The Clinger-Cohen Act and federal IT investment management reform

Clinger-Cohen Act Defines Information Technology as:

Any equipment or interconnected system or subsystem of equipment, that is used in the automatic acquisition, storage, manipulation, management, movement, control, display, switching, interchange, transmission, or reception of data or information by the executive agency... And includes computers, ancillary equipment, software, firmware, support services, and related resources (U.S. Department of Justice)."

The Information Technology (IT) Management Reform Act (ITMRA) or in other words the Clinger-Cohen Act was originally formed in 1989 was amended and rectified on August 8, 1996. It put an end to the Brooks Act that canceled Section 111 of the Federal Property and Administrative Services Act of 1949. This Brooks Act made the General Services Administration (GSA) as the central authority for procurement process of automatic data processing (ADP) resources (U.S. Department of Justice).

While, on the other hand, the Federal Information Resources Management Regulation (FIRMR) was issued in order to execute the Brooks act and set up a process that needed Federal agencies to attain a Delegation of Procurement Authority (DPA) initially from GSA to obtain ADP and telecommunications (TC) resources. However, a main paradigm shift in the process for acquiring and managing IT is the passage of the Information Technology (IT) Management Reform Act (U.S. Department of Justice).

Clinger-Cohen Act & Law Governing IT Management

Originally the Information Technology Management Reform Act and the Federal Acquisition Reform Act formed in 1989 and reissued in the year 1996 with a new name as Clinger-Cohen Act (CCA). The objective of CCA is to influence performance-based and results-based management by means of an effective use of information technology (IT). It has moved its emphasis from IT purchase management to IT investment management, along with major accentuation on information resources management and IT management rather then on information management (U.S. Department of Commerce).

As this act cancelled the Brooks Act and returned IT procurement authority to managerial agencies. This step was taken into effect to abolish the Federal Information Resources Management Regulations and the General Services Board of Contract Appeals. The law governing the IT management gives responsibility (U.S. Department of Commerce):

To develop a process for examining, tracing, and assessing the threats and outcomes of major capital investments,

To direct executive agencies on creating a successful, proficient IT capital planning and investment review process, and To enforce responsibility by means of budget process (U.S. Department of Commerce).

The law further adds responsibility to executive agencies:

To establish an IT capital planning and investment review process,

To asses how well IT supports programs, utilization of performance measures should be implemented

To justify continuation of systems that move away from cost, schedule or performance objectives (U.S. Department of Commerce).

Clinger-Cohen has also established the responsibility for principles and rules for computer systems. For example, institutes like National Institute for Standards and Technology, Department of Commerce as well as it has reinforced the requirements of the Computer Security Act. It in addition has encouraged and provided modular contracting for IT systems and pilot IT acquisition programs.

Clinger-Cohen Act also gives the government information technology shop to be functioned just as a well-organized and cost-effective business would be operated. Also, planning, management of technology and acquisition should be regarded as a "capital investment " and at the same time as the law is complicated, all consumers of hardware as well as software in the Department should be well aware of the Chief Information Officer's leadership in implementing this rule.

However, the law governing IT management highlights an integrated framework of technology that is designed at effectively performing the business of the Department. While few businesses can turn a revenue by permitting their employees to buy anything they need to do any project they want, the Department too does not function effectively with hardware and software systems that has been purchased on an "impulse purchase" basis and installed without a complete plan. All facets as mentioned below of capital planning are taken into consideration, as they would be in any private industry (The National Science Foundation Office):

Cost/benefit ratio

Anticipated life of the technology

Requirements for Chief Information Officer

There have issues revolving the requirements in hiring of the chief information officer (CIO) in executive agencies. However, according to few agencies the responsibilities allocated to the CIO should be taken into consideration and should be amended accordingly. However, as established by the Clinger-Cohen Act, the requirements for appointing an OIC are (Intervista Institute):

Knowledge and skills of IRM personnel assessment,

Advice and assistance to the agency head on IT and information resources management,

Responsibility sharing with the CFO for provision of financial and performance data for financial statements, and The primary duty of CIO is IRM

Skillful in developing integrated IT architecture,

Abe to promote effective and successful design and operation of IRM processes,

Should be directly reporting to the agency head,

Able to use performance measures for monitoring IT programs,

Having knowledge to assumes the tasks of the Designated Senior Official as per defined in Paperwork Reduction Act.

Able to handle the agency's IT Security Program for automated information systems, as well as develop agency-wide policy for the security and control of information resources in either direct or indirect manner in relation to the activities of the Department;

Can implement a Department-wide communications Internet/Intranet strategy;

Be able to organize and sustain all enterprise-wide information technology;

Can develop suggestions and implement information technology solutions that should be designed for improvement and allow agency business processes;

Finally, can develop and give technology standards to guarantee business alignment and as well as encourage a feasible enterprise technology framework (Intervista Institute).