g) of the Act, or an employee being found criminally

liable under the provisions of Section (i) of the Act, in order to

determine the extent of the problem and to find the most effective way

to prevent recurrence of the problem.

(8) Systems of Records Notices. Review annually each system of

records notice to ensure that it accurately describes the system of

records. Where minor changes are needed, e.g., the name of the system

manager, ensure that an amended notice is published in the Federal

publication consolidating such minor changes. This requirement is

distinguished from and in addition to the requirement to report to OMB

and Congress significant changes to systems of records and to publish

those changes in the Federal Register (See paragraph 4c of this

Appendix).

b. Department of Commerce. The Secretary of Commerce shall,

consistent with guidelines issued by the Director, OMB, develop and

issue standards and guidelines for ensuring the security of information

protected by the Act in automated information systems.

c. The Department of Defense, General Services Administration, and

National Aeronautics and Space Administration. These agencies shall,

consistent with guidelines issued by the Director, OMB, ensure that

instructions are issued on what agencies must do in order to comply

with the requirements of Section (m) of the Act when contracting for

the operation of a system of records to accomplish an agency purpose.

d. Office of Personnel Management. The Director of the Office of

Personnel Management shall, consistent with guidelines issued by the

Director, OMB:

(1) Develop and maintain government-wide standards and procedures

for civilian personnel information processing and recordkeeping

directives to assure conformance with the Act.

(2) Develop and conduct Privacy Act training programs for agency

personnel, including both the conduct of courses in various substantive

areas (e.g., administrative, information technology) and the

development of materials that agencies can use in their own courses.

The assignment of this responsibility to OPM does not affect the

responsibility of individual agency heads for developing and conducting

training programs tailored to the specific needs of their own

personnel.

e. National Archives and Records Administration. The Archivist of

the United States through the Office of the Federal Register, shall,

consistent with guidelines issued by the Director, OMB:

(1) Issue instructions on the format of the agency notices and

rules required to be published under the Act.

(2) Compile and publish every two years, the rules promulgated

under 5 U.S.C. 552a(f) and agency notices published under 5 U.S.C.

552a(e)(4) in a form available to the public at low cost.

(3) Issue procedures governing the transfer of records to Federal

Records Centers for storage, processing, and servicing pursuant to 44

U.S.C. 3103. For purposes of the Act, such records are considered to be

maintained by the agency that deposited them. The Archivist may

disclose deposited records only according to the access rules

established by the agency that deposited them.

f. Office of Management and Budget. The Director of the Office of

Management and Budget will:

(1) Issue guidelines and directives to the agencies to implement

the Act.

(2) Assist the agencies, at their request, in implementing their

Privacy Act programs.

(3) Review new and altered system of records and matching program

reports submitted pursuant to Section (o) of the Act.

(4) Compile the biennial report of the President to Congress in

accordance with Section (s) of the Act.

(5) Compile and issue a biennial report on the agencies'

implementation of the computer matching provisions of the Privacy Act,

pursuant to Section (u)(6) of the Act.

4. Reporting Requirements. The Privacy Act requires agencies to

make the following kinds of reports:

----------------------------------------------------------------------------------------------------------------

Report When Due Recipient**

----------------------------------------------------------------------------------------------------------------

Biennial Privacy Act Report June 30, 1994, Administrator, OIRA

1996, 1998,

2000

Biennial Matching Activity Report June 30, 1994, Administrator, OIRA

1996, 1998,

2000

New System of Records Report When Administrator, OIRA, Congress

establishing a

system of

records--at

least 40 days

before

operating

system*

Altered System of Records Report When adding a Administrator, OIRA, Congress

new routine

use, exemption,

or otherwise

significantly

altering an

existing system

of records--at

least 40 days

before change

to system takes

place*

New Matching Program Report When Administrator, OIRA, Congress

establishing

new matching

program--at

least 40 days

before

operating

program*

Renewal of Existing Matching Program At least 40 days Administrator, OIRA, Congress

prior to

expiration of

one year

extension of

original

program--treat

as new program

Altered Matching Program When making a Administrator, OIRA, Congress

significant

change to an

existing

matching

program--at

least 40 days

before

operating

altered

program*

Matching Agreements At least 40 days Congress

prior to start

of matching

program*

----------------------------------------------------------------------------------------------------------------

*-Review Period: Note that the statutory reporting requirement is 30 days prior; the additional 10 days will

ensure that OMB and Congress have sufficient time to review the proposal. Agencies should therefore ensure

that reports are mailed expeditiously after being signed.

**-Recipient Addresses: At bottom of envelope print ``PRIVACY ACT REPORT''

House of Representatives:

The Chair of the House Committee on Government Operations, 2157

RHOB, Washington, D.C. 20515-6143.

Senate:

The Chair of the Senate Committee on Governmental Affairs, 340

SDOB, Washington, D.C. 20510-6250.

Office of Management and Budget:

The Administrator of the Office of Information and Regulatory

Affairs, Office of Management and Budget, ATTN: Docket Library, NEOB

Room 3201, Washington, D.C. 20503.

a. Biennial Privacy Act Report. To provide the necessary

information for the biennial report of the President, agencies shall

submit a biennial report to OMB, covering their Privacy Act activities

for the calendar years covered by the reporting period. The exact

format of the report will be established by OMB. At a minimum, however,

agencies should collect and be prepared to report the following data on

a calendar year basis:

(1) A listing of publication activity during the year showing the

following:

*-Total Number of Systems of Records (Exempt/NonExempt)

*-Number of New Systems of Records Added (Exempt/NonExempt)

*-Number Routine Uses Added

*-Number Exemptions Added to Existing Systems

*-Number Exemptions Deleted from Existing Systems

*-Total Number of Automated Systems of Records (Exempt/NonExempt)

The agency should provide a brief narrative describing those

activities in detail, e.g., ``the Department added a (k)(1) exemption

to an existing system of records entitled ``Investigative Records of

the Office of Investigations;'' or ``the agency added a new routine use

to a system of records entitled ``Employee Health Records'' that would

permit disclosure of health data to researchers under contract to the

agency to perform workplace risk analysis.''

(2) A brief description of any public comments received on agency

publication and implementation activities, and agency response.

(3) Number of access and amendment requests from record subjects

citing the Privacy Act that were received during the calendar year of

the report. Also the disposition of requests from any year that were

completed during the calendar year of the report:

*-Total Number of Access Requests

Number Granted in Whole

Number Granted in Part

Number Wholly Denied

Number For Which No Record Found

*-Total Amendment Requests

Number Granted in Whole

Number Granted in Part

Number Wholly Denied

*-Number of Appeals of Denials of Access

Number Granted in Whole

Number Granted in Part

Number Wholly Denied

Number For Which No Record Found

*-Number of Appeals of Denials of Amendment

Number Granted in Whole

Number Granted in Part

Number Wholly Denied

(4) Number of instances in which individuals brought suit under

section (g) of the Privacy Act against the agency and the results of

any such litigation that resulted in a change to agency practices or

affected guidance issued by OMB.

(5) Results of any reviews undertaken in response to paragraph 3a

of this Appendix.

(6) Description of agency Privacy Act training activities conducted

in accordance with paragraph 3a(6) of this Appendix.

b. Biennial Matching Activity Report (See 5 U.S.C. 552a(u)(3)(D)).

At the end of each calendar year, the Data Integrity Board of each

agency that has participated in matches covered by the computer

matching provisions of the Privacy Act will collect data summarizing

that year's matching activity. The Act requires that such activity be

reported every two years. OMB will establish the exact format of the

report, but agencies' Data Integrity Boards should be prepared to

report the data identified below both to the agency head and to OMB.

(1) A listing of the names and positions of the members of the Data

Integrity Board and showing separately the name of the Board Secretary,

his or her agency mailing address, and telephone number. Also show and

explain any changes in membership or structure occurring during the

reporting year.

(2) A listing of each matching program, by title and purpose, in

which the agency participated during the reporting year. This listing

should show names of participant agencies, give a brief description of

the program, and give a citation including the date to the Federal

(3) For each matching program, an indication of whether the cost/

benefit analysis performed resulted in a favorable ratio. The Data

Integrity Board should explain why the agency proceeded with any

matching program for which an unfavorable ratio was reached.

