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

    [[Page 151]]

              9.  INTEGRATING SERVICES WITH INFORMATION TECHNOLOGY

       This year, the President is proposing to spend about $64 billion for
    Information Technology (IT) and associated support services to deliver
    results for the American people, providing timely and accurate
    information to citizens and Government decision makers while ensuring
    security and privacy.
      As one of the largest users and acquirers of data, information and
    supporting technology systems in the world, the United States Government
    will continue its efforts to strengthen our capabilities in managing
    technology and information in order to be the world's leader in
    information technology. Departments and agencies are determined to build
    upon past success including their experience with enterprise
    architecture and to apply new principles and methods such as earned
    value management (EVM) to achieve greater savings, better results and
    improved customer service levels.

                                ACHIEVING RESULTS

      The Federal Government continues to deliver results through the
    adoption of electronic government management principles and best
    practices for the implementation of information technology. Departments
    and agencies are focused on:
        Improving service levels to citizens and Government decision
              makers;
        Making better purchasing decisions;
        Securing our systems and data; and
        Reducing duplication and related costs.
      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.
    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 Performance.--The Federal Government has shown improvement
    over the last year in achieving the goals specifically included in the
    President's Management Agenda, the Expanded Electronic Government
    initiative. For example, each IT investment must have specific
    performance targets tied to a specific significant benefits for our
    citizens and performance must be defined, valued and delivered in terms
    of measurable outcomes.
      The Federal departments and agencies continue to improve in their
    efforts to guarantee success and results for the taxpayer. The
    Administration continues to monitor the performance of its IT
    investments. With the release of the FY 2006 President's Budget, there
    were 342 major projects representing about $15 billion on the
    ``Management Watch List,'' i.e., those project justifications needing
    improvement in performance measurement, earned value management or
    system security. Before the start of the fiscal year, agencies were
    directed to remedy the shortfalls identified prior to expending funds.
    The agencies have worked to correct 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.
    As of September 30, 2005, 84 percent of the agencies (21 of 25) had
    acceptable FY 2006 business cases. As a result, from last year's
    ``Management Watch List,'' only 19 business cases, valued in FY 2006 at
    $314.5 million from four agencies remain. As of the printing of this
    budget, 263 of 857 projects valued at $9.9 billion are on the
    ``Management Watch List.'' These projects still need to address
    performance measures, implementation of earned value management,
    security or other issues before obligating funding in FY 2007.
      The Report on Information Technology (IT) Spending for the Federal
    Government (Exhibit 53) located at www.whitehouse.gov/OMB, provides
    details of the Administration's proposed 2007 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, 2006.
      Since the Administration's guidance on capital assets has not changed
    from FY 2005 through FY 2007, investments were studied for trends and
    potential duplications across Government entities. At about $64 billion,
    the 2007 Federal IT portfolio represents nearly a 3 percent increase
    over the FY 2006 President's Budget (see July 2005, 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:

                                                                    Percent
                                     FY 2005   FY 2006   FY 2007  \1\ Change

    Major IT Investments..........     1,130     1,087       857       -21%
    Not Well Planned and Managed         745       358       263       -27%
     \2\..........................
    Well Planned and Managed......       385       682       594       -13%

    [[Page 152]]

                               (Value in millions)
    Major IT Investments..........   $32,341   $40,979   $36,999       -10%
    Not Well Planned and Managed     $23,863   $16,218    $9,938       -39%
     \2\..........................
    Well Planned and Managed......    $8,478   $24,761   $27,061         9%
    ------------------------------------------------------------------------

    \1\ Change from FY 2006 to FY 2007.
    \1\ Reflects investments on Management Watch List as well as those rated
      Unacceptable.

