    [Analytical Perspectives]
    [Information Technology Investments]
    [22. Program Performance Benefits from Major Information Technology
    Investments]
    [From the U.S. Government Publishing Office, www.gpo.gov]

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                       INFORMATION TECHNOLOGY INVESTMENTS

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      22.  PROGRAM PERFORMANCE BENEFITS FROM MAJOR INFORMATION TECHNOLOGY
                                   INVESTMENTS

      The federal government's investment in information technology (IT) is
    estimated to be $50 billion for 2003. This investment makes the federal
    government the largest buyer of information technology (IT) in the
    world. Indeed, the federal government is likely one of the few
    organizations planning double-digit percentage IT spending increases in
    the next year. In addition to improving the government's overall
    performance within and across agencies in the federal government, the
    additional investment will support the three key priorities in the
    President's Budget: homeland security, the war on terrorism, and
    facilitating economic growth.
      More specifically, to improve the results from federal IT spending,
    the President has made ``Expanding Electronic Government'' one of five
    management priorities. IT spending should focus on efforts that make the
    federal government citizen-centered and results-oriented, so that
    citizens can rapidly get service and decisions in minutes or hours
    instead of the current standard of weeks or months. Over the next two
    years, the Administration is deploying 24 high payoff E-Government
    initiatives that improve government productivity at multiple departments
    and agencies, while eliminating redundant systems and significantly
    improve government's quality of service for citizens and businesses.
    Overall, the President's E-government initiative will focus federal
    investments in technology to free-up billions of dollars of wasteful
    federal spending, reduce government's burden on citizens and businesses,
    and improve government operations.
      A key principle of the Administration's approach is to simplify
    government processes and unify hundreds of redundant government computer
    systems across agencies that act as ``islands of automation.'' Indeed,
    the complicated processes and redundant operations represent a legacy of
    operations that have held back necessary productivity gains. The United
    States can no longer afford to be the world's number one superpower yet
    run the risk of being second-rate as a federal government in providing
    services to its citizens. The Internet has placed government IT
    investments at a crossroads, and the President has chosen to invest in
    modernization that delivers results for the citizen rather than spend
    increasing amounts to maintain legacy systems without improving
    government's performance.
      Achieving the President's vision requires effective IT management
    practices. The federal government is spending $45 billion on IT in 2002,
    and this Budget estimates an increase to $50 billion in 2003. But
    federal IT investments have not produced improvements in productivity
    and quality in service delivery that are commensurate with those of
    commercial firms. Expanding E-government is critical for the federal
    government to achieve the tremendous improvements in efficiency and
    customer service that the Internet has spawned throughout society. As
    the detail in the table that follows (and related documents identified
    below) demonstrates, the 2003 Budget represents a stark contrast to past
    approaches for federal IT investment. Under the Administration's IT
    management reforms, federal agencies will no longer pursue the costly
    strategy of automating paper intensive procedures that have long
    outlived their worth. Instead, the 2003 Budget focuses on using
    information technology to:
        Simplify and integrate processes across redundant or
              duplicative programs, so as to make it easy for citizens to
              get service,
        Directly improve the management of programs, so as to
              achieve better program outcomes,
        Ensure sound security of government information systems,
        Eliminate redundant or non-productive IT investments, and
        Bring successful e-business practices to government
              administrative operations, such as effective procurement and
              human capital management strategies.
      As will be outlined below, the 2003 IT investment decisions have been
    made on the basis of business cases that review the costs, benefits, and
    risks. In executing these business plans, federal agencies will use
    information technology to improve their effectiveness through improving
    performance in individual agencies, and more importantly improving the
    way agencies work together to serve citizens. Expanding E-Government and
    improving IT management will both result in improved program performance
    and are inextricably linked.

                                   Background

      The Clinger-Cohen Act of 1996 (CCA) requires that, in conjunction with
    the President's budget submission, the Director submit a report to
    Congress on the results of federal IT spending. The Act requires that
    the report identify ``net program performance benefits achieved as a
    result of major capital investments made by executive agencies in
    information systems and how the benefits relate to the accomplishments
    of the goals of the executive agencies.'' The Act requires that computer
    security be considered in IT investment decisions. In addition, the
    Clinger-Cohen Act and the Federal Acquisition Streamlining Act of 1994
    contain IT management reform activities that must be documented in the
    President's budget submission to Congress:
        The Clinger-Cohen Act requires the Director to develop, as
              part of the budget process, a procedure for ``analyzing,
              tracking, and evaluating the risks

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              and results of all major capital investments made by an
              executive agency for information systems.''
        The Federal Acquisition Streamlining Act, Title V, (FASA V)
              requires that agencies review for termination any major
              projects significantly exceeding cost, schedule, and
              performance goals, so that an agency's average cost overruns,
              performance shortfalls, and schedule delays do not exceed 10%.
      This Budget fulfills the statutory requirements through two
    components: Table 22-1 and the Agency IT Investments Portfolios (Exhibit
    53 as required by OMB Circular A-11). Table 22-1 summarizes the results
    of IT management processes at major agencies. The table documents how
    agency actions are improving the program results from IT investments,
    fulfilling the requirements of the Clinger Cohen Act.
      The Agency IT Investment Portfolios (available in the Exhibit 53 on
    the Internet at http://www.whitehouse.gov/OMB) provide details for the
    2003 IT investments, including:
        Agency summaries of major projects and many significant
              projects,
        Current and anticipated funding,
        Strategic goals, and
        Performance goals and measures.
      Related documents on IT security and E-government are discussed below,
    and will also be available at http://www.whitehouse.gov/OMB.

                    Improving the Management of Government IT

      Federal IT spending has risen from $32.9 billion in 1999 to an
    estimated $50 billion in 2003. However, government productivity has not
    noticeably improved. Achieving productivity growth requires executive
    focus on E-Government and IT management reform. Consequently, the Office
    of Management and Budget has implemented IT decisionmaking practices
    that review IT investments across agencies to resolve six issues that
    have previously limited productivity improvements:
    1.          Automation of existing outdated processes, instead of fixing
              underlying management problems or simplifying agency
              procedures to take advantage of new e-business and E-
              Government capabilities. This issue must be addressed for
              agencies to reduce burden and improve service to citizens,
              other government entities, and businesses that interact with
              the federal government. Rather than putting paper processes
              online, new federal IT systems reflect improvements in agency
              operations that are being tailored to better address to these
              customers' needs.
    2.          Duplicative IT investments. Multiple departments and
              agencies buy the same IT items, resulting in redundant
              investments and operations that make it difficult and time
              consuming for citizens to interact with the federal
              government. The President's management agenda requires
              agencies to work as a team across agency silos to create
              single points or websites where citizens and businesses can
              obtain service. Prior to the 2003 Budget, IT investment
              decisions often led to purchase of separate systems performing
              much the same functions (that is, stove-piped operations) at
              different agencies. With the 2003 Budget, operations and IT
              investments are being integrated into efficient, responsive
              operations, especially for citizen centered service delivery
              or information security investments.
    3.          Few IT investments have significantly improved mission
              performance. Although agencies have made progress in
              implementing capital planning and investment control, agency
              budget decisions and management practices rarely linked IT
              investments to program performance improvement. For example,
              agencies often evaluated IT investments by the percentage of
              time the computers work rather than the performance gain they
              deliver to the programs supported. Setting departmental
              priorities among competing project proposals has been
              exception, not the rule. For the 2003 Budget, IT investments
              are not being made without a valid business case.
    4.          Few agencies have plans demonstrating and documenting the
              linkage between IT capabilities and the business needs of the
              agency. Lack of such ``enterprise architecture'' plans can
              lead to IT investments that cannot work together, which
              further retards information flows across agencies and across
              the government. As a result, citizens and businesses supply
              the same information repeatedly because agencies cannot share
              information across systems. For the same reason, agencies make
              unnecessary investments in infrastructure because individual
              programs cannot ensure that their infrastructure requirements
              will be met collaboratively. Additionally, without such an
              architecture, agencies cannot easily analyze information
              security risks and determine investment needs. Virtually every
              agency is considering or investing in enterprise resource
              management (ERP) software to improve management of finances
              and human capital. Building on the lessons learned from
              similar private sector efforts, 2003 ERP investment decisions
              were made contingent on an enterprise architecture that
              documents how improved results will be obtained.
    5.          Many major IT projects do not meet cost, schedule, and
              performance goals. Under the Federal Acquisition Streamlining
              Act (FASA), agencies must report and track progress against
              cost, schedule and performance goals for IT and other capital
              projects, which is implemented through Administration budget
              guidance. There is wide variation in the performance of
              agencies against these benchmarks. The President's management
              agenda requires that IT investment performance be tracked and
              reported quarterly, with agencies identifying any needed
              corrective actions and the Chief Information Officers (CIO)
              Council

