    [Analytical Perspectives]
    [Crosscutting Programs]
    [9. Integrating Services with Information Technology]
    [From the U.S. Government Printing Office, www.gpo.gov]

    [[Page 173]]

              9.  INTEGRATING SERVICES WITH INFORMATION TECHNOLOGY

      This year the President is proposing to spend about $65 billion for
    Information Technology (IT) and associated support services to deliver
    results for the American people, providing timely and accurate
    information to the citizens and government decision makers while
    ensuring security and privacy.
      The three major efforts underway will continue this fiscal year to
    ensure the Federal government's investment in Information Technology
    returns benefits which far outweigh the costs. These efforts are:
        Managing for Results
        Expanding the Use of Electronic Government
        Integrating the Federal Enterprise Architecture

                             MANAGEMENT FOR RESULTS

      Departments and agencies are focused on:
        Making it easier for citizens to obtain service and interact
              with the Federal government;
        Improving government efficiency and effectiveness;
        Improving government's responsiveness to citizens; and
        Making better purchasing decisions.
      With these goals in mind, the Federal departments and agencies are
    fulfilling the goals of the Clinger-Cohen Act of 1996. This Act also
    requires the Director of the Office of Management and Budget (OMB) to
    submit an annual report to the Congress on the results we are achieving
    from Federal IT spending. This Budget chapter and Table 9-1,
    ``Effectiveness of Agency's IT Management and E-Gov Processes,''
    included on the CD-ROM, fulfill the statutory reporting requirement.
      The Administration continues its oversight of agencies' IT planning
    and portfolio activities. Our goal is to be the best manager, innovator
    and user of information, services and information systems in the world.
    There are great opportunities to apply existing and emerging business
    best practices to government to achieve increases in productivity and
    delivery of services and information. Agencies are continuing to
    establish program performance metrics, identify benefits achieved by
    their IT investments and show results in the agency's overall program
    performance. Work continues in the operational analysis of cost,
    schedule and performance.
      Performance of Government.--The measure of success rests in the
    results we achieve and the satisfaction of our customers. The ultimate
    success is determined by measuring distinct, quantitative, citizen-
    centered, performance results which are tied to the overall agencies'
    mission goals and outcomes. Each IT investment must have specific
    performance targets tied to a specific significant beneficial impact for
    our citizens. The IT projects represented by these investments must be
    monitored by the agencies and they must continually assess whether or
    not the projects are accomplishing their intended outcomes on-time while
    staying within their approved budgets.
      Departments' or agencies' IT business cases for any planned and/or
    operational system critical to the mission of the agency must be
    evaluated. Each business case must have a clearly defined vision and
    outcomes, including security linked to the department's or agency's
    mission through their enterprise architecture. The business cases are
    scored on specific criteria, including whether:
        the expected benefits outweigh estimated costs;
        the likelihood the agency will succeed;
        cyber-security, planned or in place, as appropriate;
        the acquisition strategy helps manage project risks; and
        project management teams and plans are qualified and
              complete.
      The Federal departments and agencies continue to improve in their
    efforts to guarantee the success and results for the taxpayer. The
    Administration continues to monitor the performance of its IT projects.
    With the release of the Fiscal Year 2005 President's Budget, there were
    621 major projects representing about $22 billion on the ``Management
    Watch List,'' i.e., those project justifications needing improvement in
    performance measurement, earned value management or system security.
    Agencies were directed to remediate the shortfalls identified prior to
    expending funds before the start of the fiscal year. The agencies have
    worked to remediate the weaknesses or have put measures in place to
    monitor the progress of the project. If a project is still on the
    ``Management Watch List,'' agencies must describe their plans to manage
    or mitigate risk before undertaking or continuing that project. For
    example, the Department of Defense (DOD) successfully addressed
    deficiencies for 106 of its 107 business cases on the ''Management Watch
    List,'' and developed a remediation plan and schedule for the remaining
    program. This year, less than a third (342 of 1,087 projects valued at
    $15 billion) are on the ``Management Watch List.'' These projects still
    need to address performance, security or other related issues before
    obligating funding in Fiscal Year 2006.
      The Report on Information Technology (IT) Spending for the Federal
    Government (Exhibit 53) located at

