[Budget of the United States Government]
[IV. Improving Performance Through Better Management]
[From the U.S. Government Publishing Office, www.gpo.gov]
IV. IMPROVING PERFORMANCE THROUGH BETTER MANAGEMENT
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IV. IMPROVING PERFORMANCE THROUGH BETTER MANAGEMENT
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We had to reject the idea of those who say we should do nothing with
Government and reject those who say we should try to do everything.
Instead, we gave the American people a Government that is very much smaller,
more focused, but more committed to giving people the tools and conditions
they need to make the most of their lives.
President Clinton
October 1997
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The President has challenged the Federal Government to do more with
less--and with good reason.
Departments and agencies, which once could count on more funds from
year to year, no longer can; indeed, with the Administration committed
to balancing the budget, some agencies will get less.
Public demands for more and better services have not shrunk, however.
Americans continue to want good schools, a clean environment, high-
quality health care, and secure retirement benefits. Thus, the
Government must satisfy these demands by managing better and improving
the performance of programs.
The Administration has answered the call. Vice President Gore, working
with the departments, agencies, and inter-agency working groups, and
drawing on the expertise of the private sector, has led an unprecedented
effort to cut the size of the Federal Government and make it more
efficient and effective. Through these reinvention efforts, the
Administration has saved $137 billion over the last five years.
The Administration has cut the civilian Federal work force by over
316,000 \1\ employees, creating the smallest work force in 35 years and,
as a share of total civilian employment, the smallest work force since
1931. Almost all of the 14 Cabinet Departments have cut their work
forces; only the Justice Department's work force is growing due to the
Administration's expanded war on crime and drugs, while the Commerce
Department's work force is growing due to the decennial census (see
Charts IV-1 and IV-2).
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\1\ As of September 30, 1997.
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But the work is not done, and the Administration has an ambitious
agenda to continue reinventing Government so that it is more effective,
more efficient, and more responsive to the American people. This section
highlights the key parts of this ``Management Agenda'' \2\:
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\2\ For more information on the issues discussed in Section IV, see
the footnotes that list websites on the Internet.
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The National Performance Review's (NPR) efforts to reinvent
entire agencies;
The Administration's top management objectives;
The Administration's management support initiatives; and
The activities of inter-agency working groups.
The NPR: Reinventing Agencies to Serve Americans
The NPR has introduced important changes across the Government that
have improved services and cut costs--from streamlined drug approvals at
the Food and Drug Administration to better customer service at the
Social Security Administration; from procurement reforms that have saved
$12.3 billion to the pending sale of the Naval Academy's 800-acre dairy
farm in Annapolis, Md. Now, the NPR is moving from reinventing processes
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within agencies to reinventing agencies in their entirety in order to
create customer-oriented, results-driven organizations that focus on
performance.
Over the next three years, the NPR will work with the agencies that
interact most with individuals and businesses to improve performance and
enable the American people to more quickly enjoy better service and
regain their confidence in Government. Following the examples of
America's best-run companies, the NPR will help these agencies align
their management systems to better serve their customers. These agencies
already have the key building blocks in place: strategic plans, annual
performance plans, and budgetary resources. The next step is to better
integrate their information technology, human resource systems, and
service processes so that they better focus on customers.
In addition, the Vice President has challenged the leaders of 32
agencies, with over 1.4 million full-time equivalent (FTE) positions, to
commit to achieving significant, concrete, measurable goals over the
next three years. These ``High Impact Agencies'' include the Immigration
and Naturalization Service, National Park Service, and Social Security
Administration (see Table IV-1).
``You should focus your efforts in three areas--partnerships, the use
of information technology, and customer service,'' the Vice President
instructed the heads of these agencies last summer. ``Yours are the
agencies that shape the public's opinion of Government and can redeem
the promise of self-government. Public cynicism about Government is a
cancer on democracy. Reinvention isn't just about fixing processes, it's
about redefining priorities and focusing on the things that matter.''
Working with the NPR, these agencies have developed over 200 specific,
measurable commitments that they will complete by the year 2000. They
involve improving services
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in areas that Americans care about.\3\ Major performance goals include:
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\3\ The NPR's home page, at www.npr.gov, links to the performance
commitments of each agency.
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Improving student aid delivery: The Education Department will
determine, within four days, the eligibility of students and
families who apply for student aid electronically, cutting the
processing time in half.
Speeding aid to disaster victims: Through partnerships with
Federal, State, local, and voluntary agencies, the Federal
Emergency Management Agency will act on all requests to meet
victims' needs for water, food, and shelter within 12 hours of
a disaster event, with the intent to coordinate services
within 72 hours of a Presidential declaration of disaster.
Finding the right agency on the first try: The General
Services Administration will restructure Federal listings in
the blue pages of local telephone books, ensuring that
Americans can find the Government service they need the first
time they look.