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              developing tools and best practices in support of achieving
              the FASA requirements.
    6.          Major gaps exist in agency and government-wide computer-
              related security. Under the Government Information Security
              Reform Act, agencies submitted reports to OMB based on annual
              assessments by CIOs and Inspectors General. The assessments
              show gaps both within and across agencies, which suggest that
              federal agency missions may be put at risk by a broad range of
              security problems. OMB guidance directs agencies to identify,
              prioritize, and resolve these problems to eliminate such gaps.
              The 2003 Budget reflects IT investment decisions made to
              address security gaps, through which IT investments have
              incorporated security or were terminated for lack of security.
      The Administration's actions taken to address these are described in
    the key areas discussed in Table 22-1. An agency's IT management and
    governance process must contain three ``legs''--capital planning and
    investment control (CPIC), enterprise architecture (EA), and IT
    performance management. Agencies over the last few years have focused
    primarily on the CPIC process, without sufficient focus on enterprise
    architecture and IT performance management. Also, as discussed below,
    security is a critically important element in IT management that has now
    been incorporated in agency IT investment and management decisions.
      Development of Agency Capital Planning Processes. To manage
    investments in IT and as required by Clinger-Cohen, most agencies have a
    capital planning and investment control process in place. Capital
    Planning and Investment Control (CPIC) is a collective decision-making
    process for ensuring that IT investments integrate strategic planning,
    budgeting, procurement, and the management of IT in support of agency
    missions and business needs. Agencies have made mixed progress over the
    last few years in terms of capital planning. As agencies continue to
    improve these processes, they are integrating planned cost, schedule,
    and performance information as elements of the processes, thereby
    ensuring the only projects selected for funding are those that identify
    and capture the benefits to the agency's programs and business lines. As
    reflected in Table 22-1, agencies continue to fall into several
    categories in terms of the effectiveness of their CPIC process.
      Development of Agency Enterprise Architectures. Enterprise
    Architecture (EA) is a tool required under the Clinger-Cohen Act and OMB
    policy to ensure agency management is kept effective and modern. The EA
    establishes an Agency-wide roadmap to achieve an Agency's mission by
    improving its core business processes and effectively using information
    technology (IT). Simply stated, Enterprise Architectures are
    ``blueprints'' for systematically and completely defining an
    organization's current (baseline) or desired (target) environment.
    Enterprise Architectures are essential for evolving information systems
    and developing new systems that optimize their value to the agency
    missions. EAs also allow an agency to continually identify redundant
    organizations, processes, and projects in order to unify and simplify
    their business lines, identify opportunities for cross-agency
    applications, and identify process and projects that could be better
    performed in the private sector. An EA also identifies an agency's
    capabilities in terms of delivering projects and investments, and the
    absence of an EA can be the sole reason for failure of a project. As
    expected, Table 22-1 shows that agencies have made mixed progress in
    terms of enterprise architecture.
      Development of IT Performance Measures. The 2003 IT Budget information
    and the Administration's focus on E-Gov is leading to improvement on
    performance measurement for IT. As an example, 2002 budget reviews
    indicated less than 20 percent of the IT investments identified any
    performance goals and measures. The 2003 information detailed in the
    Agency IT Investment Portfolios (Exhibit 53) reveal a significant
    improvement in the performance metrics with a large number of the
    projects including performance information in three areas:
        Government Performance and Results Act and Agency
              performance goals;
        Contracts that are performance based with measures; and
        IT project goals in terms of increasing customer service,
              reducing process time, and reducing burden on the citizen by
              standardizing data and reusing it to address multiple business
              processes.
      The Administration's increased emphasis on the business cases that are
    used to justify IT investments is also creating a mandate that agencies
    identify these performance measures in order to support the proposed or
    ongoing IT investment. Still, much work remains to ensure that when
    agencies request funding for investments, they can identify how much
    funding is needed, the agency's process goals and measures, the IT
    project and acquisition goals, and what the federal government will
    accrue in terms of benefit by investing in the project. The progress
    that agencies have made on identifying performance measures suggests
    that with continued significant, sustained attention by the
    Administration and at senior levels in the agencies, similar progress
    can be made on capital planning and enterprise architecture.
      IT Security. The President has given a high priority to the security
    of government assets, including government information systems and the
    protection of our Nation's critical information assets from cyber
    threats and physical attacks to our cyber assets. To adequately protect
    the information and information systems that the federal government
    depends upon, agencies must identify and resolve current security
    weaknesses and risks as well as protect against future vulnerabilities
    and threats. Implementing sound security is a critically important
    enabler to the success of the E-government strategy outlined below, and
    is a key part of the agenda that this Budget outlines for Homeland
    Security.

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      OMB's review of 2001 agency security reports has identified six common
    government-wide security weaknesses. To appropriately address these
    weaknesses, federal agencies need to:
        Greatly increase the degree of senior management attention.
              Senior leaders must consistently establish and maintain
              control over the security of the operations and assets for
              which they are responsible.
        Establish measures of performance to ensure senior agency
              management can evaluate the performance of officials charged
              with securing agency operations and assets.
        Improve security education and awareness. Ensure that
              general users, IT professionals, and security professionals
              have the knowledge to do their jobs effectively.
        Fully integrate security into capital planning and
              investment control. Security must be built into and funded
              within each system and program through effective capital
              planning and investment control.
        Ensure contractor services are adequately secure as most
              federal IT projects are developed and ultimately operated
              through outsourcing.
        Improve their ability to detect, report, and share
              information on vulnerabilities.
      To address these weaknesses and others, agencies are responsible for
    developing corrective action plans. These plans will assist agencies in
    identifying, assessing, prioritizing, allocating resources, and
    monitoring the progress of corrective efforts for their security
    weaknesses. They are important because they bring a discipline to the
    process, make tracking progress much easier for all involved, and are a
    valuable management and oversight tool.
      For additional information on agency security programs, please see the
    2001 OMB Summary Report on Government Information Security Reform, which
    will be available at www.whitehouse.gov/omb/inforeg/infopoltech/
    FY01SecurityActReport.

     Improving Performance and Citizen Service Across the Government: The E-
                                  Gov Strategy

      The President's Expanding E-Government initiative requires that
    agencies leverage technology to better serve citizens. While the
    government will not become a ``dotcom,'' the U.S. government will mix
    its use of Internet and physical assets to become a ``click and mortar''
    enterprise where organizations that serve citizens, businesses, internal
    federal government functions, and inter-governmental needs become more
    accessible, effective and efficient. In adopting a ``click and mortar''
    model, the federal government will use the best practices of industry.
    The Administration's goal is that services and information will rarely
    be more than 3 clicks away.
      Indeed, Electronic Government is one of the five key elements in the
    President's Management Agenda. Detailed elsewhere in the Budget, the
    President's vision for government reform under the Management Agenda is
    guided by three principles, that the government should be:
        Citizen-centered, not bureaucracy-centered;
        Results-oriented; and
        Market-based, actively promoting rather than stifling
              innovation through competition.
      E-Government is critical to implementing these principles across
    agencies. The Administration is committed to advancing the E-Government
    strategy by supporting broad-ranged projects that provide performance
    gains and citizen services across agency boundaries. With that
    objective, the Administration, through OMB, established a Task Force in
    August 2001 to develop a roadmap for the implementation of E-Government
    (E-Gov). The E-Gov Task Force's objectives were to:
        Recommend highest-payoff-cross-agency initiatives that can
              be rapidly developed;
        Identify key barriers to becoming a citizen-centered E-
              Government and actions needed to overcome these barriers; and
        Develop an IT architecture that provides for the integration
              of government services and information.
      Pursuing a coherent electronic government vision can result in an
    order-of-magnitude improvement in the federal government's value to the
    citizen. E-government efforts are critical to our ability to effectively
    and efficiently run the government, including achievement of the
    following goals:
        Simplified delivery of services to citizens;
        Citizens, businesses, and other levels of governments find
              it efficient and easy to access information and do business
              with the federal government on-line;
        Agencies' business processes are simplified and unified
              through integration and elimination of multiple, redundant
              (systems) operating elements; and
        Government services are organized around customer groups.
      In short, by using information technology strategically to simplify
    business processes and unify information flows across government lines
    of business, agencies will:
        Provide high-quality customer service, regardless of whether
              the citizen contacts the agency by phone, in person, or on the
              Web;
        Reduce the expense and difficulty of doing business with the
              government;
        cut government operating costs;
        Provide citizens with readily available access to government
              services;
        Increase access for seniors and persons with disabilities to
              electronic services; and
        Make government more transparent and accountable.
      Our E-Government strategy focuses initiatives on four citizen-centered
    groups, each providing opportunities to transform delivery of services.