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    www.whitehouse.gov/OMB, provides details of the Administration's
    proposed 2006 IT investments. Related documents on IT security and
    Electronic Government (E-Government) will also be available at
    www.whitehouse.gov/OMB and will be published by March 1, 2005.
      Since the Administration's guidance was unchanged from Fiscal Year
    2005 to Fiscal Year 2006, investments were studied for trends and
    duplications across government entities. At about $65 billion, the
    Fiscal Year 2006 Federal IT portfolio represents a 9 percent increase
    over Fiscal Year 2005 President's Budget (see July 2004, Update to the
    Report on Information Technology (IT) Spending for the Federal
    Government (Exhibit 53) located at www.whitehouse.gov/OMB.) The
    following represents the highlights:

                                               FY 2005    FY 2006   % Change

    Major IT Investments...................      1,130      1,087         -4
      Rated Unacceptable...................         54         16        -70
      Well Planned and Managed.............        385        682         78

                                                   (Value in millions)

    Major IT Investments...................    $32,341    $40,979         27
      Rated Unacceptable...................     $1,109     $1,497         35
      Well Planned and Managed.............     $8,478    $24,761        292

      In addition to analyzing business cases for major acquisitions, the
    Administration identifies overlapping or duplicative IT investments.
    When there is duplication across Federal agencies, the Administration
    brings together the appropriate agencies and helps them to consider
    broad-based approaches to promote inter-agency data sharing and
    cooperation in building common solutions, rather than maintaining
    separate investments.
      These inter-agency taskforces focus on the agency Lines of Business
    (LoB) rather than a specific technology or investment. In Fiscal Year
    2004, there was significant progress made on five LoB efforts. These
    are:
        Case Management
        Federal Health Architecture
        Financial Management
        Human Resources Management
        Grants Management
      The Case Management LoB is the business and technology foundation upon
    which new solutions for the Department of Justice and other agencies
    will be built. It will also provide a blueprint for sharing information
    and best practices across the Federal government. The goal of this LoB
    is to improve effectiveness and efficiency of law enforcement,
    investigation, and civil and criminal litigation case management
    business processes.
      Federal Health Architecture (FHA) is focused on improving the
    efficiency, standardization, reliability, and availability of
    comprehensive health information solutions through a common framework.
    FHA is working within the Office of the National Coordinator for Health
    Information Technology in the Department of Health and Human Services to
    improve the safety and health of citizens by providing easier access to
    health-related information and services.
      Cross-agency teams analyzed opportunities for integration and
    consolidation in the areas of Financial Management, Human Resources
    Management, and Grants Management. They have recommended the
    establishment of government-wide service providers in the areas of
    Financial Management and Human Resources Management. The Grants
    Management team is developing plans for the consolidation of Grants
    Management activities across the government. The analysis showed savings
    of more than $5 billion can be expected over a 10 year timeframe through
    the consolidation of Financial Management and Human Resources Management
    systems and the standardization and optimization of associated business
    processes and functions.
      To realize these benefits, the Administration asked agencies with the
    skills and capabilities to function as government-wide service providers
    in the areas of Human Resources Management and/or Financial Management
    to submit business cases for doing so as part of the Fiscal Year 2006
    budget process. The business cases were evaluated using a due diligence
    checklist developed in conjunction with third-party industry groups.
    This checklist assessed potential service providers' abilities in terms
    of past performance, current capabilities, and ability to operate a
    customer-focused organization. On the basis of the review, the following
    agencies were designated as eligible to enter into competitions to
    become cross-agency service providers:

    Financial Management

        Department of the Interior (National Business Center)
        General Services Administration
        Department of Transportation
        Treasury/Bureau of Public Debt

