Competitively Sourced Cybersecurity: Key in Preparing the FY2007 Budget
To prepare the FY2007 budget, the Office of Management and Budget has updated the Information Technology and E-Government section of Circular A-11. The Circular governs the Executive Branch's budget development process.

Cybersecurity investments and using the competitive sourcing process for those investments are essential for federal officials developing the new budget.

Agencies report to OMB on Information Technology (IT) investment through the Agency IT Investment Portfolio, also know as Exhibit 53. One of the purposes of the Portfolio is to allow OMB and the agencies to "Identify investments for IT security..." Each agency Portfolio is also used by OMB to create an overall "Federal IT Investment Portfolio" which is designed, among other purposes, to "Ensure sound security of Government information systems and appropriate protection of information held in those systems."

OMB places a great emphasis on cybersecurity. Information agencies must report for each IT investment includes the "estimated percentage of the total investment for budget year associated with IT security..." Furthermore, OMB specifies an extensive set of criteria for determining cybersecurity costs including: "The products, procedures, and personnel (Federal employees and contractors) that are primarily dedicated to or used for provision of IT security for the specific IT investment... Authentication or cryptographic applications... Development and maintenance of agency reports to OMB and corrective action plans as they pertain to the specific investment..." and "Computer security investigations and forensics."

Competitive sourcing is an essential component in IT investments, including the cybersecurity portion of those investments. As the Circular explains, "All IT investments must support the President's Management Agenda (PMA)...." Competitive sourcing of one of the five ‘scorecard" items in the PMA.

OMB further explains that the "President's Budget also defines guiding principles for the investments supporting the PMA. The principles OMB will use to implement the PMA and the supporting IT investments ensure that investments... Represent sound business cases that address overall solutions..." including "competitive sourcing...."

Thus, cybersecurity and competitive sourcing are integral to federal IT investments.