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        Individuals: We are focused on building easy to find one-
              stop-shops for citizens-creating single points of easy entry
              to access high-quality government services. Citizens should be
              able to find what they need quickly and easily and access
              information in minutes or seconds, instead of days or hours.
        Businesses: The federal government must reduce the burden on
              businesses through the use of the Internet. This is not about
              building government web sites, but rather about being able to
              communicate with businesses in the language of E-business. The
              Administration cannot continue to make businesses report the
              same data to multiple agencies because government fails to
              reuse the data appropriately or fails to take advantage of
              commercial electronic transaction protocols. This can help
              streamline myriad reporting requirements as well as facilitate
              a more efficient means for business to do business with the
              government. Businesses will be able to avoid significant cost
              and effort while becoming more aware of compliance
              requirements.
        Intergovernmental: The federal government must make it
              easier for states and localities to meet reporting
              requirements, while enabling better performance measurement,
              especially for grants. Other governments will see significant
              administrative savings and will be able to improve program
              delivery because of more accurate data is available in a
              timely fashion. Moreover, improving the way that information
              is shared among levels of government will improve the nation's
              ability to provide for homeland security.
        Internal Efficiency and Effectiveness: The federal
              government must use modern technology to re-think internal
              processes to reduce costs for federal government agency
              administration by using industry best practices in areas such
              as supply-chain management, financial management, and
              knowledge management. Agencies will be able to improve
              effectiveness and efficiency, eliminating delays in processing
              and improving employee satisfaction and retention.
      To better identify opportunities to simplify and unify work across
    agencies, it was instructive to identify a clear organization of the
    government's business architecture and develop a model. The outcome
    indicated that there were 30 major business lines in the Executive
    Branch of government. Each of these business lines is supported by
    multiple IT systems. The E-Gov Task Force then reviewed the information
    technology budgets of the agencies and found that on average among 30
    major agencies, each line of business is being performed by 19 agencies
    and that each agency is involved in 17 business lines.
      In many cases, agencies buy redundant IT systems to support redundant
    operations; this generally over-burdens and confuses the citizen,
    business, or local government that must hire experts who convert simple
    data into complex government filings four or five times over. Silos of
    federal operations create an untenable situation for citizens seeking
    service on-line. Today's federal government business architecture is
    expensive to operate and not customer-centered.
      The business architecture points to opportunities to unify operations
    and simplify processes within lines of business. Basic management
    principles tell us that government operating costs will go down and
    effectiveness will go up if we make it simpler for citizens to get
    service. E-Government provides the tool kit for accomplishing these
    objectives. E-Government offers the opportunity to streamline this
    hodgepodge of activities, so that different agencies can perform
    different lines of business for the federal government as a whole,
    allowing all agencies to focus on their core competencies and mission
    requirements.
      Part of the solution to unify islands of automation is to better use
    authorities under the Budget process to promote cross-agency work that
    serves citizens. Although agencies have made significant strides in
    improving their business cases for IT projects in preparing this Budget,
    many project plans remain non-compliant with the Clinger Cohen Act, FASA
    V, and OMB policy (including security requirements). Agencies must
    continue to revise IT business cases to make them compliant, and thus
    demonstrate productivity improvements as a result of making or
    continuing the investment. If an agency fails to demonstrate an
    acceptable business case for an IT project, OMB will take appropriate
    action, consistent with law and policy, to ensure either that an
    acceptable business case is presented or that funds are re-allocated to
    other high priority activities.
      The result of all this work is detailed in the report of the E-Gov
    Task Force, which will be available online at www.whitehouse.gov/OMB.
    The report describes the 24 cross-cutting E-Gov initiatives that will
    lead to significant improvements in the productivity of agencies working
    across traditional boundaries to serve citizens. The 24 initiatives,
    along with the agency ``managing partners'' who are leading the cross-
    agency work that underlies each initiative, are:

                              Government to Citizen

    Recreation One-Stop
    Proposed Agency Managing Partner: Interior

      This initiative will build upon ``Recreation.Gov'' and will provide a
    one-stop, searchable database of recreation areas nationwide, featuring
    on-line mapping and integrated transactions, including online campground
    reservations and the purchase of recreational passes, maps, and other
    products.

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    Eligibility Assistance Online
    Proposed Agency Managing Partner: Labor

      Through a common Internet access point citizens will gain an on-line
    tool for identifying federal government benefit programs for which they
    may be eligible. The site will provide direct access to an integrated
    array of services. This will enable individuals to easily learn about
    assistance programs that may help them and to start the process of
    gaining that assistance.

    On-Line Access for Loans
    Proposed Agency Managing Partner: Education

      The On-line Access for Loans initiative will allow citizens and
    businesses to find the loan programs that meet their needs and access
    information for applying for loans. Citizens will have direct and faster
    access to the loan process in agencies.

    USA Service
    Proposed Agency Managing Partner: General Services Administration

      The USA Service initiative will use best practices in customer
    relationship management to enable citizens to quickly obtain service on-
    line, while improving the responsiveness and consistency across
    government agencies. This would enable citizens to personalize the
    combination of services they obtain across multiple programs and
    agencies, in a privacy-protected environment.

    EZ Tax Filing
    Proposed Agency Managing Partner: Treasury/Internal Revenue Service

      The initiative would make it easier for businesses and the public to
    files taxes in a web-enabled environment.

                             Government to Business

    On-Line Rulemaking Management
    Proposed Agency Managing Partner: Transportation

      This initiative would provide access to the rulemaking process for
    citizens anytime, anywhere. An existing ``e-docket'' system would be
    expanded and enhanced to serve as a government-wide system for agency
    dockets. Other agency systems would use the system by creating
    ``storefronts,'' consistent with statutory requirements for each agency
    under the Administrative Procedures Act. Comments would be organized
    using knowledge management tools to improve the quality of rules.

    Simplified and Unified Tax and Wage Reporting
    Proposed Agency Managing Partner: Treasury /Internal Revenue Service

      This initiative's goals include decreasing the number of tax-related
    forms that an employer must file, providing timely and accurate tax
    information to employers, increasing the availability of electronic tax
    filing, and modeling simplified federal and state tax employment laws.

    Federal Asset Sales
    Proposed Agency Managing Partner: General Services Administration

      Customers will be able to find assets that they are interested in
    regardless of the agency that holds those assets. Customers will be able
    to bid and/or make purchases electronically for financial, real, and
    disposable assets.

    International Trade Process Streamlining
    Proposed Agency Managing Partner: Commerce

      The initiative would create a single customer-focused site, whereby
    new or existing exporters could be facilitated through the entire export
    process. The 20 current web sites would be organized and accessed
    through a single entry point.

    One-Stop Business Compliance Information
    Proposed Agency Managing Partner: Small Business Administration

      This initiative would provide information on laws and regulations,
    help users understand this information, and offer wizards and tutorials
    to help users determine if rules apply to them and how to proceed. To
    the maximum extent possible permits would be completed, submitted, and
    approved online.

    Consolidated Health Informatics (business case only)
    Proposed Agency Managing Partner: Health and Human Services

      The initiative would provide a simplified and unified system for
    sharing and reusing medical record information among government agencies
    and their private healthcare providers and insurers. It would provide a
    single mechanism for making those records accessible.

                            Government to Government

    Geospatial Information One-Stop
    Proposed Agency Managing Partner: Interior

      The GIS One-Stop will provide access to the federal government's
    spatial data assets in a single location. Agencies will coordinate their
    planned future spatial data activities and make them available to state
    and local governments in an effort to promote collaboration and reduce
    duplicative efforts.

    eGrants
    Proposed Agency Managing Partner: Health and Human Services

      This initiative will create an electronic grants portal for grant
    recipients and grant-making agencies that will streamline, simplify and
    provide an electronic option for grants management across the
    government. This effort will include the 26 federal grant-making
    agencies' work to implement P.L. 106-107.

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    Disaster Assistance and Crisis Response
    Proposed Agency Managing Partner: Federal Emergency Management Agency

      This initiative involves a public one-stop portal containing
    information from applicable public and private organizations involved in
    areas including disaster preparedness, response and recovery.

    Wireless Networks for Emergency Communications
    Proposed Agency Managing Partner: Treasury

      To be effective before, during, and after their response, public
    safety officials throughout levels of government, must be able to
    communicate with each other. This initiative would provide standards to
    enable interoperability between federal, state, and local officials.

    eVital
    Proposed Agency Managing Partner: Social Security Administration

      This initiative would expand the existing vital records on-line data
    exchange efforts between federal agencies and state governments.

                      Internal Efficiency and Effectiveness

    eTraining
    Proposed Agency Managing Partner: Office of Personnel Management

      The vision is to provide a repository of government-owned courseware
    to be made available to all government (federal, state and local), to
    provide high interest and government required training to government
    employees at economies of scale pricing. In addition, this would foster
    development of communities of practice. This initiative supports
    achievement of the President's Human Capital initiative.

    Recruiting One-Stop
    Proposed Agency Managing Partner: Office of Personnel Management

      The initiative will modify USAJOBS to create an automated resource for
    federal government information and career opportunities. It would allow
    for automated resume and assessment tools with the ability to route
    resumes, assess candidates and streamline the federal hiring process, as
    well as an up-to-the-minute application status for job seekers.

    Enterprise HR
    Proposed Agency Managing Partner: Office of Personnel Management

      This initiative will eliminate the need for a paper employee records,
    enable the electronic transfer of HR data throughout the federal sector,
    better protect the rights and benefits of the federal workforce, and
    streamline and improve government-wide reporting and data analyses. This
    initiative will also reduce the time required to seek and access
    employee and contractor security clearance information through
    electronic application, shared clearance history and investigative data,
    and reciprocity among government agencies.

    eTravel
    Proposed Agency Managing Partner: General Services Administration

      Agencies will use a common travel management system throughout the
    federal government. Existing travel management resources will be
    consolidated and processes will be simplified for cheaper more efficient
    operation.

