[Congressional Bills 103th Congress]
[From the U.S. Government Publishing Office]
[S. 20 Enrolled Bill (ENR)]
S.20
One Hundred Third Congress
of the
United States of America
AT THE FIRST SESSION
Begun and held at the City of Washington on Tuesday,
the fifth day of January, one thousand nine hundred and ninety-three
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 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:
``§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
to 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 goals and objectives 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 required by section 1115(a) of title 31 shall be related to the
general goals and objectives 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; and
``(6) a description of the program evaluations used in
establishing or revising general goals and objectives, 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 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, the 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 a 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 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.''.
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:
``§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 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)(i) a minimally effective program, and
``(ii) a successful 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, disaggregate, 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 and sections 1116 through 1119,
and sections 9703 and 9704 the term--
``(1) `agency' has the same meaning as such term is defined
under section 306(f) of title 5;
``(2) `outcome measure' means an assessment of the results of a
program activity compared to its intended purpose;
``(3) `output measure' means the tabulation, calculation, or
recording of activity or effort and can be expressed in a
quantitative or qualitative manner;
``(4) `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) `performance indicator' means a particular value or
characteristic used to measure output or outcome;
``(6) `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) `program evaluation' means an assessment, through
objective measurement and systematic analysis, of the manner and
extent to which Federal programs achieve intended objectives.
``§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 program performance report 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
under section 1115(b), the results of such program shall be described in
relation to such specifications, including whether the performance
failed to meet the criteria of a minimally effective or successful
program.
``(c) The report 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 shall--
``(1) review the success of achieving the performance goals of
the fiscal year;
``(2) evaluate the performance plan for the current fiscal year
relative to the performance achieved toward the performance goals in
the fiscal year covered by the report;
``(3) explain and describe, where a performance goal has not
been met (including when a program activity's performance is
determined not to have met the criteria of a successful program
activity under section 1115(b)(1)(A)(ii) or a corresponding level of
achievement if another alternative form is used)--
``(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 9703 of this title;
and
``(5) include the summary findings of those program evaluations
completed during the 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
program performance reports under this section shall be performed only
by Federal employees.
``§1117. Exemption
``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.''.
SEC. 5. MANAGERIAL ACCOUNTABILITY AND FLEXIBILITY.
(a) Managerial Accountability and Flexibility.--Chapter 97 of title
31, United States Code, is amended by adding after section 9702, the
following new section:
``§9703. 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, 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 the
endorsement 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 purposes of this section, the definitions under section
1115(f) shall apply.''.
SEC. 6. PILOT PROJECTS.
(a) Performance Plans and Reports.--Chapter 11 of title 31, United
States Code, is amended by inserting after section 1117 (as added by
section 4 of this Act) the following new section:
``§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 to 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
9703 of this title, and this section.''.
(b) Managerial Accountability and Flexibility.--Chapter 97 of title
31, United States Code, is amended by inserting after section 9703 (as
added by section 5 of this Act) the following new section:
``§9704. 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 9703 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 purposes of this section the definitions under section
1115(f) shall apply.''.
(c) Performance Budgeting.--Chapter 11 of title 31, United States
Code, is amended by inserting after section 1118 (as added by section 6
of this Act) the following new section:
``§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 9703 of
this title, and this section.
``(e) After receipt of the report required under subsection (d), the
Congress may specify that a performance budget be submitted as part of
the annual budget submitted under section 1105.''.
SEC. 7. UNITED STATES POSTAL SERVICE.
Part III of title 39, United States Code, is amended by adding at
the end thereof the following new chapter:
``CHAPTER 28--STRATEGIC PLANNING AND PERFORMANCE MANAGEMENT
``Sec.
``2801. Definitions.
``2802. Strategic plans.
``2803. Performance plans.
``2804. Program performance reports.
``2805. Inherently Governmental functions.
``§2801. Definitions
``For purposes of this chapter the term--
``(1) `outcome measure' refers to an assessment of the results
of a program activity compared to its intended purpose;
``(2) `output measure' refers to the tabulation, calculation, or
recording of activity or effort and can be expressed in a
quantitative or qualitative manner;
``(3) `performance goal' means a target level of performance
expressed as a tangible, measurable objective, against which actual
achievement shall be compared, including a goal expressed as a
quantitative standard, value, or rate;
``(4) `performance indicator' refers to a particular value or
characteristic used to measure output or outcome;
``(5) `program activity' means a specific activity related to
the mission of the Postal Service; and
``(6) `program evaluation' means an assessment, through
objective measurement and systematic analysis, of the manner and
extent to which Postal Service programs achieve intended objectives.
