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TO THE HEADS OF EXECUTIVE DEPARTMENTS AND ESTABLISHMENTS
SUBJECT: Financial Management Systems
This Transmittal Memorandum revises Circular No. A-127, "Financial Management Systems",
dated July 23, 1993, by revising Sections 8d and 9b. It also will add new Sections 9a(3) and 9c.
These changes are being made to reflect recommendations from the Chief Financial Officers (CFO)
Council. These recommendations change the process for acquiring software to meet core financial
system requirements by eliminating the restriction to only acquire the software and related services from
the FMSS Schedule, and to provide for software testing that is independent of the procurement
process. These updates will become effective on the dates specified in the attachment. A complete
revision of Circular A-127 is forthcoming in the near future which will incorporate these changes in the
text of the Circular.
All questions or inquiries concerning OMB Circular A-127 should be addressed to the Office
of Federal Financial Management, Federal Financial Systems Branch, telephone number 202/395-6903.
Jacob J. Lew Director
Attachment
The changes to Circular A-127 are as follows.
Section 8d of the current Circular should be deleted in its entirety and replaced with the
following:
8d(1)Use of "Off-the-Shelf" Software. Agencies replacing software to meet core financial
system requirements are required to use the GSA FMSS Multiple Award Schedule
until its expiration on September 30, 1999. As of October 1, 1999 agencies replacing
software to meet core financial system requirements are no longer required to use the
GSA FMSS Multiple Award Schedule; they must use "off-the-shelf" software that has
been tested and certified through the JFMIP software certification process as meeting
JFMIP Core Financial Management System Requirements. Agencies may purchase
this software using the strategy and procurement vehicle they believe will best enable
them to meet their needs in a timely and effective manner following the competition
requirements associated with the procurement vehicle being used to conduct the
acquisition.
In addition, agencies will notify JFMIP that a core financial management software
procurement is planned - - preferably prior to, or in the early phases of, acquisition
planning. JFMIP will electronically post a public message to permit interested certified
system vendors to market agencies. The sole purpose of this message is to facilitate
agency market research. This message is not intended to, and shall not, serve as an
invitation for offerors to submit bids, proposals, or quotes.
OMB policy pertaining to using "off-the-shelf" software is contained in OMB Circular
A-130 and must be followed when replacing financial management systems.
8d(2) Software Certification Testing. "Off-the-shelf" software will be tested to ensure that it
meets core financial system requirements as defined in the Core Financial System
Requirements document published by JFMIP. JFMIP will coordinate the testing
process and issue software certifications. Information on the details of the certification
testing process and its results will be available to any interested Federal agency for any
certified software package.
2. A new section 9a(3) is being added to the current Circular as follows:
9a.(3) Notify JFMIP on Plans to Acquire Core Financial System Software. Agencies shall
notify JFMIP on plans to acquire software supporting core financial system functions.
Section 9b of the current Circular is revised to read as follows:
9b. GSA Responsibilities. GSA is responsible for continuing to support existing contracts
under the FMSS Schedule until their completion. GSA also will make procurement vehicles available
to agencies for acquiring software which has been certified according to the processes in Section8d(2).
4. A new Section 9c is being added and will read as follows:
9c. JFMIP Responsibilities. JFMIP will establish processes for testing "off-the-shelf"
software supporting core financial system requirements which include:
developing and administering the certification test.
notifying GSA when a software package successfully completes the certification
test.
providing interested parties with information on the core financial system
requirements and their related testing scenarios.
providing interested parties with details on the results of the certification tests
for certified software packages.
posting a public notice on planned core financial system procurements.