Which 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

Which OMB Circular addresses Major Systems Acquisition?

Explanation:
Managing large, high‑risk federal procurements requires a formal policy framework that covers the entire life cycle from justification and planning through deployment and disposal. OMB Circular A-109 was created to govern major system acquisitions, setting the criteria for what counts as a major system and prescribing the processes for cost estimation, baselines, reviews, and oversight. It ensures these programs are managed with disciplined governance, independent cost estimates, and clear milestones so decisions at critical points are informed and accountable. Other circulars focus on budgeting (A-11), outsourcing decisions (A-76), or internal controls and accountability (A-123) and do not specifically address major system acquisitions.

Managing large, high‑risk federal procurements requires a formal policy framework that covers the entire life cycle from justification and planning through deployment and disposal. OMB Circular A-109 was created to govern major system acquisitions, setting the criteria for what counts as a major system and prescribing the processes for cost estimation, baselines, reviews, and oversight. It ensures these programs are managed with disciplined governance, independent cost estimates, and clear milestones so decisions at critical points are informed and accountable. Other circulars focus on budgeting (A-11), outsourcing decisions (A-76), or internal controls and accountability (A-123) and do not specifically address major system acquisitions.

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