[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 $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%

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                           (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

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          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

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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

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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.