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Code of Federal Regulations Title 48. Federal Acquisition Regulations System 48.2834.002 Policy

Current as of January 02, 2025 | Updated by Findlaw Staff

In accordance with Pub.L. 98–577, the Small Business and Federal Procurement Competition Enhancement Act of 1984, an executive agency may establish a dollar threshold for the designation of a major system. Accordingly, dollar thresholds for a major system under Office of Management and Budget Circular A–109 are designated in this section.

(a) Major automated information system. Within the Department of Justice, a major automated information system is one whose life-cycle cost is in excess of $100 million.

(b) Major real property system.

(1) By purchase, when the assessed value of the property exceeds $60 million.

(2) By lease, when the annual rental charges, including basic services (e.g., cleaning, guards, maintenance), exceed $1.8 million.

(3) By transfer from another agency at no cost when the assessed value of the property exceeds $12 million.

(c) Research and Development (R & D) System. Any R & D activity expected to exceed $0.5 million, for the R & D phase is subject to OMB Circular A–109, unless exempted by the HCA.

(d) Any other system or activity. The HCA responsible for the system may designate any system or activity as a Major System under OMB Circular A–109 as a result of Departmental review, e.g., selected systems designed to support more than one principal organizational unit.

(e) Exemption. The AAG/A, upon recommendation by the HCA responsible for the system, may determine that because of the routine nature of the acquisition, the system (e.g., an information system utilizing only off-the-shelf hardware or software) will be exempt from the OMB Circular A–109 process, although by virtue of the life cycle costs, it would otherwise be identified as “major” in response to OMB Circular A–109.

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Cite this article: FindLaw.com - Code of Federal Regulations Title 48. Federal Acquisition Regulations System 48.2834.002 Policy - last updated January 02, 2025 | https://codes.findlaw.com/cfr/title-48-federal-acquisition-regulations-system/cfr-48-2834-002/

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