Reducing time for clearance at U.S. airports: Working with
the Agriculture Department and the Customs Service, the
Justice Department's Immigration and Naturalization Service
will clear international passengers at airports in 30 minutes
or less while improving enforcement and regulatory processing.
Reducing injury and illnesses in the workplace: The Labor
Department's Occupational Safety and Health Administration
will cut injury and illness rates by a fifth in at least
50,000 of the most hazardous workplaces.
Increasing access to Federal recreation opportunities: The
National Park Service will create, with other Federal natural
resource agencies, an integrated Nation-wide outdoor
recreation information system that gives all Americans
electronic access to information about recreation on Federal
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Table IV-1. High Impact Agencies
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Agriculture:
Animal and Plant Health Inspection
Service
Food Safety and Inspection Service
Food and Consumer Service
Forest Service
Commerce:
Bureau of the Census
U.S. and Foreign Commercial Service/Inter-
national Trade Administration
Patent and Trademark Office
National Weather Service
Defense:
Acquisition Reform
Education:
Student Financial Assistance
Environmental Protection Agency
Federal Emergency Management Agency
General Services Administration
Health and Human Services:
Food and Drug Administration
Administration for Children and Families
Health Care Financing Administration
Interior:
National Park Service
Bureau of Land Management
Justice:
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lands, recreation use permits, and reservations.
Speeding Social Security information: The Social Security
Administration will provide overnight electronic Social
Security number verification for employers. Today,
verification can take up to two weeks.
Priority Management Objectives
The Administration plans to ``provide management leadership to ensure
the faithful execution of the enacted budget, programs, regulations, and
policies,'' and to ``work within and across agencies to identify
solutions to mission critical problems.'' \4\ For 1999, the
Administration will focus on 22 key management objectives (see Table IV-
2).
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\4\ See OMB's Strategic Plan, at www.whitehouse.gov/WH/EOP/OMB/
Special----Emphasis/stratplan.html.
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Table IV-2. PRIORITY MANAGEMENT OBJECTIVES
---------------------------------------------Inter-agency Objectives--------------------------------------------
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Year 2000................................................... Manage the year 2000 computer problem in a timely
and cost-effective manner to ensure that no
critical Federal programs fail as a result of
this problem.
GPRA........................................................ Implement the Government Performance and Results
Act in a timely and compliant manner to improve
agency program performance.
Financial Management........................................ Present performance and cost information in a
timely, informative and accurate way, consistent
with Federal accounting standards. Assure the
integrity of Federal financial information by
completing audits and gaining unqualified
opinions for all Chief Financial Officer Act
agencies and on the Federal Government as a
whole.
Information Technology...................................... Improve the use of information technology and
decrease the number of troubled investments in
technology.
Selected Inter-Agency Systems............................... Improve the use of information technology and
eliminate unnecessary duplication by developing a
Simplified Tax and Wage Reporting System (STAWRS)
and the International Trade Data System (ITDS).
Acquisition Reform.......................................... Provide greater customer satisfaction through
acquisition reform in terms of price, timeliness,
quality, and productivity; increase use of
performance-based service contracting.
Loan Portfolio Management................................... Improve loan portfolio management by encouraging
the use of electronic loan origination, loan
underwriting, and reporting on the status of
major loan portfolios that will provide faster
and more economical loan processing.
Debt Collection............................................. Improve debt collection for major receivable
accounts by effectively using the tools provided
by the Debt Collection Improvement Act of 1996
(referral to private collection agencies,
referral to Treasury for offset, and asset
sales).
International Credit Programs............................... Improve agency loan management servicing,
portfolio tracking and credit budgeting policies
and procedures. More accurate financial records,
which use consistent accounting standards, will
result in improved repayment practices and
increased collections. (The Agency for
International Development, Overseas Private
Investment Corporation, Export Import Bank,
Defense Security Assistance Agency, Defense
Export Loan Guarantee Program, and Agriculture
have about $130 billion in outstanding loans and
guarantees to foreign obligors.)
Statistical Programs........................................ Strengthen the quality, utility, accessibility and
cost-effectiveness of Federal statistical
programs.
Regulation.................................................. Maximize the social benefits of regulation while
minimizing the costs and burdens of regulation.
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Table IV-2. PRIORITY MANAGEMENT OBJECTIVES--Continued
-------------------------------------------Agency-Specific Objectives-------------------------------------------
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Defense..................................................... Develop a plan with specific milestones to obtain
an unqualified audit opinion on Defense's
financial statement.
Defense..................................................... Increase outsourcing and privatization of military
department infrastructure functions closely
related to commercial enterprises, and of Defense
Logistics Agency, Defense Finance and Accounting
Service, and Defense Health Program functions.
Education................................................... Modernize the management of student aid benefit
delivery by reforming contracting, system
development, and program oversight practices.