      In reviewing the overall IT portfolio, the trend of decreasing major
    IT investments is attributed to departments' and agencies' efforts to
    better manage their Capital Planning and Investment Control (CPIC)
    process in conformance with their enterprise architectures. Although the
    trend may indicate a problem, the maturing CPIC processes provide for
    greater oversight and evaluation of the investments achieving and/or
    addressing intended results by departments' and agencies' Chief
    Information Officers. This oversight and understanding allows for
    changes in the IT portfolio to address mission priorities, consolidation
    and elimination of redundant investments.
      The Administration continues its oversight to ensure the American
    taxpayer's dollars are being invested wisely. This oversight includes
    analysis of overlapping or duplicative IT investments as well as high
    risk projects. Avoiding duplication is one of the four principal
    criteria agencies must report on high risk projects as included in OMB's
    Memorandum M-05-23, ``Improving Information Technology Project Planning
    and Execution,'' dated August 4, 2005.
      The other three criteria are:
        establishing and validating baselines with clear goals;
        managing and measuring projects to within 10% of baseline
              goals using earned value management; and
        having a qualified project manager.
      Agencies work with OMB to identify high-risk projects (those requiring
    special attention from oversight authorities and the highest level of
    agency management) and report on them quarterly to OMB. As a result,
    oversight authorities and agency management now have data on how these
    projects are performing at least quarterly to ensure improved execution
    and performance. OMB is working with the agencies to implement
    corrective actions in cases where a project did not meet one or more of
    the four principal criteria.
      When duplication across Federal agencies has been identified, the
    Administration has an ongoing process, through inter-agency taskforces,
    to bring together the appropriate agencies and help them to consider
    broad-based approaches to promote inter-agency data sharing and
    cooperation in building common solutions, rather than maintaining
    separate investments. Upon migration to common, Government-wide
    solutions, agencies will shut down redundant systems which will not only
    save money but also free-up resources for agencies to better focus on
    achieving their missions. These inter-agency taskforces focus on the
    agency Lines of Business (LoB) rather than a specific technology or
    investment. In FY 2006, there was significant progress made on six LoB
    efforts. These are:
        Case Management
        Federal Health Architecture
        Financial Management
        Human Resources Management
        Grants Management
        Information System Security
      Case Management.--The Department of Justice with the Department of
    Homeland Security developed the business and architectural solution for
    sharing investigative case management information. The work will
    continue this year under the leadership of the Department of Justice to
    ensure the solution is applicable Government-wide to improve the
    effectiveness and efficiency of sharing information for law enforcement,
    investigation and civil and criminal litigation case management.
      Federal Health Architecture (FHA).--The Department of Health and Human
    Services (HHS) continues to work through the Office of the National
    Coordinator for Health Information Technology (ONCHIT). In October 2005,
    the American Health Information Community (AHIC) was established by the
    Secretary of HHS. The AHIC comprises representation from the private
    sector, industry, State and local government, and the Federal
    Government, and will advise the Secretary of HHS on health information
    technology issues. A total of $5.5 billion for health information
    technology is being requested for FY07, a slight increase from the
    FY2006 request of $5.4 billion.
      Throughout the coming year, the Administration will continue to focus
    on the improvement of the quality and efficiency of health care by
    ensuring the appropriate steps are taken to eventually enable Federal
    health information technology systems to share health information
    amongst Federal agencies, with the private sector, and with other
    governmental entities. Specifically, the Administration will focus on
    the areas of standards implementation, additional standards development
    and harmonization, alignment of agency investments, and increased
    interoperability.
      Financial Management (FM) and Human Resources Management (HR).--As
    part of the FY 2006 budget process, OMB designated the following
    agencies as LoB service provider candidates, capable of entering into
    competitions for servicing interested Federal agencies:
        FM: GSA, Interior, Treasury, and Transportation
        HR: USDA, Interior, Treasury, HHS, and DOD
      This year, these departments and agencies will focus on agency
    migrations and on fulfilling the promise of service providers to realize
    economies of scale and improved service delivery to customer agencies.
    Agencies will continue to use their existing legacy systems for the
    remainder of their system life cycle. At the point when an agency needs
    to replace or upgrade their HR or FM system, they will migrate to
    service providers. Although there were additional requests by
    departments and agencies to become cross-agency service pro