(4) For each program for which the Board waived a cost/benefit

analysis, reasons for the waiver and the results of match, if

tabulated.

(5) A description of each matching agreement the Board rejected and

an explanation of why it was rejected.

(6) A listing of any violations of matching agreements that have

been alleged or identified, and a discussion of any action taken.

(7) A discussion of any litigation involving the agency's

participation in any matching program.

(8) For any litigation based on allegations of inaccurate records,

an explanation of the steps the agency used to ensure the integrity of

its data as well as the verification process it used in the matching

program, including an assessment of the adequacy of each.

c. New and Altered System of Records Report. The Act requires

agencies to publish notices in the Federal Register describing new or

altered systems of records, and to submit reports to OMB, and to the

Chair of the Committee on Government Operations of the House of

Representatives, and the Chair of the Committee on Governmental Affairs

of the Senate. The reports must be transmitted at least 40 days prior

to the operation of the new system of records or the date on which the

alteration to an existing system takes place.

(1) When to Report Altered Systems of Records. Minor changes to

systems of records need not be reported. For example, a change in the

designation of the system manager due to a reorganization would not

require a report, so long as an individual's ability to gain access to

his or her records is not affected. Other examples include changing

applicable safeguards as a result of a risk analysis or deleting a

routine use when there is no longer a need for the disclosure. The

following changes are those for which a report is required:

(a) A significant increase in the number of individuals about whom

records are maintained. For example, a decision to expand a system that

originally covered only residents of public housing in major cities to

cover such residents nationwide would require a report. Increases

attributable to normal growth should not be reported.

(b) A change that expands the types or categories of information

maintained. For example, a file covering physicians that has been

expanded to include other types of health care providers, e.g., nurses,

technicians, etc., would require a report.

used.

(d) A change to equipment configuration (either hardware or

software) that creates substantially greater access to the records in

the system of records. For example, locating interactive terminals at

regional offices for accessing a system formerly accessible only at the

headquarters would require a report.

(e) The addition of an exemption pursuant to Section (j) or (k) of

the Act. Note that, in examining a rulemaking for a Privacy Act

exemption as part of a report of a new or altered system of records,

OMB will also review the rule under applicable regulatory review

procedures and agencies need not make a separate submission for that

purpose.

(f) The addition of a routine use pursuant to 5 U.S.C. 552a(b)(3).

(2) Reporting Changes to Multiple Systems of Records. When an

agency makes a change to an information technology installation or a

telecommunication network, or makes any other general changes in

information collection, processing, dissemination, or storage that

affect multiple systems of records, it may submit a single,

consolidated report, with changes to existing notices and supporting

documentation included in the submission.

(3) Contents of the New or Altered System Report. The report for a

new or altered system has three elements: a transmittal letter, a

narrative statement, and supporting documentation that includes a copy

of the proposed Federal Register notice. There is no prescribed format

for either the letter or the narrative statement. The notice must

appear in the format prescribed by the Office of the Federal Register's

Document Drafting Handbook.

(a) Transmittal Letter. The transmittal letter should be signed by

the senior agency official responsible for implementation of the Act

within the agency and should contain the name and telephone number of

the individual who can best answer questions about the system of

records. The letter should contain the agency's assurance that the

proposed system does not duplicate any existing agency or government-

wide systems of records. The letter sent to OMB may also include

requests for waiver of the time period for the review. The agency

should indicate why it cannot meet the established review period and

what will be the consequences of not obtaining the waiver, (see

paragraph 4e below).

(b) Narrative Statement. The narrative statement should be brief.

It should make reference, as appropriate, to information in the

supporting documentation rather than restating such information. The

statement should:

1. Describe the purpose for which the agency is establishing the

system of records.

2. Identify the authority under which the system of records is

maintained. The agency should avoid citing housekeeping statutes, but

rather cite the underlying programmatic authority for collecting,

maintaining, and using the information. When the system is being

operated to support an agency housekeeping program, e.g., a carpool

locator, the agency may, however, cite a general housekeeping statute

that authorizes the agency head to keep such records as necessary.

3. Provide the agency's evaluation of the probable or potential

effect of the proposal on the privacy of individuals.

4. Provide a brief description of the steps taken by the agency to

minimize the risk of unauthorized access to the system of records. A

more detailed assessment of the risks and specific administrative,

technical, procedural, and physical safeguards established shall be

made available to OMB upon request.

5. Explain how each proposed routine use satisfies the

compatibility requirement of subsection (a)(7) of the Act. For altered

systems, this requirement pertains only to any newly proposed routine

use.

6. Provide OMB Control Numbers, expiration dates, and titles of any

OMB approved information collection requests (e.g., forms, surveys,

etc.) contained in the system of records. If the request for OMB

clearance of an information collection is pending, the agency may

simply state the title of the collection and the date it was submitted

for OMB clearance.

altered system of records reports:

1. A copy of the new or altered system of records notice in Federal

For proposed altered systems the agency should supply a copy of the

original system of records notice to ensure that reviewers can

understand the changes proposed.

2. A copy in Federal Register format of any new exemption rules or

changes to published rules (consistent with the provisions of 5 U.S.C.

552a(f),(j), or (k)) that the agency proposes to issue for the new or

altered system.

(4) OMB Concurrence. Agencies may assume that OMB concurs in the

Privacy Act aspects of their proposal if OMB has not commented within

40 days from the date the transmittal letter was signed. Agencies

should ensure that letters are transmitted expeditiously after they are

signed. Agencies may publish system of records and routine use notices

as well as proposed exemption rules in the Federal Register at the same

time that they send the new or altered system report to OMB and

Congress. The period for OMB and congressional review and the notice

and comment period for routine uses and exemptions will then run

concurrently. Note that exemptions must be published as final rules

before they are effective.

d. New or Altered Matching Program Report. The Act requires

agencies to publish notices in the Federal Register describing new or

altered matching programs, and to submit reports to OMB, and to

Congress. The report must be received at least 40 days prior to the

initiation of any matching activity carried out under a new or

substantially altered matching program. For renewals of continuing

programs, the report must be dated at least 40 days prior to the

expiration of any existing matching agreement.

(1) When to Report Altered Matching Programs. Agencies need not

report minor changes to matching programs. The term ``minor change to a

matching program'' means a change that does not significantly alter the

terms of the agreement under which the program is being carried out.

Examples of significant changes include:

(a) Changing the purpose for which the program was established.

(b) Changing the matching population, either by including new

categories of record subjects or by greatly increasing the numbers of

records matched.

(d) Changing the source or recipient agencies involved in the

matching program.

(2) Contents of New or Altered Matching Program Report. The report

for a new or altered matching program has three elements: a transmittal

letter, a narrative statement, and supporting documentation that

includes a copy of the proposed Federal Register notice. There is no

prescribed format for either the letter or the narrative statement. The

notice must appear in the format prescribed by the Office of the

Federal Register's Document Drafting Handbook.

(a) Transmittal Letter. The transmittal letter should be signed by

the senior agency official responsible for implementation of the

Privacy Act within the agency and should contain the name and telephone

number of the individual who can best answer questions about the

matching program. The letter should state that a copy of the matching

agreement has been distributed to Congress as the Act requires. The

letter to OMB may also include a request for waiver of the review time

period.

(b) Narrative Statement. The narrative statement should be brief.

It should make reference, as appropriate, to information in the

supporting documentation rather than restating such information. The

statement should provide:

1. A description of the purpose of the matching program and the

authority under which it is being carried out.

2. A description of the security safeguards used to protect against

any unauthorized access or disclosure of records used in the match.

3. If the cost/benefit analysis required by Section (u)(4)(A)

indicated an unfavorable ratio or was waived pursuant to OMB guidance,

an explanation of the basis on which the agency justifies conducting

the match.

1. A copy of the Federal Register notice describing the matching

program.

2. For the Congressional report only, a copy of the matching

agreement.