``§2802. Strategic plans
``(a) No later than September 30, 1997, the Postal Service shall
submit to the President and the Congress a strategic plan for its
program activities. Such plan shall contain--
``(1) a comprehensive mission statement covering the major
functions and operations of the Postal Service;
``(2) general goals and objectives, including outcome-related
goals and objectives, for the major functions and operations of the
Postal Service;
``(3) a description of how the goals and objectives 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 required under section 2803 shall be related to the general
goals and objectives in the strategic plan;
``(5) an identification of those key factors external to the
Postal Service and beyond its control that could significantly
affect the achievement of the general goals and objectives; and
``(6) a description of the program evaluations used in
establishing or revising general goals and objectives, 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 under section 2803 shall be
consistent with the Postal Service'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, the Postal Service shall
solicit and consider the views and suggestions of those entities
potentially affected by or interested in such a plan, and shall advise
the Congress of the contents of the plan.
``§2803. Performance plans
``(a) The Postal Service shall prepare an annual performance plan
covering each program activity set forth in the Postal Service budget,
which shall be included in the comprehensive statement presented under
section 2401(g) of this title. 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 an alternative form is used 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 the Postal Service determines that it is not feasible to
express the performance goals for a particular program activity in an
objective, quantifiable, and measurable form, the Postal Service may use
an alternative form. Such alternative form shall--
``(1) include separate descriptive statements of--
``(A) a minimally effective program, and
``(B) a successful program,
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 either description; or
``(2) state why it is infeasible or impractical to express a
performance goal in any form for the program activity.
``(c) In preparing a comprehensive and informative plan under this
section, the Postal Service may aggregate, disaggregate, 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.
``(d) The Postal Service may prepare a non-public annex to its plan
covering program activities or parts of program activities relating to--
``(1) the avoidance of interference with criminal prosecution;
or
``(2) matters otherwise exempt from public disclosure under
section 410(c) of this title.
``§2804. Program performance reports
``(a) The Postal Service shall prepare a report on program
performance for each fiscal year, which shall be included in the annual
comprehensive statement presented under section 2401(g) of this title.
``(b)(1) The program performance report shall set forth the
performance indicators established in the Postal Service performance
plan, 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 by descriptive statements
of a minimally effective program activity and a successful program
activity, the results of such program shall be described in relationship
to those categories, including whether the performance failed to meet
the criteria of either category.
``(c) The report 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 shall--
``(1) review the success of achieving the performance goals of
the fiscal year;
``(2) evaluate the performance plan for the current fiscal year
relative to the performance achieved towards the performance goals
in the fiscal year covered by the report;
``(3) explain and describe, where a performance goal has not
been met (including when a program activity's performance is
determined not to have met the criteria of a successful program
activity under section 2803(b)(2))--
``(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; and
``(4) include the summary findings of those program evaluations
completed during the fiscal year covered by the report.
``§2805. Inherently Governmental functions
``The functions and activities of this chapter shall be considered
to be inherently Governmental functions. The drafting of strategic
plans, performance plans, and program performance reports under this
section shall be performed only by employees of the Postal Service.''.
SEC. 8. CONGRESSIONAL OVERSIGHT AND LEGISLATION.
(a) In General.--Nothing in this Act shall be construed as limiting
the ability of 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.
(b) GAO Report.--No later than June 1, 1997, the Comptroller General
of the United States shall report to 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
9704 of title 31, United States Code.
SEC. 9. 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. 10. APPLICATION OF ACT.
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, and no person who is not an officer or
employee of the United States acting in such capacity shall have
standing to file any civil action in a court of the United States to
enforce any provision or amendment made by this Act; or
(2) superseding any statutory requirement, including any
requirement under section 553 of title 5, United States Code.
SEC. 11. 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 9702 the following:
``9703. Managerial accountability and flexibility.
``9704. Pilot projects for managerial accountability and flexibility.''.
(c) Amendment to Title 39, United States Code.--The table of
chapters for part III of title 39, United States Code, is amended by
adding at the end thereof the following new item:
``28. Strategic planning and performance management...............
2801''.
Speaker of the House of Representatives.
Vice President of the United States and
President of the Senate.