I would also agree that there is potential for abuse in a related direction, and that is in many cases the Government, the contracting agencies, may acquire, pay for, collect, and retain too much data, and pay the price for unnecessary encumbrances. If I might briefly review the current situation, let me touch on four separate circumstances that arise. First, let me address the cases where data is treated explicitly today in many contracts. This can be both product data, where the contractors will be told quite clearly what is to be done with engineering drawings and other specifications and materials and processes. In addition, contracts are very often quite elaborate in describing nonproduct data and what is to be done with it, how often submitted and retained. This will relate to administrative reports, audit findings, financial reports and a variety of contractor operational data. In many cases these are boilerplate requirements, imposed on everyone, particularly in the high dollar weapons system-type contracts. At the current time, the Office of Federal Procurement Policy is, in fact, seeking to standardize many of these contract requirements with an eye toward making them uniform, just as the committee's intent seems to be, and to make sure that questions of national security, patent rights, copyrights, proprietary rights, and application of the Privacy Act are well understood and uniform. In that regard, the draft circular, which is out for comments, I will place in the record, with the committee's permission, and this can be a takeoff point for further discussions and deliberations. Mr. WEISS. Without objection. [The information follows:] 6026102 Copeland 9/18/78 EXECUTIVE OFFICE OF THE PRESIDENT APR 1 3 1978 MEMORANDUM TO THE HEADS OF EXECUTIVE DEPARTMENTS AND SUBJECT: Control of Management System Criteria and Data The Attached is a copy of a proposed policy on the above subject We would appreciate a response by close of business Monday, June 19, 1978, so that we may incorporate appropriate revisions. Jenner J. M. Jetzen, Jr. Games McIntyre, Jr. Director Attachment EXECUTIVE OFFICE OF THE PRESIDENT WASHINGTON, D.C. 20503 OFFICE OF FEDERAL PROCUREMENT POLICY DRAFT TO THE HEADS OF EXECUTIVE DEPARTMENTS AND ESTABLISHMENTS SUBJECT: Control of Management System Criteria and Data 1. Purpose. This document establishes policies to be followed by executive branch agencies in the control of development and application of contractually specified management system criteria and required product and nonproduct data in the acquisition of goods and services. 2. Background. Government contracts for goods and services frequently prescribe management systems to be used by contractors in performance of their contracts. Additionally, records are required to be kept, reports and data to be submitted, and product data retained or submitted. While the cost impact of such requirements varies significantly among individual procurements, the cumulative costs on all procurements have been estimated to be billions of dollars annually. Although some of these requirements are essential, a system of checks and balances is needed to ensure that such requirements are necessary, that management system criteria rather than management systems are used, and that such requirements are coordinated and compatible. The system set forth herein is illustrated in the attachment to this document. The Commission on Government Procurement recommended more effective control over the selection and imposition of such data requirements. This policy is based on executive branch consideration of the Commission's recommendations. 3. Responsibility. Each agency head has the responsibility to ensure that the provisions of this policy are followed. 4. Coverage. This document applies to agency or interagency regulations or other issuances included in purchase solicitations or contracts which: (1) directly or indirectly prescribe management system criteria for use by contractor; (2) specify product data or nonproduct data required by the Government from the contractor; or (3) establish standards of accuracy and timeliness for the specified data. a. Management system is a term used to identify management disciplines which are employed to assist managers in: (1) defining or stating policy, objectives, criteria, and requirements; (2) assigning responsibility; (3) achieving efficient and effective utilization of resources; (4) periodi cally measuring performance; (5) comparing that performance against stated objectives and requirements; and (6) taking appropriate action. A management system may encompass part or all of the above areas. b. Management system criteria means the contractually prescribed management discipline which specifies the required output and performance standards but does not specify detailed procedures or methods of accomplishment. Management system criteria may require generation, preparation, maintenance, analysis, evaluation, display, and dissemination of information. c. Product data requirement means a documented contract requirement which directs contractors to collect, organize, prepare, maintain, transmit, deliver or retain information incident to the design, development, production, operation, preservation, maintenance or repair of contract end items. Product data include engineering drawings, product specifications and standards, part breakdown lists, catalog item identifications, operation and/or maintenance instructions, descriptions of product physical qualities and characteristics, computerized product definition media, and reprocurement data. |