    Integrated Acquisition
    Proposed Agency Managing Partner: General Services Administration

      Agencies will begin sharing common data elements to enable other
    agencies to make better-informed procurement, logistical, payment and
    performance assessment decisions. It will also allow agencies to make
    maximum use of e-markets approaches.

    eRecords Management
    Proposed Agency Managing Partner: National Archives and Record
    Administration

      This initiative will establish procedures, requirements and standards
    for electronic record keeping by agencies, including a prototype for the
    use of extensible markup language (XML).

    ePayroll
    Proposed Agency Managing Partner: Office of Personnel Management

      The vision is to simplify and unify elements of the payroll process in
    order to consolidate and integrate payroll systems across the government
    with HR systems.

            Initiatives that Address Barriers to E-Government Success

    eAuthentication and digital signature
    Proposed Agency Managing Partner: General Services Administration
    (infrastructure)

      e-Authentication is the enabler of trust in Government to Citizen,
    Government to Business, and Government to Government transactions.
    Without an appropriate level of identity proofing the promise of e-
    Government will not reach its full potential.
      Finally, underlying all of the previous initiatives is the necessity
    to develop a Federal Enterprise Architecture. This activity, being led
    by OMB, will map government processes by line of business. It will
    develop information, data and application interface standards to unify
    redundancies, yield improved operating efficiency and effectiveness.

    [[Page 398]]

      Table 22-1 that follows provides agency by agency summaries of
    performance. For more detail on agency performance, see the Agency IT
    Investment Portfolios (Exhibit 53) at www.whitehouse.gov/OMB; for more
    detail on the E-Gov initiatives, see the Report of the E-Gov Task Force
    which will be available at www.whitehouse.gov/OMB; for more detail on
    security, see the FY 2001 OMB Summary Report on Government Information
    Security Reform, which will be available at www.whitehouse.gov/omb/
    inforeg/infopoltech/FY01SecurityActReport.

                        Table 22-1.  EFFECTIVENESS OF AGENCY'S IT MANAGEMENT AND E-GOV PROCESSES
    ----------------------------------------------------------------------------------------------------------------
                                                                                                        Process
         Capital Planning and           Enterprise       Business Cases for                           Improvement
      Investment Control (CPIC)     Architecture (EA)       IT Projects         E-Gov Progress      Milestones for
            Effectiveness             Effectiveness                                               Calendar Year 2002
    ----------------------------------------------------------------------------------------------------------------
                                                       Agriculture
    ----------------------------------------------------------------------------------------------------------------
    CPIC process is                Agency has an EA     Many, but not all,   USDA is deploying    Agency provided a
     comprehensive, includes all    framework and        major USDA system    Geospatial           detailed project
     parts of the Department and    process in the       investments have     Information          plan for EA on
     is used to make decisions      very early stages    been adequately      Systems and          January 4, 2002.
     about IT investments.          and it is not yet    justified and        participates in      OMB will work
                                    used to make         supported by well-   Firstgov.gov. In     with the agency
                                    decisions about IT   drawn business       the first quarter    as it moves
                                    investments.         cases. Many, but     of FY 02, USDA       forward on this
                                                         not all, of the      defined its          EA effort
                                                         projects are         mission, vision,     ensuring the EA
                                                         operating within     goals                addresses
                                                         90 percent of        andobjectives and    business, data,
                                                         cost, schedule,      identified ``smart   applications, and
                                                         and performance      choices'' for its    technology for
                                                         targets. For those   leader projects,     its current
                                                         projects not         in addition to       architecture and
                                                         making the           participating in     any modernization
                                                         business case, the   12 of the 23 Quick   plans. During FY
                                                         CIO is actively      Silver               2002, the
                                                         involved in          initiatives. In      Department needs
                                                         assisting the        December 2001 most   to assess how its
                                                         program areas to     of the crop          projects meet the
                                                         strengthen the       insurance            Administration's
                                                         business cases and   providers began      goals to unify
                                                         the management of    providing services   and simplify and
                                                         the project.         electronically as    reduce redundancy
                                                                              required by the      in IT systems
                                                                              Freedom to E-File    government-wide.
                                                                              Act. By June 2002,   This assessment
                                                                              USDA Service         should be
                                                                              Center agencies      completed by
                                                                              will offer           February 28, 2002
                                                                              agricultural         to allow for
                                                                              producers and        discussion during
                                                                              customers involved   OMB's review of
                                                                              in USDA rural        general IT issues
                                                                              development          next spring.
                                                                              programs the
                                                                              option of
                                                                              electronically
                                                                              submitting forms.
    ----------------------------------------------------------------------------------------------------------------
                                                        Commerce
    ----------------------------------------------------------------------------------------------------------------
    The Department has a robust    The EA in Commerce   Commerce submitted   Commerce bureaus     Commerce will work
     CPIC process in the agency     addresses most       sound business       are using the        to integrate its
     and the process informs        parts of the         cases for nearly     Internet to serve    CPIC and EA
     decisions about IT             Department and the   all major systems    businesses           processes and
     Investments. Commerce is       agency continues     and continues to     interested in        will update OMB
     working to strengthen the      to work with the     work to strengthen   international        on progress
     CPIC process, integrate it     bureaus to educate   the remaining        trade and minority   periodically.
     with their EA efforts and      them about EA, the   business cases.      contracting          Commerce will
     create a comprehensive E-      implications for                          opportunities.       also continue to
     Government governance          Commerce, and for                         Census uses e-       strengthen their
     process for managing IT in     the overall                               government for its   management of IT
     the Department.                efforts of the                            economic surveys     by making IT
                                    Federal                                   of firms, and will   decisions based
                                    government.                               use it more for      upon sound
                                    Commerce has                              the 2010 census of   business cases
                                    engaged OMB on                            population.          and a portfolio
                                    this improvement                          Commerce is also     management
                                    effort.                                   the managing         process of trade-
                                                                              partner for the      offs between
                                                                              ``International      benefits and
                                                                              Trade Process        risks.
                                                                              Streamlining'' E-
                                                                              Gov initiative of
                                                                              the President's
                                                                              Management Council.
    ----------------------------------------------------------------------------------------------------------------

    [[Page 399]]

                                                  Department of Defense
    ----------------------------------------------------------------------------------------------------------------
    DoD operates a lengthy budget  The DoDC4ISR Global  Clinger-Cohen and    DoD is a leader in   DoD will review
     review process, the            Information Grid     DoD regulations      some areas of e-     its major
     Planning, Programming and      (GIG) Architecture   require DoD to       gov, such as on-     projects to
     Budgeting System (PPBS)        is a well crafted    justify major IT     line education       improve
     which serves as the capital    technical            investments. DoD     opportunities        visibility of IT
     planning and investment        architecture. DoD    has begun to         through programs     funds. In
     control process for DoD. It    should build on      implement this       like eArmyU. It      addition, DoD
     often fails, however, to       this primarily       requirement and      has not, however,    will continue to
     closely link IT with the       technical            complete the         made significant     work on a
     departments mission. It also   architecture to      necessary            progress in          financial
     fails to consider a family     create a             analysis. However,   creating one stop    management
     of systems approach to IT      comprehensive EA     DoD has failed to    service centers,     Enterprise
     investment decisions.          with fully           submit complete      implementing DoD-    Architecture and
                                    developed business   business cases for   wide business        will expand this
                                    and data layers.     a number of its      process enterprise   effort to other
                                    It should also       major IT             solutions, or        areas. DoD will
                                    include an           investments. In      developing           also work to
                                    operational view     addition, many of    electronic methods   improve the
                                    that describes the   the cases that       for data             oversight of IT
                                    plan for the         were submitted       submission and       projects and the
                                    future and the       require              collection. DoD      capital planning
                                    transitional plan.   improvement to       does not have an     and investment
                                                         meet Clinger-Cohen   department-wide e-   control process,
                                                         standards.           gov plan.            in part by
                                                                                                   including the
                                                                                                   Office of Program
                                                                                                   Analysis and
                                                                                                   Evaluation in the
                                                                                                   review of IT
                                                                                                   business cases.
    ----------------------------------------------------------------------------------------------------------------
                                                        Education
    ----------------------------------------------------------------------------------------------------------------
    The Department has developed   The Department has   Performance has      Education has        The agency is
     a robust CPIC process but      had two separate     been mixed.          success in using     working to
     still needs to fully           EA issues ongoing    Initial submission   new technologies     develop a single,
     incorporate all business       in the agency--one   of student aid       to simplify          integrated and
     units throughout the agency.   for Student          modernization        students' access     comprehensive EA.
                                    Financial Aid and    business cases       to financial aid,    OMB is in active
                                    another for the      were incomplete.     such as using        conversation with
                                    remainder of the     Work continues to:   electronic           the agency as to
                                    agency. This non-    1) identify all      signatures for aid   the strategy and
                                    integrated           major projects       applications and     design of this
                                    approach allows      within the           promissory notes.    integrated EA. In
                                    for possible         Department's                              addition, the
                                    duplication of       Portfolio; 2)                             Department is
                                    process, systems,    demonstrate that                          undertaking a
                                    and technology.      the business cases                        major reform of
                                                         for all major                             the IT security
                                                         projects; and 3)                          and testing
                                                         strengthen the                            process and is
                                                         business cases for                        working to fully
                                                         some of the                               integrate all IT
                                                         projects.                                 into a common
                                                                                                   process for IT
                                                                                                   management.
    ----------------------------------------------------------------------------------------------------------------
                                                         Energy
    ----------------------------------------------------------------------------------------------------------------
    The Department does not have   The Department has   Initial submission   DOE reports only     Redefine its major
     an integrated and              an EA that           of business cases    10% of its IT        IT investments to
     comprehensive CPIC process     addresses only a     were incomplete      investments as       include a
     that includes all of the       small portion of     and work continues   ``major'', which     majority of the
     program offices and does not   the corporate        to 1) identify all   excludes too many    $1 Billion in IT
     use the tenets of CPIC to      issues of the        major projects       relevant projects    investments. DOE
     make decisions about IT        department. The EA   within the           from oversight and   is to consolidate
     investments.                   does not include     Department's         justification. DOE   the IT portfolio
                                    program offices      Portfolio, 2)        has not been         and manage it at
                                    and is not used to   demonstrate the      extensively          a departmental
                                    make or control      business cases for   involved in the      level, and
                                    decisions about IT   all major            QuickSilver          provide strong
                                    investments.         projects, 3) and     Initiatives of the   leadership from
                                                         continue to          President's          the CIO in the
                                                         strengthen the       Management Council   areas of IT
                                                         business cases for   (PMC).               management and E-
                                                         the projects                              Gov as the agency
                                                         initially                                 transforms and
                                                         submitted that                            modernizes.
                                                         were not compliant
                                                         with A-11.
    ----------------------------------------------------------------------------------------------------------------

