[Senate Report 117-164]
[From the U.S. Government Publishing Office]


                                                     Calendar No. 506
117th Congress      }                                   {      Report
                                 SENATE
 2d Session         }                                   {     117-164
_______________________________________________________________________

                                     



                   PERFORMANCE ENHANCEMENT REFORM ACT

                               __________

                              R E P O R T

                                 of the

                   COMMITTEE ON HOMELAND SECURITY AND

                          GOVERNMENTAL AFFAIRS

                          UNITED STATES SENATE

                              to accompany

                               H.R. 2617

               TO AMEND SECTION 1115 OF TITLE 31, UNITED
              STATES CODE, TO AMEND THE DESCRIPTION OF HOW
         PERFORMANCE GOALS ARE ACHIEVED, AND FOR OTHER PURPOSES






[GRAPHIC(S) NOT AVAILABLE IN TIFF FORMAT]





               September 27, 2022.--Ordered to be printed 
               
                             _________
                              
                 U.S. GOVERNMENT PUBLISHING OFFICE
                 
29-010                   WASHINGTON : 2022
               
               
               
               
               
               
               
               
               
               
               
               
               
               
               
               
               
               
               
               
               
               
               
        COMMITTEE ON HOMELAND SECURITY AND GOVERNMENTAL AFFAIRS

                   GARY C. PETERS, Michigan, Chairman
THOMAS R. CARPER, Delaware           ROB PORTMAN, Ohio
MAGGIE HASSAN, New Hampshire         RON JOHNSON, Wisconsin
KYRSTEN SINEMA, Arizona              RAND PAUL, Kentucky
JACKY ROSEN, Nevada                  JAMES LANKFORD, Oklahoma
ALEX PADILLA, California             MITT ROMNEY, Utah
JON OSSOFF, Georgia                  RICK SCOTT, Florida
                                     JOSH HAWLEY, Missouri

                   David M. Weinberg, Staff Director
                    Zachary I. Schram, Chief Counsel
            Lena C. Chang, Director of Governmental Affairs
         Matthew T. Cornelius, Senior Professional Staff Member
                Pamela Thiessen, Minority Staff Director
            Sam J. Mulopulos, Minority Deputy Staff Director
       Cara G. Mumford, Minority Director of Governmental Affairs
                    Allen L. Huang, Minority Counsel
                     Laura W. Kilbride, Chief Clerk























                                                     Calendar No. 506
117th Congress      }                                   {      Report
                                 SENATE
 2d Session         }                                   {     117-164

======================================================================



 
                   PERFORMANCE ENHANCEMENT REFORM ACT

                                _______
                                

               September 27, 2022.--Ordered to be printed

                                _______
                                

 Mr. Peters, from the Committee on Homeland Security and Governmental 
                    Affairs, submitted the following

                              R E P O R T

                        [To accompany H.R. 2617]

      [Including cost estimate of the Congressional Budget Office]

    The Committee on Homeland Security and Governmental 
Affairs, to which was referred the bill (H.R. 2617) to amend 
section 1115 of title 31, United States Code, to amend the 
description of how performance goals are achieved, and for 
other purposes, having considered the same, reports favorably 
thereon with amendments and recommends that the bill, as 
amended, do pass.

                                CONTENTS

                                                                    Page
  I. Purpose and Summary.............................................. 1
 II. Background and Need for the Legislation.......................... 2
III. Legislative History.............................................. 2
 IV. Section-by-Section Analysis of the Bill, as Reported............. 2
  V. Evaluation of Regulatory Impact.................................. 3
 VI. Congressional Budget Office Cost Estimate........................ 3
VII. Changes in Existing Law Made by the Bill, as Reported............ 4

                         I. Purpose and Summary

    H.R. 2617, the Performance Enhancement Reform Act, revises 
provisions regarding agency reporting of performance goals by 
requiring agencies to include the following in their 
descriptions of how the performance goals are to be achieved: 
(1) the human capital, training, data and evidence, information 
technology, and skill sets required to meet such goals; and (2) 
the technology modernization investments, system upgrades, 
staff technology skills and expertise, stakeholder input and 
feedback, and other resources and strategies required to meet 
such goals. The bill also requires an agency's chief 
performance improvement office to provide the description 
instead of an agency's chief human capital office which is the 
current requirement.

