OMB Circular addresses Major Systems Acquisition?

Study for the Certified Defense Financial Manager (CDFM) Exam 1. Engage with flashcards and multiple choice questions, with hints and explanations for each query. Prepare confidently for your exam!

Multiple Choice

OMB Circular addresses Major Systems Acquisition?

Explanation:
Major System Acquisitions involve large, expensive, high-risk programs that need a formal, transparent process for justification, planning, and oversight. The circular dedicated to Major System Acquisitions provides the policy framework for these investments, including requirements for an economic justification, lifecycle cost estimates, a sound acquisition strategy, and post-implementation reviews, ensuring the investment aligns with the agency’s budget and governance. Other circulars cover different topics: one governs outsourcing and competition for in-house work, another addresses budget preparation and execution, and another focuses on internal controls. Because the question is about guidance for major, high-cost investments, the circular devoted to Major System Acquisitions is the correct reference.

Major System Acquisitions involve large, expensive, high-risk programs that need a formal, transparent process for justification, planning, and oversight. The circular dedicated to Major System Acquisitions provides the policy framework for these investments, including requirements for an economic justification, lifecycle cost estimates, a sound acquisition strategy, and post-implementation reviews, ensuring the investment aligns with the agency’s budget and governance.

Other circulars cover different topics: one governs outsourcing and competition for in-house work, another addresses budget preparation and execution, and another focuses on internal controls. Because the question is about guidance for major, high-cost investments, the circular devoted to Major System Acquisitions is the correct reference.

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