(3) OMB Concurrence. Agencies may assume that OMB concurs in the

Privacy Act aspects of their proposal if OMB has not commented within

40 days from the date the transmittal letter was signed. Agencies

should ensure that letters are transmitted expeditiously after they are

signed. Agencies may publish matching program notices in the Federal

OMB and Congress. The period for OMB and congressional review and the

notice and comment period will then run concurrently.

e. Expediting the Review Process. The Director, OMB, may grant a

waiver of the 40-day review period for either systems of records or

matching program reviews. The agency must ask for the waiver in the

transmittal letter and demonstrate compelling reasons. When a waiver is

granted, the agency is not thereby relieved of any other requirement of

the Act. If no waiver is granted, agencies may presume concurrence at

the expiration of the 40 day review period. Note that OMB cannot waive

time periods specifically established by the Act such as the 30 days

notice and comment period required for the adoption of a routine use

proposal pursuant to Section (b)(3) of the Act.

5. Publication Requirements. The Privacy Act requires agencies to

publish notices or rules in the Federal Register in the following

circumstances: when adopting a new or altered system of records, when

adopting a routine use or exemption for a system of records, or when

proposing to carry out a new or altered matching program. (See

paragraph 4c(1) and 4d(1) above on what constitutes a reportable

alteration.)

a. Publishing New or Altered Systems of Records Notices and

Exemption Rules.

(1) Who Publishes. The agency responsible for operating the system

of records makes the necessary publication. Publication should be

carried out at the departmental or agency level. Where a system of

records is to be operated exclusively by a component, the department

rather than the component should publish the notice. Thus, for example,

the Department of the Treasury would publish a system of records notice

covering a system operated exclusively by the Internal Revenue Service.

Note that if the agency is proposing to exempt the system under Section

(j) or (k) of the Act, it must publish a rule in addition to the system

of records notice.

(a) Government-wide Systems of Records. Certain agencies publish

systems of records containing records for which they have government-

wide responsibilities. The records may be located in other agencies,

but they are being used under the authority of and in conformance with

the rules mandated by the publishing agency. The Office of Personnel

Management, for example, has published a number of government-wide

systems of records relating to the operation of the government's

personnel program. Agencies should not publish systems of records that

wholly or partly duplicate existing government-wide systems of records.

(b) Section (m) Contract Provisions. When an agency provides by

contract for the operation of a system of records, it should ensure

that a system of records notice describing the system has been

published. It should also review the notice to ensure that it contains

a routine use under Section (e)(4)(D) of the Act permitting disclosure

to the contractor and his or her personnel.

(2) When to Publish.

(a) System Notice. It must appear in the Federal Register before

the agency begins to operate the system, e.g., collect and use the

information.

(b) Routine Use. Must be published in the Federal Register 30 days

before agency discloses records pursuant to its terms. If the sole

change to an existing system of records is to add a routine use, the

agency should either republish the entire system of records notice, a

condensed description of the system of records, or a citation to the

last full text Federal Register publication. (Note that the addition of

a routine use to an existing system of records requires a report to OMB

and Congress, and that the review period for this report is 40 days.)

pursuant to the Administrative Procedure Act. This process generally

requires publication of a proposed rule, a period during which the

public may comment, publication of a final rule, and the adoption of

the final rule. Agencies may not withhold records under an exemption

until these requirements have been met.

(3) Format. Agencies should follow the publication format contained

in the Office of the Federal Register's Document Drafting Handbook

obtainable from the Government Printing Office.

b. Publishing Matching Notices.

(1) Who Publishes. Generally, the Recipient Federal agency (or the

Federal source agency in a match conducted by a nonfederal agency) is

responsible for publishing in the Federal Register a notice describing

the new or altered matching program. However, in large, multi-agency

matching programs, where the recipient agency is merely performing the

matches, and the benefit accrues to the source agencies, the partners

should assign responsibility for compliance with the administrative

requirements in a fair and reasonable way. This may mean having the

matching agency carry out these requirements for all parties, having

one participant designated to do so, or having each source so for its

own matching program(s).

(2) Timing. Publication must occur at least 30 days prior to the

initiation of any matching activity carried out under a new or

substantially altered matching program. For renewals of programs

agencies wish to continue past the 30 month period of initial

eligibility (i.e., the initial 18 months plus a 1 year extension),

publication must occur at least 30 days prior to the expiration of the

existing matching agreement. (But note that a report to OMB and the

Congress is also required with a 40 day review period).

(3) Format. The matching notice shall be in the format prescribed

by the Office of the Federal Register's Document Drafting Handbook and

contain the following information:

(a) The name of the Recipient Agency.

(b) The Name(s) of the Source Agencies.

(d) A brief description of the matching program, including its

purpose; the legal authorities authorizing its operation; categories of

individuals involved; and identification of records used, including

name(s) of Privacy Act Systems of records.

(e) The identification, address, and telephone number of a

Recipient Agency official who will answer public inquiries about the

program.

Appendix II to OMB Circular No. A-130

Cost Accounting, Cost Recovery, and Interagency Sharing of Information

Technology Facilities

[As proposed in the September 10, 1993 notice (58 FR 47793), the

guidance formerly found in Appendix II has been revised and placed in

Section 8b. Appendix II is therefore deleted and is reserved for future

topics.]

Appendix III to OMB Circular No. A-130

Security of Federal Automated Information Systems

[Appendix III is unchanged by this revision. See 50 FR 52742-44

(December 24, 1985).]

Appendix IV to OMB Circular No. A-130

Analysis of Key Sections

1. Purpose

The purpose of this Appendix is to provide a general context and

explanation for the contents of the key Sections of the Circular.

2. Background

The Paperwork Reduction Act (PRA) of 1980, Public Law 96-511, 94

Stat. 2812, codified at Chapter 35 of Title 44 of the United States

Code, establishes a broad mandate for agencies to perform their

information activities in an efficient, effective, and economical

manner. Section 3504 of the Act provides authority to the Director,

OMB, to develop and implement uniform and consistent information

resources management policies; oversee the development and promote the

use of information management principles, standards, and guidelines;

evaluate agency information management practices in order to determine

their adequacy and efficiency, and determine compliance of such

practices with the policies, principles, standards, and guidelines

promulgated by the Director.

The Circular implements OMB authority under the Act with respect to

Section 3504(b), general information policy, Section 3504(e), records

management, Section 3504(f), privacy, and Section 3504(g), Federal

automatic data processing and telecommunications; the Privacy Act of

1974 (5 U.S.C. 552a); the Chief Financial Officers Act (31 U.S.C. 3512

et seq.); Sections 111 and 206 of the Federal Property and

Administrative Services Act of 1949, as amended (40 U.S.C. 759 and 487,

respectively); the Computer Security Act (40 U.S.C. 759 note); the

Budget and Accounting Act of 1921 (31 U.S.C. 1 et seq.); and Executive

Order No. 12046 of March 27, 1978, and Executive Order No. 12472 of

April 3, 1984, Assignment of National Security and Emergency

Telecommunications Functions. The Circular complements 5 CFR Part 1320,

Controlling Paperwork Burden on the Public, which implements other

Sections of the PRA dealing with controlling the reporting and

recordkeeping burden placed on the public.

In addition, the Circular revises and consolidates policy and

procedures in seven previous OMB directives and rescinds those

directives, as follows:

A-3--Government Publications

A-71--Responsibilities for the Administration and Management of

Automatic Data Processing Activities Transmittal Memorandum No. 1 to

Circular No. A-71--Security of Federal Automated Information Systems

A-90--Cooperating with State and Local Governments to Coordinate

and Improve Information Systems

A-108--Responsibilities for the Maintenance of Records about

Individuals by Federal Agencies

A-114--Management of Federal Audiovisual Activities

A-121--Cost Accounting, Cost Recovery, and Interagency Sharing of

Data Processing Facilities

3. Analysis

Section 6, Definitions. Access and Dissemination. The original

Circular No. A-130 distinguished between the terms ``access to

information'' and ``dissemination of information'' in order to separate

statutory requirements from policy considerations. The first term means

giving members of the public, at their request, information to which

they are entitled by a law such as the FOIA. The latter means actively

distributing information to the public at the initiative of the agency.

The distinction appeared useful at the time Circular No. A-130 was

written, because it allowed OMB to focus discussion on Federal

agencies' responsibilities for actively distributing information.

However, popular usage and evolving technology have blurred differences

between the terms ``access'' and ``dissemination'' and readers of the

Circular were confused by the distinction. For example, if an agency

``disseminates'' information via an on-line computer system, one speaks

of permitting users to ``access'' the information, and on-line

``access'' becomes a form of ``dissemination.''