Energy...................................................... Use prudent contracting and business management
approaches that emphasize results,
accountability, and competition; improve
timeliness; minimize costs; and ensure customer
satisfaction.
Housing and Urban Development............................... Implement HUD's 2020 Management Reform Plan to:
(a) restore public trust by achieving and
demonstrating competence in implementing HUD's
programs, and (b) restructure the way HUD
operates to empower people and communities.
Implementation of HUD's management reform plan
began in June 1997 and will extend to 2002. HUD
will periodically measure changes in its
performance to assess the impact of reform.
Interior: Bureau of Indian Affairs.......................... Seek to settle disputed tribal trust fund
balances, make comprehensive reforms to the
operation of tribal and individual Indian trust
asset and trust funds management, and implement a
recently introduced legislative proposal to
consolidate ownership of highly fractionated
Indian lands.
Transportation: Federal Aviation Administration (FAA)....... FAA Reform:
Implement a personnel system that, without
increasing costs, empowers managers to effectively
hire, reward, promote, discipline, and remove
employees, while at the same time protecting
employee rights.
Treasury: Financial Management Service (FMS)................ Implement a number of changes at FMS to increase
electronic payments, collections, and debt
collection; and improve the accuracy and
timeliness of Government-wide accounting and
reporting.
Treasury: Internal Revenue Service (IRS).................... Position the IRS to move forward with the
Modernization Blueprint and undertake an
incremental modernization, including year 2000
conversion, resulting in centralized data bases
that would stimulate significant improvements in
customer service, compliance and financial
reporting.
Veterans Affairs............................................ Work to consolidate infrastructure (hospitals,
regional offices, data centers) where service
improvements and efficiencies can be achieved.
Social Security Administration.............................. Reduce the processing time for disability claims
and appeals in the Disability Insurance and
Supplemental Security Income programs at lower
administrative cost with neutral impact on
program costs.
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Agency managers have the primary responsibility to achieve these
performance goals; they must actively and effectively carry out both
inter-agency and agency-specific initiatives. OMB will help agencies
develop specific measures \5\ and implement detailed action plans to
ensure that they make progress toward meeting these commitments.
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\5\ For information on performance measures for priority management
objectives, see OMB's home page, at www.whitehouse.gov/WH/EOP/OMB/
Special----Emphasis.
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The Government-wide management initiatives described below will help
achieve several of these inter-agency objectives.
Year 2000 Computer Problem: The Administration is committed to
ensuring that agency computer systems correctly process the year 2000.
The report, ``Getting Federal Computers Ready for 2000,'' which the
Administration sent to Congress with last year's budget, outlines the
Administration's strategy.\6\ Agencies report quarterly on their
progress, as does the Administration as a whole. The Administration's
most recent report states that the estimated cost of addressing the
problem stands at $3.9 billion; agencies have identified 8,589 mission-
critical systems, 26 percent of which are compliant; and all agencies
are renovating their systems. That report also establishes a Government-
wide goal of completing the implementation of all mission-critical
systems by March 1999. The budget proposes adequate funding to address
the problem. For example, the Defense Department will spend $275 million
and the Treasury Department will spend $312 million.
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\6\ For more information on the year 2000 issue and other information
technology issues, see the Chief Information Officers Council web site
(www.cio.fed.gov).
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Government Performance and Results Act (GPRA): All agencies have sent
Congress their strategic plans under the Results Act, and will be
sending their annual performance plans as well after the budget is
transmitted. Nearly 100 departments and agencies have prepared strategic
plans and are preparing annual performance plans. By March 2000, these
agencies will submit clear, concise annual performance reports on their
progress toward the goals they set in their annual plans.
Agency Audited Financial Statements: For 1996, 22 of the 24 largest
agencies have produced audited financial statements, as required by the
Government Management and Reform Act (GMRA). On these statements, six
agencies already have received unqualified opinions: the Energy
Department, General Services Administration, National Aeronautics and
Space Administration, Nuclear Regulatory Commission, Small Business
Administration, and Social Security Administration. The Chief Financial
Officers (CFOs) have projected when their agencies will issue
unqualified and timely audited financial statements (see Table IV-3).
As part of a GMRA-authorized pilot program, 12 agencies are issuing
Accountability Reports for 1997, enabling them to provide, in one place,
reader-friendly information about their programs and operations,
including their audited financial statements. In 1998, OMB and the CFO
Council will conduct a final assessment of the pilot program and, based
on the results, will work with Congress on legislation to turn the pilot
into a permanent, Government-wide program. Twenty-one of the 24 agencies
have committed to producing an Accountability Report for 1999.