    Human Resources Management

        Department of the Interior (National Business Center)
        Department of Agriculture (National Finance Center)
        Department of Treasury
        Department of Health and Human Services
        Department of Defense
      Rather than expend significant effort and resources modernizing
    existing systems, agencies will select, through a competitive process,
    beginning in Fiscal Year 2005, a government-wide service provider for
    Human Resources Management and/or Financial Management services. Upon
    migration to common, government-wide solutions, agencies will shut down
    existing systems--which will not only save money but also make available
    resources for agencies to better focus on achieving their missions.
      This Administration continues to leverage government buying power
    while reducing redundant purchases through the SmartBUY program.
    SmartBUY is a Federal government-wide enterprise software licensing
    initiative managed by the General Services Admin

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    istration (GSA) to streamline the acquisition process and provide the
    best priced, standards-compliant IT. The SmartBUY initiative includes
    commercial off-the-shelf software generally acquired using license
    agreements with terms and prices that vary based on volume, including
    the following types of software licenses: Office Automation; Network
    Management; Antivirus; Database; Business Modeling Tools; and Open
    Source Software Support. Since the Administration announced the SmartBUY
    program in June 2003, the program has completed agreements with four
    software vendors and plans to negotiate agreements with the remaining
    top software vendors to the Federal government. Based on these
    agreements already in place, the Federal government expects to reduce
    its annual software licenses expenses by $21.5 million annually. The
    Administration estimates when all agencies make joint use of these best
    priced software licenses, the Federal government could save in excess of
    $100 million per year.
      As part of its management responsibilities, OMB continued using one of
    the key authorities established in Section 5113, ``Enforcement of
    Accountability'' of the Clinger-Cohen Act. Under this authority, the
    Director is required to evaluate information resources management
    practices of the executive agencies with respect to IT investments.
    Accordingly, OMB has taken several steps to assist the SmartBUY program
    in leveraging government buying power and reducing redundant purchases.
    The following actions were taken:
        Issued M-03-14 ``Reducing Cost & Improving Quality in
              Federal Purchases of Commercial Software,'' (06/02/03)
              requesting agencies to assist and support the SmartBUY
              initiative by providing information on existing agreements,
              developing migration strategies, and taking steps to integrate
              agency common desktop and server software licenses with the
              initiative.
        Required, as part of the Fiscal Year 2005 budget process, in
              Fiscal Year 2004, agencies to review all commercial software
              acquisitions for possible inclusion into the SmartBUY program.
        Issued M-04-08 ``Maximizing Use of SmartBUY and Avoiding
              Duplication of Agency Activities with the President's 24 E-Gov
              Initiatives,'' (02/25/04) to all senior procurement officers
              and Chief Information Officers (CIOs) directing agencies to
              postpone all further purchase requirements for a category of
              software once GSA has notified the agencies that it expects to
