IT Capital Asset Planning Policy
U.S. Department of Commerce
Office of the Chief Information Officer
Information Technology Capital Asset Planning Policy
What is information technology (IT) capital asset planning and management about?
Who does this policy/guidance apply to?
Why should an operating unit implement an IT capital asset management process?
What are the regulatory requirements for IT capital asset planning and management?
How do I do IT Capital Asset Planning and Management?
How can we judge the quality of our IT capital asset management process?
How does IT capital planning relate to other management processes?
Who can answer questions about IT capital asset planning?
What is information technology (IT) capital asset planning and management about?
IT capital asset planning is the overarching management process that incorporates all aspects of IT management in a cradle-to-grave approach. IT capital asset planning addresses legislated management reforms for improving IT management. This includes the three-phase process the Department adopted for selecting, controlling, and evaluating IT investments.
Who does this policy/guidance apply to?
This policy applies to the Office of the Secretary and all operating units of the Department of Commerce.
Why should an operating unit implement an IT capital asset management process?
IT capital asset planning provides a structured framework for applying proven techniques for successfully managing IT investments. The ultimate goal of IT capital asset management is improved decision-making that leads to achieving the best return on the investment in terms of anticipated results, performance, and service delivery. A good IT capital asset management process helps inform decisions about whether to continue, modify, or cancel operational systems and provides a mechanism for ensuring the correct balance for the IT portfolio of projects.
Organizations with strong IT capital asset management processes can establish a track record of successful IT projects and are much more likely to have IT projects funded in the Commerce and OMB budget review process.
What are the regulatory requirements for IT capital asset planning and management?
Capital asset planning and management are governed by a broad array of regulations and guidance including the Paperwork Reduction Act, the Government Performance and Results Act, the Federal Acquisition Streamlining Act, the Clinger-Cohen Act, OMB Capital Programming Guide, and associated guidance. Section 1 and 2 of the General Accountability Office’s (GAO) “Information Technology Investment Management: A Framework for Assessing and Improving Process Maturity” (GAO’s Guide) provide an overview of the IT investment management process.
How do I do IT Capital Asset Planning and Management?
The overall process is a cross cutting activity that involves linking program objectives, budgeting, performance planning, acquisition planning, and all aspects of IT management.
A helpful way to envision the process is through the three phases of project selection, control, and evaluation.
The Investment Evaluation Approach With Key Elements
A useful document for understanding the broad scope of capital asset management is OMB's Capital Programming Guide. This guide is a basic reference on principles and techniques for planning, budgeting, procurement, and management of capital assets.
Also, the Information Technology (IT) Planning and Investment Review Maturity Model provides a useful evaluation tool.
How can we judge the quality of our IT capital asset management process?
Operating units have the freedom to design IT capital planning processes that best suit their needs within the parameters of best practice guidance. GAO developed assessment guidance to help evaluators and decision makers assess their IT capital planning and decision-making processes. The assessment guide builds on the three phases of the IT investment process -- selection, control, and evaluation. By performing an evaluation of your processes using the guidance in Appendix II of GAO’s Guide, you can determine how well your organization meets best practice guidance and develop plans to improve weak areas.
How does IT capital planning relate to other management processes?
IT capital planning is performed within the broad umbrella of the legislation described above. It relates directly to processes for program planning, budgeting, acquiring, and managing capital assets. Within the realm of IT management, capital planning must include enterprise architecture and security considerations.
Who can answer questions about IT capital asset planning?
Stuart Simon at (202) 482-0275 or ssimon@doc.gov.
Supersedes policy dated: None
Origination date: November 30, 2000
Approved by: Roger Baker, Chief Information Officer, November 30, 2000
Revision status: February 27, 2007
- Last Updated:
- February 27, 2007
- Questions regarding this section may be directed to the IT Policy, Guidance & Legislation Administrator