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    viders, the Administration has not expanded the list of potential
    providers beyond the original service providers selected last year.
      Grants Management.--Currently, more than 900 programs in over 26
    grant-making agencies provide $526 billion annually in Federal financial
    assistance. The evolution of grants management processes and systems has
    largely happened in a decentralized manner resulting in highly stove-
    piped operations. The cross-agency team identified a ``consortia-based''
    approach to implementation and developed a process for forming consortia
    and agencies participating in consortia as members. The consortia
    approach aligns agency work teams (consortia) around shared business
    interests. Each consortium provides planning, leadership, business, and
    program direction with the goal of defining a common solution to meet
    its members' needs. The target operating model states the grants
    management community will process grants in a decentralized way using
    common business processes supported by shared technical support services
    and estimates savings of more than $2.4 billion can be expected between
    FY 2008 through FY 2015 through this consortia approach. To realize
    these benefits and cost savings, the Administration asked the taskforce
    for recommendations for agencies with the skills and capabilities to
    function as a Consortium Provider. The recommendations were evaluated
    similarly to the financial management and human resources cross-agency
    service providers assessing 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 be grants
    management consortia providers:
        Department of Education
        Department of Health and Human Services
        National Science Foundation
      This year, the consortia providers will develop the infrastructure and
    capabilities necessary to cross-service other agencies including fee-
    for-service models with performance metrics.
      Information Systems Security.--The cross-agency taskforce analyzed
    commonly used IT security processes and controls in an effort to
    identify the extent to which consolidation opportunities existed in the
    Federal Government. Their analysis indicated more than 25 percent ($1.4
    billion) of the overall funds ($4.5 billion in FY 2006 up from $4.2
    billion in FY 2005) go towards implementing four common processes--
    training, reporting, incident response and evaluating and selecting
    security products and services. The taskforce identified common
    solutions to be shared across Government and developed a joint business
    case outlining a general concept of operations with overall milestones
    and budget estimates. The Administration asked all agencies to submit
    proposals to either become a service provider for other agencies, or
    migrate to another agency from which they would acquire expert security
    services. Upon reviewing the proposals, the Administration will select
    the service providers for training and reporting during FY 2006 in
    conjunction with the Department of Homeland Security, who is continuing
    to serve as the program manager for this effort and will work with those
    agencies proposing to become service centers to bring greater clarity to
    their proposals. The taskforce will continue to explore the
    establishment of security centers of excellence in areas of incident
    response and evaluating and selecting products and processes.
      With this President's Budget, the Administration plans to establish
    the following new LoBs:
        IT Infrastructure.--to further refine the opportunities for
              IT infrastructure consolidation and optimization and develop
              Government-wide common solutions. The LoB taskforce will
              define specific common performance measures for service levels
              and costs, identify best practices and develop guidance for
              transition plans within agencies and/or across agencies for
              activities such as IPv6. Consolidation and optimization of IT
              infrastructure represents a significant opportunity for future
              cost savings. Based on industry benchmarks and analysis of
              agencies' FY07 IT budget submissions, the Federal Government
              could potentially save between 16 percent and 27 percent
              annually on its IT infrastructure budget and between $18
              billion and $29 billion over 10 years by taking a more
              coordinated approach to spending on commodity IT
              infrastructure, such as help desks, data centers, and
              telecommunications. IT infrastructure consolidation and
              optimization case studies also demonstrate agencies could
              improve IT service levels and, when relieved of the burden of
              managing these non-core functions, can concentrate more on
              mission priorities and results.
        Geospatial.--to identify opportunities for optimizing and
              consolidating Federal geospatial-related investments to reduce
              the cost of Government and improve services to citizens
              through business performance improvements. The LoB taskforce
              will analyze cost benefits, alternatives and risks, define
              roles and responsibilities, expected outcomes, performance
              measures, milestones, and timelines. The Federal Geographic
              Data Committee will continue to develop the National Spatial
              Data Infrastructure and full implementation will require
              Federal agencies to play a critical role; therefore, the
              establishment of the Geospatial LoB will ensure sustainable
              business model for Federal partners to establish a sustainable
              business model for Federal partners to collaborate on
              geospatial-related activities and investments.
        Budgeting.--to build toward a ``budget of the future''
              employing standards and technologies for electronic
              information exchange to link budget, execution, performance,
              and financial information throughout all phases of the annual
              budget formulation and execution cycle. As first outlined in
              the FY 2004 Report to Congress on Implementation of the E-
              Government Act of 2002, the LoB taskforce will identify
              opportunities for common