              II. Background and the Need for Legislation

    Federal agencies are required by law to create annual 
performance plans, which preview an agency's strategic goals 
and objectives, help leaders align resources and guide 
decision-making to accomplish priorities, and improve how 
agencies deliver services to the public.\1\ The current law 
requires an agency's Chief Human Capital Officer to contribute 
to the creation of the agency's performance plan but does not 
require agencies to incorporate data and evidence or 
information technology measurements into plans.\2\
---------------------------------------------------------------------------
    \1\Subcommittee on Government Operations Chairman Gerald Connolly 
and Ranking Member Jody Hice, Performance Enhancement Reform Act One 
Pager (April 16, 2021) (https://
oversight.house.gov/sites/democrats.oversight.house.gov/files/
Performance%20Enhancement%20Reform%20Act_one-pager.pdf).
    \2\31 U.S.C. Sec. 1115(g).
---------------------------------------------------------------------------
    This bill would require collaboration between executive 
suite leaders including the Chief Human Capital Officer, Chief 
Information Officers, Chief Financial Officers, and Chief 
Performance Officers (where applicable) in developing agencies' 
annual performance plans.\3\ This bill would also require plans 
to include descriptions of: human capital, training, data and 
evidence, information technology, and skill sets needed for the 
agency to meet the agency's performance goals; and technology 
modernization investments, system upgrades, staff technology 
skills and expertise, stakeholder input and feedback, and other 
resources and strategies needed to meet the agency's 
performance goals.
---------------------------------------------------------------------------
    \3\Committee on Oversight and Reform: Chairman Connolly, Ranking 
Member Hice Introduce Bipartisan Performance Enhancement Reform Act 
(April 16, 2021).
---------------------------------------------------------------------------
    By requiring the collaboration of these senior officials 
that have expertise in the areas they oversee and ensuring 
agencies have the resources needed to achieve their performance 
goals, agencies can maximize human capital, technology, and 
time to better serve the public and meet their performance 
milestones.

                        III. Legislative History

    Representative Gerry Connolly (D-VA) introduced H.R. 2617, 
the Performance Enhancement Reform Act, on April 16, 2021, with 
Representative Jody Hice (R-GA). Delegate Eleanor Holmes Norton 
joined as a cosponsor on April 19, 2021. This bill passed the 
House under suspension of the rules on September 28, 2021 by a 
roll call vote of 414-10 and was referred to the Senate 
Committee on Homeland Security and Governmental Affairs.
    The Committee considered H.R. 2617 at a business meeting on 
November 3, 2021. The bill was ordered reported favorably by 
voice vote en bloc. Senators Peters, Hassan, Sinema, Rosen, 
Padilla, Ossoff, Portman, Johnson, Lankford, Romney, Scott, and 
Hawley were present.

        IV. Section-by-Section Analysis of the Bill, as Reported


Section 1. Short title

    This section establishes the short title of the bill as the 
``Performance Enhancement Reform Act.''

Sec. 2. Amendment

    This section amends section 1115 of title 31 of the U.S. 
Code to require a description of how performance goals are to 
be achieved. The requirements to meet the performance goals 
include: human capital, training, data and evidence, 
information technology, and skill sets. The requirements also 
include technology modernization investments, system upgrades, 
staff technology skills and expertise, stakeholder input and 
feedback, and clearly defined milestones. The description must 
also include the external and internal factors that contribute 
to performance goals, which could be organizations, program 
activities, regulations, policies, operational processes; and 
how the agency is working with the aforementioned entities. The 
description also requires the identification of ``goal 
leaders'' who will be responsible for the achievement of a 
performance goal.
    This section also requires the Performance Improvement 
Officer of an agency to collaborate with the Chief Human 
Capital Officer, the Chief Information Officer, the Chief Data 
Officer, and the Chief Financial Officer on preparing agency 
performance goals. If the positions listed do not exist at an 
agency, an equivalent position may fulfill these requirements.

Sec. 3. Determination of budgetary effects

    This section states that the legislation complies with 
PAYGO.

                   V. Evaluation of Regulatory Impact

    Pursuant to the requirements of paragraph 11(b) of rule 
XXVI of the Standing Rules of the Senate, the Committee has 
considered the regulatory impact of this bill and determined 
that the bill will have no regulatory impact within the meaning 
of the rules. The Committee agrees with the Congressional 
Budget Office's statement that the bill contains no 
intergovernmental or private-sector mandates as defined in the 
Unfunded Mandates Reform Act (UMRA) and would impose no costs 
on state, local, or tribal governments.

