[Congressional Bills 103th Congress]
[From the U.S. Government Publishing Office]
[H.R. 826 Referred in Senate (RFS)]

103d CONGRESS
  1st Session
                               H. R. 826


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

                May 26 (legislative day, April 19), 1993

  Received; read twice and referred to the Committee on Governmental 
                                Affairs

_______________________________________________________________________

                                 AN ACT


 
To provide for the establishment of strategic planning and performance 
     measurement in the Federal Government, and for other purposes.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Government Performance and Results 
Act of 1993''.

SEC. 2. FINDINGS AND PURPOSES.

    (a) Findings.--The Congress finds that--
            (1) waste and inefficiency in Federal programs undermine 
        the confidence of the American people in the Federal Government 
        and reduces the Federal Government's ability to address 
        adequately vital public needs;
            (2) Federal managers are seriously disadvantaged in their 
        efforts to improve program efficiency and effectiveness, 
        because of insufficient articulation of program goals and 
        inadequate information on program performance; and
            (3) congressional policymaking, spending decisions, and 
        program oversight are seriously handicapped by insufficient 
        attention to program performance and results.
    (b) Purposes.--The purposes of this Act are to--
            (1) improve the confidence of the American people in the 
        capability of the Federal Government, by systematically holding 
        Federal agencies accountable for achieving program results;
            (2) initiate program performance reform with a series of 
        pilot projects in setting program goals, measuring program 
        performance against those goals, and reporting publicly on 
        their progress;
            (3) improve Federal program effectiveness and public 
        accountability by promoting a new focus on results, service 
        quality, and customer satisfaction;
            (4) help Federal managers improve service delivery, by 
        requiring that they plan for meeting program objectives and by 
        providing them with information about program results and 
        service quality;
            (5) improve congressional decisionmaking by providing more 
        objective information on achieving statutory objectives, and on 
        the relative effectiveness and efficiency of Federal programs 
        and spending; and
            (6) improve internal management of the Federal Government.

SEC. 3. STRATEGIC PLANNING.

    Chapter 3 of title 5, United States Code, is amended by adding 
after section 305 the following new section:
``Sec. 306. Strategic plans
    ``(a) No later than September 30, 1997, the head of each agency 
shall submit to the Director of the Office of Management and Budget and 
the Congress a strategic plan for program activities. Such plan shall 
contain--
            ``(1) a comprehensive mission statement covering the major 
        functions and operations of the agency;
            ``(2) general goals and objectives, including outcome-
        related goals and objectives, for the major functions and 
        operations of the agency;
            ``(3) a description of how the general goals and objectives 
        contained in the strategic plan are to be achieved, including a 
        description of the operational processes, skills and 
        technology, and the human, capital, information, and other 
        resources required to meet those goals and objectives;
            ``(4) a description of how the performance goals included 
        in the plan for the agency required by section 1115(a) of title 
        31 shall be related to the general goals and objectives 
        contained in the strategic plan;
            ``(5) an identification of those key factors external to 
        the agency and beyond its control that could significantly 
        affect the achievement of the general goals and objectives 
        contained in the strategic plan; and
            ``(6) a description of the program evaluations used in 
        establishing or revising general goals and objectives contained 
        in the strategic plan, with a schedule for future program 
        evaluations.
    ``(b) The strategic plan shall cover a period of not less than five 
years forward from the fiscal year in which it is submitted, and shall 
be updated and revised at least every three years.
    ``(c) The performance plan required for an agency by section 1115 
of title 31 shall be consistent with the agency's strategic plan. A 
performance plan may not be submitted for a fiscal year not covered by 
a current strategic plan under this section.
    ``(d) When developing a strategic plan, an agency shall consult 
with the Congress, and shall solicit and consider the views and 
suggestions of those entities potentially affected by or interested in 
such plan.
    ``(e) The functions and activities of this section shall be 
considered to be inherently governmental functions. The drafting of 
strategic plans under this section shall be performed only by Federal 
employees.
    ``(f) For purposes of this section the term `agency' means an 
Executive agency as that term is defined under section 105, but does 
not include the Central Intelligence Agency, the General Accounting 
Office, the Panama Canal Commission, the United States Postal Service, 
and the Postal Rate Commission.
    ``(g) For exemptions of agencies from the requirements of this 
section, see section 1117 of title 31, United States Code.''.