Thus, the revision defines only the term ``dissemination.'' Special

considerations based on access statutes such as the Privacy Act and the

FOIA are explained in context.

Government Information. The definition of ``government

information'' includes information created, collected, processed,

disseminated, or disposed of both by and for the Federal Government.

This recognizes the increasingly distributed nature of information in

electronic environments. Many agencies, in addition to collecting

information for government use and for dissemination to the public,

require members of the public to maintain information or to disclose it

to the public. Sound information resources management dictates that

agencies consider the costs and benefits of a full range of

alternatives to meet government objectives. In some cases, there is no

need for the government actually to collect the information itself,

only to assure that it is made publicly available. For example, banks

insured by the FDIC must provide statements of financial condition to

bank customers on request. Particularly when information is available

in electronic form, networks make the physical location of information

increasingly irrelevant.

The inclusion of information created, collected, processed,

disseminated, or disposed of for the Federal Government in the

definition of ``government information'' does not imply that

responsibility for implementing the provisions of the Circular itself

extends beyond the executive agencies to other entities. Such an

interpretation would be inconsistent with Section 4, Applicability, and

with existing law. For example, the courts have held that requests to

Federal agencies for release of information under the FOIA do not

always extend to those performing information activities under grant or

contract to a Federal agency. Similarly, grantees may copyright

information where the government may not. Thus the information

responsibilities of grantees and contractors are not identical to those

of Federal agencies except to the extent that the agencies make them so

in the underlying grants or contracts. Similarly, agency information

resources management responsibilities do not extend to other entities.

Information Dissemination Product. This notice defines the term

``information dissemination product'' to include all information that

is disseminated by Federal agencies. While the provision of access to

on-line databases and search software included on compact disk, read-

only memory (CD-ROM) are often called information services rather than

products, there is no clear distinction and, moreover, no real

difference for policy purposes between the two. Thus, the term

``information dissemination product'' applies to both products and

services, and makes no distinction based on how the information is

delivered.

Section 8a(1). Information Management Planning. Parallel to new

Section 7, Basic Considerations and Assumptions, Section 8a begins with

information resources management planning. Planning is the process of

establishing a course of action to achieve desired results with

available resources. Planners translate organizational missions into

specific goals and, in turn, into measurable objectives.

The PRA introduced the concept of information resources management

and the principle of information as an institutional resource which has

both value and associated costs. Information resources management is a

tool that managers use to achieve agency objectives. Information

resources management is successful if it enables managers to achieve

agency objectives efficiently and effectively.

Information resources management planning is an integral part of

overall mission planning. Agencies need to plan from the outset for the

steps in the information life cycle. When creating or collecting

information, agencies must plan how they will process and transmit the

information, how they will use it, how they will protect its integrity,

what provisions they will make for access to it, whether and how they

will disseminate it, how they will store and retrieve it, and finally,

how the information will ultimately be disposed of. They must also plan

for the effects their actions and programs will have on the public and

State and local governments.

The Role of State and Local Governments. OMB made additions at

Sections 7a, 7e, and 7j, Basic Considerations and Assumptions,

concerning State and local governments, and also in policy statements

at Sections 8a(1)(c), (3)(f), (5)(d)(iii), and (8)(e).

State and local governments, and tribal governments, cooperate as

major partners with the Federal Government in the collection,

processing, and dissemination of information. For example, State

governments are the principal collectors and/or producers of

information in the areas of health, welfare, education, labor markets,

transportation, the environment, and criminal justice. The States

supply the Federal Government with data on aid to families with

dependent children; medicare; school enrollments, staffing, and

financing; statistics on births, deaths, and infectious diseases;

population related data that form the basis for national estimates;

employment and labor market data; and data used for census geography.

National information resources are greatly enhanced through these major

cooperating efforts.

Federal agencies need to be sensitive to the role of State and

local governments, and tribal governments, in managing information and

in managing information technology. When planning, designing, and

carrying out information collections, agencies should systematically

consider what effect their activities will have on cities, counties,

and States, and take steps to involve these governments as appropriate.

Agencies should ensure that their information collections impose the

minimum burden and do not duplicate or conflict with local efforts or

other Federal agency requirements or mandates. The goal is that Federal

agencies routinely integrate State and local government concerns into

Federal information resources management practices. This goal is

consistent with standards for State and local government review of

Federal policies and programs.

Training. Training is particularly important in view of the

changing nature of information resources management. Decentralization

of information technology has placed the management of automated

information and information technology directly in the hands of nearly

all agency personnel rather than in the hands of a few employees at

centralized facilities. Agencies must plan for incorporating policies

and procedures regarding computer security, records management,

protection of privacy, and other safeguards into the training of every

employee and contractor.

Section 8a(2). Information Collection. The PRA requires that the

creation or collection of information be carried out in an efficient,

effective, and economical manner. When Federal agencies create or

collect information--just as when they perform any other program

functions--they consume scarce resources. Such activities must be

continually evaluated for their relevance to agency missions.

Agencies must justify the creation or collection of information

based on their statutory functions. Policy statement 8a(2) uses the

justification standard--``necessary for the proper performance of the

functions of the agency''--established by the PRA (44 U.S.C.

3504(c)(2)). Furthermore, the policy statement includes the requirement

that the information have practical utility, as defined in the PRA (44

U.S.C. 3502(16)) and elaborated in 5 CFR Part 1320. Practical utility

includes such qualities of information as accuracy, adequacy, and

reliability. In the case of general purpose statistics or

recordkeeping, practical utility means that actual uses can be

demonstrated (5 CFR 1320.7(o)). It should be noted that OMB's intent in

placing emphasis on reducing unjustified burden in collecting

information, an emphasis consistent with the Act, is not to diminish

the importance of collecting information whenever agencies have

legitimate program reasons for doing so. Rather, the concern is that

the burdens imposed should not exceed the benefits to be derived from

the information. Moreover, if the same benefit can be obtained by

alternative means that impose a lesser burden, that alternative should

be adopted.

Section 8a(3). Electronic Information Collection. Section 7l

articulates a basic assumption of the Circular that modern information

technology can help the government provide better service to the public

through improved management of government programs. One potentially

useful application of information technology is in the government's

collection of information. While some information collections may not

be good candidates for electronic techniques, many are. Agencies with

major electronic information collection programs have found that

automated information collections allow them to meet program objectives

more efficiently and effectively. Electronic data interchange (EDI) and

related standards for the electronic exchange of information will ease

transmission and processing of routine business transaction information

such as invoices, purchase orders, price information, bills of lading,

health insurance claims, and other common commercial documents. EDI

holds similar promise for the routine filing of regulatory information

such as tariffs, customs declarations, license applications, tax

information, and environmental reports.

Benefits to the public and agencies from electronic information

collection appear substantial. Electronic methods of collection reduce

paperwork burden, reduce errors, facilitate validation, and provide

increased convenience and more timely receipt of benefits.

The policy in Section 8a(3) encourages agencies to explore the use

of automated techniques for collection of information, and sets forth

conditions conducive to the use of those techniques.

Section 8a(4). Records Management. Section 8a(4) begins with the

fundamental requirement for Federal records management, namely, that

agencies create and keep adequate and proper documentation of their

activities. Federal agencies cannot carry out their missions in a

responsible and responsive manner without adequate recordkeeping.

Section 7h articulates the basic considerations concerning records

management. Policy statements concerning records management are also

interwoven throughout Section 8a, particularly in subsections on

planning (8a(1)(j)), information dissemination (8a(6)), and safeguards

(8a(9)).

Records support the immediate needs of government--administrative,

legal, fiscal--and ensure its continuity. Records are essential for

protecting the rights and interests of the public, and for monitoring

the work of public servants. The government needs records to ensure

accountability to the public which includes making the information

available to the public. Each stage of the information life cycle

carries with it records management responsibilities. Agencies need to

record their plans, carefully document the content and procedures of

information collection, ensure proper documentation as a feature of

every information system, keep records of dissemination programs, and,

finally, ensure that records of permanent value are preserved.

Preserving records for future generations is the archival mission.

