§ 2834.002-70 - Policy.

In accordance with Pub. L. 98-577, the Small Business and Federal Procurement Competition Enhancement Act of 1984, an executive agency may establish dollar thresholds 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 below.

(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 $40 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 $1.5 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 head of the contracting activity.

(d) Any Other System or Activity. The head of the contracting activity 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 Assistant Attorney General for Administration, upon recommendation by the head of the contracting activity 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 its life cycle costs, it would otherwise be identified as “major” in response to OMB Circular A-11.