SEC. 4. ANNUAL PERFORMANCE PLANS AND REPORTS.

    (a) Budget Contents and Submission to Congress.--Section 1105(a) of 
title 31, United States Code, is amended by adding at the end thereof 
the following new paragraph:
            ``(29) beginning with fiscal year 1999, a Federal 
        Government performance plan for the overall budget as provided 
        for under section 1115.''.
    (b) Performance Plans and Reports.--Chapter 11 of title 31, United 
States Code, is amended by adding after section 1114 the following new 
sections:
``Sec. 1115. Performance plans
    ``(a) In carrying out the provisions of section 1105(a)(29), the 
Director of the Office of Management and Budget shall require each 
agency to prepare and submit to the Director an annual performance plan 
covering each program activity set forth in the budget of such agency. 
Such plan shall--
            ``(1) establish performance goals to define the level of 
        performance to be achieved by a program activity;
            ``(2) express such goals in an objective, quantifiable, and 
        measurable form unless authorized to be in an alternative form 
        under subsection (b);
            ``(3) briefly describe the operational processes, skills, 
        and technology, and the human, capital, information, or other 
        resources required to meet the performance goals;
            ``(4) establish performance indicators to be used in 
        measuring or assessing the relevant outputs, service levels, 
        and outcomes of each program activity;
            ``(5) provide a basis for comparing actual program results 
        with the established performance goals; and
            ``(6) describe the means to be used to verify and validate 
        measured values.
    ``(b) If an agency, in consultation with the Director of the Office 
of Management and Budget, determines that it is not feasible to express 
the performance goals for a particular program activity in an 
objective, quantifiable, and measurable form, the Director of the 
Office of Management and Budget may authorize an alternative form. Such 
alternative form shall--
            ``(1) include separate descriptive statements of--
                    ``(A) a minimally effective program, or
                    ``(B) such alternative as authorized by the 
                Director of the Office of Management and Budget,
        with sufficient precision and in such terms that would allow 
        for an accurate, independent determination of whether the 
        program activity's performance meets the criteria of the 
        description; or
            ``(2) state why it is infeasible or impractical to express 
        a performance goal in any form for the program activity.
    ``(c) For the purpose of complying with this section, an agency may 
aggregate or consolidate program activities, except that any 
aggregation or consolidation may not omit or minimize the significance 
of any program activity constituting a major function or operation for 
the agency.
    ``(d) An agency may submit with its annual performance plan an 
appendix covering any portion of the plan that--
            ``(1) is specifically authorized under criteria established 
        by an Executive order to be kept secret in the interest of 
        national defense or foreign policy; and
            ``(2) is properly classified pursuant to such Executive 
        order.
    ``(e) The functions and activities of this section shall be 
considered to be inherently governmental functions. The drafting of 
performance plans under this section shall be performed only by Federal 
employees.
    ``(f) For purposes of this section, sections 1116 through 1119, and 
sections 9704 and 9705--
            ``(1) the term `agency' has the meaning that term has in 
        section 306(f) of title 5;
            ``(2) the term `outcome measure' means an assessment of the 
        results of a program activity compared to its intended purpose;
            ``(3) the term `output measure' means the tabulation, 
        calculation, or recording of activity or effort, expressed in a 
        quantitative or qualitative manner;
            ``(4) the term `performance goal' means a target level of 
        performance expressed as a tangible, measurable objective, 
        against which actual achievement can be compared, including a 
        goal expressed as a quantitative standard, value, or rate;
            ``(5) the term `performance indicator' means a particular 
        value or characteristic used to measure output or outcome;
            ``(6) the term `program activity' means a specific activity 
        or project as listed in the program and financing schedules of 
        the annual budget of the United States Government; and
            ``(7) the term `program evaluation' means an assessment, 
        through objective measurement and systematic analysis, of the 
        manner and extent to which Federal programs achieve intended 
        objectives.
``Sec. 1116. Program performance reports
    ``(a) No later than March 31, 2000, and no later than March 31 of 
each year thereafter, the head of each agency shall prepare and submit 
to the President and the Congress, a report on program performance for 
the previous fiscal year.
    ``(b)(1) Each report on program performance shall set forth the 
performance indicators established in the agency performance plan under 
section 1115, along with the actual program performance achieved 
compared with the performance goals expressed in the plan for that 
fiscal year.
    ``(2) If performance goals are specified in an alternative form 
pursuant to section 1115(b), the results of such program shall be 
described in relation to such specifications.
    ``(c) The report on program performance for fiscal year 2000 shall 
include actual results for the preceding fiscal year, the report for 
fiscal year 2001 shall include actual results for the two preceding 
fiscal years, and the report for fiscal year 2002 and all subsequent 
reports shall include actual results for the three preceding fiscal 
years.
    ``(d) Each report on program performance shall--
            ``(1) review the success of achieving the performance goals 
        of the fiscal year covered by the report;
            ``(2) evaluate the performance plan for the current fiscal 
        year relative to the performance achieved toward the 
        performance goals in each fiscal year covered by the report;
            ``(3) explain and describe, where a performance goal has 
        not been met--
                    ``(A) why the goal was not met;
                    ``(B) those plans and schedules for achieving the 
                established performance goal; and
                    ``(C) if the performance goal is impractical or 
                infeasible, why that is the case and what action is 
                recommended;
            ``(4) describe the use and assess the effectiveness in 
        achieving performance goals of any waiver under section 9704 of 
        this title; and
            ``(5) include the summary findings of those program 
        evaluations completed during each fiscal year covered by the 
        report.
    ``(e) An agency head may include all program performance 
information required annually under this section in an annual financial 
statement required under section 3515 if any such statement is 
submitted to the Congress no later than March 31 of the applicable 
fiscal year.
    ``(f) The functions and activities of this section shall be 
considered to be inherently governmental functions. The drafting of 
reports on program performance under this section shall be performed 
only by Federal employees.
    ``(g) For definitions applicable under this section, see section 
1115.
``Sec. 1117. Exemptions
    ``(a) The Director of the Office of Management and Budget may 
exempt from the requirements of sections 1115 and 1116 of this title 
and section 306 of title 5, any agency with annual outlays of 
$20,000,000 or less.
    ``(b) For definitions applicable under this section, see section 
1115.''.