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Table IV-3. Financial Statement Performance Goals
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Estimate
Financial Statements 1996 ---------------------------
Actual 1997 1998 1999 2000
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Audits Completed............................................................ 22 23 24 24 24
Agencies with Unqualified Opinion........................................... 6 12 16 21 23
Agencies with Unqualified and Timely Opinion................................ 4 9 16 21 23
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Government-Wide Audited Financial Statements: GMRA also requires the
first Government-wide audited financial statements for 1997. The
Government's ability to obtain an unqualified opinion on its Government-
wide statements is hampered, however, by the lack of adequate financial
management systems to capture the data that would satisfy Federal
accounting standards requirements. OMB plans to work with the agencies
to resolve these problems in time for the Government to receive such an
opinion on its 1999 statements.\7\
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\7\ For more information on financial management performance
commitments, see the CFO Status Report and Five-Year Plan at the OMB web
site (www.whitehouse.gov/WH/EOP/OMB/Finance/).
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Information Technology Investments: Investments in information
technology can help Government to work better and cost less. For the
best return on investment, agencies are following the successful
practices of private firms--reengineering, creating disciplined capital
programming processes, and developing information technology
architectures--to ensure that the investments provide workable solutions
to problems at a reasonable cost. (For performance information with
regard to information technology investments for 1999 and beyond, see
Table IV-4.)
Table IV-4. Program Performance Benefits From Major Information Technology Investments
(Budget authority, in millions of dollars)
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1997 1998 1999
Program/Project Actual Estimate Proposed Program Performance Benefits \1\
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Agriculture: Common Computing 21 41 45 Allows ``one-stop service'' for farmers at
Environment.\2\ local Agriculture Department offices.
Commerce: Advanced Weather 100 117 69 Improves the accuracy of forecasts. Lowers the
Interactive Processing System. costs of generating forecasts through reduced
staffing requirements. A component ``The
Advance Hydrological Prediction System'' will
provide 60-day flood warnings with 90-percent
accuracy.
Commerce: Census 2000. 26 80 199 Reduces errors, the number of temporary
employees needed, and publication costs.
Defense: Defense Message System. 154 197 207 Provides timely, reliable, accountable, and
secure messaging and electronic mail directory
services to tactical, organizational and
individual users. Defense estimates lifecycle
cost savings of over $600 million.
Education: Direct Student Lending. 141 187 220 Supports loan origination and servicing of a
portfolio that will grow to more than $55
billion in 1999.
Education: National Student Loan 27 21 27 Improves the Government's collection of
Data System. defaulted loans and integrity of participating
institutions.
Education: PELL Grant Systems. 7 7 7 Distributes grant funds to institutions and
supports sound financial management.
Education: Guaranteed Student Loan 23 24 30 Improves the Government's collection of
Data System. defaulted loans.
Education: Student Aid Application 49 51 63 Assists institutions and students by providing
System. a standardized way to determine financial aid
eligibility.
Energy (DOE): Telecommunications 2 100 123 Lowers operating and maintenance costs and
Integrator Services (TELIS) improves sharing of information by promoting
contract.\3\ interoperability of telecommunications
systems.
Health and Human Services: Medicare 75 40 45 Simplifies and streamlines claims processing,
Information Technology System.\4\ eligibility, and managed care information
systems while improving service to Medicare
customers.
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Health and Human Services: Federal 25 28 29 Assists States in locating out-of-State, non-
Parent Locator Service, including custodial parents who owe child support by
the National Directory of New matching quarterly wage, new hire, and
Hires and the Federal Case unemployment insurance data with national
Registry. registry of child support cases. This system
will increase interstate collections by $3
billion over ten years.
Housing and Urban Development: 48 90 90 Provides better internal controls and oversight
Information Technology of federal grants, verification of the
Investments. eligibility of recipients, timely and accurate
payment of funds, and oversight and servicing
of FHA mortgages.
Interior: Automated Land Management 42 33 35 Improves the quality of, and access to, land,
Records System. resources, and title information for public
land managers and adjacent land owners.
Interior: American Indian Trust 3 4 10 Ensures that trust income is allocated based
System. upon accurate land ownership information.
Justice: Integrated Automated 84 84 48 Allows the FBI to process routine
Fingerprinting Identification identification requests in 24 hours and urgent
System. requests in two hours.
Justice: National Criminal 8 ........ ........ Provides law enforcement agencies across the
Information Center 2000. country real-time access to sophisticated
databases on criminals and criminal activity.
Justice: Information Sharing. ...... ........ 50 Promotes sharing of investigative data
bureauwide.
Labor: ERISA Filing Acceptance 6 3 (\5\) Increases the speed, accuracy, and integrity of
System. information that three agencies use to
safeguard private pensions.
State: Diplomatic and Consular 146 260 283 Improves delivery and management of information
Systems Modernization.\6\ required by diplomatic and consular officers
overseas to support the Nation's foreign
policy goals and ensure U.S. border security.
Transportation: Federal Aviation 1,233 1,306 1,410 Maintains and improves capability to promote
Administration Air Traffic Control the safe, orderly, and expeditious flow of air
System Modernization. traffic. Reduces the accident rate by 80
percent of baseline levels by 2007.