             VI. Congressional Budget Office Cost Estimate

                                     U.S. Congress,
                               Congressional Budget Office,
                                  Washington, DC, January 18, 2022.
Hon. Gary Peters,
Chairman, Committee on Homeland Security and Governmental Affairs, U.S. 
        Senate, Washington, DC.
    Dear Mr. Chairman: The Congressional Budget Office has 
prepared the enclosed cost estimate for H.R. 2617, the 
Performance Enhancement Reform Act.
    If you wish further details on this estimate, we will be 
pleased to provide them. The CBO staff contact is Matthew 
Pickford.
            Sincerely,
                                         Phillip L. Swagel,
                                                          Director.
    Enclosure.

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    Under current law, federal agencies must publicly release 
plans that detail performance goals and measurements for all 
program activities. H.R. 2617 would require agencies to include 
information about the human capital, technology, and other 
resources necessary to achieve those goals. The act also would 
require collaboration among the chief performance officer and 
other executives within the agency as they prepare those plans.
    Because most of the act's requirements would codify 
existing guidance from the Office of Management and Budget 
(OMB), CBO estimates that implementing H.R. 2617 would cost 
less than $500,000 over the 2022-2026 period. Those costs would 
be for OMB to amend that guidance and for federal agencies to 
expand their current reporting. Any spending would be subject 
to the availability of appropriated funds.
    Enacting the legislation could affect direct spending by 
some agencies that are allowed to use fees, receipts from the 
sale of goods, and other collections to cover operating costs. 
CBO estimates that any net changes in direct spending by those 
agencies would be negligible because most of them can adjust 
amounts collected to reflect changes in operating costs.
    On July 23, 2021, CBO transmitted a cost estimate for H.R. 
2617, the Performance Enhancement Reform Act, as ordered 
reported by the House Committee on Oversight and Reform. The 
two pieces of legislation are similar and CBO's estimates of 
their budgetary effects is the same.
    The CBO staff contact for this estimate is Matthew 
Pickford. The estimate was reviewed by H. Samuel Papenfuss, 
Deputy Director of Budget Analysis.

       VII. Changes in Existing Law Made by the Bill, as Reported

    In compliance with paragraph 12 of rule XXVI of the 
Standing Rules of the Senate, changes in existing law made by 
the bill, as reported, are shown as follows: (existing law 
proposed to be omitted is enclosed in brackets, new matter is 
printed in italic, and existing law in which no change is 
proposed is shown in roman):

UNITED STATES CODE

           *       *       *       *       *       *       *


TITLE 31--MONEY AND FINANCE

           *       *       *       *       *       *       *


SEC. 1115. FEDERAL GOVERNMENT AND AGENCY PERFORMANCE PLANS.

    (a) * * *
    (b) * * *

           *       *       *       *       *       *       *

          (5) provide a description of how the performance 
        goals are to be achieved, including--
                  (A) [the operation processes, training, 
                skills and technology, and the human, capital, 
                information, and other resources and 
                strategies] the human capital, training, data 
                and evidence, information technology, and skill 
                sets required to meet those performance goals;]
                  (B) the technology modernization investments, 
                system upgrades, staff technology skills and 
                expertise, stakeholder input and feedback, and 
                other resources and strategies needed and 
                required to meet the performance goals;
                  [(B)] (C) clearly defined milestones;
                  [(C)] (D) an identification of the 
                organizations, program activities, regulations, 
                policies, operational processes, and other 
                activities that contribute to each performance 
                goal, both within and external to the agency;
                  [(D)] (E) a description of how the agency is 
                working with other agencies and the 
                organizations identified in subparagraph (D) to 
                measure and [to] achieve its performance goals 
                as well as relevant Federal Government 
                performance goals; and
                  [(E)] (F) an identification of the agency 
                officials responsible for the achievement of 
                each performance goal, who shall be known as 
                goal leaders;

           *       *       *       *       *       *       *

    (g) [Chief Human Capital Officers.--With respect to each 
agency with a Chief Human Capital Officer, the Chief Human 
Capital Officer shall] Preparation of Performance Plan._The 
Performance Improvement Officer of each agency (or the 
functional equivalent) shall collaborate with the Chief Human 
Capital Officer (or the functional equivalent), the Chief 
Information Officer (or the functional equivalent), the Chief 
Data Officer (or the functional equivalent), and the Chief 
Financial Officer (or the functional equivalent) of that agency 
to prepare that portion of the annual performance plan 
described under subsection (b)(5)[(A)].

                                  [all]