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



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          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.