    [[Page 154]]

              solutions and automated tools to enhance agency and central
              budget processes. It will also:
         --Promote integration and standardize information exchange between
             budget formulation, execution, financial management, and
             performance measurement systems and activities across
             Government;
         --Institutionalize Budget and Performance Integration, including
             aligning programs and their outputs and outcomes with budget
             levels and actual costs; and
         --Provide Government with enhanced capabilities for analyzing
             budget, performance, and financial information.
      The Administration continues to leverage Government buying power while
    reducing redundant purchases through the SmartBUY program. Launched in
    June 2003, the SmartBUY program continues to provide increased cost
    avoidance savings to Federal agencies through new and existing
    agreements with commercial software providers. In FY 2005, the Federal
    Government signed a SmartBUY agreement with Oracle Inc. which provides a
    mandatory contract vehicle for all agencies purchasing Oracle database
    and database with security software products. The Federal Government has
    achieved avoidance of $174.8 million in the first six months of the
    contract alone. The SmartBUY Office continues to manage four agreements.
    The Administration anticipates the establishment of a new agreement in
    Spring 2006 with Antivirus software developers and will continue to
    identify and develop new agreements throughout the year.
      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.
      On April 15, 2005, the Administration requested agencies to develop
    and submit to OMB plans for closing important IT skill and competency
    gaps. (Memorandum to the President's Management Council from Deputy
    Director for Management, ``Human Capital Planning for the IT
    Workforce'') The Chief Information Officers (CIO) Council identified IT
    Project Management, IT Architecture (Enterprise and Solutions), and IT
    Security as job activities important at the Federal level due to their
    direct contribution to fulfilling the E-Government element of the
    President's Management Agenda. Agency plans were submitted to OMB on
    August 30, 2005. The following chart highlights the current and planned
    staffing as submitted to OMB:

                                                      # of      FY 2006 # of
                                                  Positions on  Positions to
                                                      Board       be Filled

    IT Project Management.......................      4,618.95        599.95
    IT Security.................................      9,030.40        488.47
    IT Architecture (Enterprise)................      1,168.67        179.80
    IT Architecture (Solutions).................        941.70        148.03
                                                 ---------------------------
      Total.....................................     15,759.72      1,416.25

      Across all job areas, the most frequently occurring skill and
    competency gaps were:
        Federal/OMB Enterprise Architecture--Activities related to
              the business-based framework developed by OMB for Government-
              wide improvement;
        Risk Management--Knowledge of methods and tools used for
              risk assessment and mitigation of risk;
        Standards--Knowledge of standards which are either compliant
              with or derived from established standards or guidelines;
        Process Design--Activities related to the strategic
              establishment of the flow of information, control or materials
              from one activity to another;
        Systems Analysis and Design.--Activities related to the
              design, specification, feasibility, cost, and implementation
              of a computer system for business. Knowledge of the
              development and implementation process, metrics and tools for
              analysis, design and project management, quality factors and
              post evaluation techniques.
      Although agencies are reporting gaps in the Enterprise Architecture
    (EA) job areas, a review of agency EA's indicates much progress has been
    made in EA Government-wide compensating for this skill gap through
    contractor support services. This is evidenced by all agencies having an
    effective EA (average evaluation of the EA section of the FY 2007
    Business cases is 3.33 of 5) as assessed by OMB.
      While agencies reported on their Exhibit 53's more than 70% of major
    IT investments as having a qualified project manager, there continue to
    be gaps in project management capabilities. In many cases, a project
    manager supports multiple investments, diminishing their effectiveness.
    Across the FY 2007 Business Cases, the average evaluation of the Project
    Management section is 3.21 (with a ``3'' defined as much work remains in
    order for Project Management to manage the risk of this project).
      Agencies are addressing Project Management issues in several ways
    including additional training, mentoring, development of Communities of
    Practice, skills incentive programs, efforts to increase retention of
    staff, and increased recruiting efforts. Agency plans indicate in FY
    2006 an overwhelming majority of these positions present a Medium or
    High risk to the agency of not being able to accomplish mission
    objectives (such as delivering critical functionality on schedule and
    within budget). Given competing budgetary priorities, the Administration
    will focus IT staffing efforts on job areas not demonstrating adequate
    results. As such, the agencies will, within agencies' funding levels,
    prioritize the hiring of IT Project Management positions rather than EA
    positions where possible. This prioritization of staffing allows
    agencies to make efficient use of resources while improving the quality
    of agency Project Management.
      Going forward, the Administration will measure agency progress in
    further strengthening IT management--both in terms of hiring progress as
    well as train