SEC. 5. MANAGERIAL ACCOUNTABILITY AND FLEXIBILITY.

    Chapter 97 of title 31, United States Code, is amended by adding 
after section 9703 the following new section:
``Sec. 9704. Managerial accountability and flexibility
    ``(a) Beginning with fiscal year 1999, the performance plans 
required under section 1115 may include proposals to waive 
administrative procedural requirements and controls (other than 
requirements under section 553 of title 5), including specification of 
personnel staffing levels, limitations on compensation or remuneration, 
and prohibitions or restrictions on funding transfers among budget 
object classification 20 and subclassifications 11, 12, 31, and 32 of 
each annual budget submitted under section 1105, in return for specific 
individual or organization accountability to achieve a performance 
goal. In preparing and submitting the performance plan under section 
1105(a)(29), the Director of the Office of Management and Budget shall 
review and may approve any proposed waivers. A waiver shall take effect 
at the beginning of the fiscal year for which the waiver is approved.
    ``(b) Any such proposal under subsection (a) shall describe the 
anticipated effects on performance resulting from greater managerial or 
organizational flexibility, discretion, and authority, and shall 
quantify the expected improvements in performance resulting from any 
waiver. The expected improvements shall be compared to current actual 
performance, and to the projected level of performance that would be 
achieved independent of any waiver.
    ``(c) Any proposal waiving limitations on compensation or 
remuneration shall precisely express the monetary change in 
compensation or remuneration amounts, such as bonuses or awards, that 
shall result from meeting, exceeding, or failing to meet performance 
goals.
    ``(d) Any proposed waiver of procedural requirements or controls 
imposed by an agency (other than the proposing agency or the Office of 
Management and Budget) may not be included in a performance plan unless 
it is endorsed by the agency that established the requirement, and any 
such endorsement shall be included in the proposing agency's 
performance plan.
    ``(e) A waiver shall be in effect for one or two years, as 
specified by the Director of the Office of Management and Budget in 
approving the waiver. A waiver may be renewed for a subsequent year. 
After a waiver has been in effect for three consecutive years, the 
performance plan prepared under section 1115 may propose that a waiver, 
other than a waiver of limitations on compensation or remuneration, be 
made permanent.
    ``(f) For definitions applicable under this section, see section 
1115.''.