Treasury: Information Technology ...... 325 323 Provides advanced funding for redesign of tax
Investments. administration systems and operations,
improving the timeliness and quality of
taxpayer data, and thereby significantly
enhancing customer service and collection
activities. Increases automated calls answered
from 16 million to 30 million.
Treasury: Treasury Communications 129 187 200 Provides secure data transmission and
System.\7\ information services worldwide for Treasury
bureaus.
Treasury: Automated Commercial 12 11 56 Supports business process redesign, systems
Environment. architecture, development, and implementation
for systems to replace Customs' Automated
Commercial System.
Veterans Affairs: VA Medical 1 80 73 Allows automation of veterans' eligibility
Enrollment System. status and tracking of veteran demographics.
Environmental Protection Agency: 8 7 8 Helps to improve the environment by maintaining
Toxic Release Inventory System. data related to certain toxic chemical uses.
The data are available to EPA staff, State and
local governments, educational institutions,
industry, environmental and public interest
groups, and the general public. This allows
for search requests to be fulfilled within 48
hours 95 percent of the time.
National Aeronautics and Space 235 210 257 Supports spacecraft control, science data
Administration: Earth Observing processing, and Earth science data management,
System Data Information System. archiving, and distribution. Will archive 560
terabytes and deliver 3.4 million data
products by end of 1999.
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Social Security: Automation 235 190 ........ Provides more than 2,400 workyears in
Investment Fund. productivity gains for SSA and State
Disability Determination Services.
General Services Administration: 10 13 11 Beginning in 1999, will offer the Federal
FTS2001 Program.\8\ Government low- cost, state-of-the-art,
integrated voice, data, and long-distance
telecommunications. Replaces the FTS2000
contracts for similar services that expire in
1998.
Nuclear Regulatory Commission: 2 7 4 Implements workprocess improvement review and
Agency Document Access and increases staff efficiency through improved
Management System. information access and elimination of
redundant data entry. Reduces maintenance
costs by replacing aging legacy hardware and
minimizing custom software.
Office of Personnel Management: ...... 2 5 Completes development of agency-wide
Retirement System Modernization. information technology architecture and
development of retirement system modernization
program requirements.
Interagency: Simplified Tax and 1 ........ 2 Reduces employers' tax and wage reporting
Wage Reporting System. burden.
Interagency: International Trade 6 6 5 Reduces burden on exports and imports, speeds
Data System. up shipments, and improves the quality of
trade statistics.
Interagency: Data Center ...... 100 100 Saves money by requiring all Federal agencies
Consolidation. to consolidate or collocate their data
processing centers to fewer larger, more
efficient, and cost effective locations,
either within the Government or with a private
sector provider.
Interagency: Land Mobile Radio ...... ........ 130 Allows a 50-percent increase in number of
Narrowbanding.\9\ radios that can operate in current spectrum,
promoting interoperability among users.
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\1\ Required under the Clinger-Cohen Information Technology Management Reform Act.
\2\ Previously called the Field Service Center Initiative
\3\ Budget authority for non-DOE agencies using the TELIS contract vehicle is $1.5 million, $77 million, and $99
million in 1997, 1998, and 1999, respectively.
\4\ Succeeds the Medicare Transaction System.
\5\ 1997 and 1998 figures represent capital investment to set up the system. 1999 numbers are operational costs.
For consistency, 1999 is zero for capital costs and $4.5 million in operational costs.
\6\ Includes user fees and budget authority
\7\ Funded through Treasury's working capital fund, not annual appropriations.
\8\ Cost numbers are not budget authority, but agency contributions to the Information Technology Fund for
expenses associated with the FTS2001 Program. These numbers do not include the cost of transitioning to the
new contracts.
\9\ Total of Departments of Justice, the Treasury, Agriculture, and Transportation investments.
Procurement: Changes in law and regulatory policy continue to help
agencies get more value from what they buy, improving Government's
performance along the way. With fewer Government-specific requirements
to meet and with more flexibility, contracting officials can
increasingly buy commercial items and, in the process, pay less while
they gain access to the most current technology. Agencies can
communicate more with industry and more directly link Government's needs
to the market's capabilities. The Administration will build on these
improvements so that Federal acquisition practices can match those of
the most successful companies. For instance, by the end of 1999: 15
agencies will have a system in place to evaluate contractor performance
on all non-exempt contracts over $100,000; agencies will make 60 percent
of all transactions under $2,500 with the Government charge card; and
OMB will work with agencies to increase, by 30 percent, the number of
model performance-based service statements of work available for agency
use.