    [[Page 155]]

    ing, mentoring, development of skills incentive programs, etc.--on a
    quarterly basis to inform PMA Scorecard decisions and reflected in the
    Human Capital Scorecard requirement.
      Other initiatives sponsored or organized by the Office of Personnel
    Management, the General Services Administration, and the CIO Council
    further strengthen the Federal information technology workforce and
    ensure agencies can achieve their mission. An IT Quarterly Forum
    convenes to discuss and share promising practices regarding information
    technology initiatives. A partnership between CIO University and seven
    universities graduated over 600 students trained in Federal information
    technology management. Finally, the Scholarship for Service (Cyber
    Corps) Program provides more than 300 student scholarships and paid
    internships working on information security at agencies.
      Securing Government Systems.--The Federal Government continues to
    improve the identification and resolution of long-standing, serious, and
    pervasive IT security problems. Agencies report quarterly on their
    efforts to address IT security weaknesses against key IT security
    performance measures.
      The 2005 agency Federal Information Security Management Act (FISMA)
    reports reveal increased attention and progress in the area of system
    certification and accreditation. In FY 2005, the percentage of certified
    and accredited systems rose from 77 percent to 85 percent. In addition,
    overall quality of the certification and accreditation processes at
    agencies increased, with over two-thirds of the agencies having a
    process in place rated as ``satisfactory'' or better by the Inspector
    General (IG). To complement the certification and accreditation process,
    over 75 percent of agencies can demonstrate they have an effective
    process in place for identifying and correcting weaknesses.
      Several agencies have made outstanding progress in FY 2005. For
    example, the Department of Defense moved from 58 percent to 82 percent
    of systems certified and accredited and the Department of Veterans
    Affairs improved from 14 percent to 100 percent.
       The overall security status and progress in percentage of systems,
    from FY 2002 to FY 2005, is as follows:

                                       FY 2002   FY 2003   FY 2004   FY 2005

    Effective Security and Privacy         47%       62%       77%       85%
     Controls (C&A).................
    Tested Contingency Plans........       35%       48%       57%       60%
    Total Systems reported..........     7,957     7,998     8,623    10,289

      The number of agencies where the IG 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
    FY 2005................................  19

      While notable progress in resolving IT security weaknesses has been
    made, challenges remain and new threats and vulnerabilities continue to
    materialize. 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, 2006 and will be made available
    on OMB's website.
      Initiative to Secure Federal Information Systems and Facilities.--
    Inconsistent agency approaches to facility security and computer
    security are inefficient and costly, and increase risks to the Federal
    Government. On August 27, 2004 the President signed Homeland Security
    Presidential Directive (HSPD) 12, ``Policy for a Common Identification
    Standard for Federal Employees and Contractors,'' which requires
    agencies to implement a mandatory, Government-wide standard for secure
    and reliable forms of identification for Federal employees and
    contractors. HSPD-12 requires a complex deployment on an accelerated
    time table. During FY 2006-FY 2008, agencies are required to complete
    issuance of these IDs to all applicable employees and contractors and
    install infrastructure to use them.
      Protecting Privacy.--OMB instituted several important measures for
    privacy management this fiscal year. On February 11, 2005, OMB's
    Memorandum M-05-08, ``Designation of Senior Agency Officials for
    Privacy,'' requesting each executive department and agency to identify a
    Senior Agency Official for Privacy to assume overall responsibility and
    accountability for ensuring the agency's compliance with privacy law and
    policy. The Administration requested the Senior Agency Officials for
    Privacy across Government to assume responsibility for coordinating
    their agencies' responses on the FISMA privacy template. Finally,
    privacy has been added to the ``maintaining green'' criteria of the
    Expanded Electronic Government element of the President's Management
    Agenda.
      Making Government Accessible to All.--The efficient, effective, and
    appropriately consistent use of Federal agency public websites is
    important to promote a more citizen centered Government. Federal agency
    public websites are information resources funded by the Federal
    Government and operated by an agency, contractor, or other organization
    on behalf of the agency. They present Government information or provide
    services to the public or a specific non-Federal user group and support
    the proper performance of an agency function.
      Cost-effective and consistent access to and dissemination of
    Government information is essential to promote a more citizen-centered
    Government. The Administration's recent guidance identifies procedures
    to organize and categorize information and make it searchable across
    agencies to improve public access and dissemination, discusses using the
    Federal Enterprise Architecture Data Reference Model (DRM), and reminds
    agencies of the breadth of their existing responsibilities primarily
    related to information access and dissemination.
      Agencies are managing innovative information dissemination programs
    for their own agency information and services. While agencies remain
    ultimately responsible for disseminating their own information, they are
    working collaboratively to provide access to the public