SEC. 6. PILOT PROJECTS.

    (a) Performance Plans and Reports.--Chapter 11 of title 31, United 
States Code, is amended by adding after section 1117 (as added by 
section 4 of this Act) the following new section:
``Sec. 1118. Pilot projects for performance goals
    ``(a) The Director of the Office of Management and Budget, after 
consultation with the head of each agency, shall designate not less 
than ten agencies as pilot projects in performance measurement for 
fiscal years 1994, 1995, and 1996. The selected agencies shall reflect 
a representative range of Government functions and capabilities in 
measuring and reporting program performance.
    ``(b) Pilot projects in the designated agencies shall undertake the 
preparation of performance plans under section 1115, and program 
performance reports under section 1116, other than section 1116(c), for 
one or more of the major functions and operations of the agency. A 
strategic plan shall be used when preparing agency performance plans 
during one or more years of the pilot period.
    ``(c) No later than May 1, 1997, the Director of the Office of 
Management and Budget shall submit a report to the President and the 
Congress which shall--
            ``(1) assess the benefits, costs, and usefulness of the 
        plans and reports prepared by the pilot agencies in meeting the 
        purposes of the Government Performance and Results Act of 1993;
            ``(2) identify any significant difficulties experienced by 
        the pilot agencies in preparing plans and reports; and
            ``(3) set forth any recommended changes in the requirements 
        of the provisions of Government Performance and Results Act of 
        1993, section 306 of title 5, sections 1105, 1115, 1116, 1117, 
        1119 and 9704 of this title, and this section.
    ``(d) For definitions applicable under this section, see section 
1115.''.
    (b) Managerial Accountability and Flexibility.--Chapter 97 of title 
31, United States Code, is amended by adding after section 9704 (as 
added by section 5 of this Act) the following new section:
``Sec. 9705. Pilot projects for managerial accountability and 
              flexibility
    ``(a) The Director of the Office of Management and Budget shall 
designate not less than five agencies as pilot projects in managerial 
accountability and flexibility for fiscal years 1995 and 1996. Such 
agencies shall be selected from those designated as pilot projects 
under section 1118 and shall reflect a representative range of 
Government functions and capabilities in measuring and reporting 
program performance.
    ``(b) Pilot projects in the designated agencies shall include 
proposed waivers in accordance with section 9704 for one or more of the 
major functions and operations of the agency.
    ``(c) The Director of the Office of Management and Budget shall 
include in the report to the President and to the Congress required 
under section 1118(c)--
            ``(1) an assessment of the benefits, costs, and usefulness 
        of increasing managerial and organizational flexibility, 
        discretion, and authority in exchange for improved performance 
        through a waiver; and
            ``(2) an identification of any significant difficulties 
        experienced by the pilot agencies in preparing proposed 
        waivers.
    ``(d) For definitions applicable under this section, see section 
1115.''.
    (c) Performance Budgeting.--Chapter 11 of title 31, United State 
Code, is amended by adding after section 1118 (as added by section 6 of 
this Act) the following new section:
``Sec. 1119. Pilot projects for performance budgeting
    ``(a) The Director of the Office of Management and Budget, after 
consultation with the head of each agency, shall designate not less 
than five agencies as pilot projects in performance budgeting for 
fiscal years 1998 and 1999. At least three of the agencies shall be 
selected from those designated as pilot projects under section 1118, 
and shall also reflect a representative range of Government functions 
and capabilities in measuring and reporting program performance.
    ``(b) Pilot projects in the designated agencies shall cover the 
preparation of performance budgets. Such budgets shall present, for one 
or more of the major functions and operations of the agency, the 
varying levels of performance, including outcome-related performance, 
that would result from different budgeted amounts.
    ``(c) The Director of the Office of Management and Budget shall 
include, as an alternative budget presentation in the budget submitted 
under section 1105 for fiscal year 1999, the performance budgets of the 
designated agencies for this fiscal year.
    ``(d) No later than March 31, 2001, the Director of the Office of 
Management and Budget shall transmit a report to the President and to 
the Congress on the performance budgeting pilot projects which shall--
            ``(1) assess the feasibility and advisability of including 
        a performance budget as part of the annual budget submitted 
        under section 1105;
            ``(2) describe any difficulties encountered by the pilot 
        agencies in preparing a performance budget;
            ``(3) recommend whether legislation requiring performance 
        budgets should be proposed and the general provisions of any 
        legislation; and
            ``(4) set forth any recommended changes in the other 
        requirements of the Government Performance and Results Act of 
        1993, section 306 of title 5, sections 1105, 1115, 1116, 1117, 
        and 9704 of this title, and this section.
    ``(e) For definitions applicable under this section, see section 
1115.''.