Advances in technology affect the amount of information that can be

created and saved, and the ways this information can be made available.

Technological advances can ease the task of records management;

however, the rapid pace of change in modern technology makes decisions

about the appropriate application of technology critical to records

management. Increasingly the records manager must be concerned with

preserving valuable electronic records in the context of a constantly

changing technological environment.

Records schedules are essential for the appropriate maintenance and

disposition of records. Records schedules must be prepared in a timely

fashion, implement the General Records Schedules issued by the National

Archives and Records Administration, be approved by the Archivist of

the United States, and be kept accurate and current. (See 44 U.S.C.

3301 et seq.) The National Archives and Records Administration and the

General Services Administration provide guidance and assistance to

agencies in implementing records management responsibilities. They also

evaluate agencies' records management programs to determine the extent

to which they are appropriately implementing their records management

responsibilities.

Sections 8a(5) and 8a(6). Information Dissemination Policy. Section

8a(5). Every agency has a responsibility to inform the public within

the context of its mission. This responsibility requires that agencies

distribute information at the agency's initiative, rather than merely

responding when the public requests information.

The FOIA requires each agency to publish in the Federal Register

current descriptions of agency organization, where and how the public

may obtain information, the general methods and procedural requirements

by which agency functions are determined, rules of procedure,

descriptions of forms and how to obtain them, substantive regulations,

statements of general policy, and revisions to all the foregoing (5

U.S.C. 552(a)(1)). The Privacy Act also requires publication of

information concerning ``systems of records'' which are records

retrieved by individual identifier such as name, Social Security

Number, or fingerprint. The Government in the Sunshine Act requires

agencies to publish meeting announcements (5 U.S.C. 552b (e)(1)). The

PRA (44 U.S.C. 3507(a)(2)) and its implementing regulations (5 CFR Part

1320) require agencies to publish notices when they submit information

collection requests for OMB approval. The public's right of access to

government information under these statutes is balanced against other

concerns, such as an individual's right to privacy and protection of

the government's deliberative process.

As agencies satisfy these requirements, they provide the public

basic information about government activities. Other statutes direct

specific agencies to issue specific information dissemination products

or to conduct information dissemination programs. Beyond generic and

specific statutory requirements, agencies have responsibilities to

disseminate information as a necessary part of performing their

functions. For some agencies the responsibility is made explicit and

sweeping; for example, the Agriculture Department is directed to

``...diffuse among people of the United States, useful information on

subjects connected with agriculture....'' (7 U.S.C. 2201) For other

agencies, the responsibility may be much more narrowly drawn.

Information dissemination is also a consequence of other agency

activities. Agency programs normally include an organized effort to

inform the public about the program. Most agencies carry out programs

that create or collect information with the explicit or implicit intent

that the information will be made public. Disseminating information is

in many cases the logical extension of information creation or

collection.

In other cases, agencies may have information that is not meant for

public dissemination but which may be the subject of requests from the

public. When the agency establishes that there is public demand for the

information and that it is in the public interest to disseminate the

information, the agency may decide to disseminate it automatically.

The policy in Section 8a(5)(d) sets forth several factors for

agencies to take into account in conducting their information

dissemination programs. First, agencies must balance two goals:

maximizing the usefulness of the information to the government and the

public, and minimizing the cost to both. Deriving from the basic

purposes of the PRA (44 U.S.C. 3501), the two goals are frequently in

tension because increasing usefulness usually costs more. Second,

Section 8a(5)(d)(ii) requires agencies to conduct information

dissemination programs equitably and in a timely manner. The word

``equal'' was removed from this Section since there may be instances

where, for example, an agency determines that its mission includes

disseminating information to certain specific groups or members of the

public, and the agency determines that user charges will constitute a

significant barrier to carrying out this responsibility.

Section 8a(5)(d)(iii), requiring agencies to take advantage of all

dissemination channels, recognizes that information reaches the public

in many ways. Few persons may read a Federal Register notice describing

an agency action, but those few may be major secondary disseminators of

the information. They may be affiliated with publishers of newspapers,

newsletters, periodicals, or books; affiliated with on-line database

providers; or specialists in certain information fields. While millions

of information users in the public may be affected by the agency's

action, only a handful may have direct contact with the agency's own

information dissemination products. As a deliberate strategy,

therefore, agencies should cooperate with the information's original

creators, as well as with secondary disseminators, in order to further

information dissemination goals and foster a diversity of information

sources. An adjunct responsibility to this strategy is reflected in

Section 8a(5)(d)(iv), which directs agencies to assist the public in

finding government information. Agencies may accomplish this, for

example, by specifying and disseminating ``locator'' information,

including information about content, format, uses and limitations,

location, and means of access.

Section 8a(6). Information Dissemination Management System. This

Section requires agencies to maintain an information dissemination

management system which can ensure the routine performance of certain

functions, including the essential functions previously required by

Circular No. A-3. Smaller agencies need not establish elaborate formal

systems, so long as the heads of the agencies can ensure that the

functions are being performed.

Subsection (6)(a) carries over a requirement from OMB Circular No.

A-3 that agencies' information dissemination products are to be, in the

words of 44 U.S.C. 1108, ``necessary in the transaction of the public

business required by law of the agency.'' (Circular No. A-130 uses the

expression ``necessary for the proper performance of agency

functions,'' which OMB considers to be equivalent to the expression in

44 U.S.C. 1108.) The point is that agencies should determine

systematically the need for each information dissemination product.

Section 8a(6)(b) recognizes that to carry out effective information

dissemination programs, agencies need knowledge of the marketplace in

which their information dissemination products are placed. They need to

know what other information dissemination products users have available

in order to design the best agency product. As agencies are constrained

by finite budgets, when there are several alternatives from which to

choose, they should not expend public resources filling needs which

have already been met by others in the public or private sector.

Agencies have a responsibility not to undermine the existing diversity

of information sources.

At the same time, an agency's responsibility to inform the public

may be independent of the availability or potential availability of a

similar information dissemination product. That is, even when another

governmental or private entity has offered an information dissemination

product identical or similar to what the agency would produce, the

agency may conclude that it nonetheless has a responsibility to

disseminate its own product. Agencies should minimize such instances of

duplication but could reach such a conclusion because legal

considerations require an official government information dissemination

product.

Section 8a(6)(c) makes the Circular consistent with current

practice (See OMB Bulletins 88-15, 89-15, 90-09, and 91-16), by

requiring agencies to establish and maintain inventories of information

dissemination products. (These bulletins eliminated annual reporting to

OMB of title-by-title listings of publications and the requirement for

agencies to obtain OMB approval for each new periodical. Publications

are now reviewed as necessary during the normal budget review process.)

Inventories help other agencies and the public identify information

which is available. This serves both to increase the efficiency of the

dissemination function and to avoid unnecessary burdens of duplicative

information collections. A corollary, enunciated in Section 8a(6)(d),

is that agencies can better serve public information needs by

developing finding aids for locating information produced by the

agencies. Finally, Section 8a(6)(f) recognizes that there will be

situations where agencies may have to take appropriate steps to ensure

that members of the public with disabilities whom the agency has a

responsibility to inform have a reasonable ability to access the

information dissemination products.

Depository Library Program. Sections 8a(6)(g) and (h) pertain to

the Federal Depository Library Program. Agencies are to establish

procedures to ensure compliance with 44 U.S.C. 1902, which requires

that government publications (defined in 44 U.S.C. 1901 and repeated in

Section 6 of the Circular) be made available to depository libraries

through the Government Printing Office (GPO).

Depository libraries are major partners with the Federal Government

in the dissemination of information and contribute significantly to the

diversity of information sources available to the public. They provide

a mechanism for wide distribution of government information that

guarantees basic availability to the public. Executive branch agencies

support the depository library program both as a matter of law and on

its merits as a means of informing the public about the government. On

the other hand, the law places the administration of depository

libraries with GPO. Agency responsibility for the depository libraries

is limited to supplying government publications through GPO.

Agencies can improve their performance in providing government

publications as well as electronic information dissemination products

to the depository library program. For example, the proliferation of

``desktop publishing'' technology in recent years has afforded the

opportunity for many agencies to produce their own printed documents.