    [[Page 400]]

                                                Health and Human Services
    ----------------------------------------------------------------------------------------------------------------
    HHS must continue              HHS needs better     IT projects          HHS leadership in    HHS will develop
     strengthening central IT       enterprise           justifications       grants               an improved EA
     decision-making, and           architecture         have been            streamlining/E-      and its 5 year
     identifying duplicative IT     documentation,       extensive, but       Grants is its        Strategic IT
     systems across the             most particularly    need to better       highest priority.    Plan, with a
     Department, in order to        in the areas of      inform budget        GPEA plans are       focus on E-Gov
     consolidate and unify common-  baseline and         decisions, and the   adjusting to focus   and IT security.
     purpose systems. This should   target data          quality of these     on transactions      HHS will also
     create savings, and enhance    architectures,       justifications is    with the greatest    continue to
     the setting of priorities      business process     uneven. HHS is       impact on the        assess internally
     and coordination of data use   descriptions, and    working with OMB     public. As a         duplicative
     across the agency. Security    systems and          to establish more    partner in many E-   systems,
     planning in project plans      application          solid business       Gov initiatives,     consolidate IT
     and justifications must be     descriptions.        cases for all        HHS will advance     resources
     strengthened.                  Recently initiated   major IT             plans for            commencing with
                                    plans to unify       development          contributing         infrastructure
                                    financial and        projects and         technical            support
                                    human resource       continuing legacy    assistance,          functions, and
                                    systems across HHS   systems.             staffing and         analyze overlaps
                                    are a step                                funding resources.   of HHS systems
                                    forward, but will                                              with the
                                    be demanding in                                                President's
                                    execution. The                                                 Management
                                    utility of                                                     Council's E-Gov
                                    extensive health                                               initiatives.
                                    data resources
                                    should be enhanced
                                    through
                                    architecture
                                    planning.
    ----------------------------------------------------------------------------------------------------------------
                                              Housing and Urban Development
    ----------------------------------------------------------------------------------------------------------------
    CPIC process is                EA is in the first   All of HUD's major   HUD is in the        During 2002, HUD
     comprehensive, includes all    year of              projects             process of           will continue to
     parts of the Department and    implementation and   demonstrated         updating its tool    integrate its
     is used to make decisions      work continues to    business cases.      for EA, the          CPIC and EA
     about IT investments.          populate the         However, many of     Enterprise           process, will
                                    business, data,      HUD's projects       Architecture         continue with the
                                    application, and     start out            Management System    project
                                    technology layers    seemingly well       (EAMS) to reflect    management
                                    of the EA. HUD       planned but fail     an E-Government      education, and
                                    should continue      to deliver on the    view and are         will work to
                                    working to improve   planned benefits.    assessing their IT   fully integrate
                                    the integration of   Over the past        efforts against      security efforts
                                    the CPIC and EA      year, HUD            the E-Gov            into the EA and
                                    processes creating   initiated an         initiatives of the   CPIC.
                                    an E-Government      aggressive project   President's
                                    governance process   management effort    Management
                                    for selecting,       to correct this      Council. One such
                                    managing, and        problem and          effort has been
                                    evaluating IT        continues to work    noted, and HUD is
                                    investments.         on improving         integrating their
                                                         delivery of the      Departmental
                                                         systems within       Grants Management
                                                         planned costs,       System (DGMS)
                                                         schedule, and        effort into the E-
                                                         performance goals.   Grants initiative.
    ----------------------------------------------------------------------------------------------------------------

    [[Page 401]]

                                                        Interior
    ----------------------------------------------------------------------------------------------------------------
    Departmental CPIC process is   Agency does not      Historically,        DOI has taken a      Interior is
     designed and implemented in    have an integrated   Interior has made    government-wide      committed to
     a decentralized manner. Some   and comprehensive    major information    leadership role as   improving its
     bureaus have comprehensive     EA. Like the CPIC    technology (IT)      managing partner     review and
     CPIC process for their         process,             investments          for an               approval of IT
     individual bureau portfolios   individual bureaus   without thorough     intergovernmental    investments
     but there is not a             have EA efforts      analysis of          Recreation One-      centrally, and
     comprehensive priority         for their IT         realistic cost,      Stop project and a   has already hired
     setting process at the         investments but      schedule, and        similar One-Stop     a contractor to
     Departmental Enterprise        there is no          performance goals    project for          survey Interior's
     level. Therefore, there        enterprise view of   for new              geospatial           IT environment
     remains duplicative process    these investments    acquisitions. As a   information. In      and make
     and systems within the         at the               result, Interior     addition             recommendations,
     Department's IT portfolio.     Departmental level.  puts large sums of   Interior's Budget    due in June 2002,
                                                         public funds at      includes the         that will guide
                                                         high risk for        initiation of an E-  future investment
                                                         failure and does     Gov Transformation   decisions. DOI's
                                                         not comply with      project that will    Inspector General
                                                         either the           transform the        is reviewing the
                                                         Paperwork            Outer Continental    Department's IT
                                                         Reduction Act or     Shelf oil and gas    investment
                                                         the Clinger-Cohen    business processes   process as well.
                                                         Act. Initial         to increase          Further, Interior
                                                         submission of        efficiency and       has agreed to
                                                         business cases       responsiveness to    create an
                                                         were incomplete      customers--states    integrated and
                                                         and work continues   and federal          comprehensive
                                                         to 1) identify all   agencies,            departmental EA
                                                         major projects       industry, and        that supports and
                                                         within the           citizens.            coordinates the
                                                         Department's                              work of the
                                                         Portfolio, 2)                             bureaus in the
                                                         demonstrate the                           area of EA. The
                                                         business cases for                        Department is
                                                         all major                                 actively working
                                                         projects, and 3)                          to improve this
                                                         continue to                               situation and
                                                         strengthen the                            will have the
                                                         business cases for                        first four phases
                                                         the projects                              of the EA
                                                         initially                                 completed in May
                                                         submitted that                            2002. The
                                                         were not compliant                        Department plans
                                                         with A-11.                                to have the last
                                                                                                   four phases of
                                                                                                   the EA completed
                                                                                                   by December 2002.
    ----------------------------------------------------------------------------------------------------------------
                                                         Justice
    ----------------------------------------------------------------------------------------------------------------
    In spite of recent progress,   EA is in the very    Many, but not all,   DOJ is               ..................
     significant work remains to    early stages and     major projects       collaborating in a
     fully carry out a capital      was redirected       have been            number of E-Gov
     planning process. The CPIC     during this past     adequately           initiatives, and
     process exists on paper but    year to better       justified and        are in the process
     is not fully implemented       accommodate the      supported by well-   of assessing the
     throughout the agency though   bureaus needs as     drawn business       impact and
     much progress was made in      well as those of     cases. Many, but     collaboration
     this area over the last        the Department.      not all, of the      opportunities
     reporting cycle. Justice's     Agency provided a    projects are         against the other
     timetable calls for all        detailed EA          operating within     E-Gov initiatives
     bureaus to have completed a    project plan with    90 percent of        and their related
     plan by the end of 2002.       the initial budget   cost, schedule,      DOJ Projects. DOJ
                                    submission. To       and performance      investments tied
                                    ensure system        targets. The         to the PMC E-Gov
                                    compatibility and    agency continues     initiatives are
                                    improve              to strengthen the    being asked to
                                    information          business cases for   assess their
                                    sharing, Justice's   those not            project vis-a-vis
                                    enterprise           initially A-11       the federal
                                    architecture         compliant.           initiative.
                                    efforts must be a    Discussions
                                    high priority        continue with OMB
                                    throughout the       on these efforts.
                                    Department.
    ----------------------------------------------------------------------------------------------------------------

