January 10, 2007
In Reply Refer To:
1265 (WO-570D) P
Instruction Memorandum No. 2007-040
Expires: 09/30/2008
To:                   ADs, SDs and CDs
From:               Assistant Director, Information Resources Management
Subject:           Fiscal Year 2007 Annual Operational Analysis (OA) for all Information Technology (IT) Investments DD: 01/22/2007
Program Area: IT Investment Management
Purpose: This Instruction Memorandum (IM) establishes a due date for Annual Operational Analyses conducted in Fiscal Year 2007.
Policy/Actions: System Owners of national-level IT investments in the Evaluate Phase are responsible for ensuring an Operational Analysis (OA) is performed annually to assess and document the investment’s continued alignment with strategic goals and objectives; effectiveness in supporting business needs and end users; cost and trends of continued operations and maintenance; technology opportunities and risks; and to consider potential consolidation, retirement or replacement of the investment.
Results of analyses will be provided to the Assistant Director for IRM. All costs associated with conducting an OA should be planned and included in the annual operations and maintenance costs of each IT investment.
Timeframe:  Operational Analyses should be submitted to Melissa McNichols, WO570D, via e-mail by January 22, 2007.
Budget Impacts: None.
Background: The Office of Management and Budget (OMB) requires that all Steady State (Operations and Maintenance) projects/systems be reviewed annually to document the continued effectiveness in supporting mission requirements and minimize the cost of asset ownership. OA results are reported to OMB each year in the Exhibit 300 Project (Investment) and Funding Plan section. Performing OAs is a key practice within the GAO’s IT Investment Management Stage 4 maturity model.
BLM’s current Capital Planning and Investment Guide provide guidance for conducting an Operational Analysis. The Guide can be found at: http://www.blm.gov/nhp/efoia/wo/fy05/im2005-240.htm.
Manual/Handbook Sections Affected:  None.
Coordination: The development of this policy has been coordinated within WO-500.  
Contacts: Questions concerning policy issues identified in this IM should be addressed to Stew Nelson, Acting Group Manager, WO-550 at (202) 452-5039 .  All requests for assistance in conducting an OA, or questions regarding the OA processes can be directed to Melissa McNichols (303)236-1782 .
Signed by:                                                                   
Authenticated by:
Scott E. MacPherson                                                   
Robert M. Williams
Acting, Assistant Director                                            
Division of IRM Governance,WO-560
Information Resources Management