On October 25, 1996, OMB Director Raines issued a memorandum setting forth
guidance under the Information Technology Management Reform Act (ITMRA). Those
policies, commonly known as "Raines' Rules," specify that investments in major
information systems proposed for funding in the President's budget should:
1. Support core/priority mission functions that need to be
performed by the Federal government.
2. Be undertaken because no alternative private sector or
governmental source can efficiently support the function.
3. Support work processes that have been simplified or otherwise
redesigned to reduce costs, improve effectiveness, and make maximum use of
commercial off-the-shelf (COTS) technology.
4. Demonstrate a projected return on investment that is clearly
equal to or better than alternative uses of available resources.
5. Be consistent with Federal, agency, and bureau information
architectures which: integrate agency work processes and information flows
with technology to achieve the agency's strategic goals ... and specify
standards that enable information exchange and resource sharing, while
retaining flexibility in the choice of suppliers and in the design of local
6. Reduce risk by: avoiding or isolating custom-designed
components ...; using fully tested pilots, simulations, and prototypes ...;
establishing clear measures and accountability for project progress; and
securing substantial involvement and buy-in ... from program officials who
will use the system.
7. Be implemented in phased, successive chunks as narrow in scope
and brief in duration as practicable, each of which solves a specific part of
an overall mission problem and delivers a measurable net benefit independent
of future chunks.
8. Employ an acquisition strategy that appropriately allocates
risk between government and the contractor, effectively uses competition, ties
contract payments to accomplishments, and takes maximum advantage of
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