    [[Page 402]]

                                                          Labor
    ----------------------------------------------------------------------------------------------------------------
    CPIC process is                EA is in the first   All of the           DOL's information    The Department
     comprehensive, includes all    full year of         Department's major   technology (IT) is   will work further
     parts of the Department and    implementation and   projects provided    built on a strong    to complete the
     is used to make sound          is used to make      business cases for   enterprise           business and
     decisions about IT             decisions about IT   IT projects. There   architecture and     other portions of
     investments.                   investments. Labor   were a number of     planning process.    its EA, which
                                    is currently         projects             DOL is the only      will help enhance
                                    updating its EA to   identified as        federal agency       its E-Gov focus
                                    reflect the E-Gov    ``significant''      with Department-     and strategy. The
                                    Strategy of the      that may meet the    wide IT financing    agency will
                                    Department and       criteria for         to ensure that its   continue updating
                                    continues to work    ``major''. The       investments are      the EA
                                    to complete the      agency is updating   cost effective and   information in
                                    business, data,      its CPIC process     serve the entire     the Enterprise
                                    application, and     to include E-Gov     organization         Architecture
                                    technology           type criteria and    mission. DOL has     Management System
                                    portions of the      will submit          let IT serve         (EAMS).
                                    EA. Completing the   business cases for   citizens better.
                                    EA helps to ensure   all of the           For example, OSHA
                                    that planned         ``significant''      accepts health and
                                    investments in IT    projects that are    safety complaints
                                    accrue savings or    upgraded to the      over the Internet;
                                    enhance business     ``major'' category.  individuals can
                                    operations, or                            use the Internet
                                    both.                                     to discover lost
                                                                              pensions; and a
                                                                              pilot project
                                                                              allows people to
                                                                              calculate
                                                                              approximate
                                                                              retirement
                                                                              benefits on-line.
                                                                              Labor is also the
                                                                              managing partner
                                                                              for the
                                                                              ``Eligibility
                                                                              Assistance On-
                                                                              line'' E-Gov
                                                                              initiative of the
                                                                              President's
                                                                              Management Council.
    ----------------------------------------------------------------------------------------------------------------
                                                          State
    ----------------------------------------------------------------------------------------------------------------
    The CPIC process does not      The Department has   Initial submission   Department of State  Working with OMB,
     routinely scrutinize a large   not completed an     of business cases    is collaborating     the department
     portion of IT investments.     enterprise           were incomplete      on a number of the   plans an
     For example, FY 2003 300s,     architecture to      and work continues   E-Gov initiatives    aggressive effort
     only 49 percent of planned     guide IT             to 1) identify all   of the President's   to improve their
     major project spending,        investments          major projects       Management Council   business cases
     totaling $329 million has      although it plans    within the           (PMC). The           and make them A-
     been reviewed and approved     to do so in 2002.    Department's         Department will      11 compliant by
     by the CPIC.                                        Portfolio, 2)        assess how its       August of 2002.
                                                         demonstrate the      projects meet the    Also, the
                                                         business cases for   Administration's     Department will
                                                         all major            goals to unify,      increase the
                                                         projects, 3) and     simplify, and        central review of
                                                         continue to          reduce redundancy    projects to at
                                                         strengthen the       in IT systems.       least 70 percent
                                                         business cases for                        of total spending
                                                         the projects                              and all of the
                                                         initially                                 planned major
                                                         submitted that                            project spending.
                                                         were not compliant
                                                         with A-11.
    ----------------------------------------------------------------------------------------------------------------

    [[Page 403]]

                                                     Transportation
    ----------------------------------------------------------------------------------------------------------------
    Transportation's CPIC process  DOT is continuing    DOT is working to    DOT is implementing  Transportation
     is currently being             its work to          strengthen its       e-business process   will implement a
     documented and vetted and is   develop an IT EA.    business cases for   initiatives that     comprehensive
     expected to be in place        The Department's     major Information    will improve         CPIC process by
     throughout the department      EA is being          Technology           agency operations,   the end of FY
     during FY2002.                 developed by an      projects. In         as part of their     2002, and will
                                    intermodal group     addition, cost,      GPEA                 complete EA
                                    representing all     schedule, and        implementation.      business analyses
                                    DOT components.      performance          The Department has   for five
                                    The DOT EA will be   milestones for       committed to an e-   Operating
                                    completed by early   some major           government           Administrations.
                                    FY2003.              projects,            leadership role
                                                         particularly those   for on-line
                                                         within the Federal   rulemaking
                                                         Aviation             management.
                                                         Administration,
                                                         will be monitored
                                                         to ensure that
                                                         potential problems
                                                         are addressed in a
                                                         timely fashion.
    ----------------------------------------------------------------------------------------------------------------
                                                        Treasury
    ----------------------------------------------------------------------------------------------------------------
    Treasury has made progress in  The Treasury         Initial submission   Treasury has made    Department: Expand
     recent years in improving      Enterprise           of business cases    progress in          improved IT
     its technology investment      Architecture         were incomplete      implementing         planning and
     planning and execution         Framework needs to   and work continues   electronic           investment
     (i.e., using business cases    be strengthened.     to 1) identify all   government options   control processes
     and monitoring progress        The CIO shop         major projects       for citizens         at the bureaus
     against performance            should exert more    within the           (e.g., electronic    and the
     targets). However,             leadership and       Department's         tax filing and       Department. IRS:
     improvements are still         provide more         Portfolio, 2)        benefits             Demonstrate
     needed to ensure that all      guidance to the      demonstrate the      payments). The       improved
     investments are managed        bureaus. Bureaus'    business cases for   Budget proposes to   management
     carefully to achieve maximum   architectures have   all major            further expand       process controls
     benefits.The Department        surpassed the        projects, 3) and     electronic           for the Business
     needs to exert more control    Department's in      continue to          government           Systems
     over and provide more          levels of planning   strengthen the       including new tax    Modernization
     guidance to the bureaus.       and further          business cases for   payer services and   program at the
     Capital planning needs to      independent          the projects         expanding the        IRS before
     include ongoing projects as    development at the   initially            Treasury's Pay.gov   submission of the
     well as proposed               bureaus introduces   submitted that       on-line payment      next spending
     initiatives.                   the risk that they   were not compliant   system.              plan. Extend
                                    ultimately will be   with A-11.                                disciplined
                                    incompatible.                                                  controls to
                                                                                                   investments
                                                                                                   funded by the
                                                                                                   Information
                                                                                                   Systems account.
                                                                                                   Provide improved
                                                                                                   business cases in
                                                                                                   support of IS
                                                                                                   investments.Custo
                                                                                                   ms: Improve
                                                                                                   investment
                                                                                                   decision making
                                                                                                   and management
                                                                                                   process controls.
    ----------------------------------------------------------------------------------------------------------------

    [[Page 404]]