SEC. 7. CONGRESSIONAL OVERSIGHT AND LEGISLATION.

    (a) In General.--Nothing in this Act shall be construed as limiting 
the ability of the Congress to establish, amend, suspend, or annul a 
performance goal. Any such action shall have the effect of superseding 
that goal in the plan submitted under section 1105(a)(29) of title 31, 
United States Code, as amended by this Act.
    (b) GAO Report.--No later than June 1, 1997, the Comptroller 
General of the United States shall report to the Congress on the 
implementation of this Act, including the prospects for compliance by 
Federal agencies beyond those participating as pilot projects under 
sections 1118 and 9705 of title 31, United States Code.

SEC. 8. TRAINING.

    The Office of Personnel Management shall, in consultation with the 
Director of the Office of Management and Budget and the Comptroller 
General of the United States, develop a strategic planning and 
performance measurement training component for its management training 
program and otherwise provide managers with an orientation on the 
development and use of strategic planning and program performance 
measurement.

SEC. 9. RULE OF CONSTRUCTION.

    No provision or amendment made by this Act may be construed as--
            (1) creating any right, privilege, benefit, or entitlement 
        for any person who is not an officer or employee of the United 
        States acting in such capacity; or
            (2) superseding any statutory requirement, including any 
        requirement under section 553 of title 5, United States Code.

SEC. 10. TECHNICAL AND CONFORMING AMENDMENTS.

    (a) Amendment to Title 5, United States Code.--The table of 
sections for chapter 3 of title 5, United States Code, is amended by 
adding after the item relating to section 305 the following:

``306. Strategic plans.''.
    (b) Amendments to Title 31, United States Code.--
            (1) Amendment to chapter 11.--The table of sections for 
        chapter 11 of title 31, United States Code, is amended by 
        adding after the item relating to section 1114 the following:

``1115. Performance plans.
``1116. Program performance reports.
``1117. Exemptions.
``1118. Pilot projects for performance goals.
``1119. Pilot projects for performance budgeting.''.
            (2) Amendment to chapter 97.--The table of sections for 
        chapter 97 of title 31, United States Code, is amended by 
        adding after the item relating to section 9703 the following:

``9704. Managerial accountability and flexibility.
``9705. Pilot projects for managerial accountability and 
                            flexibility.''.

            Passed the House of Representatives May 25, 1993.

            Attest:

                                           DONNALD K. ANDERSON,

                                                                 Clerk.

HR 826 RFS----2