    [[Page 156]]

    and are taking advantage of a variety of dissemination channels.
    Consequently, Federal information is disseminated by Federal agencies as
    well as diverse nonfederal parties, including State and local government
    agencies, for-profit organizations, and educational and other not-for-
    profit organizations such as libraries and community centers. These
    dissemination channels also aid the public in accessing Federal
    information and services by providing the skills, knowledge, and
    training for citizens to access various information resources (see
    http://www.whitehouse.gov/omb/inforeg/section--213--report--04-
    2005.pdf).
      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 the General
    Services Administration, helps agencies 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. In April 2005, the
    Civilian Agency Acquisition Council and the Defense Agency Acquisition
    Council published a final rule requiring micro purchase to comply with
    the requirements of Section 508. Micro purchases were previously exempt
    from these requirements to give agencies time to update purchase card
    training modules on the 508 requirements and implement necessary
    training. Free on-line training is available at http://
    www.section508.gov.

                    SUCCESSFULLY USING ELECTRONIC GOVERNMENT

      The departments and agencies continue 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:
      The Department of Interior (DOI) has the responsibility to manage
    federally owned resources, protect the environment, prevent, detect, and
    investigate criminal activity and manage visitor use and protection
    programs. The Incident Management Analysis and Reporting System (IMARS)
    provides a Department-wide information collection, analysis, and
    reporting system for incident information, which are defined as any
    occurrence requiring documentation.
      Currently, it is not possible to query and analyze incidents across
    multiple National Park Service (NPS) parks or other DOI Bureaus. The new
    system aggregates and disseminates incident information, improving DOI's
    ability to prevent, detect, and investigate criminal activity, and
    thereby aid in protecting the public, as well as natural and cultural
    resources. The system also helps DOI to prioritize protection efforts
    and complete reports required to evaluate agency programs and services.
      An advisory council insures the requirements of DOI bureaus are
    included. The Council includes representatives from non-law enforcement
    subject areas, as well as the NPS, the Bureau of Reclamation, Fish and
    Wildlife Service, the Bureau of Indian Affairs, and the Bureau of Land
    Management. The system will also interface with criminal information
    sharing networks at other Federal, State, and local governments.
    Information on the system is accessible to those who are disabled, and
    resources are available to answer questions or provide assistance when
    necessary. Services and information disseminated by the system can also
    be provided in alternative media as well.
      The timeliness and number of successfully adjudicated cases, as well
    as the number of illegal incidents leading to damage or loss to Federal
    or private property located on DOI lands or areas of interest are key
    performance indicators demonstrating the impact of the system on agency
    programs and services. The system will reduce operational costs by
    replacing and integrating isolated law enforcement efforts into a
    centralized and common infrastructure, and eliminate the need for
    duplicative technologies and training.
      The Department of Education has improved mission critical internal
    processes by developing an online e-monitoring system to provide grant
    monitoring functionality for Department staff. The system allows all
    Department users, across multiple agencies, access to essential grant
    management information. The application enhances the Department's
    ability to effectively manage grants by improving the efficiency of the
    Department's grant processing. For example, the system allows users to
    analyze budget and financial summary data over the lifecycle of the
    grant, as well as monitor, track, and report grant status and trends.
    The system also aids in grants processing by allowing users to reassign
    grants for review and receive notice of inadequate and excessive grant
    drawdown.
      While the initiative is designed to assist Department employees in
    monitoring recipients of Department grants, and is not used by external
    partners, it does