                                                    Veterans Affairs
    ----------------------------------------------------------------------------------------------------------------
    The Department needs to exert  The Department has   Initial submission   VA is currently      In early 2002, VA
     more control over and          just begun an        of business cases    reviewing its IT     provide a
     provide more guidance about    integrated           were incomplete      projects against     detailed project
     project life cycle             comprehensive EA     and work continues   the E-Gov            plan for their EA
     management to the              and submitted a      to 1) identify all   initiatives of the   efforts and are
     Administrations. Capital       detailed project     major projects       President's          working with OMB
     planning needs to be           plan for             within the           Management Council   to provide
     strengthened for ongoing       implementation       Department's         (PMC) for            Business Cases
     projects as well as proposed   with the initial     portfolio, 2)        opportunities to     for IT projects
     initiatives.                   Budget Submission.   demonstrate the      participate and      for all IT
                                    It is too early to   business cases for   collaborate. One     investments by
                                    determine whether    all major            project has          March 2002. VA
                                    this EA will be      projects, and 3)     already been         will also report
                                    effective in         continue to          redirected through   to OMB
                                    managing and         strengthen the       this review          periodically on
                                    controlling IT       business cases for   process. Further,    status of the
                                    investments in the   the projects         VA is committed to   improvement
                                    Department. The EA   initially            the OMB              efforts in the
                                    does integrate       submitted that       recommendation       area of E-Gov and
                                    CPIC and EA which    were not compliant   that it partner      IT management.
                                    as is required by    with A-11.           with DOD to
                                    OMB guidance; an                          develop an
                                    application to                            integrated
                                    automate the EA/                          enrollment system
                                    CPIC interface is                         as well as a joint
                                    under development.                        patient record
                                                                              system.
    ----------------------------------------------------------------------------------------------------------------
                                             Environmental Protection Agency
    ----------------------------------------------------------------------------------------------------------------
    Most of EPA's capital asset    EPA has the          On average, major    EPA plans to make    The agency aims to
     planning for information       fundamental          IT projects          regulatory           integrate
     technology acquisitions is     elements of an EA    operate near cost,   information more     enterprise
     well done although not fully   documented.          schedule, and        readily available    architecture and
     documented.                                         performance          through a            its capital
                                                         targets.             consolidated         planning process;
                                                                              docket. EPA also     implement a broad
                                                                              plans to             based network for
                                                                              participate in       efficient
                                                                              several other e-     electronic
                                                                              gov initiatives.     sharing of
                                                                                                   environmental
                                                                                                   information; and
                                                                                                   promote e-gov
                                                                                                   through a central
                                                                                                   data exchange.
    ----------------------------------------------------------------------------------------------------------------
                                           Federal Emergency Management Agency
    ----------------------------------------------------------------------------------------------------------------
    FEMA's CPIC process is         FEMA's EA effort is  Many of FEMA's       FEMA is involved     During 2002, FEMA
     comprehensive, includes all    comprehensive and    revised business     with a number of e-  will work to
     parts of the agency and is     addresses the        cases demonstrated   gov initiatives      integrate its
     used to make decisions about   business, data,      improvement.         including lead on    CPIC and EA
     IT investments.                application and      However, work        the disaster         process, will
                                    technology layers    remains for a        assistance and       address all A-11
                                    of the agency. OMB   number of FEMA's     crisis response      requirements when
                                    recommends that      IT investments       initiative.          developing their
                                    FEMA continue to     that failed to                            business cases
                                    update its EA        make the business                         and submit the
                                    efforts with         case, particularly                        business cases in
                                    knowledge they       in regards to                             a timely manner,
                                    gain via their       performance goals.                        and will work to
                                    role in the E-gov    Additionally, the                         fully integrate
                                    initiatives, and     agency failed to                          security efforts
                                    create an EA         submit their                              into the EA and
                                    repository so that   initial business                          CPIC. Two recent
                                    managing change      cases on time.                            initiatives --
                                    becomes easier.                                                the establishment
                                                                                                   of an Office of
                                                                                                   Cyber Security
                                                                                                   reporting
                                                                                                   directly to the
                                                                                                   CIO and the
                                                                                                   revision of
                                                                                                   FEMA's CPIC --
                                                                                                   should
                                                                                                   significantly
                                                                                                   advance the
                                                                                                   Agency's efforts
                                                                                                   in these regards.
    ----------------------------------------------------------------------------------------------------------------

    [[Page 405]]

                                             General Services Administration
    ----------------------------------------------------------------------------------------------------------------
    GSA's documented CPIC process  GSA provided draft   Initial submission   GSA plays a major    GSA will continue
     appears to be very             EA documents and     of business cases    role in the area     during 2002 to
     comprehensive and complies     OMB cannot           were incomplete      of E-gov. They are   educate the
     with OMB guidance. The         officially assess    and work continues   the managers of      agency on CPIC
     resulting business cases       or comment on the    to demonstrate and   the Federal          and further
     from this process              draft until it is    strengthen           Government's         integrate the
     demonstrate that the           signed and           business cases for   portal (firstGov),   processes into
     processes is not fully         executive buy-in     all major projects.  and is the           decision-making
     integrated into agency         from the agency                           managing partner     for IT
     decision-making. GSA is        demonstrated.                             for 4 of the         investments
     working to better educate      However, OMB does                         President's          within the
     the agency on the tenets of    note that if the                          Management Council   agency. GSA will
     CPIC and integrating CPIC      work continues as                         (PMC) E-Gov          also continue
     with their EA efforts.         is defined in the                         initiatives: 1)      integrating CPIC
                                    draft, the agency                         USA Service, 2)      and EA with an
                                    will be well on                           Federal Asset        emphasis on E-Gov
                                    their way to                              Sales, 3) E-         within their IT
                                    addressing EA and                         Authentication,      governance
                                    the principles of                         and 4) E-Travel.     structure at GSA.
                                    OMB guidance.                                                  GSA should also
                                                                                                   update its agency
                                                                                                   EA efforts with
                                                                                                   knowledge learned
                                                                                                   from managing the
                                                                                                   E-Gov initiatives
                                                                                                   of the PMC.
    ----------------------------------------------------------------------------------------------------------------
                                          Agency for International Development
    ----------------------------------------------------------------------------------------------------------------
    Not integrated with overall    Not integrated with  None of the          The agency has a     USAID is
     IT management processes.       overall IT           Agency's IT          comprehensive plan   undertaking a
     USAID is undertaking a study   management           projects could       to go online and     study to address
     to re-engineer Agency          processes. USAID     make the business    implement the        how it can make
     business practices, improve    is undertaking a     case. Revised        Government           more effective
     capital planning and           study to re-         business cases       Paperwork            use of capital
     integrate enterprise           engineer Agency      will submitted.      Elimination Act.     planning,
     architecture.                  business                                                       enterprise
                                    practices, improve                                             architecture, and
                                    capital planning                                               modern business
                                    and integrate                                                  concepts. The FY
                                    enterprise                                                     2003 budget
                                    architecture.                                                  includes a
                                                                                                   capital
                                                                                                   investment
                                                                                                   account to
                                                                                                   segregate and
                                                                                                   better manage IT
                                                                                                   funding.
    ----------------------------------------------------------------------------------------------------------------
                                      National Aeronautics and Space Administration
    ----------------------------------------------------------------------------------------------------------------
    NASA is working with OMB to    NASA has made        NASA has 5 major     NASA has been a      During 2002, NASA
     develop a more complete,       progress in the      projects that        strong leader in e-  will continue to
     agency-level framework for     area of EA and       demonstrated         government. NASA     integrate its
     managing all of its IT         continues to         business cases for   should continue to   CPIC and EA
     investments.                   populate the         IT projects. NASA    assess its IT        process. NASA
                                    business, data,      is in the process    investments          will continue
                                    application, and     of developing        against the 23       work to fully
                                    technology layers    other business       major e-government   integrate OMB
                                    of the EA. NASA      cases for major      initiatives of the   Circular A-11
                                    should continue      projects for         President's          requirements into
                                    working to improve   submission to OMB    Management Council   its internal
                                    the integration of   in February. NASA    to identify          reviews for FY
                                    the CPIC and EA      is directed to       opportunities to     2004.
                                    processes creating   continue work on     collaborate and
                                    an E-Government      the remaining FY     participate.
                                    governance process   2003 major
                                    for selecting,       projects
                                    managing, and        identified in
                                    evaluating IT        their Exhibit 53.
                                    investments.
    ----------------------------------------------------------------------------------------------------------------

    [[Page 406]]

                                               National Science Foundation
    ----------------------------------------------------------------------------------------------------------------
    The Foundation has a strong    NSF has the tenets   NSF provided         NSF was the first    Initiate Strategic
     CPIC process in place in the   of a good EA         business cases for   agency to perform    Business Analysis
     agency that drives decision    working. The IT      IT projects for      all of its           and Business Case
     making about IT investments.   Architecture is      all of their major   critical             for Next
                                    being updated to     projects.            interactions with    Generation
                                    reflect a more E-                         its proposal         eGovernment
                                    Government focus.                         applicants through   capability and
                                                                              the web. Over 99     supporting
                                                                              percent of the       Enterprise
                                                                              proposals the        Architecture
                                                                              agency receives      (June 02)
                                                                              are submitted
                                                                              electronically.
    ----------------------------------------------------------------------------------------------------------------
                                             Office of Personnel Management
    ----------------------------------------------------------------------------------------------------------------
    OPM's CPIC process is robust   OPM's EA effort is   OPM submitted fully  OPM will lead 5 of   OPM will continue
     and informs decisions about    comprehensive and    compliant business   the President's      to integrate its
     IT investments based on        addresses the        cases for all of     Management Council   CPIC and EA
     trade-offs of benefits and     business, data,      their major          (PMC) E-Gov          processes to
     risks.                         application and      projects with the    initiatives: 1)      create an E-
                                    technology layers    initial budget       Integrated HR, 2)    Government
                                    of the agency. OMB   request.             Recruitment One      governance
                                    recommends that                           Stop, 3) E-          process for all
                                    OPM continue to                           Clearance, 4) E-     IT investments
                                    update its EA                             Training, and 5)     including the PMC
                                    efforts with                              Payroll              E-Gov
                                    knowledge they                            Modernization.       initiatives, pre-
                                    gain via their                                                 existing IT
                                    role in the E-gov                                              initiatives
                                    initiatives, to                                                (e.g., Retirement
                                    create an EA                                                   System
                                    repository so that                                             Modernization),
                                    managing change                                                and strategic
                                    becomes easier.                                                initiatives that
                                                                                                   will unify and
                                                                                                   simplify
                                                                                                   personnel
                                                                                                   processes across
                                                                                                   government,
                                                                                                   eliminating
                                                                                                   duplicate systems
                                                                                                   and reducing
                                                                                                   costs.
    ----------------------------------------------------------------------------------------------------------------
                                              Small Business Administration
    ----------------------------------------------------------------------------------------------------------------
    The agency has a strong CPIC   SBA has had an IT    SBA has business     SBA has been very    Agency will
     process in place in the        Architecture for     cases for all IT     active in the        continue working
     agency and it is used to       several years. It    projects that were   President's          with OMB
     make decisions about IT        is not clear         approved via the     Management Council   throughout 2002
     investments.                   whether the ITA in   budget process.      (PMC) E-Gov          to integrate its
                                    the past was used                         efforts. SBA is      CPIC and EA
                                    to govern                                 managing partner     processes. SBA is
                                    decisions about                           for the ``One Stop   also reviewing
                                    IT. The agency is                         Business             its IT portfolio
                                    in the process of                         Compliance           to ensure that
                                    updating the ITA                          Information'' E-     100 percent of
                                    to an EA to                               Gov initiative.      the IT
                                    capture a more                                                 investments are
                                    comprehensive view                                             subject to the
                                    of the agency and                                              CPIC and EA
                                    to integrate it                                                processes and
                                    with the CPIC                                                  ensuring IT
                                    process.                                                       security is
                                                                                                   planned and
                                                                                                   demonstrated for
                                                                                                   all IT projects.
    ----------------------------------------------------------------------------------------------------------------

