[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.

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  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.
----------------------------------------------------------------------------------------------------------------