Many such documents may properly belong in the depository libraries but

are not sent because they are not printed at GPO. The policy requires

agencies to establish management controls to ensure that the

appropriate documents reach the GPO for inclusion in the depository

library program.

At present, few agencies provide electronic information

dissemination products to the depository libraries. At the same time, a

small but growing number of information dissemination products are

disseminated only in electronic format.

OMB believes that, as a matter of policy, electronic information

dissemination products generally should be provided to the depository

libraries. Given that production and supply of information

dissemination products to the depository libraries is primarily the

responsibility of GPO, agencies should provide appropriate electronic

information dissemination products to GPO for inclusion in the

depository library program.

While cost may be a consideration, agencies should not conclude

without investigation that it would be prohibitively expensive to place

their electronic information dissemination products in the depository

libraries. For electronic information dissemination products other than

on-line services, agencies may have the option of having GPO produce

the information dissemination product for them, in which case GPO would

pay for depository library costs. Agencies should consider this option

if it would be a cost effective alternative to the agency making its

own arrangements for production of the information dissemination

product. Using GPO's services in this manner is voluntary and at the

agency's discretion. Agencies could also consider negotiating other

terms, such as inviting GPO to participate in agency procurement orders

in order to distribute the necessary copies for the depository

libraries. With adequate advance planning, agencies should be able to

provide electronic information dissemination products to the depository

libraries at nominal cost.

In a particular case, substantial cost may be a legitimate reason

for not providing an electronic information dissemination product to

the depository library program. For example, for an agency with a

substantial number of existing titles of electronic information

dissemination products, furnishing copies of each to the depository

libraries could be prohibitively expensive. In that situation, the

agency should endeavor to make available those titles with the greatest

general interest, value, and utility to the public. Substantial cost

could also be an impediment in the case of some on-line information

services where the costs associated with operating centralized

databases would make provision of unlimited direct access to numerous

users prohibitively expensive. In both cases, agencies should consult

with the GPO, in order to identify those information dissemination

products with the greatest public interest and utility for

dissemination. In all cases, however, where an agency discontinues

publication of an information dissemination product in paper format in

favor of electronic formats, the agency should work with the GPO to

ensure availability of the information dissemination product to

depository libraries.

Notice to the Public. Sections 8a(6)(i) and (j) present new

practices for agencies to observe in communicating with the public

about information dissemination. Among agencies' responsibilities for

dissemination is an active knowledge of, and regular consultation with,

the users of their information dissemination products. A primary reason

for communication with users is to gain their contribution to improving

the quality and relevance of government information--how it is created,

collected, and disseminated. Consultations with users might include

participation at conferences and workshops, careful attention to

correspondence and telephone communications (e.g., logging and

analyzing inquiries), or formalized user surveys.

A key part of communicating with the public is providing adequate

notice of agency information dissemination plans. Because agencies'

information dissemination actions affect other agencies as well as the

public, agencies must forewarn other agencies of significant actions.

The decision to initiate, terminate, or substantially modify the

content, form, frequency, or availability of significant products

should also trigger appropriate advance public notice. Where

appropriate, the Government Printing Office should be notified

directly. Information dissemination products deemed not to be

significant require no advance notice.

Examples of significant products (or changes to them) might be

those that:

(a) are required by law; e.g., a statutorily mandated report to

Congress;

(b) involve expenditure of substantial funds; (c) by reason of the

nature of the information, are matters of continuing public interest;

e.g., a key economic indicator;

(d) by reason of the time value of the information, command public

interest; e.g., monthly crop reports on the day of their release;

(e) will be disseminated in a new format or medium; e.g.,

disseminating a printed product in electronic medium, or disseminating

a machine-readable data file via on-line access.

Where members of the public might consider a proposed new agency

product unnecessary or duplicative, the agency should solicit and

evaluate public comments. Where users of an agency information

dissemination product may be seriously affected by the introduction of

a change in medium or format, the agency should notify users and

consider their views before instituting the change. Where members of

the public consider an existing agency product important and necessary,

the agency should consider these views before deciding to terminate the

product. In all cases, however, determination of what is a significant

information dissemination product and what constitutes adequate notice

are matters of agency judgment.

Achieving Compliance with the Circular's Requirements. Section

8a(6)(k) requires that the agency information dissemination management

system ensure that, to the extent existing information dissemination

policies or practices are inconsistent with the requirements of this

Circular, an orderly transition to compliance with the requirements of

this Circular is made. For example, some agency information

dissemination products may be priced at a level which exceeds the cost

of dissemination, or the agency may be engaged in practices which are

otherwise unduly restrictive. In these instances, agencies must plan

for an orderly transition to the substantive policy requirements of the

Circular. The information dissemination management system must be

capable of identifying these situations and planning for a reasonably

prompt transition. Instances of existing agency practices which cannot

immediately be brought into conformance with the requirements of the

Circular are to be addressed through the waiver procedures of Section

10(b).

Section 8a(7). Avoiding Improperly Restrictive Practices. Federal

agencies are often the sole suppliers of the information they hold. The

agencies have either created or collected the information using public

funds, usually in furtherance of unique governmental functions, and no

one else has it. Hence agencies need to take care that their behavior

does not inappropriately constrain public access to government

information.

When agencies use private contractors to accomplish dissemination,

they must take care that they do not permit contractors to impose

restrictions that undercut the agencies' discharge of their information

dissemination responsibilities. The contractual terms should assure

that, with respect to dissemination, the contractor behaves as though

the contractor were the agency. For example, an agency practice of

selling, through a contractor, on-line access to a database but

refusing to sell copies of the database itself may be improperly

restrictive because it precludes the possibility of another firm making

the same service available to the public at a lower price. If an agency

is willing to provide public access to a database, the agency should be

willing to sell copies of the database itself.

By the same reasoning, agencies should behave in an even-handed

manner in handling information dissemination products. If an agency is

willing to sell a database or database services to some members of the

public, the agency should sell the same products under similar terms to

other members of the public, unless prohibited by statute. When an

agency decides it has public policy reasons for offering different

terms of sale to different groups in the public, the agency should

provide a clear statement of the policy and its basis.

Agencies should not attempt to exert control over the secondary

uses of their information dissemination products. In particular,

agencies should not establish exclusive, restricted, or other

distribution arrangements which interfere with timely and equitable

availability of information dissemination products, and should not

charge fees or royalties for the resale or redissemination of

government information. These principles follow from the fact that the

law prohibits the Federal Government from exercising copyright.

Agencies should inform the public as to the limitations inherent in

the information dissemination product (e.g., possibility of errors,

degree of reliability, and validity) so that users are fully aware of

the quality and integrity of the information. If circumstances warrant,

an agency may wish to establish a procedure by which disseminators of

the agency's information may at their option have the data and/or

value-added processing checked for accuracy and certified by the

agency. Using this method, redisseminators of the data would be able to

respond to the demand for integrity from purchasers and users. This

approach could be enhanced by the agency using its authority to

trademark its information dissemination product, and requiring that

redisseminators who wish to use the trademark agree to appropriate

integrity procedures. These methods have the possibility of promoting

diversity, user responsiveness, and efficiency as well as integrity.

However, an agency's responsibility to protect against misuse of a

government information dissemination product does not extend to

restricting or regulating how the public actually uses the information.

Agencies should not attempt to condition the resale or redissemination

of its information dissemination products by members of the public.

User charges. Title 5 of the Independent Offices Appropriations Act

of 1952 (31 U.S.C. 9701) establishes Federal policy regarding fees

assessed for government services, and for sale or use of government

property or resources. OMB Circular No. A-25, User Charges, implements

the statute. It provides for charges for government goods and services

that convey special benefits to recipients beyond those accruing to the

general public. It also establishes that user charges should be set at

a level sufficient to recover the full cost of providing the service,

resource, or property. Since Circular No. A-25 is silent as to the

extent of its application to government information dissemination

products, full cost recovery for information dissemination products

might be interpreted to include the cost of collecting and processing

information rather than just the cost of dissemination. The policy in

Section 8a(7)(c) clarifies the policy of Circular No. A-25 as it

applies to information dissemination products.