              award a SmartBUY contract within 30 days for that category of
              software.
        Established a formal waiver process for agencies with
              compelling procurement needs, ensuring compliance with
              SmartBUY and promoting negotiating leverage with software
              vendors.
        Issued M-04-16 ``Software Acquisition,'' (07/01/04),
              reminding agencies of policies and procedures covering
              acquisition of software to support agency operations. This
              directive requires that all agency IT investment decisions be
              made consistent with the agency's enterprise architecture and
              the Federal Enterprise Architecture, must consider the total
              cost of ownership of IT investments, and coordinated, where
              applicable, with the SmartBUY program.
      Other management guidance provided to Federal departments and agencies
    is included on Table 9-2, ``Management Guidance,'' and is available at
    www.whitehouse.gov/OMB/memoranda.
      Government IT Workforce.--Qualified Federal IT Project Managers with
    skilled interdisciplinary teams are the first line of defense against
    the cost overruns, schedule slippages, poor performance, and weakened
    security which threaten agencies' ability to deliver efficient and
    effective services to citizens. OMB issued M-04-19 ``Information
    Technology (IT) Project Manager (PM) Qualification Guidance'' (07/19/04)
    requiring agencies to submit, by July 30, 2004, a plan to implement the
    Chief Information Officer Council (CIOC) guidance on the qualifications
    of Federal IT project managers. The CIOC made great strides in the
    development of this guidance to further ensure the quality of our IT
    process. Agencies were asked to submit plans for meeting the CIOC
    guidance and to identify the required PM Level for each investment
    requested for their Fiscal Year 2006 IT budget requests. Agencies were
    also required to confirm whether the assigned project manager's
    qualifications for major IT investments had been validated against the
    CIOC guidance.
      A review of the top tier of Agencies' IT requests indicates all
    agencies directly or indirectly addressed IT project management
    qualification standards in accordance with CIOC guidance. According to
    the submissions for the fourth quarter of Fiscal Year 2004 President's
    Management Agenda (PMA) scorecard reporting, over 75 percent of the
    project managers of major IT investments have been validated against
    CIOC guidance, and plans are in place across government to ensure
    remaining project managers are trained and validated by the end of the
    calendar year.
      The Office of Personnel Management (OPM) and the CIO Council have
    conducted two annual government-wide IT workforce assessments in 2003
    and 2004. The surveys revealed five critical jobs: IT Project
    Management, IT Security/Information Assurance, Customer Support, System
    Analysis, and Applications Software Management. Using these standardized
    assessments provides an efficient and effective government-wide view of
    competency and skill gaps assuring our critical systems are sufficiently
    staffed to provide for security, reliability and efficiency. Agencies
    have received the results of the Fall Fiscal Year 2004 survey and are
    participating in a specialized job activity target-setting exercise to
    provide a more defined skill gap analysis government-wide, and to apply
    to agency-specific workforce assessment and planning. A Spring
    assessment based on CIO's judgment revealed maintaining a cadre of
    qualified IT Project Managers, IT Security Specialists and IT Architects
    could best be managed through training programs.