Performance Based Service Contracting (PBSC): PBSC requires that, in
procuring a service, the Government outline its needs in measurable,
mission-related terms--not prescribe precisely how contractors do the
work, and not describe its needs too vaguely. With PBSC, agencies pay
for results, not effort or process, enabling contractors to determine
the
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best, most cost-effective ways to do the job. Preliminary results of a
Government-wide PBSC pilot project show that it cut prices 15 to 20
percent while increasing Government's satisfaction with contractor
performance. The Administration believes that PBSC offers great
potential to reap savings and other benefits in the roughly $100 billion
that the Government spends a year on service contracts. Agencies plan to
convert about 1,000 contracts, valued at $20 billion, to PBSC over
several years. In 1999, agencies project that they will convert at least
700 contracts, worth $9 billion, to PBSC.
Loan Portfolio Management: Because the Federal Government is the
Nation's single largest source of credit, agency credit programs and
performance measures should address each major phase of credit
management--credit extension, account servicing, and special collection.
For each phase of this new initiative, agencies will more widely use
modern electronic business processes to improve customer service, cut
costs, and improve collection. For credit extension, agencies will
ensure that individuals and entities applying for credit are eligible in
terms of income and are not delinquent on a Federal claim. For account
servicing, agencies will work together to ensure that accurate monthly
information is available on the status of loans. A consortium of single
family loan programs run by the Departments of Housing and Urban
Development, Agriculture, and Veterans Affairs will provide a forum for
its program delivery partners to speed their use of electronic reporting
on the status of accounts.
Debt Collection Management: The 1996 Debt Collection Improvement Act
(DCIA) created more tools for the Treasury Department and individual
agencies to reduce losses and increase collections. In the special
collection phase, when a loan becomes seriously delinquent--over 180
days overdue--Treasury will help the agency by intercepting other
Federal payments to the delinquent borrower and applying them to the
delinquent account. Treasury can also cross-service debts that are over
180 days overdue by referring them to private collection agencies. A
principle of sound credit management for most Federal loan programs is
that once a loan is delinquent for over one year, the agency should sell
the debt or write it off as uncollectible, as appropriate. The Federal
Credit Policy Working Group will review write-off practices and redesign
loan sales policy in order to cut the growth of delinquencies and boost
Federal collections of delinquent debt. By January 1999, the Federal
Credit Policy Working Group, in cooperation with the CFO Council, will
work to reduce delinquencies by 10 percent and increase collections by
$95 million from the 1997 level.
Management Support Initiatives
The activities described above do not encompass all of the
Administration's management efforts. Indeed, the Administration
continues to work on a host of other initiatives--from providing more
Federal services electronically to improving the management of credit
programs--that will help reach the goal of creating a Government that
``works better and costs less.''
Access America: This plan, which the Vice President is spearheading,
is designed to make Government services available electronically to all
Americans who seek them. More specifically, the plan calls for, among
other things, conducting electronically those transactions that
individuals, States, localities, businesses, law enforcement agencies,
and others most often request; ensuring high standards of privacy and
security for these transactions; and providing the necessary
infrastructure and skills in Government to support the vision. A
Government-wide task force is leading implementation efforts.\8\
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\8\ For further details, see www.gits.fed.gov.
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Electronic Commerce Security: Electronic commerce is the use of
computers and networks to buy and pay for goods and services, accept
regulatory filings, and provide public services--making Government more
convenient and cost-effective. For agencies and the public to enjoy
those benefits, however, they must be sure that their information is
going to whom it should--and to no one else. An important tool for
providing that security is the digital signature, but the private
institutions and the rules for managing those signatures are just
emerging. Through efforts of the Government Information Technology
Services Board and others, the Federal Government is aligning Federal
electronic commerce security
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practices with this emerging private infrastructure.
Data Center Consolidation: The Government can save money by
consolidating large computer centers, thereby eliminating duplication in
facilities, staff, computer hardware and software, and related services.
Large-scale data processing service contracts, such as GSA's Virtual
Data Center contract, make outsourcing for the related services sensible
and cost-effective. OMB has directed agencies to significantly reduce
the number of agency data centers to save substantial sums of money for
the Government.
Budgeting for Results: In preparing the budget, the Administration
had, for the first time, agency strategic plans, annual performance
plans, and performance measures to help decide how to allocate
resources. In general, however, the budget structure and charging
practices do not make it easy to match costs with a specific program.
First, the budget does not charge all of a program's resources to that
program; instead, the budget subsidizes programs by paying for certain
activities centrally. Second, not all budget accounts are as well-
aligned as they might be with the programs they finance. As a result, in
some cases, the quality of budgeting, management, and resource
acquisition all suffer.
Good budgeting is predicated on the ability to compare costs and
benefits, at least roughly, across all programs every year. In some
cases, current practices distort such comparisons. Good management
requires that managers focus on, and are held accountable for, getting
the best results for the resources they have. Managers should be free to
allocate resources as they see fit, and to obtain competitive,
performance-oriented procurement.
