The Clinger-Cohen Act of 1996 requires government agencies to use a
disciplined Capital Planning and Investment Control (CPIC) process to
acquire, use, maintain and dispose of information technology (IT). A robust
CPIC process is a dynamic process in which IT investments are selected and
then continually monitored and evaluated to ensure each chosen Capital
Investment is well managed, cost effective, and supports the mission and
strategic goals of the government organization.
The CPIC process is governed by an appropriate Investment Review Board
(IRB), to ensure that the appropriate Capital Investments enter, or are
maintained in an agency's portfolio. The CPIC process is closely aligned
with Portfolio Management (PfM) processes.
Generally, the Department's or Agency's CPIC program management office (PMO)
is responsible for developing a comprehensive IT CPIC policy framework that
implements the following 3-phased approach to selecting, managing and
evaluating IT investments:
Select Phase – Investment analyses are conducted and the Review Board
chooses those IT investments that best support the mission of the
organization and agency's approach to enterprise architecture. Federal
procurement activities commence in order to make and execute the acquisition
of the desired investment activity.
Control Phase – The agency ensures, through timely management oversight,
quality control, and executive review, that IT initiatives are developed and
executed in a disciplined, well-managed, and consistent manner.
Evaluate Phase – Actual results of the selected IT investments are compared
to expectations to assess investment performance. This is done to assess the
project’s impact on mission performance and to identify any necessary
project changes or modifications.
All phases of planning, operating, developing, modernizing, enhancing and
maintaining Capital Investments, particularly with respect to Information
Technology (IT) are referred to in stages: O&M for Operations and
Maintenance, and DME, for Development, Modernization and Enhancement. The
Office of Management & Budget (OMB) provides guidance and memos which aid
CPIC professionals in managing and reporting investments compliantly. Two
OMB circulars, the A-130 (Management of Federal Information Resources) and
the A-11 (Capital Programming Guide )(Specifically Part 7) are integral to a
compliant CPIC process. The A-11 Part 7 Section 300 prescribes Capital Asset
Plan and Business Case reports as well as reporting on an Exhibit 300 as
part of the compliant CPIC process. |