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      The E-Government Act of 2002 requires the assessment and reporting of
    current training offerings and the oversight of development of
    curricula, training methods, and training priorities to meet projected
    personnel needs. In July 2004, OPM published its report on the
    ``Establishment of a Government Information Technology Training
    Program.'' The training report establishes a common IT training
    framework and identifies a baseline of current government-wide IT
    training. The report reviewed and assessed the adequacy of existing
    government-wide IT training programs with the Clinger-Cohen Act core
    competencies as the basis for evaluation. This report also served as a
    baseline for OPM to track IT and Information Resources Management (IRM)
    training availability and adequacy across government in its ongoing
    responsibility to identify where gaps in IT and IRM training do not
    satisfy personnel needs.
      OPM also recommended a government-wide IT training framework using the
    IT Workforce Development Roadmap as a foundation to link existing IT and
    IRM training programs. The framework supports the OPM requirement to
    assist agencies in establishing and operating IT training programs.
    Agency use of this framework will enable their workforce to obtain
    government-wide competencies and skills that improve the ability of the
    government to achieve agency missions and program goals. This framework
    fosters the development of highly skilled Federal IT workers who are
    better able to deliver essential services to the American people in the
    increasingly technical E-Government environment. However, skill gaps
    remain in the IT Workforce. The CIO Council will work in conjunction
    with OPM to develop guidelines for assisting departments and agencies in
    identifying the skill gaps in their workforce.
      OMB asked agencies to report their use of training plans as well as
    their integration of IT plans in overall human capital planning. Most
    agencies have shown progress in identifying IT and the needs of the IT
    workforce as part of their overall human capital planning. Most indicate
    coordination and cooperation between their agencies' Chief Human Capital
    and Chief Information Officers and staffs to improve IT project
    management skills. Most agencies refer to their human capital planning
    efforts as a way to ensure the Federal government has sufficient highly
    qualified IT professionals to deliver services to citizens, businesses,
    and government entities, effectively and in direct alignment with the
    mission of the agency. A number of agencies discussed the importance of
    the government-wide survey data in relation to agency succession
    planning. Agencies also referred to OPM's report as the basis for
    selecting training in filling current workforce gaps, especially in the
    IT project management arena. The Administration's goal during Fiscal
    Year 2005 is to have no more than 50 percent of the agencies with IT
    skill gaps within their workforce.
      On January 15, 2004, OPM published proposed regulations to implement
    an Information Technology Exchange Program. OPM has completed analysis
    of comments received from the public on the proposed IT Exchange Program
    Regulations. In accordance with Executive Order 12866 ``Regulatory
    Planning and Review'' (01/11/96), the final regulation is being provided
    to OMB for concurrence prior to publication in the Federal Register.
      The IT Exchange Program can improve the skills of Federal IT managers
    by exposing them to cutting-edge management and technical trends in the
    private sector. The Program can improve the government's capability to
    apply advances in IT to enhance governmental functions and services,
    achieve more efficient performance, increase access to government
    information, and increase citizen participation in government.
      Securing Government Systems.--Over the last four years the Federal
    government has improved the identification and resolution of long-
    standing, serious, and pervasive IT security problems. Agencies report
    both quarterly and annually on their efforts to address IT security
    weaknesses against key IT security performance measures.
      For example, the Department of Labor and the Department of
    Transportation have excelled this year in protecting their information
    technology assets. Both agencies have increased the number of certified
    and accredited systems, with Labor moving from 58 percent to 96 percent
    accredited, and Transportation improving from 33 percent to 98 percent.
    Agency Inspectors General have approved the quality of these
    certification and accreditation processes as well as the effectiveness
    of agency remediation plans. By focusing on cyber-security, the
    Department of Labor and the Department of Transportation have taken
    great steps to protect the integrity of their agencies.
      The overall security status and progress in percentage of systems*,
    from Fiscal Year 2002 to Fiscal Year 2004, is as follows:

                                              FY 2002    FY 2003    FY 2004

    Effective Security and Privacy Controls        47%        62%        77%
     (C&A).................................
    ``Built in'' with Security Costs.......        62%        77%        85%
    Tested with Contingency Plans..........        35%        48%        57%
                                            --------------------------------
      *Total Systems reported..............      7,957      7,998      8,623

      The number of agencies where the Inspector General has verified the
    process exists to remediate IT security weaknesses (POA&M):

    FY 2002......................  N/A (was not required in until FY 2003)
    FY 2003......................  12
    FY 2004......................  18

      While notable progress in resolving IT security weaknesses has been
    made, challenges remain and new threats and vulnerabilities continue to
    materialize. Agencies continue to improve the security of the
    information and systems supporting the Federal government's missions. To
    address these challenges, the Administration works with agencies,
    Inspectors General, the Congress and the Government Accountability
    Office (GAO) to assure appropriate cost-effective IT security

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    programs, policies, and procedures are in place to protect government
    systems. OMB issued M-04-25 ``FY 2004 Reporting Instructions for the
    Federal Information Security Management Act'' (08/23/04) providing
    updated instructions for the agency reporting under the Federal
    Information Security Management Act of 2002 (FISMA). Agencies were
    directed to transmit their Fiscal Year 2004 reports on the effectiveness
    of their security programs to OMB by October 6, 2004.
      Additional information and detail concerning the Federal government's
    IT security program and agency IT security performance can be found in
    OMB's Annual Report to Congress on IT Security. The next such report
    will be issued by March 1, 2005 and will be made available on OMB's
    website.
      Additionally, the Administration intends to focus on the
    implementation of a security LoB to reduce costs and increase security
    effectiveness across government. Working with agencies, the
    Administration will analyze commonly used IT security processes and
    controls in an effort to identify the extent to which consolidation
    opportunities exist.
      Protecting Privacy.--The Administration continues to work with
    departments and agencies to assure that privacy issues are addressed
    across boundaries providing a uniform and systematic process to protect
    citizen information. One method is through the Privacy Impact Assessment
    (PIA) process. The PIA is a description of business processes, data
    flows and technologies in the context of applicable privacy principles.
    Agencies have been conducting PIAs since the last budget cycle,
    submitting them to OMB as necessary and making them publicly available.
    The CIO Council has released a Security and Privacy Profile to be used
    in conjunction with the Federal Enterprise Architecture and the agency's
    specific enterprise architecture to ensure privacy and security are
    properly addressed within the planned IT investment. Because of the
    visibility of the PIA's and the work done, OMB did not request reporting
    on this activity this year.
      The Administration plans for greater transparency on the part of the
    government agencies as it relates to information collection and will
    continue to use the PIA effort to provide this service.
      Making Government Accessible to All.--Information technology is
    increasing access to Federal information and services. The Federal
    government continues to ensure electronic information technology is
    accessible to people with disabilities as required by Section 508 of the
    Rehabilitation Act of 1973. The creation of the Buy Accessible Wizard, a
    web-based application developed by GSA, helps agencies to determine
    relevance, applicability, and compliance to Section 508 when managing
    electronic and information technology products and services. The
    application helps Federal program managers to consistently and correctly
    apply the Federal Acquisition Regulation to their market research.
      Agencies have also established inventories of the types of information
    available on their websites, as well as priorities and schedules for
    posting content. The inventories and schedules help ensure agency
    information products are adequately categorized and preserved so
    citizens can easily retrieve them when searching. These practices
    improve the quality and timeliness of the Federal government's
    information resources.

                    SUCCESSFUL USES OF ELECTRONIC GOVERNMENT

      E-Government continues to seek to leverage information technologies to
    make government services available to the citizen while ensuring
    security of those systems, the privacy of the citizen information and
    the prudent use of taxpayer money. E-Government is about providing
    direct and measurable results supporting departments' and agencies'
    mission and goals. For departments and agencies, the benefits must far
    outweigh the cost of implementation. In the coming months, the
    Presidential E-Government initiatives graduate from development and
    implementation phases to mature service offerings supported by service
    fees. Increased agency adoption and customer utilization will become the
    primary measures of success. The expanded availability of government
    information and the utilization of an increased percentage of
    transactions between the Federal government and citizens will be
    measured, where appropriate.
      Examples of how the tenets of E-Government are helping to deliver
    services to the citizen and make the government more effective include:
      In Fiscal Year 2003, the Department of Labor (DOL) fully deployed the
    Safety and Health Information Management System (SHIMS) which manages
    employee injury reports and worker compensation claims and produces
    management reports and data to help guide intervention activities.
    Previously, claim forms were manually written and mailed which resulted
    in a two week response. With SHIMS, DOL electronically receives the
    claim within 24 hours and provides a response within two days. The cost
    savings are attributed to the implementation of the SHIMS in DOL. The
    system demonstrates a reduction in workers' compensation costs through
    quicker claims processing and the ability to identify persons able to
    return to work. As a result of this effort, DOL saved over $3.23 million
    from FY 2003 to FY 2004 in workers' compensation costs. Fourteen Federal
    agencies have agreed to implement SHIMS with six agencies working
    towards a January 2005 implementation target. DOL's successful project
    management performance in attaining Federal goals is a major factor in
    agencies seeking to partner for use of SHIMS.
      The Department of Transportation's (DOT) Federal Motor Carrier Safety
    Administration implemented the Motor Carrier Management Information
    System providing businesses with an online, efficient method to apply
    for operating authority and register for a U.S.