Statutes such as FOIA and the Government in the Sunshine Act

establish a broad and general obligation on the part of Federal

agencies to make government information available to the public and to

avoid erecting barriers that impede public access. User charges higher

than the cost of dissemination may be a barrier to public access. The

economic benefit to society is maximized when government information is

publicly disseminated at the cost of dissemination. Absent statutory

requirements to the contrary, the general standard for user charges for

government information dissemination products should be to recover no

more than the cost of dissemination. It should be noted in this

connection that the government has already incurred the costs of

creating and processing the information for governmental purposes in

order to carry out its mission.

Underpinning this standard is the FOIA fee structure which

establishes limits on what agencies can charge for access to Federal

records. That Act permits agencies to charge only the direct reasonable

cost of search, reproduction and, in certain cases, review of requested

records. In the case of FOIA requests for information dissemination

products, charges would be limited to reasonable direct reproduction

costs alone. No search would be needed to find the product, thus no

search fees would be charged. Neither would the record need to be

reviewed to determine if it could be withheld under one of the Act's

exemptions since the agency has already decided to release it. Thus,

FOIA provides an information ``safety net'' for the public.

While OMB does not intend to prescribe procedures for pricing

government information dissemination products, the cost of

dissemination may generally be thought of as the sum of all costs

specifically associated with preparing a product for dissemination and

actually disseminating it to the public. When an agency prepares an

information product for its own internal use, costs associated with

such production would not generally be recoverable as user charges on

subsequent dissemination. When the agency prepares the product for

public dissemination, and disseminates it, costs associated with

preparation and actual dissemination would be recoverable as user

charges.

When agencies provide custom tailored information services to

specific individuals or groups, full cost recovery, including the cost

of collection and processing, is appropriate. For example, if an agency

prepares special tabulations or similar services from its databases in

answer to a specific request from the public, all costs associated with

fulfilling the request would be charged, and the requester should be so

informed before work is begun.

In a few cases, agencies engaging in information collection

activities augment the information collection at the request of, and

with funds provided by, private sector groups. Since the 1920's, the

Bureau of the Census has carried out, on request, surveys of certain

industries at greater frequency or at a greater level of detail than

Federal funding would permit, because gathering the additional

information is consistent with Federal purposes and industry groups

have paid the additional information collection and processing costs.

While the results of these surveys are disseminated to the public at

the cost of dissemination, the existence and availability of the

additional government data are special benefits to certain recipients

beyond those accruing to the public. It is appropriate that those

recipients should bear the full costs of information collection and

processing, in addition to the normal costs of dissemination.

Agencies must balance the requirement to establish user charges and

the level of fees charged against other policies, specifically, the

proper performance of agency functions and the need to ensure that

information dissemination products reach the public for whom they are

intended. If an agency mission includes disseminating information to

certain specific groups or members of the public and the agency

determines that user charges will constitute a significant barrier to

carrying out this responsibility, the agency may have grounds for

reducing or eliminating its user charges for the information

dissemination product, or for exempting some recipients from the

charge. Such reductions or eliminations should be the subject of agency

determinations on a case by case basis and justified in terms of agency

policies.

Section 8a(8). Electronic Information Dissemination. Advances in

information technology have changed government information

dissemination. Agencies now have available new media and formats for

dissemination, including CD-ROM, electronic bulletin boards, and public

networks. The growing public acceptance of electronic data interchange

(EDI) and similar standards enhances their attractiveness as methods

for government information dissemination. For example, experiments with

the use of electronic bulletin boards to advertise Federal contracting

opportunities and to receive vendor quotes have achieved wider

dissemination of information about business opportunities with the

Federal Government than has been the case with traditional notices and

advertisements. Improved information dissemination has increased the

number of firms expressing interest in participating in the government

market and decreased prices to the government due to expanded

competition. In addition, the development of public electronic

information networks, such as the Internet, provides an additional way

for agencies to increase the diversity of information sources available

to the public. Emerging applications such as Wide Area Information

Servers and the World-wide Web (using the NISO Z39.50 standard) will be

used increasingly to facilitate dissemination of government information

such as environmental data, international trade information, and

economic statistics in a networked environment.

A basic purpose of the PRA is ``to maximize the usefulness of

information collected, maintained, and disseminated by the Federal

Government.'' (44 U.S.C. 3501(3)) Agencies can frequently enhance the

value and practical utility of government information as a national

resource by disseminating information in electronic media. Electronic

collection and dissemination may substantially increase the usefulness

of government information dissemination products for three reasons.

First, information disseminated electronically is likely to be more

timely and accurate because it does not require data re-entry. Second,

electronic records often contain more complete and current information

because, unlike paper, it is relatively easy to make frequent changes.

Finally, because electronic information is more easily manipulated by

the user and can be tailored to a wide variety of needs, electronic

information dissemination products are more useful to the recipients.

As stated at Section 8a(1)(h), agencies should use voluntary

standards and Federal Information Processing Standards to the extent

appropriate in order to ensure the most cost effective and widespread

dissemination of information in electronic formats.

Agencies can frequently make government information more accessible

to the public and enhance the utility of government information as a

national resource by disseminating information in electronic media.

Agencies generally do not utilize data in raw form, but edit, refine,

and organize the data in order to make it more accessible and useful

for their own purposes. Information is made more accessible to users by

aggregating data into logical groupings, tagging data with descriptive

and other identifiers, and developing indexing and retrieval systems to

facilitate access to particular data within a larger file. As a general

matter, and subject to budgetary, security or legal constraints,

agencies should make available such features developed for internal

agency use as part of their information dissemination products.

There will also be situations where the agency determines that its

mission will be furthered by providing enhancements beyond those needed

for its own use, particularly those that will improve the public

availability of government information over the long term. In these

instances, the agency should evaluate the expected usefulness of the

enhanced information in light of its mission, and where appropriate

construct partnerships with the private sector to add these elements of

value. This approach may be particularly appropriate as part of a

strategy to utilize new technology enhancements, such as graphic

images, as part of a particular dissemination program.

Section 8a(9). Information Safeguards. The basic premise of this

Section is that agencies should provide an appropriate level of

protection to government information, given an assessment of the risks

associated with its maintenance and use. Among the factors to be

considered include meeting the specific requirements of the Privacy Act

of 1974 and the Computer Security Act of 1987.

In particular, agencies are to ensure that they meet the

requirements of the Privacy Act regarding information retrievable by

individual identifier. Such information is to be collected, maintained,

and protected so as to preclude intrusion into the privacy of

individuals and the unwarranted disclosure of personal information.

Individuals must be accorded access and amendment rights to records, as

provided in the Privacy Act. To the extent that agencies share

information which they have a continuing obligation to protect,

agencies should see that appropriate safeguards are instituted.

Appendix I prescribes agency procedures for the maintenance of records

about individuals, reporting requirements to OMB and Congress, and

other special requirements of specific agencies, in accordance with the

Privacy Act.

This Section also incorporates the requirement of the Computer

Security Act of 1987 that agencies plan to secure their systems

commensurate with the risk and magnitude of loss or harm that could

result from the loss, misuse, or unauthorized access to information

contained in those systems. It includes assuring the integrity,

availability, and appropriate confidentiality of information. It also

involves protection against the harm that could occur to individuals or

entities outside of the Federal Government as well as the harm to the

Federal Government. Such protection includes limits on collection and

sharing of information and procedures to assure the integrity of

information as well as requirements to adequately secure the

information.

Incorporation of Circular No. A-114. OMB Circular No. A-114,

Management of Federal Audiovisual Activities, last revised on March 20,

1985, prescribes policies and procedures to improve Federal audiovisual

management. Although OMB will rescind Circular No. A-114, its essential

policies and procedures will continue. This revision provides

information resources management policies and principles independent of

medium, including paper, electronic, or audiovisual. By including the

term ``audiovisual'' in the definition of ``information,'' audiovisual

materials are incorporated into all policies of this Circular.

The requirement in Circular No. A-114 that the head of each agency

designate an office with responsibility for the management oversight of

an agency's audiovisual productions and that an appropriate program for

the management of audiovisual productions in conformance with 36 CFR

1232.4 is incorporated into this Circular at Section 9a(10). The

requirement that audiovisual activities be obtained consistent with OMB

Circular No. A-76 is covered by Sections 8a(1)(d), 8a(5)(d)(i) and

8a(6)(b).