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    improve the Department's interaction and communication with external
    partners and grantees. For example, the system allows users to log
    email, phone or mail communications of any given grant, as well as print
    mailing labels and send bulk emails to aid in information dissemination.
    Performance agreements of applicable Department employees required use
    of the system, reinforcing the importance of the initiative.
      The system has been implemented in one program office, and there are
    plans to roll out the tool to other Department program offices over the
    next year. The system will be evaluated to assess performance and impact
    on improving the agency mission, and the Department is establishing
    performance measures (including cost savings and avoidance) based on
    baseline data collected this year.
      The Administration continues the focus of the department and agency
    specific services towards citizen-centered services. Overall funding for
    the President's E-Government initiatives has reduced annually since FY
    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.

                           LOOKING AHEAD--MORE RESULTS

      Current Federal Government initiatives inclusive of the President's E-
    Government initiatives augmented by the current analysis of the LoBs
    will increase the requirement for departments and agencies to facilitate
    a change from a ``closed'' agency technical architecture to an
    interoperable Federal architecture. In order for the departments and
    agencies to overcome technical limitations arising from this need to
    interoperate and support emerging requirements and technologies, the
    Administration set June 2008 as the date by which all agencies'
    infrastructure (network backbones) must be using IPv6 and agency
    networks must interface with this infrastructure. In August 2005, OMB
    issued guidance to agencies in Memorandum M-05-22, ``Transition Planning
    to Internet Protocol Version 6 (IPv6),'' to ensure an orderly and secure
    transition from Internet Protocol Version 4 (IPv4) to Version 6 (IPv6).
    Since the Internet Protocol is core to an agency's IT infrastructure,
    beginning in February 2006, the Administration will use the Enterprise
    Architecture Assessment Framework to evaluate agency IPv6 transition
    planning and progress, IP device inventory completeness, and impact
    analysis thoroughness. The August 2005 memorandum discussed a series of
    actions agencies must take by specific dates. For instance, by November
    15, 2005, agencies were to: (1) assign an official to lead and
    coordinate agency planning and (2) complete an inventory of existing
    routers, switches, and hardware firewalls. To date, 23 (of 24) large
    agencies have provided the requested information and 38 (of 107) small
    agencies.
      Additionally, the President's National Strategy to Secure Cyberspace
    directed the Secretary of Commerce to form a taskforce to examine the
    most recent iteration of the Internet Protocol, IP version 6 (IPv6). The
    President charged the taskforce with considering a variety of IPv6-
    related issues, ``including the appropriate role of government,
    international interoperability, security in transition, and costs and
    benefits.'' The taskforce, co-chaired by the Administrator of the
    National Telecommunications and Information Administration (NTIA) and
    the Director of the National Institute of Standards and Technology
    (NIST), prepared a report discussing the benefits and impacts of IPv6.
    This report was published in January 2006.
      The Administration will continue to use the Federal Enterprise
    Architecture data for business analysis to focus our efforts to direct
    information technology investments to improve service delivery to
    citizens and other entities. The Administration will continue to improve
    performance and achieve results by continuing our efforts in linking IT
    investments to program performance as demonstrated by the analytical
    tool called the Program Assessment Rating Tool (PART).
      In 2007 and beyond, the Federal Government will continue to identify
    IT opportunities for collaboration and consolidation while improving
    services. Although the Federal Government continues to improve, much
    more work is needed to better serve the citizen. Through the PMA, the
    Clinger-Cohen Act, the E-Government Act, FISMA, budget guidance and
    other management tools, the Federal Government has the ability to be the
    best manager, innovator and user of information, services and
    information systems in the world. The President's E-Government
    initiatives will have graduated from development and implementation
    phases to mature service offerings supported by service fees. The future
    is to ensure reliability, security and continuity of services to the
    point where the services are thought of as utilities just like
    electricity and water. This service and results oriented approach will
    ensure the future Government IT investments will leverage existing
    capabilities to their maximum potential and will provide cost-effective
    and customer-centered services.