To better integrate budgeting with performance planning and reporting,
as GPRA envisions, OMB will work with agencies to review their budget
account structures and, in consultation with the Budget Officers
Advisory Council and the CFO Council, develop legislation to enable
agencies to charge programs' accounts uniformly and comprehensively for
the resources they use. As these proposals take shape, OMB will consult
with the Congressional Budget Office, the General Accounting Office, and
congressional committees on next steps.
Competition: Competition spurs efficiency. Federal agencies that
provide administrative and other support services need the stimulus of
competition to sharpen their skills, improve their performance, and cut
their costs. As a result, for buying commercial goods and services, the
Administration is encouraging agencies to consolidate common
administrative services, and to compete those and other services with
one another and with the private sector on a level playing field to
provide the best deal for the taxpayer, in accordance with the March
1996 revised OMB Circular A-76 Supplemental Handbook. More competition
will spur new technologies, new capital, and new management techniques
to help improve performance, while creating greater opportunities for
Federal and private employees and their customers. The Secretary of
Defense, for instance, has announced that the department will evaluate
over 41,000 FTE positions for their possible conversion to the private
sector or other agencies in 1999, and evaluate over 150,000 FTE through
2001.
Error Reduction: The Administration is launching an effort to reduce
errors in Federal programs that lead to waste, fraud, or abuse. Federal
agencies will work together to identify common sources of error and
enable the Government to develop more integrated solutions, thus saving
money for the taxpayers. For 1999, the Administration will focus on
increasing accuracy and efficiency in three areas: program eligibility
verification; financial and program management; and debt collection.
Eligibility verification: Many agencies run benefit and credit
programs in which eligibility depends, at least in part, on an
applicant's income or other financial resources, and other
criteria, such as marital status and number of dependents.
These programs include small business loans, student loans and
grants, veterans pensions, rental housing assistance, income
maintenance, nutrition support, and others. Generally,
applicants must submit financial and other data on forms that
agencies use to determine eligibility. When applicants provide
false or erroneous information about their income or personal
sta
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tus, they may receive benefits for which they are ineligible,
and may deprive eligible applicants from the assistance they
deserve. A better verification process for credit and benefit
programs can reduce errors significantly and allocate
resources more fairly.
Financial and program management: Agencies often can address
the sources of errors within programs by changing their
financial or management practices. For example, transaction
analysis software can help agencies identify improper billing
trends or high-risk operations. In addition, agencies could
recoup the interest lost due to overpayments to vendors by
charging the vendors for those funds, and the Administration
is drafting legislation to enable the Treasury Department to
assess those charges. Also, more audits and other integrity
initiatives will help agencies identify errors earlier. The
biggest payoffs come when agencies prevent errors up front or
quickly identify them before losses mount.
Debt collection: Although most efforts to improve accuracy
focus on prevention, some bad debt is inevitable. In trying to
collect, agencies face the major obstacle of finding both the
debtor and his or her employer. For example, the Education
Department devotes about 70 percent of its collection efforts
to locating debtors. Agencies could collect debt more
effectively by better using data, subject to appropriate
privacy protections, that's already in Government databases
such as the National Directory for New Hires, which should be
fully on line in early 1998 and which provides some of the
Federal Government's most timely information for debt
collection purposes.
Inter-Agency Working Groups: Using Network Management for Better
Performance
The Administration relies on inter-agency groups to develop certain
policies, and to identify and implement ways to better manage Federal
resources. The groups meet regularly to initiate action, undertake
projects, exchange information, set priorities, and recommend policy
direction.
In 1993, President Clinton established the President's Management
Council (PMC), comprising the Chief Operating Officers of the largest
Federal departments and agencies, to improve management of the Executive
Branch. The PMC has undertaken a number of initiatives, including:
Rightsizing: Leading efforts to reduce the number of Federal
civilian employees without unnecessarily disrupting the work
force.
Procurement reforms: Identifying performance measures to help
agencies assess improvements in the procurement process, and
supporting implementation of Electronic Commerce and
Performance-Based Service Contracting initiatives.
Field office restructuring: Identifying appropriate criteria
for restructuring activities within agencies; and recommending
various approaches to restructuring.
Overseas missions: Implementing a cost-sharing process for
foreign missions.
Labor-Management partnerships: Supporting partnerships through
continuous communication with union leaders; and fostering
culture change at all organizational levels.
Customer service: Facilitating the development of customer
service standards in agencies and the delivery of Customer
Service Reports.
The President's Council on Integrity and Efficiency (PCIE), comprising
27 Presidentially-appointed Inspectors General (IGs) and other key
integrity officials, focuses on two main objectives:
mounting collaborative efforts to address integrity, economy,
and effectiveness issues that transcend individual agencies;
and
increasing the professionalism and effectiveness of IG
personnel across the Government.