    [[Page 407]]

                                             Social Security Administration
    ----------------------------------------------------------------------------------------------------------------
    SSA's capital planning         SSA has just begun   All of SSA's major   SSA has taken        SSA will continue
     process has improved           an integrated        projects             constructive steps   through 2002 to
     markedly over the last two     comprehensive EA     demonstrated         in the last two      build upon the EA
     years. However, SSA still      and submitted a      business cases for   years by rapidly     submitted to OMB
     needs to improve its risk      detailed project     IT projects. SSA     expanding online     with the FY03
     management assessment, set     plan for             continues to work    customer service     budget and will
     performance goals associated   implementation       on improving         options. These       focus on the
     with specific IT projects,     with the initial     delivery of the      include retirement   integration of
     and develop a cost-tracking    Budget Submission.   systems within       claims, Medicare     the CPIC and EA
     system that consolidates       It is too early to   planned costs,       replacement cards,   to create an E-
     cost information for IT        determine whether    schedule, and        online ``account''   Government
     projects.                      this EA will be      performance goals.   status, access to    governance
                                    effective in         OMB has asked the    change one's         process whereby
                                    managing and         agency to review     address and          all decisions for
                                    controlling IT       their                telephone number,    managing IT at
                                    investments in the   ``significant''      and direct           SSA are made.
                                    agency.              projects against     deposit. Despite
                                                         the criteria for     these new
                                                         ``major'' in an      services, SSA
                                                         effort to increase   remains a paper-
                                                         the visibility of    driven agency that
                                                         the IT portfolio.    still relies on
                                                         Negotiations         moving claims
                                                         continue with the    folders from one
                                                         agency in this       site to the next
                                                         area.                for processing.
                                                                              SSA is also
                                                                              managing partner
                                                                              for the
                                                                              President's
                                                                              Management Council
                                                                              (PMC) E-Gov
                                                                              initiative ``E-
                                                                              Vital''.
    ----------------------------------------------------------------------------------------------------------------
                                       National Archives and Record Administration
    ----------------------------------------------------------------------------------------------------------------
    NARA submitted a CPIC process  NARA submitted an    NARA is working to   NARA is the          During 2002, NARA
     for the first time this        EA for the first     strengthen its       managing partner     will continue to
     year. NARA should continue     time this year.      business cases for   for the              integrate its
     to develop the CPIC , with     NARA should          IT and will          ``Electronic         CPIC and EA
     an emphasis on developing an   continue to          periodically         Records Management   process. NARA
     integrated framework for       develop the EA and   inform OMB of its    (ERM)'' E-           continues to work
     managing all of its IT         to improve the       progress.            government           on the
     investments across the         integration of the                        initiative. This     ``Electronic
     agency.                        CPIC and EA                               initiative will      Records Archive
                                    processes.                                prototype the use    (ERA). NARA will
                                                                              of a markup          also continue to
                                                                              language based       work on the ERM e-
                                                                              approach in          government
                                                                              establishing         initiative and to
                                                                              uniform procedures   coordinate with
                                                                              and requirements     the other partner
                                                                              for the creation,    agencies.
                                                                              management, and
                                                                              interagency
                                                                              sharing of
                                                                              electronic
                                                                              records. NARA is
                                                                              also a partner on
                                                                              several other e-
                                                                              government
                                                                              initiatives,
                                                                              including
                                                                              Transportation's
                                                                              ``Online
                                                                              Rulemaking
                                                                              Management''
    ----------------------------------------------------------------------------------------------------------------

    [[Page 408]]

                                              Nuclear Regulatory Commission
    ----------------------------------------------------------------------------------------------------------------
    The NRC CPIC process has been  The NRC Enterprise   NRC's major           NRC has             NRC will continue
     in place for several years.    Architecture (EA)    projects are         implemented          working
     NRC strives for continuous     process is based     supported by         Electronic           throughout 2002
     improvements by                on OMB's             business cases.      Information          to improve the
     incorporating best             Memorandum M-97-     NRC is also          Exchange (EIE)       CPIC and EA
     practices. NRC has underway    16, ``Information    continuing to 1)     with its nuclear     processes in
     a major review and update of   Technology           include all major    reactor licensees.   consultation with
     the CPIC to better integrate   Architectures,''     projects within      The agency has       OMB. NRC will
     the IT management processes    and has been in      the Department's     initiated a          also review the
     within the agency and to       place for several    Portfolio, 2)        rulemaking           President's
     promote a stronger business    years. In response   demonstrate the      activity to open     Management
     case approach for IT           to more recent       business cases for   the EIE program to   Council (PMC) E-
     investments.                   guidance, CIO        all new major        all licensees by     Gov initiatives
                                    Council's ``A        projects, and 3)     the end of FY 2002.  for opportunities
                                    Practical Guide to   improve the                               to participate.
                                    Federal Enterprise   decision making
                                    Architecture,''      processes for IT
                                    NRC is in the        investments.
                                    process of
                                    updating their EA
                                    efforts,
                                    integrating them
                                    with the updated
                                    CPIC processes and
                                    creating an E-
                                    Government
                                    framework which
                                    they will use to
                                    manage IT
                                    investments.
    ----------------------------------------------------------------------------------------------------------------
                                             Corps of Engineers--Civil Works
    ----------------------------------------------------------------------------------------------------------------
    The Corps' CPIC process has    The Corps' EA        The Corps' initial   It is difficult to   The Corps will
     been in place and not          efforts were         submission of        assess the           continue working
     updated for several years.     started prior to     business cases       agencies efforts     throughout 2002
     The Corps is reviewing and     the issuance of      were incomplete.     and compliance is    to improve the
     updating the CPIC to better    Clinger-Cohen. The   The Corps engaged    this area. The       CPIC and EA
     integrate a myriad of IT       Corps' original      OMB in efforts to    Corps only           processes in
     management process within      1995 architecture    demonstrate the      provided detailed    consultation with
     the agency and a stronger      had a heavy          business cases and   justification for    OMB. It is
     business case approach for     preponderance in     were successful in   the three projects   recognized that
     IT investments.                the areas of         doing so for the     it identified as     the Corps is
                                    technology and       major projects       ``major.'' which     participating in
                                    infrastructure       identified. The      is only 14 percent   one of the 23
                                    with no clear tie    Corp is also         of its IT            multi-agency eGov
                                    or mapping to the    continuing to: 1)    investments. The     initiatives,
                                    business and data    identify all major   agency is            specifically,
                                    layers as required   projects within      reassessing their    ``Recreation One
                                    in OMB guidance.     the Department's     entire IT            Stop.'' However,
                                    The Corps web-       Portfolio; 2)        portfolio to         the Corps needs
                                    based Enterprise     demonstrate the      provide greater      to provide
                                    Architecture         business cases for   visibility into      increased
                                    Framework (CEA)is    all major            their efforts.       visibility to its
                                    in place, but        projects; and 3)                          internal e-Gov
                                    needs to be fully    improve the                               initiatives and
                                    populated.           decision -making                          also review the
                                                         processes for IT                          President's
                                                         investments.                              Management
                                                                                                   Council (PMC) e-
                                                                                                   Gov initiatives
                                                                                                   for further
                                                                                                   opportunities to
                                                                                                   participate.
                                                                                                   Also, The Corps
                                                                                                   is in the process
                                                                                                   of updating their
                                                                                                   EA efforts,
                                                                                                   integrating them
                                                                                                   with an updated
                                                                                                   CPIC processes
                                                                                                   and creating an E-
                                                                                                   Government
                                                                                                   framework which
                                                                                                   they will use to
                                                                                                   manage IT
                                                                                                   investments.
    ----------------------------------------------------------------------------------------------------------------