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    DOT Number. The system improves the sharing of commercial motor carrier
    information among the levels of government. Federal, state, and local
    agencies all access the system for their safety, enforcement, licensing,
    and insurance needs. Prior to October 2003, Cargo Tank Manufacturers
    could not register online. Now over 4,000 Cargo Tank Manufacturers have
    registered online. This investment reduces costs and improves
    efficiencies in various ways by providing centrally-hosted information
    for all interstate carriers and targeting enforcement activities by
    utilizing motor carrier safety data.
      The departments and agencies continue to focus on service improvements
    and best value for their customers. The government is managing itself as
    one entity. Through the continued work of the multi-agency E-Government
    initiatives, such as Recreation.gov and Disaster Management, multiple
    agencies work together to provide service to the citizen from a single
    location.
      Recreation.gov makes it easier for all citizens to make reservations
    at any of 3,000 Federal parks and other recreation sites without regard
    to which Federal agency manages the facility. Disaster Management,
    through DisasterHelp.gov has over 34,000 users registered with disaster
    management services being used in 69 actual emergencies as well as 344
    disaster preparedness exercises.
      The Administration continues the focus of the department and agency
    specific services movement to citizen-centered services. We have reduced
    overall E-Government funding annually since Fiscal Year 2004 as the
    initiatives have met their milestones and have become incorporated into
    the daily operations of Federal departments and agencies. This reduction
    has come as result of moving the initiatives to fee-for-service models
    where appropriate, thereby eliminating the need for agency
    contributions. Chapter 9, Table 9-3, ``Status of the Presidential E-
    Government Initiatives,'' included on the CD-ROM, provides an update for
    each project.

                         FEDERAL ENTERPRISE ARCHITECTURE

      The Office of Management and Budget's (OMB) E-Government and
    Information Technology Office with the support of the General Services
    Administration and the Federal Chief Information Officers (CIO) Council,
    established the Federal Enterprise Architecture (FEA) Program to build a
    comprehensive business-driven blueprint of the entire Federal
    government. The development of this framework has and will continue to
    enable the Federal government to identify opportunities to leverage
    technology to:
        Reduce redundancy;
        Facilitate horizontal (cross-federal) and vertical (federal,
              state and local) information sharing;
        Establish a direct relationship between IT and mission/
              program performance to support citizen-centered, customer-
              focused government; and
        Maximize IT investments to better achieve mission outcomes.
      The FEA framework and its five supporting reference models
    (Performance, Business, Service, Technical and Data) are now used by
    departments and agencies in developing their budgets and setting
    strategic goals. With the recent release of the Data Reference Model,
    the FEA will be the ``common language'' for diverse agencies to use
    while communicating with each other and with state and local governments
    seeking to collaborate on common solutions for services.
      Using these reference models, the FEA identified five major
    collaborative initiatives with potential to transform the Federal
    government, improve services and deliver substantial savings. Launched
    in February 2004, these initiatives, known as the Lines of Business
    (LoB), used EA principles to identify common solutions. These
    initiatives are projected to save $5 billion across government over the
    next 10 years.
      Sharing Technology and Information Across Agencies Will Drive
    Results.--The Administration's continued use of the Federal Enterprise
    Architecture data to drive lines of business analysis will continue to
    be a central focus in our efforts to direct information technology
    investments to support delivery of services to citizens and other
    entities. The Administration will continue to improve performance and
    achieve results by linking IT investments to another analytical tool
    used by the Administration, the Program Assessment Rating Tool (PART).
      Looking Ahead.--In 2006 and beyond, the government will continue to
    identify IT opportunities for collaboration and consolidation. The
    Federal government continues to make significant progress in
    implementing E-Government to better serve the citizen, but much could
    still be done. Through the PMA, the Clinger-Cohen Act, the E-Government
    Act, budget guidance and other management tools, the Federal government
    has the ability to make it easier for the citizens and businesses to
    interact with their government. The FEA Framework will continue to guide
    the interfaces between systems and re-use of data and applications where
    appropriate. This service-oriented architecture approach will ensure
    future government IT investments will leverage existing capabilities to
    their maximum potential and will provide the most efficient and
    customer-centered services.

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      The Federal government is managing its IT more professionally as a
    resource for improving results. Seventy percent of the Federal
    government's IT systems are secure; 72 percent of the departments and
    agencies have mechanisms in place to validate performance relative to
    cost, schedule and performance goals for the IT investments; about half
    of those departments and agencies meet at least 90 percent of their cost
    and schedule goals. We have huge potential and opportunities for growth.
    This Administration will continue to work in all aspects of expanding E-
    Government to deliver results the American people deserve.