The PCIE, for example, has recommended controls for Federal electronic
benefits pro
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grams and reviewed the next generation of Federal Government credit card
programs. In addition to setting basic standards for IG investigations,
audits, and inspections, the PCIE has confronted new challenges, from
implementing the 1993 Government Performance and Results Act to
developing the Federal Financial Statement Audit Manual.\9\
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\9\ For more on PCIE activities, see IGnet (www.ignet.gov).
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A reinvigorated Joint Financial Management Improvement Program (JFMIP)
will use added resources to help agencies in financial systems
improvement efforts. In 1999, JFMIP will revise the Federal Supply
Schedule for Federal financial systems, and continue to develop systems
standards and other guidance documents.
Table IV-5 lists the priorities of several other inter-agency working
groups: the National Partnership Council, the CFO Council, the Chief
Information Officer (CIO) Council, the Electronic Processes Initiative
Committee, the Federal Credit Policy Working Group, and the Federal
Procurement Council.
Table IV-5. PRIORITIES OF INTER-AGENCY WORKING GROUPS
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National Partnership Council
President Clinton established the National Partnership Council in October 1993 to enlist the Federal labor
relations program as an ally in reinvention, and to refocus Federal labor relations from adversarial litigation
to cooperative problem solving. Among the NPC's key objectives for 1998 are the following:
Bring high-level attention to partnership issues to ensure that
partnerships are established and working effectively throughout the Federal
Government.
Continue to focus on partnerships experiencing problems and help them
overcome barriers.
Encourage partnerships to address major NPR objectives, such as
increasing efficiency, improving service, and reducing cost.
Chief Financial Officers Council
Authorized by the CFOs Act, the CFO Council is a Government-wide body that addresses critical cross-cutting
financial issues by working collaboratively. The Council consists of the CFOs and Deputy CFOs of the 24 largest
Federal agencies and senior officials of OMB and Treasury. The CFO Council's priorities are:
Improve financial management systems.
Effectively implement the Government Performance and Results Act.
Issue accounting standards and financial statements.
Develop human resources and CFO organizations.
Improve the management of receivables.
Ensure management accountability and control.
Modernize payments and business methods.
Improve the administration of Federal assistance programs.
Chief Information Officers Council
The CIO Council's role includes: developing recommendations for information technology management policy,
procedures, and standards; identifying opportunities to share information resources; and assessing and
addressing the Federal Government's needs for an information technology work force. The Council consists of
CIOs and Deputy CIOs from 28 large Federal agencies, two CIOs from small Federal agencies, and representatives
from OMB and two information technology boards. The CIO Council's priorities are:
Define an interoperable Federal information technology architecture.
Ensure information security practices that protect Government
services.
Lead the Federal year 2000 conversion effort.
Establish sound capital planning and investment practices.
Improve the information technology skills of the Federal work force.
Build relationships through outreach programs with Federal
organizations, Congress, industry, and the public.
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Electronic Processes Initiative Committee (EPIC)
The President's Management Council established EPIC to integrate end-to-end business processes electronically,
with an emphasis on procurement and finance. EPIC consists of senior officials from DOD, the General Services
Administration, Treasury, and OMB. The EPIC priorities are:
Use a multi-purpose smart card to support reengineering of business
and administrative processes.
Integrate electronic buying and paying processes.
Efficiently and effectively process intra-governmental transfers that
contribute to unqualfied financial statements.
Federal Credit Policy Working Group
This inter-agency forum provides advice and assistance to OMB, Treasury, and Justice in formulating and
implementing Government-wide credit management policy. Membership consists of representatives from the major
credit and debt collection agencies and OMB. The Federal Credit Policy Working Group's priorities are:
Effective implementation of the Debt Collection Improvement Act.
Use of the Internet for credit management, especially for lending,
underwriting, and portfolio status reporting.
Sale of loan assets that are over a year delinquent.
Review agency write-off practices and Government-wide policy.
Improve prescreening of loan applications to validate eligibility and
application data.
Federal Procurement Council
The Federal Procurement Council, which consists of the Senior Procurement Executives from major Federal
agencies, meets regularly with OMB to discuss ways to improve the procurement process. The Federal Procurement
Council's priorities are:
Promote agency use of commercial buying practices by increasing the
use of performance-based service contracting, past performance in
administering current contracts and selecting new contractors, electronic
commerce as an enabler, and other innovative buying strategies.
Promote the Federal procurement work force's use of good business
judgment within an adaptable system of flexible rules and procedures that
allow professionals, working in a continuous learning environment, to use
discretion.
Collaborate with budget, financial, and information technology
management offices to improve agency planning and management of capital asset
procurement.
Promote national socioeconomic procurement policies consistent with
fostering the efficiency and effectiveness of the procurement system.
Promote the use of a globally competitive industrial base, integrating
facilities and operations serving the Government market with those serving the
commercial market by reducing Government-unique requirements that restrict
full integration.
Increase customer satisfaction by routinely providing quality products
and services, on time, and within budget.
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