Procurement policies contained in Circular No. A-114 will be

incorporated into an Office of Federal Procurement Policy Letter.

The National Archives and Records Administration will continue to

prescribe the records management and archiving practices of agencies

with respect to audiovisual productions at 36 CFR 1232.4, ``Audiovisual

Records Management.''

Section 8b, Information Systems and Information Technology

Management

Section 8b(1) Evaluation and Performance Measurement. OMB

encourages agencies to stress several types of evaluation in their

oversight of information systems. As a first step, agencies must assess

the continuing need for the mission function. If the agency determines

there is a continuing need for a function, agencies should reevaluate

existing work processes prior to creating new or updating existing

information systems. Without this analysis, agencies tend to develop

information systems that improve the efficiency of traditional paper-

based processes which may be no longer needed. The application of

information technology presents an opportunity to reevaluate existing

organizational structures, work processes, and ways of interacting with

the public to see whether they still efficiently and effectively

support the agency's mission.

Benefit-cost analyses provide vital management information on the

most efficient allocation of human, financial, and information

resources to support agency missions. Agencies should conduct a

benefit-cost analysis for each information system to support management

decision making to ensure: (a) alignment of the planned information

system with the agency's mission needs; (b) acceptability of

information system implementation to users inside the Government; (c)

accessibility to clientele outside the Government; and (d) realization

of projected benefits. When preparing benefit-cost analyses to support

investments in information technology, agencies should seek to quantify

the improvements in agency performance results through the measurement

of program outputs.

The requirement to conduct a benefit-cost analysis need not become

a burdensome activity for agencies. The level of detail necessary for

such analyses varies greatly and depends on the nature of the proposed

investment. Proposed investments in ``major information systems'' as

defined in this Circular require detailed and rigorous analysis. This

analysis should not merely serve as budget justification material, but

should be part of the ongoing management oversight process to ensure

prudent allocation of scarce resources. Proposed investments for

information systems that are not considered ``major information

systems'' should be analyzed and documented more informally.

While it is not necessary to create a new benefit-cost analysis at

each stage of the information system life cycle, it is useful to

refresh these analyses with up-to-date information to ensure the

continued viability of an information system prior to and during

implementation. Reasons for updating a benefit-cost analysis may

include such factors as significant changes in projected costs and

benefits, significant changes in information technology capabilities,

major changes in requirements (including legislative or regulatory

changes), or empirical data based on performance measurement gained

through prototype results or pilot experience.

Agencies should also weigh the relative benefits of proposed

investments in information technology across the agency. Given the

fiscal constraints facing the Federal government in the upcoming years,

agencies should fund a portfolio of investments across the agency that

maximizes return on investment for the agency as a whole. Agencies

should also emphasize those proposed investments that show the greatest

probability (i.e., display the lowest financial and operational risk)

of achieving anticipated benefits for the organization. OMB and GAO are

creating a publication that will provide agencies with reference

materials for setting up such evaluation processes.

Agencies should complete a retrospective evaluation of information

systems once operational to validate projected savings, changes in

practices, and effectiveness in serving affected publics. These post-

implementation reviews may also serve as the basis for agency-wide

learning about effective management practices.

Section 8b(2) Strategic Information Resources Management (IRM)

Planning. Agencies should link to, and to the extent possible,

integrate IRM planning with the agency strategic planning required by

the Government Performance and Results Act (Pub.L. 103-62). Such a

linkage ensures that agencies apply information resources to programs

that support the achievement of agreed-upon mission goals.

Additionally, strategic IRM planning by agencies may help avoid

automating out-of-date, ineffective, or inefficient procedures and work

processes.

Agencies should also devote management attention to operational

information resources management planning. This operational IRM

planning should provide a one to five year focus to agency IRM

activities and projects. Agency operational IRM plans should also

provide a listing of the major information systems covered by the

management oversight processes described in Section 8b(3). Agency

operational planning for IRM should also communicate to the public how

the agency's application of information resources might affect them.

For the contractor community, this includes articulating the agency's

intent to acquire information technology from the private sector. These

data should not be considered acquisition sensitive, so that they can

be distributed as widely as possible to the vendor community in order

to promote competition. Agencies should make these acquisition plans

available to the public through government-wide information

dissemination mechanisms, including electronic means.

Operational planning should also include initiatives to reduce the

burden, including information collection burden, an agency imposes on

the public. Too often, for example, agencies require personal visits to

government offices during office hours inconvenient to the public.

Instead, agencies should plan to use information technology in ways

that make the public's dealing with the Federal government as ``user-

friendly'' as possible.

Each year, OMB issues a bulletin, requesting copies of agencies'

latest strategic IRM plans and annual updates to operational plans for

information and information technology.

Section 8b(3) Information Systems Management Oversight. Agencies

should consider what constitutes a ``major information system'' for

purposes of this Circular when determining the appropriate level of

management attention for an information system. The anticipated dollar

size of an information system or a supporting acquisition is only one

determinant of the level of management attention an information system

requires. Additional criteria to assess include the maturity and

stability of the technology under consideration, how well defined user

requirements are, the level of stability of program and user

requirements, and security concerns.

For instance, certain risky or ``cutting-edge'' information systems

require closer scrutiny and more points of review and evaluation. This

is particularly true when an agency uses an evolutionary life cycle

strategy that requires a technical and financial evaluation of the

project's viability at prototype and pilot testing phases. Projects

relying on commercial off-the-shelf technology and applications will

generally require less oversight than those using custom-designed

software.

While each phase of an information system life cycle may have

unique characteristics, the dividing line between the phases may not

always be distinct. For instance, both planning and evaluation should

continue throughout the information system life cycle. In fact, during

any phase, it may be necessary to revisit the previous stages based on

new information or changes in the environment in which the system is

being developed.

The policy statements in this Circular describe an information

system life cycle. It does not, however, make a definitive statement

that there must be four versus five phases of a life cycle because the

life cycle varies by the nature of the information system. Only two

phases are common to all information systems--a beginning and an end.

As a result, life cycle management techniques that agencies can use may

vary depending on the complexity and risk inherent in the project.

One element of this management oversight policy is the recognition

of imbedded and/or parallel life cycles. Within an information system's

life cycle there may be other subsidiary life cycles. For instance,

most Federal information systems projects include an acquisition of

goods and services that have life cycle characteristics. Some projects

include software development components, which also have life cycles.

Effective management oversight of major information systems requires a

recognition of all these various life cycles and an integrated

information systems management oversight with the budget and human

resource management cycles that exist in the agency.

Section 8b(2) of the Circular underscores the need for agencies to

bring an agency-wide perspective to a number of information resources

management issues. These issues include policy formulation, planning,

management and technical frameworks for using information resources,

and management oversight of major information systems. Agencies should

also provide for coordinated decision making (Section 8b(3)(f)) in

order to bring together the perspectives from across an agency, and

outside if appropriate. Such coordination may take place in an agency-

wide management or IRM committee. Interested groups typically include

functional users, managers of financial and human resources,

information resources management specialists, and, as appropriate, the

affected public.

Section 8b(4) Use of Information Resources. Agency management of

information resources should be guided by management and technical

frameworks for agency-wide information and information technology

needs. The technical framework should serve as a reference for updates

to existing and new information systems. The management framework

should assure the integration of proposed information systems projects

into the technical framework in a manner that will ensure progress

towards achieving an open systems environment. Agency strategic IRM

planning should describe the parameters (e.g., technical standards) of

such a technical framework. The management framework should drive

operational planning and should describe how the agency intends to use

information and information technology consistent with the technical

framework.

Agency management and technical frameworks for information

resources should address agency strategies to move toward an open

systems environment. These strategies should consist of one or multiple

profiles (an internally consistent set of standards), based on the

current version of the NIST's Application Portability Profile. These

profiles should satisfy user requirements, accommodate officially

recognized or de facto standards, and promote interoperability,

application portability, and scalability by defining interfaces,

services, protocols, and data formats favoring the use of

nonproprietary specifications.

Agencies should focus on how to better utilize the data they

currently collect from the public. Beca

This text is long and has been trimmed here. Open the source document for the complete record.

This is a copy of a public record, reproduced as it was published. It is not legal advice, and it may not be the version a court would rely on. Check the official source before you cite it.