2.3: Funding Cycles
Fund at Levels Consistent with COTS/Shorter Cycles. Other Information:
The agile IT acquisition approach defined by OMB must be matched by a budgeting process that is similarly agile. Within the
confines of the budgeting process established in statute, OMB needs to issue guidance that would remove the barriers to the
initiation of projects appropriate to agile’s more limited performance objectives and schedules and provide sufficient flexibility
in the use of different funding accounts to allow the projects to succeed. The OMB funding process also needs to incorporate
a funding approach that pressures agencies to follow strategies of Business Process Reengineering (BPR) using COTS or application
development strategies using shorter-term increments. With respect to COTS projects, OMB should limit funding to a level consistent
with a BPR+COTS strategy rather than a COTS+customization one. With respect to shorter-cycle projects, OMB could use the apportionment
process to incentivize incremental funding during the year—if the budget process drives all funding up front, apportionments
can be used to tie resources to incremental releases. In addition, projects that involve releases over multiple budget years
could be linked to appropriations language that allows carryover of funding, such as through establishment of a working capital
fund reviewed periodically consistent with each release cycle.
Indicator(s):
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