Major System: A Comprehensive Guide to Its Legal Definition and Importance

Q: Can a civilian agency designate a major system?

Yes, civilian agencies can designate systems as major systems if they meet the financial criteria.

Q: What should I do if my project is a major system?

Ensure compliance with regulatory requirements and consider using legal templates to assist with documentation.

Definition & Meaning

The term "major system" refers to a combination of elements that work together to meet specific mission requirements. These elements can include hardware, software, and equipment, but do not cover construction or improvements to real property. A system qualifies as a major system if:

The Department of Defense oversees it, and the total costs for research, development, testing, and evaluation exceed $173.5 million, or the total acquisition costs surpass $814.5 million.
A civilian agency manages it, with total costs estimated to exceed $1.8 million or the agency's defined threshold for a "major system" as per Office of Management and Budget Circular A-109.
The head of the responsible agency designates it as a "major system."

Table of content

Legal Use & context

The term "major system" is primarily used in government contracting and procurement processes. It is relevant in areas such as defense, public administration, and federal acquisitions. Understanding whether a system is classified as a major system is crucial for compliance with budgeting, reporting, and regulatory requirements. Users may find templates and forms related to major systems on platforms like US Legal Forms, which can help navigate these legal processes effectively.

Key legal elements

Real-world examples

Here are a couple of examples of abatement:

Example 1: A new military aircraft program is initiated by the Department of Defense, with projected costs exceeding $1 billion for development and acquisition. This qualifies it as a major system.

Example 2: A civilian agency launches a software system for public health management, with expected costs of $2 million. This also meets the criteria for a major system under the agency's guidelines.

Relevant laws & statutes

Major statutes relevant to the definition of a major system include:

10 U.S.C. 2302 - This statute outlines definitions and requirements for major systems within the Department of Defense.
41 U.S.C. 403 - This statute includes definitions applicable to civilian agency systems.
Office of Management and Budget Circular A-109 - This circular provides guidelines for major system acquisitions.

Comparison with related terms

Term	Definition	Key Differences
Major System	A system with significant costs and oversight by a government entity.	Defined by specific financial thresholds and agency oversight.
Minor System	A system with lower costs and less regulatory oversight.	Typically involves smaller budgets and fewer compliance requirements.

Common misunderstandings

What to do if this term applies to you

If you are involved in a project that may qualify as a major system, it's essential to understand the financial thresholds and compliance requirements. Consider using US Legal Forms to access templates that can assist you in the documentation process. If the situation is complex, consulting a legal professional is advisable to ensure compliance with all regulations.

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Quick facts

Typical thresholds: $173.5 million for RDT&E; $814.5 million for acquisition (DoD).
Major systems are overseen by federal agencies.
Designation can affect project funding and oversight.

Key takeaways

Frequently asked questions

What qualifies a system as a major system?

A system qualifies as a major system based on its total costs and the agency overseeing it.